Zscaler reported Q4 2025 revenue of US$719.2 million, up 21% from a year earlier, with annual recurring revenue rising 22% to US$3 billion.

The San Jose-based cloud security company posted a GAAP net loss of US$17.6 million for the quarter, compared to a US$14.9 million loss in Q4 2024.

Calculated billings increased 32% year-on-year to US$1.2 billion, while deferred revenue reached US$2.5 billion, up 30%.

Non-GAAP net income for the quarter was US$146.7 million, compared to US$115.8 million a year ago.

For fiscal 2025, Zscaler reported total revenue of US$2.7 billion, up 23%, and a GAAP net loss of US$41.5 million, narrowing from US$57.7 million in fiscal 2024.

The company raised US$1.7 billion in net proceeds through a convertible notes offering in July and repaid US$1.2 billion in earlier notes.

🔗 Source: Zscaler

🧠 Food for thought

1️⃣ Strategic acquisitions follow strong financial performance in cybersecurity

Zscaler’s $675 million acquisition of Red Canary came immediately after reporting record financial results, with Q4 revenue growing 21% to $719.2 million and reaching over $3 billion in annual recurring revenue 1.

The timing suggests companies are using strong cash positions to expand capabilities rather than just grow organically.

Red Canary will operate as a separate unit within Zscaler, combining managed detection and response services with Zscaler’s existing Zero Trust platform to create what they call an “AI-driven Security Operations Center” 2.

The deal reflects confidence in sustained growth within cybersecurity, particularly as the global market is projected to expand at a 13% compound annual growth rate 3.

2️⃣ Massive operational scale drives cybersecurity platform consolidation

Zscaler processes over 500 billion transactions daily through its Zero Trust Exchange platform, demonstrating the enormous data processing requirements of modern cybersecurity 4.

This scale becomes crucial as cybersecurity threats intensify, with ransomware attacks surging 146% according to Zscaler’s own threat research 1.