Is the business good?
How good a business is ZS?
Zscaler, Inc. earns −6.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−6.3%
Return on invested capital · cost of capital 9.0% · 15 points below what the capital costs: growth destroys value
- Operating margin
- −4.0%
Operating margin · Software - Infrastructure median 6.1% · 12 months to Q4 2026
- R&D as % of revenue
- 27%
R&D as % of revenue
- Gross margin
- 77%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | −31% |
| FY2022 | −30% |
| FY2023 | −15% |
| FY2024 | −5.6% |
| FY2025 | −4.8% |
| FY2026 | −4.0% |
Details›
- Gross margin12 months to Q4 2026
- 77%
- Operating margin12 months to Q4 2026
- −4.0%
- Net margin12 months to Q4 2026
- −1.9%
- Free cash flow margin
- 25%
- R&D as % of revenue
- 27%
- Revenue, trailing twelve months
- $3.35B
- Free cash flow, trailing twelve months
- $852M
- Net income, trailing twelve months
- −$63M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −6.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Infrastructure
Ranks #44 of 64 by Smart Score