ZSZscaler, Inc.
Is the business good?
The checks split: margins widening, but 3 of 9 health tests passed.
Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ZS?
Zscaler, Inc. keeps −4.0% of every revenue dollar as operating profit, against 7.5% for the median Software - Infrastructure name.
Operating margin · Software - Infrastructure median 7.5% · 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
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #61 of 78 by RyuScore