Zscaler's Q3 2025 Earnings: Insights & Financial Performance

Zscaler's Q3 2025 Earnings: Insights & Financial Performance

• 1. Fiscal Q3 2025 Earnings Call May 2025

• 2. 2025 Zscaler, Inc. All rights reserved Safe Harbor Forward-Looking Statements Unless otherwise noted, all numbers presented will be on an adjusted, non-GAAP basis. Reconciliation of GAAP to non-GAAP financial measures is in the appendix of this presentation. This presentation has been prepared by Zscaler, Inc. (“Zscaler”) for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by the presenter or Zscaler or any officer, director, employee, agent or advisor of Zscaler. This presentation does not purport to be all-inclusive or to contain all of the information you may desire. This presentation contains forward-looking statements. All statements other than statements of historical fact, including statements regarding our future financial and operating performance, including our financial outlook for the fourth quarter of fiscal 2025 and full year fiscal 2025, our planned products and upgrades, business strategy and plans and objectives of management for future operations of Zscaler are forward-looking statements. These statements involve known and a significant number of unknown risks, uncertainties, assumptions and other factors that could cause results to differ materially from statements made in this message, including any performance or achievements expressed or implied by the forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make, including but not limited to the ongoing effects of inflation and geopolitical events on our business, operations and financial results and the economy in general; our limited operating history; our ability to identify and effectively implement the necessary changes to address execution challenges; risks associated with managing our rapid growth, including fluctuations from period to period; our limited experience with new product and subscription and support introductions and the risks associated with new products and subscription and support offerings, including the discovery of software bugs; our ability to attract and retain new customers; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscription and support; rapidly evolving technological developments in the market for network security products and subscription and support offerings and our ability to remain competitive; length of sales cycles; and general market, political, economic and business conditions. Additional risks and uncertainties that could affect our financial and operating results are included in our most recent filings with the Securities and Exchange Commission (“SEC”). You can locate these reports though our website at http://ir.zscaler.com or on the SEC website at www.sec.gov. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “continues,” “contemplate,” “could,” “estimate,” “expect,” “explore,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these terms or other similar words. Zscaler based these forward-looking statements largely on its current expectations and projections about future events that it believes may affect its business. Actual outcomes and results may differ materially from those contemplated by these forward-looking statements. All forward-looking statements in this message are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

• 3. 2025 Zscaler, Inc. All rights reserved Q3’25 results exceeded guidance on all metrics Q3 Guidance Q3 Results Q3 Results vs. Guidance Revenue $665M - $667M 20%-21% y/y $678M 23% y/y Exceeded Calculated Billings +200-260bps Q/Q $785M +600bps Q/Q Exceeded Calculated Current Billings No Guidance $760M 24% y/y No Guidance Gross Margin ~80% 80.3% Exceeded Operating Profit $140M - $142M ~21% margin $147M 21.6% margin Exceeded EPS $0.75 - $0.76 $0.84 18% y/y Exceeded Free Cash Flow No Guidance $119M 18% margin No Guidance All numbers presented on an adjusted, non-GAAP basis. See appendix of this presentation for a reconciliation of GAAP to non-GAAP financial measures.

• 4. 2025 Zscaler, Inc. All rights reserved Key business metrics sustain growth momentum Latest innovations resonating with customers >210enterprises Zero Trust Everywhere Up 60%+ Q/Q ~$1B New growth categories3 ARR growing faster than total ARR 59% Zero Trust Branch purchases new logo customers Customers increasing commitments with Zscaler ~$5B RPO1 RPO growth +30% Y/Y ~$2.9B Annual Recurring Revenue (ARR)2 ARR growth +23% Y/Y $1B+ TCV Bookings a Q3 record Growth at scale with strong profitability 23%+ Revenue Growth Y/Y Strong growth across all geos 22% Operating Margin Operating Profit growth +20% Y/Y 18% Free Cash Flow Margin Free Cash Flow growth -3% Y/Y 1. Remaining Performance Obligations (RPO). 2. To establish ARR for a customer, we use the total amount of each order booked to compute the annual recurring value of revenue that we would recognize if the customer continues to renew all contractual subscriptions. 3. New Growth Categories include Zero Trust Everywhere, Data Security Everywhere, and Agentic Operations

• 5. 2025 Zscaler, Inc. All rights reserved Operating at rule of 52% for Year-to-date FY25 In a rarefied category among large publicly traded SaaS companies 24% 52% 28% Revenue growth % FCF Margin % Rule of 40 Rule-of-52 YTD Q3’25 All numbers presented on an adjusted, non-GAAP basis. See appendix of this presentation for a reconciliation of GAAP to non-GAAP financial measures.

• 6. 2025 Zscaler, Inc. All rights reserved 50M user milestone achieved! 50M+ Total Users secured on our platform 500B+ Daily transactions >50x number of daily google searches 20+Petabytes Traffic flowing through Zero Trust Exchange Cloud every day More users extend our competitive advantage and more high-quality data for our AI solutions

• 7. 2025 Zscaler, Inc. All rights reserved Longest running leader for user security 14 years Leadership in user security Zscaler’s Zero Trust Platform goes far beyond user security. We deliver Zero Trust Everywhere: • Zero Trust Branch • Zero Trust Devices (IoT/OT) • Zero Trust Cloud

• 8. 2025 Zscaler, Inc. All rights reserved • Flexible consumption: Flexibility to swap modules in-contract • Simplified procurement: no friction as products are added / swapped • Predictable Budget: no retrospective billing • Favorable Pricing: discounts scale with increasing commitments • White-glove deployment and support: best in class support & dedicated deployment experts Z-Flex: Customer benefits

• 9. 2025 Zscaler, Inc. All rights reserved ARR Z-Flex - Customer case study Fortune 500 Technology customer Before Z-Flex 20 modules added/expanded : After Z-Flex plan Contract Duration 12 modules expanded ~$13M ~$19M ARPU uplift 41% 9% 22% 3 years 5 years Data Security (% of ARR) $198 $281 ARR uplift 40% App Protection Deception Workload Protection DP Isolation Encryption/ Classification Cyber Isolation SaaS Security Inline DLP Private Access Internet Access Sandbox Firewall Seats User ARPU Threat Hunting Micro Segmentation ITDR Device Segmentation Zero Trust Branch Endpoint DLP E-mail DLP DSPM 34,000 40,000 8 modules added

• 10. 2025 Zscaler, Inc. All rights reserved New Growth Categories Zero Trust Everywhere All Entities, All Locations Data Security Everywhere Cloud, SaaS, Endpoint Agentic Operations SecOps, IT Ops AI Everywhere

• 11. 2025 Zscaler, Inc. All rights reserved “Zero Trust Everywhere”1 Data Security Everywhere Agentic Operations Three new growth categories $1B in combined ARR 1. “Zero Trust Everywhere” ARR is from customers that purchased components from each of Zero Trust Users, Zero Trust Cloud and Zero Trust Branch. Three emerging growth categories approaching ▪ Zero Trust Users (ZIA/ZPA) ▪ Zero Trust Cloud (Posture Control, Workloads) ▪ Zero Trust Branch (Branch Connector, Device Segmentation) ▪ Cyber Isolation ▪ Inline DLP ▪ SaaS Security ▪ Classification & Encryption ▪ ITOps, including ZDX, ZDX Copilot ▪ Security Ops, including Risk360, Business Insights, Unified VM, Identity Threat Detection, and Cyber Asset Attack Surface Management ▪ DP Isolation ▪ Endpoint DLP ▪ E-mail DLP ▪ DSPM

• 12. 2025 Zscaler, Inc. All rights reserved Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 FY26E 210+ 130+ 390+ Growing adoption of Zero Trust Everywhere 1. “Zero Trust Everywhere” customers are customers that purchased components of Zero Trust Users, Zero Trust Cloud and Zero Trust Branch. 2. Enterprises are customers with 1,500 or more employees. 3. 200% ROI is a potential customer outcome as shown in the Zenith Live Innovations Briefing, June 15, 2023. Not indicative of every deployment. Graph is illustrative, not to scale. Goal: 390+ “Zero Trust Everywhere”1 enterprises2 by FY26 Data Security Everywhere Agentic Operations Zero Trust Everywhere “Zero Trust Everywhere” Firewall VDI VPN DDoS MPLS NAC …and more

• 13. 2025 Zscaler, Inc. All rights reserved Zero Trust Branch and Zero Trust Cloud driving Zero Trust Everywhere growth Data Security Everywhere Agentic Operations 59% of customers who bought Zero Trust branch were new logos Zero Trust Everywhere Launched Unified Branch appliance, which brings together Zero-trust branch connectivity and Zero trust device segmentation (Airgap) Zero Trust Branch Zero Trust Cloud Global Bank • Protecting all their workload traffic with Zscaler, after securing employees and mobile banking applications 7-Figure ACV deal Zero Trust Cloud eliminates the need for: East-West firewalls North-South firewalls VPNs Express Routes Direct Connect

• 14. 2025 Zscaler, Inc. All rights reserved Most comprehensive Data Security Everywhere platform Fortune 50 manufacturer • Customer added endpoint DLP module, PRA, and expanded their Zero Trust for Users with more ZPA seats; now has 6 data security modules • Annual spend increased >50% Y/Y to $10M+ Data Protection expansion deal Upsell, 7-figure ACV deal Fortune 100 F&B • Customer purchased Data security in this land deal in addition to Zero Trust security for users • Data Security is now becoming important for customers in less regulated industry verticals Data Protection land deal New, 7-figure ACV deal Zscaler Data Security Modules Data Security Everywhere Agentic Operations Zero Trust Everywhere Cyber Isolation Inline DLP SaaS Security Classification & Encryption DP Isolation Endpoint DLP Email DLP DSPM ● G2K Tech Company ● Fleet Management Company ● Large Federal Customer Gen AI Security Deal Wins

• 15. 2025 Zscaler, Inc. All rights reserved Rapid expansion in our Agentic Operations portfolio IT OPS SECURITY OPS US healthcare provider • Customer purchased Vuln. Management for 400K assets, as they wanted Data Fabric to be the single source of truth for all data dump • “What Zscaler’s data fabric accomplished within 2 hours for asset inventory would have taken us 6 months” - customer 7-Figure UVM Deal Upsell, 7-figure ACV deal Bookings for “ZDX Advanced Plus” grew by 70%+ to ~$75M since the launch of ZDX Copilot US healthcare provider • Customer purchased ZDX Adv. Plus SKU for 140k users, expanding on ZT User purchases • ZDX Copilot was an important consideration for this win 7-Figure ZDX deal Upsell, 7-figure ACV deal SecOps portfolio is gaining traction and helped drive >120% Y/Y growth in SecOps ACV Data Security Everywhere Agentic Operations Zero Trust Everywhere

• 16. 2025 Zscaler, Inc. All rights reserved Scaling Zscaler’s Platform Vision with Red Canary Deal rationale Zero Trust Exchange Data Fabric Accelerating our vision of AI-powered SoC Red Canary’s technology will be embedded in Zscaler's platform to accelerate our vision of AI-driven SoC. Accelerates our time to have a comprehensive solution by 12-18months $675M in Cash Deal terms Equity for employees Highly talented and experienced detection and threat intel engineers A seasoned go-to-market team that knows the SoC buyer personas, and can act as a SecOps specialist team to partner closely with the larger Zscaler goto-market engine Red Canary Red Canary has developed sophisticated agentic AI technology for reasoning and workflow

• 17. 2025 Zscaler, Inc. All rights reserved Select Q3’25 deal summaries Success in selling the broader platform F500 Technology • Made a multi-year commitment under Z-Flex program • Adopted several of our Data Protection and SoC modules • ARR for the customer increased by more than 40% • Protecting all their workload traffic with Zscaler, after securing employees and mobile banking applications • Expanded Zero Trust users purchase and added Endpoint DLP and Privileged Remote Access modules • Annual spend of this customer increased by more than 50% to over $10M • Adopted ZIA and ZPA to enable Zero Trust security for users • As part of this land deal, the customer also made an initial purchase of our Data Security Everywhere solution New Logo, 7-figure deal ZIA 40,000 users ZDX 40,000 users ZPA 40,000 users Data Protection 40,000 users ZIA ZDX 150,000 users ZPA 150,000 users Data Protection 150,000 users ZIA 75,000 users ZDX 75,000 users ZPA 75,000 users Data Protection 75,000 users ZIA 100,000 users ZDX 100,000 users ZPA 100,000 users Data Protection 100,000 users Global Bank F50 Automotive F100 Beverage Upsell, 7-figure deal Upsell, 7-figure deal Upsell, 7-figure deal 150,000 users

• 18. 2025 Zscaler, Inc. All rights reserved Sustained Large customer momentum >35% Global 2000 Customers1 ~45% Fortune 500 Customers1 $1M+ ARR Customers 400 642 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 $100K+ ARR Customers 2,432 3,363 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 18% CAGR 27% CAGR 1) Forbes Global 2000 list and Fortune 500 list customers, for July 31, 2024.

• 19. 2025 Zscaler, Inc. All rights reserved Improving operating efficiency, profitability & cash flow Key factors • New products use public clouds and are optimized for faster go-to-market than gross margins • As the new products scale, we will optimize them for margins Key factors • Leverage in our financial model • Pace of hiring & higher investments in R&D Key factors • Billings collections in the quarter • Data center capital expenditures as a % of revenue Gross Profit & Margin Operating Profit & Margin Free Cash Flow & Margin 15% 22% 22% 5.00% 7.00% 9.00% 11.00% 13.00% 15.00% 17.00% 19.00% 21.00% 23.00% $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 Q3 '23 Q3 '24 Q3 '25 Operating Profit Operating Margin% 18% 22% 18% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 Q3 '23 Q3 '24 Q3 '25 Free Cash Flow FCF Margin% 80% 81% 80% 40.00% 45.00% 50.00% 55.00% 60.00% 65.00% 70.00% 75.00% 80.00% 85.00% $0 $100 $200 $300 $400 $500 $600 Q3 '23 Q3 '24 Q3 '25 Gross profit Gross Margin % (in $ M) All numbers presented on an adjusted, non-GAAP basis. See appendix of this presentation for a reconciliation of GAAP to non-GAAP financial measures.

• 20. 2025 Zscaler, Inc. All rights reserved Growing across all geographies Revenue mix by geographies 53% 54% 54% 55% 54% 54% 54% 32% 31% 31% 30% 30% 30% 15% 30% 15% 15% 15% 16% 16% 16% $497M $525M $553M $593M $628M $648M $678M Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Americas EMEA APJ

• 21. 2025 Zscaler, Inc. All rights reserved FY25 guidance Prior FY25 Guidance New FY25 Guidance New vs. Prior FY25 Guidance Revenue $2.640B - $2.654B ~22% y/y $2.659B - $2.661B ~23% y/y Increased Calculated Billings $3.153B - $3.168B 20%-21% y/y $3.184B - $3.189B 21% -22% y/y Increased Operating Profit $562M - $572M 21%-22% margin $573M - $575M ~22% margin Increased Earnings Per Share $3.04 - $3.09 $3.18 - $3.19 Increased Free Cash Flow Margin 24.5%-25.0% 25.5%-26.0% Increased All numbers presented on an adjusted, non-GAAP basis. See appendix of this presentation for a reconciliation of GAAP to non-GAAP financial measures.

• 22. Financial Appendix

• 23. 2025 Zscaler, Inc. All rights reserved Explanation of Non-GAAP Financial Measures In addition to our results determined in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. However, non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. Investors are encouraged to review these reconciliations, and not to rely on any single financial measure to evaluate our business. Expenses Excluded from Non-GAAP Measures Stock-based compensation expense is excluded primarily because it is a non-cash expense that management believes is not reflective of our ongoing operational performance. Employer payroll taxes related to stock-based compensation, which is a cash expense, are excluded because these are tied to the timing and size of the exercise or vesting of the underlying equity incentive awards and the price of our common stock at the time of vesting or exercise, which may vary from period to period independent of the operating performance of our business. Amortization expense of acquired intangible assets and amortization of debt issuance costs from the convertible senior notes are excluded because these are non-cash expenses and are not reflective of our ongoing operational performance. Effective August 1, 2024, the beginning of our fiscal year ending July 31, 2025, we are using a long-term projected non-GAAP tax rate of 23% for the purpose of determining our non-GAAP net income and non-GAAP net income per share to provide better consistency across interim reporting periods. Given the significant growth of our business and non-GAAP operating income, we believe this change is necessary to better reflect the performance of our business. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations. Prior period amounts have been recast to reflect this change. Key Non-GAAP Financial Measures Included within this Presentation: ▪ Non-GAAP Gross Profit and Non-GAAP Gross Margin(*) ▪ Non-GAAP Income from Operations and Non-GAAP Operating Margin(*) ▪ Non-GAAP Net Income and Non-GAAP Net Income per Share ▪ Free Cash Flow and Free Cash Flow Margin(*) *Non-GAAP to GAAP reconciliations shown on the following slides.

• 24. 2025 Zscaler, Inc. All rights reserved Appendix A: GAAP to Non-GAAP Reconciliation $ in thousands, EXCEPT PERCENTAGES Q3 '25 Q3 '24 Q3 '23 Revenue $ 678,034 $ 553,201 $ 418,800 Non-GAAP Gross Profit and Non-GAAP Gross Margin GAAP gross profit $ 522,056 $ 434,870 $ 322,951 Add: Stock-based compensation expense and related payroll taxes 18,262 12,487 10,025 Add: Amortization expense of acquired intangible assets 3,830 2,962 2,695 Non-GAAP gross profit $ 544,148 $ 450,319 $ 335,671 GAAP gross margin 77 % 79 % 77 % Non-GAAP gross margin 80 % 81 % 80 % Non-GAAP Income from Operations and Non-GAAP Operating Margin GAAP loss from operations $ (25,411) $ (3,013) $ (55,746) Add: Stock-based compensation expense and related payroll taxes 167,809 121,465 111,386 Add: Amortization expense of acquired intangible assets 4,255 3,381 2,975 Add: Restructuring and other charges, excluding stock-based compensation expense — — 5,265 Non-GAAP income from operations $ 146,653 $ 121,833 $ 63,880 GAAP operating margin (4)% (1)% (13)% Non-GAAP operating margin 22 % 22 % 15 %

• 25. 2025 Zscaler, Inc. All rights reserved Appendix A: GAAP to Non-GAAP Reconciliation $ in thousands, EXCEPT PER SHARE AMOUNTS Q3 '25 Q3 ‘24 Non-GAAP Net Income per Share, Diluted GAAP net income (loss) $ (4,125) $ 19,124 Add: GAAP provision for income taxes 8,688 1,742 GAAP income before income taxes 4,563 20,866 Add: Stock-based compensation expense and related payroll taxes 167,809 121,465 Amortization expense of acquired intangible assets 4,255 3,381 Amortization of debt issuance costs 984 979 Non-GAAP net income before taxes 177,611 146,691 Non-GAAP provision for income taxes 40,844 33,739 Non-GAAP net income $ 136,767 $ 112,952 GAAP provision for income taxes $ 8,688 $ 1,742 Add: Income tax and other tax adjustments 32,156 31,997 Non-GAAP provision for income taxes $ 40,844 $ 33,739 Non-GAAP effective tax rate 23% 23% Non-GAAP net income $ 136,767 $ 112,952 Add: Non-GAAP interest expense, net of tax related to the convertible senior notes 276 276 Numerator used in computing non-GAAP net income per share, diluted $ 137,043 $ 113,228 GAAP net income (loss) per share, diluted $ (0.03) $ 0.12 Stock-based compensation expense and related payroll taxes 1.03 0.76 Amortization expense of acquired intangible assets 0.03 0.02 Amortization of debt issuance costs 0.01 0.01 Income tax and other tax adjustments (0.20) (0.20) Non-GAAP interest expense, net of tax related to the convertible senior notes — — Adjustment to total fully diluted earnings per share — — Non-GAAP net income per share, diluted $ 0.84 $ 0.71 Weighted-average shares used in computing GAAP net income (loss) per share, diluted 154,909 154,081 Add: Outstanding potentially dilutive equity incentive awards 2,812 — Add: Convertible senior notes 7,626 7,626 Less: Antidilutive impact of capped call transactions (1,946) (2,050) Weighted-average shares used in computing non-GAAP net income per share, diluted 163,401 159,657

• 26. 2025 Zscaler, Inc. All rights reserved Appendix A: GAAP to Non-GAAP Reconciliation $ in thousands, EXCEPT PER SHARE AMOUNTS Q3 ‘25 Q3 ‘24 Q3 ‘23 Calculated Billings Revenue $ 678,034 $ 553,201 $ 418,800 Add: Total deferred revenue, end of period 1,984,985 1,577,014 1,175,373 Less: Total deferred revenue, beginning of period (1,878,505) (1,502,175) (1,111,880) Calculated Billings $ 784,514 $ 628,040 $ 482,293 Calculated Current Billings Revenue $ 678,034 $ 553,201 $ 418,800 Add: Current deferred revenue, end of period 1,677,895 1,376,676 1,058,901 Less: Current deferred revenue, beginning of period (1,595,780) (1,316,416) (1,000,359) Calculated Current Billings $ 760,149 $ 613,461 $ 477,342 Free Cash Flow Net cash provided by operating activities $ 211,081 $ 173,414 $ 108,469 Less: Purchases of property, equipment and other assets (72,163) (35,651) (26,244) Less: Capitalized internal-use software (19,455) (14,637) (8,339) Free Cash Flow $ 119,463 $ 123,126 $ 73,886 Free Cash Flow Margin Net cash provided by operating activities, as a percentage of revenue 31 % 31 % 26 % Less: Purchases of property, equipment and other assets, as a percentage of revenue (10)% (6)% (6)% Less: Capitalized internal-use software, as a percentage of revenue (3)% (3)% (2)% Free Cash Flow Margin 18 % 22 % 18 %