Aureus
AExcellent

Zscaler, Inc.(ZS)

A

Financial data as of Jul 31, 2025Improving · Technology

FCF Margin27.2%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$726.7M
Revenue$2.7B
Net Cash$592.4MCash exceeds debt
Debt / FCF2.5xManageable debt load
Current Ratio2.01Adequate short-term liquidity
YoY FCF Growth+41.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (27.2%, 2.5x)
→
+1Strong YoY FCF growth (41.6% YoY)
→
+1Net cash position with strong FCF margin
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (27.2%)
  • Net cash position ($0.6B)
  • Strong liquidity (current ratio: 2.01)
  • Strong YoY FCF growth (+41.6%)
  • FCF trend is improving
Cash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin27.2%
Net Margin-1.6%
Operating CF Margin36.4%
CapEx Ratio9.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$592.4MCash exceeds debt
Debt / FCF2.5xManageable debt load
Current Ratio2.01Strong liquidity
Debt / Equity1.00Low leverage

Quarterly FCF Trend

+41.6% YoYImproving (+41.6%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameZscaler, Inc.
SectorTechnology
Free Cash Flow$726.7M
Revenue$2.7B
Net Income-$41.5M
Operating Cash Flow$972.5M
Capital Expenditure$245.8M
FCF Margin27.2%
Cash Conversion Rate—
Net Margin-1.6%
Total Debt$1.8B
Total Cash$2.4B
Net Cash$592.4M
Current Ratio2.01
Debt / Equity1.00
Debt / FCF2.5x
YoY FCF Growth+41.6%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateJul 31, 2025
GradeA
Data SourceYahoo Finance