Doing some research...
Over the past five years, Zscaler has demonstrated strong revenue and gross profit growth. Revenue increased consistently from US$673 million in 2021 to US$2,673 million in 2025, indicating robust demand expansion in the cybersecurity domain. Gross profit followed a similar upward trajectory, rising from US$523 million to an impressive US$2,055 million over the same period. Notably, while there was a significant revenue and margin expansion, operating income and net income initially faced headwinds. In 2022, operating income declined by over 50% relative to 2021 (from –US$208 million to –US$327 million), and net income dropped by nearly 50% as well (from –US$262 million to –US$390 million). These declines suggest that early-stage operational challenges or higher reinvestment costs might have temporarily offset the top-line growth. Since the dip in 2022, the company has made substantial progress in improving its bottom line. Operating income improved to –US$235 million in 2023 and further narrowed to –US$121 million in 2024, although a slight uptick to –US$128 million occurred in 2025. Likewise, net income has shown dramatic recovery, moving from –US$390 million in 2022 to –US$202 million in 2023, and further closing to –US$58 million and –US$41 million in 2024 and 2025, respectively. These improvements imply better cost management and possibly enhanced operating leverage as the firm scales. Overall, while Zscaler continues to post net losses, the significant reduction in losses alongside rapid revenue and margin growth indicates a positive trend toward operational sustainability, reflecting a strategy aimed at long-term market leadership in the cybersecurity industry.
This analysis is for informational purposes only and does not constitute financial advice or recommendations for any investment decisions. Please consult with a qualified financial professional for personalized guidance.