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Zscaler ZS Amortization of deferred commissions

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Other financials

Income statement

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Revenue$850.5M+25.4%
Gross profit$657.8M+26.0%
Operating income-$29.6M-16.6%
Net income-$13.9M-237%
EPS (diluted)-$0.09-200%

Balance sheet

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Cash & equivalents$982.1M-50.7%
Total debt$1.7B+40.9%
Total equity$2.4B+31.1%
Total assets$7.1B+32.9%

Cash flow

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Operating cash flow$198.0M-6.2%
CapEx$42.4M-41.2%
Free cash flow$155.6M+12.0%

Valuation

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Market cap$26.29B-41.6%
Enterprise value$27.04B-39.1%
P/S8.3×-8.6×

Profitability

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Gross margin76.7%-0.7pp
Operating margin-4.7%-0.1pp
Net margin-2.4%+3.7pp
FCF margin30.4%+0.1pp

Returns & leverage

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Return on equity-3.7%+2.3pp
Debt / equity0.7×+0.1×
Current ratio1.9×+0.6×

Where this comes from

Reported directly by Zscaler in its filing.

Tagged under the XBRL concept us-gaap:CapitalizedContractCostAmortization.

The source filing: Zscaler’s 10-Q, filed May 26, 2026.

Filed
May 26, 2026, 4:09 PM EDT
Fiscal quarter
Q3 FY2026
Calendar quarter
Q2 2026
Accession
0001713683-26-000096
Line itemThree Months Ended April 30, 2026Three Months Ended April 30, 2025Nine Months Ended April 30, 2026Nine Months Ended April 30, 2025
Beginning balance$519,304$440,365$509,541$445,398
Capitalization of contract acquisition costs77,26465,828184,660139,986
Amortization of deferred contract acquisition costs(52,042)(42,308)(149,675)(121,499)
Ending balance$544,526$463,885$544,526$463,885

Item 1. Financial Statements

FAQ

What is Zscaler's amortization of deferred commissions?
Zscaler (ZS) reported amortization of deferred commissions of $52.04M in Q1 2026.
How has Zscaler's amortization of deferred commissions changed year-over-year?
Zscaler's amortization of deferred commissions increased by 23.0% year-over-year, from $42.31M to $52.04M.
What is the long-term trend for Zscaler's amortization of deferred commissions?
Over 4 years (2021 to 2025), Zscaler's amortization of deferred commissions has grown at a 42.3% compound annual growth rate (CAGR), from $40.56M to $166.31M.
What does amortization of deferred commissions mean?
This metric tracks the non-cash amortization of capitalized sales commissions, which are deferred and recognized as expenses over the expected period of benefit from the customer contract. It is a critical component of SaaS accounting, reflecting the timing difference between cash paid to sales teams and the recognition of the associated expense. It helps align the cost of acquiring customers with the revenue they generate.

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