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Zscaler ZS Equity Method Investments

Equity Method Investments at other companies

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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$26.14B-42.0%
Enterprise value$26.89B-39.5%
P/S8.2×-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:EquitySecuritiesWithoutReadilyDeterminableFairValueAmount.

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

Our strategic investments consist primarily of non-marketable equity securities of privately held companies, which do not have a readily determinable fair value. As of April 30, 2026 and July 31, 2025, the carrying amount of our strategic investments was $14.2 million and $10.6 million, respectively, and is included within other noncurrent assets in the condensed consolidated balance sheets. There were no material events or circumstances impacting their carrying amounts during the periods presented.

Item 1. Financial Statements

FAQ

What is Zscaler's equity method investments?
Zscaler (ZS) reported equity method investments of $14.2M in Q1 2026.
How has Zscaler's equity method investments changed year-over-year?
Zscaler's equity method investments increased by 34.0% year-over-year, from $10.6M to $14.2M.
What is the long-term trend for Zscaler's equity method investments?
Over 4 years (2021 to 2025), Zscaler's equity method investments has grown at a 20.1% compound annual growth rate (CAGR), from $5.1M to $10.6M.
What does equity method investments mean?
Investments in unconsolidated affiliates and joint ventures where the company has significant influence (typically 20-50% ownership), carried at proportional book value.

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