ZSCALER, INC. (ZS) FY2026 Annual Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2025-08-01 to 2026-07-31

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ZSCALER, INC. cash flow reconciliation, Aug 1, 2025 through Jul 31, 2026One connected Sankey reconciles operating, investing and financing net cash flows through a shared cash pool, from beginning cash to ending cash. Ribbons flow left to right on one dollar scale. Activity totals are dark gray; beginning and ending cash are blue. Cash basis for beginning and ending balances and net cash change: Cash, cash equivalents, and restricted cash. Intermediate calculation bars are lighter gray. Net income is green for profit and red for loss. Identified asset purchases, sales and maturities are blue in either cash direction. Orange marks positive customer-advance and deferred-revenue changes that add to operating cash in the reconciliation. These are net changes, not gross customer receipts. Negative changes are neutral reconciliation adjustments; they do not by themselves identify cash payments. Purple identifies capital transactions such as borrowing, repayments, share issuance and dividends. Free cash flow is a separate comparison, not an added cash flow. Read chart description and values below for full signed amounts, including zero items.Stock-based compensation expense → operating reconciliation: $821,923,000.00Deferred revenue → operating reconciliation: $379,873,000.00Amortization of deferred contract acquisition costs → operating reconciliation: $203,693,000.00Depreciation and amortization expense → operating reconciliation: $148,544,000.00Operating lease costs → operating reconciliation: $82,934,000.00Accrued compensation → operating reconciliation: $44,590,000.00Amortization expense of acquired intangible assets → operating reconciliation: $43,468,000.00Accrued expenses, other current and noncurrent liabilities → operating reconciliation: $36,417,000.00Amortization of debt issuance costs → operating reconciliation: $8,166,000.00Other → operating reconciliation: $7,484,000.00operating reconciliation → Net cash from operating activities: $1,129,654,000.00operating reconciliation → Net loss: $63,179,000.00operating reconciliation → Deferred contract acquisition costs: $312,152,000.00operating reconciliation → Accounts receivable: $139,989,000.00operating reconciliation → Operating lease liabilities: $67,601,000.00operating reconciliation → Prepaid expenses, other current and noncurrent assets: $28,076,000.00operating reconciliation → Deferred income taxes: $20,387,000.00operating reconciliation → Accounts payable: $10,627,000.00operating reconciliation → Accretion of investments purchased at a discount: $4,655,000.00operating reconciliation → Unrealized (gains) losses on hedging transactions, net: $772,000.00Proceeds from issuance of common stock under the employee stock purchase plan → financing reconciliation: $59,416,000.00Proceeds from issuance of common stock upon exercise of stock options → financing reconciliation: $3,984,000.00financing reconciliation → Net cash from financing activities: $62,409,000.00financing reconciliation → Payments for issuance costs related to the 2028 Notes: $684,000.00financing reconciliation → Purchases of capped calls related to the 2028 Notes: $197,000.00financing reconciliation → Payment of deferred consideration related to business acquisitions: $110,000.00Net cash used in investing activities → investing reconciliation: $2,652,732,000.00Proceeds from maturities of short-term investments → investing reconciliation: $589,880,000.00Proceeds from sale of short-term investments → investing reconciliation: $290,665,000.00investing reconciliation → Purchases of short-term investments: $2,254,279,000.00investing reconciliation → Payments for business acquisitions, net of cash acquired: $918,074,000.00investing reconciliation → Purchases of property, equipment and other assets: $277,304,000.00investing reconciliation → Capitalized internal-use software: $73,207,000.00investing reconciliation → Purchase of strategic investments: $10,413,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $2,389,023,000.00Net cash from operating activities → Cash sources and uses: $1,129,654,000.00Net cash from financing activities → Cash sources and uses: $62,409,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $928,354,000.00Cash sources and uses → Net cash used in investing activities: $2,652,732,000.00Net loss: -$63,179,000.00Net loss−$63.18 MDepreciation and amortization expense: $148,544,000.00Depreciation & amortization+$148.54 MAmortization expense of acquired intangible assets: $43,468,000.00Intangible amortization+$43.47 MAmortization of deferred contract acquisition costs: $203,693,000.00Contract cost amortization+$203.69 MAmortization of debt issuance costs: $8,166,000.00Debt cost amortization+$8.17 MOperating lease costs: $82,934,000.00Operating lease amortization+$82.93 MStock-based compensation expense: $821,923,000.00Stock-based compensation+$821.92 MAccretion of investments purchased at a discount: -$4,655,000.00Investment discount & premium−$4.66 MUnrealized (gains) losses on hedging transactions, net: -$772,000.00Derivative value change−$772.00 KDeferred income taxes: -$20,387,000.00Deferred tax balances−$20.39 MOther: $7,484,000.00Other non-cash items+$7.48 MAccounts receivable: -$139,989,000.00Accounts receivable−$139.99 MDeferred contract acquisition costs: -$312,152,000.00Contract assets−$312.15 MPrepaid expenses, other current and noncurrent assets: -$28,076,000.00Prepaid & other assets−$28.08 MAccounts payable: -$10,627,000.00Accounts payable−$10.63 MAccrued expenses, other current and noncurrent liabilities: $36,417,000.00Accrued & other liabilities+$36.42 MAccrued compensation: $44,590,000.00Accrued compensation+$44.59 MDeferred revenue: $379,873,000.00Deferred revenue+$379.87 MOperating lease liabilities: -$67,601,000.00Operating lease payments−$67.60 MNet cash from operating activities: $1,129,654,000.00Operating cash+$1.13 Boperating reconciliation: $1,777,092,000.00Proceeds from issuance of common stock upon exercise of stock options: $3,984,000.00Stock option exercises+$3.98 MProceeds from issuance of common stock under the employee stock purchase plan: $59,416,000.00Employee stock plan proceeds+$59.42 MPayment of deferred consideration related to business acquisitions: -$110,000.00Contingent consideration paid−$110.00 KProceeds from issuance of the 2028 Notes: $0.00Payments for issuance costs related to the 2028 Notes: -$684,000.00Convertible debt repaid−$684.00 KPurchases of capped calls related to the 2028 Notes: -$197,000.00Capped call purchases, 2028 Notes−$197.00 KPayments for the settlement of the 2025 Notes: $0.00Other: $0.00Net cash from financing activities: $62,409,000.00Financing cash+$62.41 Mfinancing reconciliation: $63,400,000.00Purchases of property, equipment and other assets: -$277,304,000.00PP&E purchases−$277.30 MCapitalized internal-use software: -$73,207,000.00Software development costs−$73.21 MPurchases of short-term investments: -$2,254,279,000.00AFS securities purchases−$2.25 BPayments for business acquisitions, net of cash acquired: -$918,074,000.00Acquisitions, net of cash−$918.07 MProceeds from maturities of short-term investments: $589,880,000.00AFS securities maturities+$589.88 MProceeds from sale of short-term investments: $290,665,000.00AFS securities sales+$290.67 MPurchase of strategic investments: -$10,413,000.00Other investment purchases−$10.41 MNet cash used in investing activities: -$2,652,732,000.00. Cash required to fund net payments.Investing cash−$2.65 Binvesting reconciliation: $3,533,277,000.00Cash sources and uses: $3,581,086,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $2,389,023,000.00Beginning cash$2.39 BEnding cash: Cash, cash equivalents, and restricted cash: $928,354,000.00Ending cash$928.35 MCASH RECONCILIATIONOperatingflowsFinancingflowsInvestingflowsNet loss −$63.18M + net operating adjustments $1.19B = operating cash +$1.13BFree cash flow$852.35 MOperating cash − cash spent on PP&ECash flow / Net incomeNot meaningfulOperating cash flow ÷ net incomeNet cash change−$1.46 BEnding cash − beginning cash
Chart details

ZSCALER, INC. cash flow reconciliation, Aug 1, 2025 through Jul 31, 2026

Cash flows for Aug 1, 2025 through Jul 31, 2026. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Jul 31, 2025. Ending cash: Jul 31, 2026. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on Jul 31, 2025
2,389,023,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
1,129,654,000 US dollars. Net cash provided.
Net loss
negative 63,179,000 US dollars
Depreciation and amortization expense
148,544,000 US dollars
Amortization expense of acquired intangible assets
43,468,000 US dollars
Amortization of deferred contract acquisition costs
203,693,000 US dollars
Amortization of debt issuance costs
8,166,000 US dollars
Operating lease costs
82,934,000 US dollars
Stock-based compensation expense
821,923,000 US dollars
Accretion of investments purchased at a discount
negative 4,655,000 US dollars
Unrealized (gains) losses on hedging transactions, net
negative 772,000 US dollars
Deferred income taxes
negative 20,387,000 US dollars
Other
7,484,000 US dollars
Accounts receivable
negative 139,989,000 US dollars
Deferred contract acquisition costs
negative 312,152,000 US dollars
Prepaid expenses, other current and noncurrent assets
negative 28,076,000 US dollars
Accounts payable
negative 10,627,000 US dollars
Accrued expenses, other current and noncurrent liabilities
36,417,000 US dollars
Accrued compensation
44,590,000 US dollars
Deferred revenue
379,873,000 US dollars
Operating lease liabilities
negative 67,601,000 US dollars
Investing activities
negative 2,652,732,000 US dollars. Net cash used.
Purchases of property, equipment and other assets
negative 277,304,000 US dollars
Capitalized internal-use software
negative 73,207,000 US dollars
Purchases of short-term investments
negative 2,254,279,000 US dollars
Payments for business acquisitions, net of cash acquired
negative 918,074,000 US dollars
Proceeds from maturities of short-term investments
589,880,000 US dollars
Proceeds from sale of short-term investments
290,665,000 US dollars
Purchase of strategic investments
negative 10,413,000 US dollars
Financing activities
62,409,000 US dollars. Net cash provided.
Proceeds from issuance of common stock upon exercise of stock options
3,984,000 US dollars
Proceeds from issuance of common stock under the employee stock purchase plan
59,416,000 US dollars
Payment of deferred consideration related to business acquisitions
negative 110,000 US dollars
Proceeds from issuance of the 2028 Notes
0 US dollars
Payments for issuance costs related to the 2028 Notes
negative 684,000 US dollars
Purchases of capped calls related to the 2028 Notes
negative 197,000 US dollars
Payments for the settlement of the 2025 Notes
0 US dollars
Other
0 US dollars
Operating adjustment reconciliation
1,777,092,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
financing gross reconciliation
63,400,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
investing gross reconciliation
3,533,277,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
Exchange-rate effect
0 US dollars
Ending cash on Jul 31, 2026
928,354,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
3,581,086,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
negative 1,460,669,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
Not meaningful. Operating cash flow divided by reconciliation net income for the same period. The ratio is not meaningful when net income is zero or negative.
Operating cash flow
1,129,654,000 US dollars. Operating cash flow used in the free cash flow calculation.
Cash purchases of property, plant and equipment
277,304,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
852,350,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

Chart connections

  • Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
  • Financing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Investing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Operating reconciliation adjustments are not all independent cash receipts.
  • Net loss −$63.18M + net operating adjustments $1.19B = operating cash +$1.13B. The loss reduces the earnings basis of the reconciliation; it is not a cash payment. The signed loss remains a deduction at the operating reconciliation junction.
  • Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
  • The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
  • Operating cash flow minus cash purchases of property, plant and equipment equals free cash flow: 1,129,654,000 US dollars minus 277,304,000 US dollars equals 852,350,000 US dollars.
ZSCALER, INC. (ZS) FY2026 Annual Statement of Cash Flows Sankey chart
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