Zscaler revenue up 26% YoY, but net loss doubles to $59.8M amid AI pivot and $1.7B debt raise

Filed May 26, 2026 · Period ending April 30, 2026 · Compared to 10-Q May 29, 2025 · ~2 min read

Key Changes

• high

  Net loss more than doubled from $23.9M to $59.8M despite 26% revenue growth, reversing prior-year trend of narrowing losses. Company issued $1.725B in new convertible notes (2028 maturity) and spent $770M on acquisitions.

  MD&A: Financial Performance verify on EDGAR →
• high

  Company stopped disclosing dollar-based net retention rate (114% in prior year) and calculated billings, replacing them with ARR metric ($3.5B). Shift away from short-term growth indicators may signal slowing expansion rates.

  MD&A: Key Metrics verify on EDGAR →
• high

  New AI-related risks disclosed: competitors using AI to lower barriers to entry, customers deploying AI agents to reduce headcount (threatening user-based revenue), and need to monetize non-user traffic from AI workloads.

  Risk Factors: AI Competition & Revenue Model verify on EDGAR →