ZSZscaler, Inc.

Services-Computer Programming Services

Revenue: $3.4B; 25% YoY
Operating margin: -4.0%; 17% YoY
EBITDA: $15M; 163% YoY
Market cap: $38.8B
Employees: 1,500; $2M revenue each
Net debt / EBITDA: 14.4×; $221M net debt
AI in 10-K: 25.1; mentions per 10K words

Takeover score 3 of 13

Fixable underperformance 2 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCYes
25% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
0% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
15% of assets
Over 40% of assets
Shareholder dissentYes
73% lowest support
Any vote under 80% support

Buyer economics 0 of 4

Low revenue per employeeNo
$2M · 94th pct
Bottom quartile of its SIC industry
Quiet on AINo
25.1 per 10K words · 99th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
14.4× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedNo
$38.8B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$22M net
Net sales over $10M in 12 months

Financials

Metric	FY2022	FY2023	FY2024	FY2025	FY2026	YoY	Trend
Revenue	$1.1B	$1.6B	$2.2B	$2.7B	$3.4B	25%
Operating income	−$327M	−$235M	−$121M	−$128M	−$133M	3.7%
Net income	−$390M	−$202M	−$58M	−$41M	−$63M	52%
Operating cash flow	$322M	$462M	$780M	$972M	$1.1B	16%
Capex	$69M	$97M	$145M	$164M	$277M	69%
Stock-based comp	$410M	$445M	$528M	$661M	$822M	24%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $22M · 74
Net: −$22M

Pay vs performance

No pay-versus-performance disclosure yet.