Zscaler, Inc.ZS

Zscaler, Inc. Commitments Disclosure

10-KFiled Sep 11, 20252 min read
Commitments and Contingencies
Non-cancelable Purchase Obligations
In the normal course of business, we enter into non-cancelable purchase commitments with various third parties to purchase products and services such as cloud infrastructure capacity, subscription-based cloud service arrangements, technology equipment, corporate and marketing events and consulting services.
The maturities of non-cancelable purchase obligations with a remaining term in excess of one year as of July 31, 2025 consisted of the following:
Amount
Year ending July 31,(in thousands)
2026$129,282 
2027168,049 
2028150,551 
2029122,700 
203029,309 
Thereafter7,996 
Total$607,887 
Other Commitments
As of July 31, 2025 and 2024, we had outstanding irrevocable standby unsecured letters of credit and a guarantee, which serve as security for certain real estate leases described in Note 11, Operating Leases. The aggregate value of these commitments was not material to our consolidated financial statements.
Legal Matters
Litigation and Claims
We are a party to various litigation matters from time to time and subject to claims that arise in the ordinary course of business, including patent, commercial, product liability, employment, class action, whistleblower and other litigation and claims, as well as governmental and other regulatory investigations and proceedings. In addition, third parties may from time to time assert claims against us in the form of letters and other communications. There is no pending or threatened legal proceeding to which we are a party that, in our opinion, is likely to have a material adverse effect on our future financial results or operations; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. The expense of litigation and the timing of this expense from period to period are difficult to estimate, subject to change and could adversely affect our results of operations.

Historical Timeline

Fiscal YearFiled
2025Sep 11, 2025Showing above
2024Sep 12, 2024
2023Sep 14, 2023
2022Sep 15, 2022
2021Sep 16, 2021
2020Sep 17, 2020
2019Sep 18, 2019
2018Sep 13, 2018

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

Other Available Disclosures

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