The summary below was generated by an AI language model and may contain errors or omissions. All other content on this page is deterministically extracted from the original SEC EDGAR filing.
Zscaler removed one risk related to the conditional conversion feature of its convertible notes, reflecting changed financial circumstances or reduced materiality of that concern. The company substantively modified nine existing risks, with notable updates to disclosures on data center infrastructure resilience and AI/ML regulatory exposure, indicating evolving priorities in operational and technology governance risk management. The overall risk factor structure remained largely stable, with 50 risks continuing unchanged, suggesting core business and compliance risks remained consistent year-over-year.
Classification is based on semantic text similarity scoring and may include approximations. “No match” means no high-confidence textual match was found — not necessarily that a section was removed.
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If our global network of data centers, which deliver our services, was damaged or otherwise failed to meet the requirements of our business, our ability to provide services to our customers and maintain the performance of our cloud platform could be negatively impacted, which could cause our business to suffer.
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Issues in the development, use and execution of AI and ML, combined with an uncertain regulatory environment, may harm our business.
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If we were not able to satisfy data protection, security, privacy and other government- and industry-specific requirements or regulations, our business, results of operations and financial condition could be harmed.
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Our corporate structure and intercompany arrangements are subject to the tax laws of various jurisdictions, and we could be obligated to pay additional taxes, which would harm our results of operations.
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If we are unable to attract new customers, our future results of operations could be harmed.
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We rely on a limited number of suppliers for certain components of our cloud platform and the systems we use to operate our business and provide services to our customers, and any disruption in the availability of these components could delay our ability to expand or increase the capacity of our global data center network, replace defective equipment in our existing data centers or otherwise operate our business and provide services to our customers.
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The capped call transactions may affect the value of our common stock.
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Sales of substantial amounts of our common stock in the public markets, or the perception that they might occur, as well as any issuances of our common stock in connection with the conversion of the 2028 Notes or other securities convertible into shares of our common stock, could reduce the price that our common stock might otherwise attain and may dilute your voting power and your ownership interest in us.
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Servicing our debt will require a significant amount of cash, which may impact our cash available for working capital, capital expenditures and other corporate purposes.
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