What Zscaler, Inc. told the SEC could break it.

Zscaler relies on a limited number of suppliers — including sole- or limited-sourced hardware, software and SaaS — for components of its cloud platform and data-center network; disruption could delay capacity expansion or impair service delivery.

“We rely on a limited number of suppliers for several components of our cloud platform and the systems we use to operate our business and provide services to our customers, including sole or limited sourced hardware, software and SaaS services. Some of our suppliers also temporarily hold a portion of our assets for us.”

Although no end customer is >10% of revenue, Zscaler sells largely through channel partners — 88% of fiscal 2025 revenue — and one (unnamed) channel partner was 12% of net accounts receivable, concentrating channel-credit and go-to-market risk.

“Channel partners $ 2,360,224 88 % $ 1,967,908 91 % $ 1,488,379 92 % Direct customers 312,891 12 ... No single customer accounted for 10% or more of the total revenue during the periods presented. The following table summarizes the concentration of 10% or more of the total balance of accounts receivable, net: July 31, 2025 ... Channel partner A 12 %”

Zscaler is highly dependent on founder-CEO/chairman Jay Chaudhry, who is critical to its vision and strategic direction; key-personnel agreements are at-will with no specific duration.

“In particular, we are highly dependent on the services of Jay Chaudhry, our Chief Executive Officer and chairman of our board of directors, who is critical to our future vision and strategic direction.”

About 49% of revenue is from international customers and ~63% of employees are outside the U.S., with significant facilities in India (plus R&D in Canada/Israel/Spain); a disaster or disruption at HQ or India could materially affect operations.

“We derived approximately 49%, 50% and 50% of our revenue from our international customers in fiscal 2025, fiscal 2024 and fiscal 2023, respectively. As of July 31, 2025, approximately 63% of our full-time employees were located outside of the United States.”