Balance sheet Components

12 Months Ended

Jul. 31, 2025

Property, Plant and Equipment [Abstract]

Property and Equipment and Purchased Intangible Assets

Property and equipment consisted of the following:


		July 31,
	Estimated Useful Life	2025		2024

		(in thousands)
Hosting equipment (1)	4 - 5 years	$	571,312	$	418,775
Capitalized internal-use software	3 - 5 years	322,265		197,769
Computers and equipment	3 - 5 years	9,138		6,741
Purchased software	3 years	1,102		1,102
Furniture and fixtures	5 years	1,195		1,071
Leasehold improvements	Shorter of useful life or lease term	10,141		7,974
Total property and equipment, gross		915,153		633,432
Less: Accumulated depreciation and amortization		(371,776)		(250,311)
Total property and equipment, net		$	543,377	$	383,121

(1) Includes purchased equipment that had not been placed in service, totaling $163.5 million and $115.1 million as of July 31, 2025 and 2024, respectively.

Purchased intangible assets consist of internet protocol addresses and source codes, which are amortized on a straight-line basis over an estimated useful life of 10 years. As of July 31, 2025, their historical cost and accumulated amortization were $20.3 million and $4.6 million, respectively. As of July 31, 2024, their historical cost and accumulated amortization were $12.4 million and $2.8 million, respectively. Purchased intangible assets are included within other noncurrent assets in the consolidated balance sheets.

We recognized depreciation and amortization expense on property and equipment and purchased intangible assets of $104.4 million, $66.3 million and $55.8 million in fiscal 2025, fiscal 2024 and fiscal 2023, respectively. Additionally, we recognized stock-based compensation expense on the amortization of capitalized stock-based compensation associated with capitalized internal-use software of $21.6 million, $13.0 million and $8.4 million in fiscal 2025, fiscal 2024 and fiscal 2023, respectively.

Accrued compensation

Accrued compensation consisted of the following:


	July 31,
	2025		2024

	(in thousands)
Accrued commissions	$	59,429	$	51,371
Accrued bonuses	51,598		53,452
Accrued payroll and related expenses	61,370		47,184
Employee stock purchase plan	9,410		8,803

Total accrued compensation	$	181,807	$	160,810

Zscaler, Inc. 10-K