Summary
ZoomInfo opened fiscal 2026 with modest top-line growth and much stronger profitability. First quarter GAAP revenue came in at $310.2 million, up 1.5% from $305.7 million in the prior-year quarter. Gross profit was $259.2 million, essentially flat against the prior-year quarter, and gross margin slipped to 83.6% from 84.5%. The profit lines moved faster than revenue. Operating income rose 15.1% to $57.9 million, lifting operating margin to 18.7% from 16.5%. Net income climbed 9.3% to $29.3 million, and diluted earnings per share reached $0.10, up from $0.08 a year earlier.
The non-GAAP picture reinforced the operating leverage story. Adjusted operating income was $109.7 million, a 9% increase, and adjusted operating income margin was 35%. Adjusted net income per diluted share was $0.28. Cash generation was softer. Operating cash flow was $114.7 million, down 3.8% from $119.2 million in the prior-year quarter, and unlevered free cash flow was $119.7 million, down 4%. Capital expenditures rose 62.8% to $24.1 million, driven by higher capitalization of internal-use developed software and spending on new facilities. Deferred revenue stood at $479.2 million, down 1.1% year over year, while remaining performance obligations rose 4.8% to $1.18 billion.
Customer metrics were mixed. ZoomInfo closed the quarter with 1,900 customers holding $100,000 or greater in annual contract value, a decrease of 21 from the prior quarter but an increase of 32 year over year. Net revenue retention was 90% as of March 31, 2026, up from 87% a year earlier. Upmarket customers represented 75% of company ACV, and upmarket ACV grew 5% year over year. The company also repurchased 13.1 million shares at an average price of $6.91 for $90.5 million, and in February 2026 the board authorized an additional $1.0 billion, bringing total authorization to $2.6 billion with $1,140.1 million still available. Third-party recognition included a Leader position in The Forrester Wave for Marketing and Sales Data Providers for B2B, Q1 2026, and a number one ranking across 142 G2 Spring 2026 reports.
Guidance points to a sequential step down in the near term. For the second quarter of 2026, management guided adjusted operating income of $103 million to $106 million and adjusted net income per diluted share of $0.26 to $0.28. For the full year 2026, the company guided adjusted operating income of $456 million to $466 million, adjusted net income per diluted share of $1.10 to $1.12, and unlevered free cash flow of $435 million to $465 million. Weighted average shares outstanding are expected to be 310 million for the second quarter.
Several risks sit alongside the results. Management tied near-term net revenue retention to macroeconomic conditions and said cost of service as a percentage of revenue should slightly increase, driven by rising AI consumption costs and customer onboarding for offerings such as ZoomInfo Copilot and ZoomInfo GTM Studio. On May 5, 2026, the board approved the 2026 Restructuring Program to reduce operating costs and drive operating leverage. Interest expense, net rose 38% to $13.5 million, largely on lower interest income from derivative swaps. The tax receivable agreement liability was $2,730.4 million at quarter end, and total net leverage to Adjusted EBITDA was 2.4x. Cash and cash equivalents were $171.2 million, with $150.0 million available under the First Lien Revolving Credit Facility.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $310.2M | $319.1M | -2.8% | $305.7M | +1.5% |
| Gross profit | $259.2M | $268.0M | -3.3% | $258.4M | +0.3% |
| Gross margin | 83.6% | 84.0% | -0.4 pp | 84.5% | -1.0 pp |
| Research & development | $42.1M | $42.2M | -0.2% | $51.1M | -17.6% |
| Sales & marketing | $103.3M | $100.7M | +2.6% | $106.0M | -2.5% |
| General & administrative | $50.8M | $65.7M | -22.7% | $45.8M | +10.9% |
| Total operating expenses | $201.3M | $213.8M | -5.8% | $208.1M | -3.3% |
| Operating income (loss) | $57.9M | $54.2M | +6.8% | $50.3M | +15.1% |
| Operating margin | 18.7% | 17.0% | +1.7 pp | 16.4% | +2.2 pp |
| Net income (loss) | $29.3M | $34.7M | -15.6% | $26.8M | +9.3% |
| Net margin | 9.4% | 10.9% | -1.4 pp | 8.8% | +0.7 pp |
| Diluted EPS | $0.10 | $0.11 | -$0.01 | $0.08 | +$0.02 |
Risks
The company states its business and financial condition have been and may continue to be impacted by adverse macroeconomic conditions, and it expects net revenue retention to be affected near term. Net revenue retention was 90% as of March 31, 2026 (up from 87% as of March 31, 2025), still below 100%, indicating contraction within the existing customer base.
Cost of service as a percentage of revenue is expected to slightly increase in the near term, driven by rising AI consumption costs and customer onboarding expenses for offerings such as ZoomInfo Copilot and ZoomInfo GTM Studio. Gross margin was down 1.0 pp to 83.6% in FY2026 Q1 versus the prior-year quarter.
Deferred revenue was down 1.1% to $479.2 million and operating cash flow was down 3.8% to $114.7 million in FY2026 Q1 versus the prior-year quarter, while revenue grew only 1.5%, pointing to soft billings and renewal dynamics. The company attributes revenue growth to an upmarket mix shift and improved net revenue retention.
On May 5, 2026 the Board approved the 2026 Restructuring Program to reduce operating costs and drive operating leverage. Restructuring and transaction-related expenses rose to $10.0 million in FY2026 Q1 from $5.4 million in the prior-year quarter, primarily from lease restructuring, right-of-use asset and leasehold improvement impairments, and severance.
Interest expense, net was up 38% to $13.5 million in FY2026 Q1, primarily due to lower interest income from derivative swaps. The company notes that as existing interest rate swaps mature, exposure to changes in interest rates on its floating rate debt will increase if new swaps are not entered into.
The company had a $2,730.4 million liability related to projected obligations under its tax receivable agreements as of March 31, 2026. It states that given the magnitude of its deferred tax assets, minor statutory or apportionment changes can materially affect the provision for income taxes and trigger concurrent TRA remeasurement through Other loss, net.
Customers with $100,000 or greater in annual contract value numbered 1,900 as of March 31, 2026 (up from 1,868) and comprised over 50% of total Company ACV, concentrating revenue in a relatively small set of large accounts as the company shifts its mix upmarket.
Litigation settlement charges and associated legal fees were $3.7 million in FY2026 Q1 versus $0.9 million in the prior-year quarter, with related cash settlement payments of $1.4 million versus $1.2 million.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Unlevered Free Cash Flow
Adjusted Operating Income
Net Revenue Retention
Summary, forecast, risks and KPIs are extracted from ZoomInfo Technologies Inc.'s SEC filings for Q1 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.