Summary
ZoomInfo reported second quarter 2025 GAAP revenue of $306.7 million, up 5.2% year over year. Gross profit was $257.2 million, up 4.7%. Operating income was $53.7 million, compared with an operating loss in the prior-year quarter. Net income was $24.0 million, compared with a net loss in the prior-year quarter. Diluted EPS was $0.07, compared with a loss per share in the prior-year quarter. Gross margin was 83.9%, down 0.4 percentage points. Operating margin was 17.5%, up 24.4 percentage points. For the six months ended June 30, 2025, revenue was $612.4 million, up 1.8%. Gross profit for the six months was $515.6 million, up 0.6%. Operating income for the six months was $104.0 million, up 352.2%. Net income for the six months was $50.8 million, compared with a net loss in the prior-year period. Diluted EPS for the six months was $0.15, compared with a loss per share in the prior-year period. Gross margin for the six months was 84.2%, down 1.0 percentage point. Operating margin for the six months was 17.0%, up 13.2 percentage points. The swing to profitability came as operating expenses fell, helped by lower restructuring and transaction-related expenses and lower equity-based compensation. General and administrative expense dropped sharply because the prior-year quarter included lease impairment and abandonment charges and a bad debt charge.
Operating cash flow was $108.9 million, down 13.8% year over year. Capital expenditures were $22.0 million, up 98.2%. Deferred revenue was $472.3 million, up 7.2%. RPO was $1,150.9 million, up 2.2%. For the six months, operating cash flow was $228.1 million, down 5.8%. Capital expenditures for the six months were $36.8 million, up 54.0%. The company also reported non-GAAP unlevered free cash flow of $99.9 million, down 17% year over year. Adjusted operating income was $104.7 million, up 28%, with a 34% adjusted operating income margin. Adjusted net income per diluted share was $0.25. The cash flow decline reflects lower operating cash flow and higher capital spending. The company repurchased 15.9 million shares at an average price of $9.22 for $146.3 million during the quarter.
ZoomInfo ended the quarter with 1,884 customers with $100,000 or greater in annual contract value, up 16 from the prior quarter and up 87 year over year. Upmarket customers represented 72% of ACV as of June 30, 2025. Net revenue retention improved sequentially to 89%. The company appointed Graham O'Brien as permanent CFO. It also completed a restructuring plan that reduced employees by approximately 6% in the second quarter. Third quarter guidance calls for non-GAAP adjusted operating income of $110 million to $113 million and adjusted net income per diluted share of $0.24 to $0.26. For full year 2025, revenue guidance is $1.215 billion to $1.225 billion. Non-GAAP adjusted operating income is guided at $433 million to $437 million. Adjusted net income per diluted share is guided at $0.99 to $1.01. Unlevered free cash flow is guided at $422 million to $442 million for the full year.
The company faces macroeconomic pressure that could affect net revenue retention. It expects cost of service as a percentage of revenue to remain consistent or modestly increase because of rising AI consumption costs and customer onboarding expenses as it migrates customers to Copilot. Restructuring and transaction-related expenses could vary with future acquisition and lease activity. The company also carries a large tax receivable agreement liability and has debt covenants that limit certain actions. It drew $100.0 million under its First Lien Revolver in May 2025 to fund share repurchases. It may pursue acquisitions that require additional debt or equity. These items add volatility to future GAAP results.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $306.7M | $305.7M | +0.3% | $291.5M | +5.2% |
| Gross profit | $257.2M | $258.4M | -0.5% | $245.6M | +4.7% |
| Gross margin | 83.9% | 84.5% | -0.7 pp | 84.3% | -0.4 pp |
| Research & development | $44.6M | $51.1M | -12.7% | $48.3M | -7.7% |
| Sales & marketing | $106.3M | $106.0M | +0.3% | $100.5M | +5.8% |
| General & administrative | $47.3M | $45.8M | +3.3% | $111.3M | -57.5% |
| Total operating expenses | $203.5M | $208.1M | -2.2% | $265.6M | -23.4% |
| Operating income (loss) | $53.7M | $50.3M | +6.8% | -$20.0M | +368.5% |
| Operating margin | 17.5% | 16.4% | +1.1 pp | -6.9% | +24.4 pp |
| Net income (loss) | $24.0M | $26.8M | -10.4% | -$24.4M | +198.4% |
| Net margin | 7.8% | 8.8% | -0.9 pp | -8.4% | +16.2 pp |
| Diluted EPS | $0.07 | $0.08 | -$0.01 | -$0.07 | +$0.14 |
| Customers | 1,884 | 1,868 | +0.9% | — | — |
Risks
The company had a liability of $2,749.0 million related to its projected obligations under the Tax Receivable Agreement as of June 30, 2025. Remeasurement can materially affect the Provision for (Benefit from) income taxes and Other income, net, with minor changes potentially having material impact.
Adverse macroeconomic conditions have impacted and may continue to impact the business and financial condition. Net revenue retention was 89% as of June 30, 2025 and 85% as of June 30, 2024, and near-term retention is expected to be impacted by macroeconomic conditions.
Migrating existing customers to Copilot and onboarding new Copilot customers is expected to keep cost of service as a percentage of revenue consistent or modestly increase due to rising AI consumption costs and onboarding expenses. Gross margin was down 0.4 pp in FY2025 Q2 versus the prior-year quarter and down 1.0 pp year to date.
In June 2025 the company announced a reduction in force of approximately 6% in the second quarter of 2025 to support moving upmarket and durable efficient growth. Execution and retention risks could disrupt operations as the plan was substantially completed as of June 30, 2025.
In May 2025 the company drew $100.0 million under its First Lien Revolver, with proceeds intended to fund the Share Repurchase Program. Total net leverage ratio to Adjusted EBITDA was 2.5x as of June 30, 2025, and restrictive covenants limit dividends, stock repurchases, debt prepayments, acquisitions, and asset sales.
The company shifted focus to customers more likely to pay, renew, and grow, and deployed a new business risk model in Q2 2024 requiring upfront prepayment from high-risk prospects. This process contributed to an incremental charge in Q2 2024 impacting reported Revenue and General and administrative expenses and affects period-to-period comparability.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Unlevered Free Cash Flow
Net Revenue Retention
Customers with $100,000 or greater in annual contract value
Summary, forecast, risks and KPIs are extracted from ZoomInfo Technologies Inc.'s SEC filings for Q2 FY2025 (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.