Summary
ZoomInfo's fiscal 2026 second quarter produced modest top-line growth but a steep GAAP loss. Revenue rose 1.2% year over year to $310.4 million. Gross profit was $256.8 million, flat versus the prior-year quarter. Gross margin slipped to 82.7%, down 1.1 percentage points. The company swung to a GAAP operating loss of $622.0 million from operating income a year earlier. Net loss was $643.7 million, and diluted EPS was -$2.19. The GAAP results included a goodwill impairment charge and restructuring costs tied to the 2026 Restructuring Program.
For the six months ended June 30, 2026, revenue rose 1.3% to $620.6 million. Six-month gross profit was $516.0 million, flat versus the prior-year period. The six-month operating loss was $564.1 million, and net loss was $614.4 million. Six-month diluted EPS was -$2.06.
The GAAP loss obscures a profitable non-GAAP picture, but the adjustments are large. Adjusted operating income was $110.0 million, up 5%, and adjusted operating income margin was 35%. Adjusted net income per diluted share was $0.28. Adjusted EBITDA was $119.1 million, up 7%. Those non-GAAP figures exclude equity-based compensation expense, amortization of acquired technology and other acquired intangibles, goodwill impairment, restructuring and transaction-related expenses, and litigation settlement. The company approved the 2026 Restructuring Program on May 5, 2026 to reduce operating costs and drive stronger operating leverage. Cost of revenue, excluding equity-based compensation expense, increased 9% in the quarter. Management pointed to expense from the restructuring program, higher hosting and infrastructure expense, and depreciation on internally developed capitalized software, partially offset by lower amortization of acquired technology.
Cash generation remained positive but weakened. GAAP operating cash flow was $87.3 million, down 19.8% year over year. Capital expenditures were $17.6 million, down 20.0%. Unlevered free cash flow, a non-GAAP measure, was $107.3 million, up 7%. The company ended the quarter with deferred revenue of $464.7 million, down 1.6%, and remaining performance obligations of $1.17 billion, up 1.8%. It repurchased 6.3 million shares at an average price of $4.51 per share for $28.2 million. It also repurchased $58.5 million in aggregate principal amount of its Senior Notes for $47.9 million in cash, which produced a gain on debt extinguishment. The total net leverage ratio to Adjusted EBITDA was 2.3x, and the Consolidated First Lien Net Leverage Ratio was 1.1x. For the six months, operating cash flow was $202.0 million, down 11.4%, and capital expenditures were $41.7 million, up 13.3%.
Operational metrics point to a mixed upmarket story. Net revenue retention was 89% as of June 30, 2026 and 2025. Customers with $100,000 or greater in Annual Contract Value totaled 1,891, a decrease of 9 from the prior quarter and an increase of 9 year over year. Upmarket represented 76% of total Company ACV, and Upmarket ACV grew 3% year over year. The company launched GTM.AI, described as a headless GTM context layer, and completed integrations with OpenAI, Claude Code, Amazon Quick Suite, Zapier, and other AI-enabled platforms. Beginning in the third quarter of 2026, ZoomInfo intends to transition a portion of per-seat subscription revenue to a hybrid model with a lower annual platform fee plus pre-purchased data credits. Management expects this change may reduce downsell pressure over time, but near-term revenue headwinds and increased period-to-period variability are possible.
Guidance for the third quarter and full year 2026 reflects both cost discipline and revenue caution. For the third quarter of 2026, non-GAAP adjusted operating income is guided to $113 million to $115 million, and non-GAAP adjusted net income per diluted share is guided to $0.28 to $0.29. Weighted average shares outstanding are expected to be 318 million. For the full fiscal year 2026, non-GAAP adjusted operating income is guided to $446 million to $451 million, and non-GAAP adjusted net income per diluted share is guided to $1.12 to $1.13. Non-GAAP unlevered free cash flow is guided to $403 million to $423 million. Weighted average shares outstanding are expected to be 318 million.
Risks remain elevated. Macroeconomic conditions may continue to pressure the business. The shift to non-seat based pricing could create revenue headwinds and make period-to-period results more variable. Cost of service as a percentage of revenue is expected to slightly increase in the near term because of rising AI consumption costs and customer onboarding expenses for offerings such as ZoomInfo Copilot and ZoomInfo GTM Studio. The goodwill impairment charge was triggered by a sustained decrease in the company's stock price, industry considerations, and a decline in planned revenues and earnings as a result of key changes in strategy. Restructuring and transaction-related expenses, including potential impairments, may vary significantly from historic levels. Litigation settlement charges related to class actions also weighed on general and administrative expense. ZoomInfo carries a large liability related to its tax receivable agreements. Management said it remains in compliance with its debt covenants.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $310.4M | $310.2M | +0.1% | $306.7M | +1.2% |
| Gross profit | $256.8M | $259.2M | -0.9% | $257.2M | -0.2% |
| Gross margin | 82.7% | 83.6% | -0.8 pp | 83.9% | -1.1 pp |
| Research & development | $56.8M | $42.1M | +34.9% | $44.6M | +27.4% |
| Sales & marketing | $107.7M | $103.3M | +4.3% | $106.3M | +1.3% |
| General & administrative | $58.6M | $50.8M | +15.4% | $47.3M | +23.9% |
| Total operating expenses | $878.8M | $201.3M | +336.6% | $203.5M | +331.8% |
| Operating income (loss) | -$622.0M | $57.9M | -1174.3% | $53.7M | -1258.3% |
| Operating margin | -200.4% | 18.7% | -219.1 pp | 17.5% | -217.9 pp |
| Net income (loss) | -$643.7M | $29.3M | -2296.9% | $24.0M | -2782.1% |
| Net margin | -207.4% | 9.4% | -216.8 pp | 7.8% | -215.2 pp |
| Diluted EPS | -$2.19 | $0.10 | -$2.29 | $0.07 | -$2.26 |
Risks
The company intends to launch a hybrid pricing model in the third quarter of 2026 that pairs a lower annual platform fee with pre-purchased data credits instead of its traditional platform plus seat-based packages. Management states this shift may create a near-term revenue headwind and introduces variability in the timing of revenue recognition driven by credit consumption relative to credit allowances, and credit-based billing increases risk of billing disputes, reduced collectability, refunds, and chargebacks.
A goodwill impairment charge of $650.5 million was recognized for the three and six months ended June 30, 2026 due to a sustained decrease in the company's stock price, industry considerations, and a decline in planned revenues and earnings as a result of key changes in strategy. Remaining goodwill of $1,042.2 million as of June 30, 2026 is subject to significant estimation uncertainty, and the charge drove operating income to a loss of $622.0 million in the quarter.
The 2026 Restructuring Program approved May 5, 2026 may not deliver the anticipated savings or operational efficiencies, and headcount reductions could cause attrition beyond planned reductions, reduced employee morale, and difficulty retaining critical management, sales, and engineering personnel. Restructuring and transaction-related expenses rose to $35.3 million in the quarter from $5.1 million in the prior-year quarter.
Net revenue retention was 89% as of June 30, 2026 and 2025, flat year over year, and management expects it to be impacted by macroeconomic conditions in the near term. Deferred revenue declined 1.6% year over year to $464.7 million, and the pricing transition is expected to affect the mix of ACV between seat-based and non-seat-based arrangements.
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 declined 1.1 percentage points to 82.7% in the quarter as cost of revenue grew 8% while revenue rose 1%.
General and administrative expense increased 24% in the quarter, partly on higher litigation settlement expense related to class actions, with litigation settlement charges of $8.5 million versus $1.5 million in the prior-year quarter. Cash litigation settlement payments were $5.7 million for the six months ended June 30, 2026.
Interest expense, net increased 37% to $14.7 million in the quarter primarily due to lower interest income from derivative swaps, and total net leverage to Adjusted EBITDA was 2.3x as of June 30, 2026. The company repurchased $58.5 million in aggregate principal of its Senior Notes for $47.1 million in cash during the six months ended June 30, 2026.
The company had a $2,726.4 million liability related to its projected obligations under its tax receivable agreements as of June 30, 2026. Changes to tax law, corporate income tax rates, or the company's state tax footprint could lead to substantial remeasurement of the TRA liability and its significant deferred tax assets, with minor changes potentially materially affecting the provision for income taxes.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Unlevered Free Cash Flow
Adjusted Operating Income
Net Revenue Retention
Adjusted EBITDA
Summary, forecast, risks and KPIs are extracted from ZoomInfo Technologies Inc.'s SEC filings for Q2 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.