Summary
ZoomInfo reported third quarter revenue of $318.0 million, up 4.7% from the prior-year quarter. Year-to-date revenue reached $930.4 million, up 2.8%. Gross profit was $266.3 million, up 3.9%, while gross margin slipped to 83.7%, down 0.7 percentage points from the prior-year quarter. Operating income jumped to $67.5 million, up 55.2%, and operating margin expanded to 21.2%, up 6.9 percentage points from the prior-year quarter. Net income rose to $38.7 million, up 62.6%, and diluted EPS was $0.12, up 71.4%. On a year-to-date basis, net income was $89.5 million, up 517.2%, and diluted EPS was $0.27, up 575.0%. Non-GAAP adjusted operating income was $117.7 million, with an adjusted operating income margin of 37%. Adjusted net income per share was $0.28.
Cash generation improved sharply. Operating cash flow was $93.8 million for the quarter, up 415.4% from the prior-year quarter. Year-to-date operating cash flow was $321.9 million, up 23.6%. Capital expenditures were $22.9 million, up 30.1%, and year-to-date capital expenditures were $59.7 million, up 43.9%. Unlevered free cash flow was $95.3 million. Deferred revenue stood at $431.9 million, up 3.0%, and remaining performance obligations were $1.17 billion, up 11.2%. Trailing twelve-month Adjusted EBITDA was $467.3 million, and Cash EBITDA was $490.7 million. The total net leverage ratio was 2.6x, and the first lien net leverage ratio was 1.1x.
Operational momentum centered on upmarket customers. Net revenue retention improved to 90% as of September 30, 2025, compared with 85% a year earlier. The company closed the quarter with 1,887 customers spending $100,000 or more in annual contract value, an increase of 78 year-over-year. Upmarket represented 73% of ACV, and Upmarket ACV grew 6% year-over-year. ZoomInfo launched GTM Workspace, an AI-powered execution engine, and was recognized as the only vendor in the customers choice quadrant in the 2025 Gartner Voice of the Customer Report for Account-Based Marketing Platforms. Salesforce announced Agentforce Sales with data and Agentic integrations to ZoomInfo. The company also repurchased shares during the quarter.
Guidance points to a sequential revenue decline in the fourth quarter. Management guided fourth quarter 2025 adjusted operating income to $117 million to $120 million, and full year 2025 adjusted operating income to $440 million to $443 million. Fourth quarter adjusted net income per diluted share is guided to $0.27 to $0.29, and full year adjusted net income per diluted share is guided to $1.04 to $1.06. Full year unlevered free cash flow is guided to $424 million to $444 million. Weighted average shares outstanding are expected to be 331 million for the fourth quarter and 341 million for the full year. Risks include adverse macroeconomic conditions, rising AI consumption costs, customer onboarding expenses for offerings such as ZoomInfo Copilot and ZoomInfo GTM Studio, potential gross margin fluctuations, restructuring and transaction-related expenses, acquisition integration, debt covenant compliance, TRA liability remeasurement, and changes in tax law.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $318.0M | $306.7M | +3.7% | $303.6M | +4.7% |
| Gross profit | $266.3M | $257.2M | +3.5% | $256.3M | +3.9% |
| Gross margin | 83.7% | 83.9% | -0.1 pp | 84.4% | -0.7 pp |
| Research & development | $44.1M | $44.6M | -1.1% | $47.7M | -7.5% |
| Sales & marketing | $101.6M | $106.3M | -4.4% | $99.1M | +2.5% |
| General & administrative | $47.9M | $47.3M | +1.3% | $60.6M | -21.0% |
| Total operating expenses | $198.8M | $203.5M | -2.3% | $212.8M | -6.6% |
| Operating income (loss) | $67.5M | $53.7M | +25.7% | $43.5M | +55.2% |
| Operating margin | 21.2% | 17.5% | +3.7 pp | 14.3% | +6.9 pp |
| Net income (loss) | $38.7M | $24.0M | +61.3% | $23.8M | +62.6% |
| Net margin | 12.2% | 7.8% | +4.3 pp | 7.8% | +4.3 pp |
| Diluted EPS | $0.12 | $0.07 | +$0.05 | $0.07 | +$0.05 |
| Customers | 1,887 | 1,884 | +0.2% | — | — |
Risks
MD&A expects cost of service as a percentage of revenue 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 0.7 pp for the quarter and down 0.9 pp year to date.
MD&A discloses a $2,725.1 million liability related to projected tax receivable agreement obligations as of September 30, 2025 and states that remeasurement of deferred tax assets can materially affect the provision for income taxes and is typically offset partly through other income, net.
MD&A states adverse macroeconomic conditions have impacted and may continue to impact the business and financial condition, and it expects near-term net revenue retention to be impacted by macroeconomic conditions; net revenue retention was 90% at September 30, 2025 and 85% at September 30, 2024.
MD&A reports interest expense, net increased 20% to $11.5 million for the quarter ended September 30, 2025, and total net leverage ratio to Adjusted EBITDA was 2.6x as of September 30, 2025, with credit agreement restrictive covenants limiting dividends, repurchases, and acquisitions.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Unlevered Free Cash Flow
Adjusted Operating Income
Net Revenue Retention
Total customers
Adjusted EBITDA
Customers > $100K ACV
Adjusted Net Income
Adjusted Net Income Per Share (Diluted)
Summary, forecast, risks and KPIs are extracted from ZoomInfo Technologies Inc.'s SEC filings for Q3 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.