Summary
ZoomInfo closed fiscal 2025 with fourth-quarter revenue of $319.1 million, up 3.2% year-over-year. Full-year revenue reached $1,249.5 million, up 2.9%. Gross profit was $268.0 million in the quarter, up 4.7%, and $1,049.9 million for the year, up 2.5%. The company reported fourth-quarter operating income of $54.2 million, up 75.4%, and full-year operating income of $225.7 million, up 131.7%. Net income was $34.7 million in the quarter, up 137.7%, and $124.2 million for the year, up 326.8%. Full-year diluted EPS was $0.38, up $0.30. Operating cash flow was $143.5 million in the quarter, up 31.7%, and $465.4 million for the year, up 26.0%. Capital expenditures were $16.4 million in the quarter, down 29.9%, and $76.1 million for the year, up 17.3%.
Margins expanded sharply on a GAAP basis. Fourth-quarter gross margin was 84.0%, up 1.2 percentage points, while full-year gross margin was 84.0%, down 0.3 percentage points. Fourth-quarter operating margin was 17.0%, up 7.0 percentage points, and full-year operating margin was 18.1%, up 10.0 percentage points. On a non-GAAP basis, fourth-quarter adjusted operating income was $122.6 million, up 6%, and full-year adjusted operating income was $445.9 million, up 4%. Adjusted operating income margin was 38% in the quarter and 36% for the year. Fourth-quarter unlevered free cash flow was $135.2 million, up 44%, and full-year unlevered free cash flow was $454.9 million, up 2%. Adjusted net income per diluted share was $0.32 in the quarter and $1.09 for the year.
Operational metrics showed progress in the upmarket push. ZoomInfo ended the quarter with 1,921 customers with $100,000 or greater in annual contract value, an increase of 34 from the prior quarter and 54 year-over-year. These customers now make up more than 50% of total company annual contract value. Upmarket customers represented 74% of annual contract value, an increase of 6% year-over-year. Net revenue retention was 90% as of December 31, 2025, compared with 87% as of December 31, 2024. The company added 10.2 million contacts discoverable through enhanced title classification, expanded international mobile coverage by 1.8 million numbers across the UK, France, Germany, Italy, Spain, and the Netherlands, and verified location data for 160 million contacts. ZoomInfo was named a Leader in the 2025 Gartner Magic Quadrant for Account-Based Marketing Platforms for the second year in a row. The company repurchased 40.5 million shares during 2025, or 12% of total shares outstanding, at an average price of $10.06. As of year-end, $230.6 million remained under existing share repurchase authorizations, and the board approved an additional $1.0 billion authorization in February 2026.
Guidance covers the first quarter of 2026 and the full fiscal year 2026. First-quarter non-GAAP adjusted operating income is guided to $105 million to $108 million, and full-year 2026 non-GAAP adjusted operating income is guided to $456 million to $466 million. First-quarter non-GAAP adjusted net income per share is guided to $0.25 to $0.27, and full-year 2026 non-GAAP adjusted net income per share is guided to $1.10 to $1.12. Full-year 2026 non-GAAP unlevered free cash flow is guided to $435 million to $465 million, while the first quarter is not guided. Revenue guidance was also provided for both periods. Deferred revenue was $477.8 million, flat. Remaining performance obligations were $1.25 billion, up 8.3%. The company reported a total net leverage ratio to adjusted EBITDA of 2.4x and a consolidated first lien net leverage ratio of 1.0x. Adjusted EBITDA was $475.7 million and cash EBITDA was $484.7 million.
Management flagged several risks. Macroeconomic conditions may continue to affect the business, and the company expects net revenue retention to be impacted by macroeconomic conditions in the near term. 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. Gross margin is expected to fluctuate from period to period. Restructuring and transaction-related expenses, including potential impairments, could vary significantly from historic levels. The company also noted that changes to tax law or its state tax footprint could lead to substantial remeasurement of the tax receivable agreement liability. Its credit agreements contain restrictive covenants that may limit dividends, share repurchases, acquisitions, and other activities. The June 2025 reduction in force cut approximately 6% of employees in the second quarter of 2025 and was substantially completed as of June 30, 2025.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $319.1M | $318.0M | +0.3% | $309.1M | +3.2% |
| Gross profit | $268.0M | $266.3M | +0.6% | $255.9M | +4.7% |
| Gross margin | 84.0% | 83.7% | +0.3 pp | 82.8% | +1.2 pp |
| Research & development | $42.2M | $44.1M | -4.3% | $56.4M | -25.2% |
| Sales & marketing | $100.7M | $101.6M | -0.9% | $114.9M | -12.4% |
| General & administrative | $65.7M | $47.9M | +37.2% | $48.3M | +36.0% |
| Total operating expenses | $213.8M | $198.8M | +7.5% | $225.0M | -5.0% |
| Operating income (loss) | $54.2M | $67.5M | -19.7% | $30.9M | +75.4% |
| Operating margin | 17.0% | 21.2% | -4.2 pp | 10.0% | +7.0 pp |
| Net income (loss) | $34.7M | $38.7M | -10.3% | $14.6M | +137.7% |
| Net margin | 10.9% | 12.2% | -1.3 pp | 4.7% | +6.1 pp |
| Diluted EPS | $0.11 | $0.12 | -$0.01 | $0.04 | +$0.07 |
Risks
Risk factors state weaker economic conditions could reduce customer spending, elongate sales cycles, and lead to renegotiations or non-renewal. MD&A notes FY2025 year-to-date revenue rose 2.9% to $1.25 billion while deferred revenue was flat at $477.8 million versus the prior-year quarter, and says net revenue retention was 90% as of Dec 31, 2025 compared with 87% a year earlier and expects near-term impact from macroeconomic conditions.
Risk factors newly emphasize that prominent LLM providers and generative AI companies may incorporate business contact information and market insights directly into models or offer them at substantially lower or no incremental cost. They also warn that AI-driven seat compression could lead customers to reduce seat counts at renewal, negatively impacting revenue even as they derive equal or greater value.
Risk factors highlight dependence on accurate, comprehensive data and a quality guarantee that allows customers to terminate and seek reimbursement if accuracy falls below a threshold. State laws and DROP launched Jan 1, 2026, plus third-party opt-out intermediaries, could increase opt-out rates and impair the contributory network and ability to gather and maintain data.
Risk factors describe complex and evolving privacy laws, including approximately twenty state comprehensive privacy laws as of January 2026 and Virginia HB638 introduced Jan 13, 2026, which would regulate data brokers by Q2 2027 and mandate a $100,000 registration fee. The EU-US DPF remains subject to legal scrutiny and NOYB challenges, creating uncertainty for cross-border data transfers.
As of Dec 31, 2025, the Company had a liability of $2,731.9 million related to projected obligations under the Tax Receivable Agreements, and $23.6 million was paid to TRA holders in FY2025. Risk factors state payments may be accelerated and significantly exceed actual cash tax benefits, potentially impairing liquidity or change of control transactions.
MD&A states 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 for ZoomInfo Copilot and GTM Studio. Risk factors note AI infrastructure and specialized talent costs may increase more rapidly than anticipated, potentially affecting margins and profitability.
Risk factors state the strategy to expand the enterprise customer base presents longer and more complex average sales cycles and requires significant investments in sales talent, product capabilities, and operational infrastructure. If enterprise sales efforts do not generate additional revenue or require longer periods to realize revenue, business would suffer.
Risk factors state the Company continues to be led by CEO and co-founder Henry Schuck, and his loss could be difficult or impossible to replace. Competition for technical and sales talent is intense, and increased emphasis on in-office work may reduce talent pools and increase hiring difficulty.
Risk factors state the Company historically relied heavily on Google SEO and paid search to generate website traffic. Increasing adoption of AI-powered search experiences and LLM models that provide answers without directing users to third-party websites could reduce click-through rates, inbound lead volume, and increase customer acquisition costs.
Risk factors state integrations with third-party systems such as Salesforce, Marketo, HubSpot, Microsoft Dynamics, and Oracle Sales Cloud are critically important. If Salesforce were to refuse to permit the integration to access its APIs, the integration would not function and customer experience would be hampered.
Risk factors state larger and better-funded companies such as Salesforce, Oracle, Google, and Microsoft/LinkedIn may enter the B2B sales and marketing intelligence space with greater resources and brand recognition. Competitors may also offer more flexible pay-as-you-go pricing that is more desirable to small and mid-market customers.
MD&A discloses a June 2025 reduction in force of approximately 6% to support moving upmarket, with restructuring and transaction-related expenses of $40.3 million for FY2025, primarily impairment charges related to Vancouver and Ra'anana and employee severance. Execution of the restructuring and move upmarket may not achieve durable and efficient growth.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Unlevered Free Cash Flow
Adjusted Operating Income
Net Revenue Retention
Total customers
Customers > $100K ACV
Summary, forecast, risks and KPIs are extracted from ZoomInfo Technologies Inc.'s SEC filings for Q4 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.