0001794515-25-000167
SEC filingZoomInfo reported solid Q2 results with revenue up 5% YoY and a return to profitability, driven by operational improvements and lower one-time charges.
ZoomInfo's second quarter of 2025 showed a notable recovery in profitability. Revenue increased 5% year-over-year to $306.7 million, led by subscription revenue of $302.8 million. Gross profit rose 5% to $257.2 million, maintaining a stable gross margin of 84%. The company swung from an operating loss of $20.0 million in Q2 2024 to an operating income of $53.7 million, largely due to the absence of large impairment and bad debt charges that hit the prior year. Net income reached $24.0 million compared to a net loss of $24.4 million in the prior-year quarter, with EPS improving to $0.07 from $(0.07).
As of June 30, 2025, ZoomInfo held $171.0 million in cash and cash equivalents and $5.9 million in short-term investments, up from $139.9 million at year-end 2024. Total assets were relatively flat at $6.45 billion. The company drew $100.0 million on its revolving credit facility in May 2025 to fund share repurchases, increasing total debt to $1.33 billion. The current portion of long-term debt remained modest at $5.9 million. The tax receivable agreement liability stood at $2.75 billion. Operating lease liabilities increased significantly due to new and modified leases, totaling $233.1 million at quarter-end.
For the first six months of 2025, operating cash flow was $228.1 million, down from $242.2 million in the same period of 2024, primarily due to $244.3 million in share repurchases. Capital expenditures rose to $36.8 million from $23.9 million, reflecting increased investment in software development and facilities. Free cash flow (operating cash flow minus capex) was approximately $191.3 million for the six-month period. The company financed buybacks partly through $100.0 million in revolving credit borrowings.
Management highlighted the ongoing shift upmarket and the introduction of AI-powered Copilot as key growth drivers. Net revenue retention improved to 89% from 85% a year ago, with customers contracted for over $100,000 in ACV increasing to 1,884. A restructuring plan initiated in June 2025 reduced headcount by 6%, incurring $4.2 million in charges, aimed at supporting durable and efficient growth. The company also noted macroeconomic uncertainty as a continuing headwind. No specific quantitative guidance was provided for future periods.
Revenue disaggregation showed subscription revenue of $302.8 million (98.7% of total), usage-based $2.4 million, and other $1.5 million. Remaining performance obligations (RPO) stood at $1.15 billion as of June 30, 2025, with $842.0 million expected to be recognized within one year. Stock-based compensation totaled $29.7 million in Q2, down 18% from $36.4 million. The company repurchased 15.9 million shares at an average price of $9.22 per share, and subsequent to quarter-end, an additional 2.5 million shares were repurchased for $25.8 million.