0001794515-26-000012
SEC filingRevenue grew 3% to $1.25B, with operating margin expansion to 18% driven by cost discipline and restructuring benefits.
ZoomInfo is a global leader in modern go-to-market software, data, and intelligence for sales, marketing, operations, and recruiting teams. The company empowers businesses with AI-ready insights, trusted data, agent-assisted selling, and advanced automation to help professionals deliver the right message to the right person at the right time.
The platform consists of three layers: Intelligence (foundation of data), Orchestration (integrates and enriches data), and Engagement (actionable insights). Named products include ZoomInfo Copilot, ZoomInfo Sales, ZoomInfo Marketing, ZoomInfo Operations, and ZoomInfo Talent, plus a free community edition called ZoomInfo Lite. The platform leverages an AI and ML-powered engine that gathers billions of data points from millions of sources for standardization, matching, verification, and cleaning.
ZoomInfo believes no competitor offers a sales-to-recruiting intelligence platform as comprehensive. Named competitors include LinkedIn Sales Navigator, D&B Hoovers, TechTarget, and large-language-model providers/generative AI companies. Competitive factors include platform comprehensiveness, data quality and breadth, ease of use, pricing relative to ROI, data privacy/security, CRM integration, and sophistication of intelligence solutions. The company believes it competes favorably across these factors.
ZoomInfo's strategy centers on its AI/ML-powered data engine to deliver high-quality intelligence at scale. The company employs a human-in-the-loop team of research analysts and data scientists to augment technology, focusing on quality assurance and addressing data gaps. It provides a contractual guarantee of the accuracy of certain data points. Strategic priorities also include maintaining a comprehensive platform with three distinct layers (Intelligence, Orchestration, Engagement) and integrating with major CRM systems.
As of December 31, 2025, ZoomInfo had 3,180 employees: 662 in cost of service, 1,370 in sales and marketing, 763 in R&D, and 385 in G&A. Employee geographic distribution: 72% North America, 9% Middle East, 16% Asia, 3% Europe. Diversity metrics: 28% of U.S. workforce self-identified as minority; 32% identified as female. The company emphasizes fair compensation, hybrid work model, and training/development programs.
For the year ended December 31, 2025, ZoomInfo reported revenue of $1,249.5 million, a 3% increase from $1,214.3 million in 2024. The growth was primarily attributed to the operational changes implemented in the second quarter of 2024, which included a new business risk model that reduced write-offs and focused on higher-quality customers. Gross profit rose 2% to $1,049.9 million, maintaining a gross margin of 84% as cost increases in hosting, infrastructure, and depreciation were offset by lower lease restructuring charges. GAAP income from operations surged 132% to $225.7 million, with operating margin expanding from 8% to 18%, driven by revenue growth and significant reductions in general and administrative expenses (down 30%) and restructuring costs. Net income increased 327% to $124.2 million, boosted by lower operating expenses and a $6.9 million gain from Tax Receivable Agreement remeasurement, partially offset by a higher effective tax rate (36.1% vs. 7.2% in 2024) due to state tax law changes.
Non-GAAP metrics also improved: Adjusted Operating Income grew 4% to $445.9 million, with margin rising from 35% to 36%, and Adjusted Net Income increased 1% to $369.2 million. The company highlighted that equity-based compensation declined 16% to $116.2 million, reflecting lower grant fair values and higher capitalization.
The MD&A does not provide segment-level revenue or profit breakdowns. However, the company noted that its top five industries by ACV remained software (32%), non-IT business services (18%), IT business services (8%), financial/insurance/real estate (9%), and manufacturing (7%). The mix shifted slightly, with non-IT business services declining from 20% to 18% of ACV. Customer concentration remained low, with no single customer exceeding 10% of revenue. International revenue was stable at 12% of total revenue. The number of customers with over $100k ACV grew 3% to 1,921, now representing over 50% of total ACV, indicating successful upmarket movement. Net revenue retention improved to 90% from 87%, signaling better renewal and expansion trends despite macroeconomic headwinds.
Management expects near-term net revenue retention to remain pressured by macroeconomic conditions but aims for long-term improvement through upmarket focus. They anticipate continued investment in sales and marketing capacity, with sales and marketing expense (excluding stock-based comp and restructuring) fluctuating as a percentage of revenue. Research and development spending is expected to be flat to moderately increasing in the short term, then modestly declining as efficiencies are gained. Cost of service is expected to increase slightly as a percentage of revenue due to AI consumption costs and customer onboarding for new offerings like ZoomInfo Copilot and GTM Studio. The company highlighted the impact of the June 2025 restructuring (6% workforce reduction) and $500 million share repurchase program authorized in February 2025. No specific numeric guidance was provided, but the tone suggests a focus on durable, efficient growth and continued margin expansion.
As of December 31, 2025, ZoomInfo held $175.9M in cash and cash equivalents and $4.0M in short-term investments, totaling $179.9M in liquid assets. Total debt stood at $1,324.0M, consisting of a $579.3M First Lien Term Loan, $100.0M drawn on the First Lien Revolving Credit Facility, and $644.7M in Senior Notes. Shareholders' equity was $1,508.7M, down from $1,693.5M at year-end 2024, primarily due to share repurchases. The company's remaining performance obligations (RPO) were $1,252.4M, with $887.4M expected to be recognized within one year.
ZoomInfo reported $77.3M in non-cancelable purchase obligations as of December 31, 2025, primarily related to third-party cloud hosting and SaaS arrangements. Of this total, $40.4M is due within one year, $35.5M in 2027, and $1.4M in 2028. The company also has operating lease liabilities of $245.2M, with undiscounted future minimum lease payments of $405.5M, including $267.8M due after 2030. Additionally, the company has a Tax Receivable Agreements liability of $2,731.9M, net of current portion.
ZoomInfo's capital allocation strategy heavily emphasizes share repurchases. During 2025, the company repurchased 40,462,670 shares for $407.0M at an average price of $10.06. As of December 31, 2025, $230.6M remained available under the $1.6B authorized program. In February 2026, the board authorized an additional $1.0B in repurchases. The company drew $100.0M on its revolving credit facility in May 2025 to fund repurchases. Capital expenditures were $76.1M (6.1% of sales). No dividends were declared or paid. Debt repayment was $5.9M, and the company made $23.6M in TRA payments.
ZoomInfo operates as a single operating segment. Revenue for 2025 was $1,249.5M, with subscription revenue of $1,229.0M (98.4% of total), usage-based revenue of $15.0M, and other revenue of $5.5M. Geographically, United States revenue was $1,103.7M (88.3% of total), while Rest of World contributed $145.8M (11.7%). International revenue declined slightly from 12% to 11.7% of total revenue year-over-year. The CODM uses net income for performance assessment and resource allocation.
The filing emphasizes that weaker economic conditions could reduce customer spending on sales, marketing, and recruiting technology, leading to longer sales cycles, higher attrition, and contract renegotiations. This is a recurring theme but remains material given the current uncertain macroeconomic environment.
A significant new emphasis is placed on AI-driven risks: (1) AI-powered agents may enable customers to achieve similar outcomes with fewer seats, compressing revenue; (2) prominent LLM providers (e.g., Google, Microsoft/LinkedIn) could integrate business data directly into their models, competing at lower cost. The company acknowledges substantial investments in AI capabilities (Copilot, GTM Workspace, GTM Studio) may not yield expected returns if customer demand fails to materialize.
The filing details an increasingly complex privacy landscape: California's DROP (launched Jan 1, 2026) allows consumers to submit single deletion requests to all data brokers; Virginia HB638 proposes a $100,000 registration fee for data brokers. The EU AI Act imposes penalties up to €35M or 7% of global turnover. The EU-US Data Privacy Framework remains under legal challenge (NOYB). These regulations could limit data collection, increase compliance costs, and reduce demand.
As of Dec 31, 2025, total debt stood at $1.33 billion. Variable-rate exposure creates sensitivity to interest rate changes. The company also highlights goodwill impairment risk if sustained stock price declines occur. Tax Receivable Agreement obligations could accelerate in a change of control, potentially exceeding actual tax benefits.
Dependence on search engine algorithms and AI-powered search experiences for traffic is flagged as a risk; algorithm changes could increase customer acquisition costs. Cybersecurity threats remain a perennial concern, with remote work increasing vulnerability. The company maintains ISO 27001, SOC 2, and other certifications but acknowledges past targeting by attackers.
The classified board structure, supermajority voting provisions, and exclusive forum clauses could deter takeover attempts. The Founders retain board designation rights, potentially influencing strategic decisions.
The provided document excerpt does not contain the actual cash flow statement; it includes only the audit opinion and critical audit matter regarding deferred tax assets. Without the Consolidated Statements of Cash Flows, no cash flow figures can be extracted or analyzed.