ZoomInfo (NASDAQ: GTM), the leader in modern go-to-market (GTM) software and data, reported fourth-quarter and full-year 2025 results that showcased a company successfully re-engineering its business model around Artificial Intelligence. While the company beat Wall Street estimates for both revenue and earnings, a cautious 2026 outlook led to a 6% decline in after-hours trading as investors weighed high profitability against flat growth projections.
Financial Performance: Record Revenue and Profitability Beats
ZoomInfo closed out 2025 with a strong operational showing, bolstered by its high-margin software model and continued cost discipline.
Q4 2025 Results
Revenue: $319.1 million, a 3.2% year-on-year (YoY) increase, surpassing the consensus estimate of $309.3 million.
Non-GAAP Diluted EPS: $0.32, beating analyst expectations of $0.28 by over 14%.
Adjusted Operating Income: $122.6 million, representing a robust 38% margin.
Free Cash Flow: $135.2 million, a 44% surge YoY, highlighting the company’s strong cash generation profile.
Full-Year 2025 Results
Total Revenue: $1.25 billion, up 3% from FY2024.
GAAP Operating Income: $225.7 million, more than doubling from the previous year.
Net Profit: $124.2 million, or $0.38 per share (GAAP).
Segment Highlights: The “Upmarket” Engine
The quarter’s results underscored ZoomInfo’s successful transition away from small-to-midsize businesses (SMBs) toward large enterprise accounts.
Enterprise Growth: The company now counts 1,921 customers with an Annual Contract Value (ACV) of $100,000 or greater, up 54 from last year. These high-value clients now represent over 50% of ZoomInfo’s total ACV.
Segment Mix: The “Upmarket” segment now contributes 74% of total ACV, growing at a 6% YoY clip, which helped offset ongoing contractions in the “Downmarket” (SMB) sector.
Retention: Net Revenue Retention (NRR) stood at 90% as of December 31, 2025, showing relative stability despite a challenging macroeconomic environment for software spending.
Con Call Highlights: AI at the Core of “RevOS”
In the earnings conference call, CEO Henry Schuck positioned 2025 as the foundation year for ZoomInfo’s transformation into an AI-first platform.
Henry Schuck, Founder & CEO said, “In 2025, we delivered record revenue and expanded profitability while building the all-in-one AI platform for go-to-market teams. In 2026, our focus is on bringing that platform to our customers at scale.”
Key Strategic Takeaways:
AI Copilot Adoption: Management noted that early renewals of the AI Copilot product are yielding mid-to-high single-digit percentage uplifts compared to standard SalesOS renewals.
Operations Suite: The Operations product suite remains a standout, growing over 20% YoY as enterprises prioritize data quality to fuel their internal AI initiatives.
Massive Share Buybacks: Following the repurchase of 40.5 million shares in 2025 (approx. 12% of shares outstanding), the Board approved a new $1.0 billion share repurchase authorization in February 2026, signaling deep confidence in the stock’s intrinsic value.
Investor Outlook
ZoomInfo is transforming into a highly profitable “Cash Cow.” With a 38% adjusted operating margin and nearly $500M in annual free cash flow, the company is using its capital to shrink its share count rapidly. For value investors, the forward P/E of 8x is exceptionally attractive for a software leader.
ZoomInfo is no longer a hyper-growth SaaS darling; it is an efficiency-first platform play. Its success in 2026 will depend on whether its AI tools can move from “nice-to-have” data search to “must-have” workflow automation, effectively increasing its NRR and stabilizing its seat count.
The Bottom Line
Investors are currently navigating a “wait-and-see” period. While ZoomInfo is a profitability powerhouse with attractive cash flow margins and a massive buyback program, it has yet to prove that its new AI features can re-accelerate overall revenue growth back into double digits.