ZoomInfo's Net Income Soars 517% Amidst Revenue Growth

TL;DR

**GTM's massive net income jump and cost cuts make it a strong buy, despite modest revenue growth.**

AI Summary

ZoomInfo Technologies Inc. (GTM) reported a significant increase in net income for the nine months ended September 30, 2025, reaching $89.5 million, up from $14.5 million in the prior year, representing a 517% increase. Revenue also grew to $930.4 million for the nine-month period, compared to $905.2 million in 2024, a 2.8% increase. For the three months ended September 30, 2025, net income was $38.7 million, a 62.6% increase from $23.8 million in the same period last year, with revenue rising to $318.0 million from $303.6 million, a 4.7% increase. The company saw a notable reduction in general and administrative expenses, which decreased to $141.0 million for the nine months ended September 30, 2025, from $247.0 million in the prior year, a 42.9% reduction. Operating income surged to $171.5 million for the nine-month period, a 157.9% increase from $66.5 million in 2024. Despite these gains, total assets slightly decreased to $6,369.7 million from $6,467.6 million at December 31, 2024, while total liabilities increased to $4,839.2 million from $4,774.1 million. The company also repurchased 32,757,891 shares of common stock for $330.5 million during the nine months ended September 30, 2025.

Why It Matters

ZoomInfo's substantial increase in net income and operating income, coupled with a reduction in G&A expenses, signals improved operational efficiency and profitability, which is a positive for investors. The company's continued revenue growth, albeit modest, in a competitive B2B sales and marketing intelligence market, demonstrates resilience. For employees, this financial health could mean stability and potential for growth, while customers benefit from a company with resources to invest in product development, including AI capabilities. The competitive landscape, with smaller and larger players, means ZoomInfo must continue innovating to maintain its market position, making its strategic outlook on AI critical.

Risk Assessment

Risk Level: medium — The risk level is medium due to the company's substantial amount of debt, totaling $1,319.0 million net of current portion as of September 30, 2025, which could adversely affect its financial position. Additionally, the filing highlights risks related to rapidly evolving markets, including AI, and potential impacts from changes in data privacy laws, which could diminish demand for its platform or restrict data gathering capabilities.

Analyst Insight

Investors should consider ZoomInfo's improved profitability and operational efficiency as a positive indicator, but closely monitor its debt levels and exposure to evolving data privacy regulations. The company's investment in AI capabilities could be a growth driver, warranting further investigation into its AI strategy and competitive positioning.

Financial Highlights

debt To Equity

3.16

revenue

$930.4M

operating Margin

18.4%

total Assets

$6,369.7M

total Debt

$1,324.9M

net Income

$89.5M

cash Position

$124.8M

revenue Growth

+2.8%

Key Numbers

• $89.5M — Net Income (9 months) (Increased from $14.5M in 2024, a 517% rise)
• $930.4M — Revenue (9 months) (Increased from $905.2M in 2024, a 2.8% rise)
• $38.7M — Net Income (Q3) (Increased from $23.8M in Q3 2024, a 62.6% rise)
• $318.0M — Revenue (Q3) (Increased from $303.6M in Q3 2024, a 4.7% rise)
• $141.0M — General & Administrative Expenses (9 months) (Decreased from $247.0M in 2024, a 42.9% reduction)
• $171.5M — Income from Operations (9 months) (Increased from $66.5M in 2024, a 157.9% rise)
• $1,319.0M — Long-term Debt (net of current portion) (As of September 30, 2025, a significant liability)
• 32,757,891 — Shares Repurchased (For $330.5M during the nine months ended September 30, 2025)
• $124.8M — Cash and Cash Equivalents (As of September 30, 2025, down from $139.9M at Dec 31, 2024)
• $429.0M — Unearned Revenue (current portion) (As of September 30, 2025, down from $473.8M at Dec 31, 2024)

Key Players & Entities

• ZoomInfo Technologies Inc. (company) — registrant
• SEC (regulator) — Securities and Exchange Commission
• $89.5 million (dollar_amount) — Net income for nine months ended September 30, 2025
• $14.5 million (dollar_amount) — Net income for nine months ended September 30, 2024
• $930.4 million (dollar_amount) — Revenue for nine months ended September 30, 2025
• $905.2 million (dollar_amount) — Revenue for nine months ended September 30, 2024
• $141.0 million (dollar_amount) — General and administrative expenses for nine months ended September 30, 2025
• $247.0 million (dollar_amount) — General and administrative expenses for nine months ended September 30, 2024
• $1,319.0 million (dollar_amount) — Long-term debt, net of current portion as of September 30, 2025
• Nasdaq Stock Market LLC (company) — exchange where common stock is registered

FAQ

Risk Factors

• Tax Receivable Agreements Liability [medium — financial]: The company has a significant Tax Receivable Agreements liability of $2,724.6 million as of September 30, 2025. Changes in tax laws or the company's ability to utilize its tax attributes could impact the valuation and settlement of these agreements, potentially affecting future cash flows and financial results.
• Long-term Debt Increase [medium — financial]: Long-term debt, net of current portion, increased to $1,319.0 million as of September 30, 2025, from $1,221.8 million at December 31, 2024. This increase in leverage could heighten financial risk, especially if interest rates rise or the company's operating performance deteriorates.
• Dependence on Cloud Infrastructure [medium — operational]: The company's cloud-based platform relies heavily on third-party cloud infrastructure providers. Any disruptions, security breaches, or failures in these services could significantly impact the availability and performance of ZoomInfo's platform, leading to customer dissatisfaction and revenue loss.
• Intense Competition [medium — market]: The go-to-market intelligence and engagement platform market is highly competitive. ZoomInfo faces competition from established players and emerging companies, which could pressure pricing, market share, and innovation efforts.
• Data Privacy and Security Regulations [high — regulatory]: As a provider of business data, ZoomInfo is subject to evolving data privacy and security regulations globally (e.g., GDPR, CCPA). Non-compliance could result in significant fines, reputational damage, and operational disruptions.

Industry Context

ZoomInfo operates in the competitive SaaS market for go-to-market intelligence and engagement platforms. The industry is characterized by rapid technological advancements, increasing demand for data-driven sales and marketing solutions, and a focus on AI-powered insights. Key trends include the integration of AI for predictive analytics, automation of sales processes, and enhanced data privacy compliance.

Regulatory Implications

ZoomInfo faces significant regulatory scrutiny related to data privacy and security. Compliance with evolving regulations like GDPR and CCPA is critical to avoid substantial fines and reputational damage. Changes in tax laws could also impact the valuation and settlement of its Tax Receivable Agreements.

What Investors Should Do

1. Monitor G&A expense management
2. Analyze long-term debt trends
3. Evaluate revenue growth drivers
4. Assess the impact of Tax Receivable Agreements

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported significant net income growth (517%) and revenue increase (2.8%), driven by reduced G&A expenses and strong operating income growth.
• 2025-09-30: Third quarter ended September 30, 2025 — Continued positive momentum with 62.6% net income growth and 4.7% revenue growth year-over-year.
• 2025-09-30: Balance Sheet Date — Total assets slightly decreased, while total liabilities increased, with a notable rise in long-term debt.
• 2025-09-30: Share Repurchases — Company repurchased over 32.7 million shares for $330.5 million, indicating a commitment to returning capital to shareholders.

Glossary

Go-to-market intelligence and engagement platform

A software solution that provides data and tools to help sales, marketing, and other business professionals identify, engage with, and convert potential customers. (This is the core business offering of ZoomInfo Technologies Inc.)

Unearned revenue

Revenue that has been received by a company for goods or services that have not yet been delivered or rendered. It is recorded as a liability on the balance sheet. (A significant current liability for ZoomInfo, indicating future revenue streams from existing contracts.)

Tax receivable agreements liability

Liabilities arising from agreements with entities (often related to prior acquisitions) that allow the company to receive a portion of the tax benefits realized from certain tax attributes. (A substantial liability for ZoomInfo, impacting its financial position and future cash flows.)

Operating lease right-of-use assets

Assets recognized under accounting standards for leases, representing the right to use an asset for the lease term. (Reflects ZoomInfo's use of leased properties and equipment.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net identifiable assets. (Represents the premium paid in past acquisitions, indicating significant past M&A activity.)

Year-Over-Year Comparison

Compared to the prior year, ZoomInfo has demonstrated a substantial improvement in profitability, with net income soaring by 517% for the nine-month period, largely due to a significant reduction in general and administrative expenses. Revenue growth has been more modest at 2.8% for the same period. While total assets saw a slight decrease, total liabilities have increased, primarily driven by a rise in long-term debt. The company has also actively engaged in share repurchases, returning capital to shareholders.

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share GTM The Nasdaq Stock Market L

Filing Documents

• zi-20250930.htm (10-Q) — 1790KB
• zi-ex311x20250930.htm (EX-31.1) — 12KB
• zi-ex312x20250930.htm (EX-31.2) — 11KB
• zi-ex321x20250930.htm (EX-32.1) — 13KB
• 0001794515-25-000184.txt ( ) — 9648KB
• zi-20250930.xsd (EX-101.SCH) — 54KB
• zi-20250930_cal.xml (EX-101.CAL) — 100KB
• zi-20250930_def.xml (EX-101.DEF) — 318KB
• zi-20250930_lab.xml (EX-101.LAB) — 765KB
• zi-20250930_pre.xml (EX-101.PRE) — 556KB
• zi-20250930_htm.xml (XML) — 1522KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 1 Consolidated Balance Sheets 2 Consolidated Statements of Operations 3 Consolidated Statements of Comprehensive Income 4 Consolidated Statements of Changes in Stockholders' Equity 5 Consolidated Statements of Cash Flows 7 Notes to the Consolidated Financial Statements 9

Management ' s Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 41

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 62

Controls and Procedures

Item 4. Controls and Procedures 63

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 64

Risk Factors

Item 1A. Risk Factors 64

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 64

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 64

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 65

Other Information

Item 5. Other Information 65

Exhibits

Item 6. Exhibits 66

Signatures

Signatures 67 i Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS From time to time we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not historical facts. These statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied by these statements. This Quarterly Report on Form 10-Q (this "Form 10-Q") contains forward-looking statements that reflect our current views with respect to, among other things, our operations and financial performance. These forward-looking statements are included throughout this Form 10-Q, including in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations", and relate to matters such as our industry, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. In some cases, you can identify these forward-looking statements by the use of words such as "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "might," "objective," "outlook," "plan," "potential," "predict," "projection," "seek," "should," "target," "trend," "will," "would" or the negative version of these words or other comparable words. We have based our forward-looking statements on beliefs and assumptions based on information available to us at the time the statements are made. We caution you that assumptions, beliefs, expectations, intentions and projections about future events may, and often do, vary materially from actual results. Therefore, we cannot assure you that actual results will not differ materially from those expres

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS INDEX TO FINANCIAL STATEMENTS Unaudited Consolidated Financial Statements of ZoomInfo Technologies Inc. and Subsidiaries Consolidated Balance Sheets 2 Consolidated Statements of Operations 3 Consolidated Statements of Comprehensive Income 4 Consolidated Statements of Changes in Stockholders' Equity 5 Consolidated Statements of Cash Flows 7 Notes to the Consolidated Financial Statements 9 1 Table of Contents ZoomInfo Technologies Inc. Consolidated Balance Sheets (in millions, except share data) September 30, December 31, 2025 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 124.8 $ 139.9 Short-term investments 10.2 — Accounts receivable, net 175.5 246.1 Prepaid expenses and other current assets 51.3 58.6 Income tax receivable 10.4 6.4 Total current assets $ 372.2 $ 451.0 Restricted cash, non-current 9.6 9.1 Property and equipment, net 156.7 112.6 Operating lease right-of-use assets, net 126.9 90.9 Intangible assets, net 231.8 275.8 Goodwill 1,692.7 1,692.7 Deferred tax assets 3,662.1 3,717.6 Deferred costs and other assets, net of current portion 117.7 117.9 Total assets $ 6,369.7 $ 6,467.6 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 19.1 $ 16.6 Accrued expenses and other current liabilities 95.8 123.0 Unearned revenue, current portion 429.0 473.8 Income taxes payable 0.2 0.6 Current portion of tax receivable agreements liability 0.5 22.3 Current portion of operating lease liabilities 6.3 9.9 Current portion of long-term debt 5.9 5.9 Total current liabilities $ 556.8 $ 652.1 Unearned revenue, net of current portion 2.9 4.1 Tax receivable agreements liability, net of current portion 2,724.6 2,740.2 Operating lease liabilities, net of current portion 231.0 151.2 Long-term debt, net of current portion 1,319.0 1,221.8 Deferred tax liabilities 2.6 2.4 Other long-term liabilities 2.3 2.3 Total liabilities $ 4,839.2 $ 4,774

Business

Business ZoomInfo Technologies Inc., through its operating subsidiaries, (the "Company", "we", "us", "our", and "ZoomInfo") provides a go-to-market intelligence and engagement platform for sales, marketing, operations, and recruiting professionals. The Company's cloud-based platform provides workflow tools with integrated, accurate, and comprehensive information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage via automated sales tools, and track progress through the deal cycle. The Company's headquarters are located in Vancouver, Washington, and we have additional offices throughout the United States, and offices internationally in Israel, Canada, the United Kingdom, India, and Ireland. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") pertaining to interim financial information. Certain information in footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") has been condensed or omitted pursuant to those rules and regulations. The financial s

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