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Zoom Communications 8-K Report, Financial Results (Aug 21, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 21, 2025
Period End
August 21, 2025
Security
ZM
In the record · 2019–202610-K710-Q238-K67

ZM filed 7 annual reports (10-K), 23 quarterly reports (10-Q) and 67 current reports (8-K) between 2019 and 2026.

  1. Material agreement8-K · Jul ’21Jul ’21
  2. Leadership change8-K · Mar ’23Mar ’23
  3. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed August 21, 2025. Cited figures are marked; the original filing is the authoritative source.

Zoom Communications, Inc. (NASDAQ: ZM) reported financial results for the second fiscal quarter of 2026, ended July 31, 2025.

Total revenue was $1,217.2 milliona, up 4.7% year over year as reported and 4.4% in constant currency. Enterprise revenue rose 7.0% to $730.7 million, while Online revenue was $486.6 million, up 1.4%. GAAP net income was $358.6 million, or $1.16 per diluted share, compared with $0.70 a year earlier.

Non-GAAP diluted EPS was $1.53b, up 10.0% year over year. GAAP operating margin was 26.4% and non-GAAP operating margin was 41.3%. Net cash provided by operating activities was $515.9 million, and free cash flow was $508.0 million, compared with $365.1 million in the prior-year quarter.

Total cash, cash equivalents and marketable securities were $7.8 billionc as of July 31, 2025. Management raised its full-year fiscal 2026 outlook for revenue, non-GAAP income from operations and free cash flow. Full-year total revenue is now expected to be between $4.825 billion and $4.835 billion, non-GAAP income from operations between $1.905 billion and $1.915 billion, and free cash flow between $1.740 billion and $1.780 billion.

For the third quarter, total revenue is guided to $1.210 billion to $1.215 billiond and non-GAAP diluted EPS to $1.42 to $1.44. The company repurchased approximately 6.0 million shares in the quarter, bringing the total under the current plan to 27.4 million shares, and $724.7 million of repurchase authorization remained as of July 31, 2025. Operating metrics were mixed.

Customers contributing more than $100,000 in trailing 12-month revenue rose 8.7% to 4,274, and the trailing 12-month net dollar expansion rate for Enterprise customers was 98%. Online average monthly churn was 2.9%, flat year over year.

The CEO highlighted the highest year-over-year revenue growth in 11 quarters and a 9 percentage point year-over-year expansion in GAAP operating margin. GAAP results benefited from a sharp decline in general and administrative expense, and GAAP net income was boosted by gains on strategic investments and other income.

02—Key points

Key Highlights

  1. Total revenue of $1,217.2 million rose 4.7% year over year (4.4% in constant currency), with Enterprise revenue up 7.0% to $730.7 million and Online revenue up 1.4% to $486.6 million.
  2. GAAP operating margin was 26.4% and non-GAAP operating margin was 41.3%; GAAP income from operations was $321.7 million versus $202.4 million a year earlier.
  3. GAAP diluted EPS was $1.16, up 65.7% year over year, and non-GAAP diluted EPS was $1.53, up 10.0%.
  4. Free cash flow was $508.0 million versus $365.1 million in the prior-year quarter, and operating cash flow was $515.9 million.
  5. Full-year fiscal 2026 guidance was raised: revenue of $4.825 billion to $4.835 billion, non-GAAP income from operations of $1.905 billion to $1.915 billion, and free cash flow of $1.740 billion to $1.780 billion.
  6. Zoom repurchased approximately 6.0 million shares in the quarter, bringing the cumulative total under the current plan to 27.4 million shares, with $724.7 million of authorization remaining.
  7. Customers contributing more than $100,000 in trailing 12-month revenue increased 8.7% to 4,274, and Online average monthly churn was 2.9%, flat year over year.

03—Questions

Frequently Asked Questions

  1. How did Zoom perform in the second quarter of fiscal 2026?

    Total revenue was $1,217.2 million, up 4.7% year over year as reported and 4.4% in constant currency. Enterprise revenue grew 7.0% to $730.7 million, and Online revenue grew 1.4% to $486.6 million. GAAP net income was $358.6 million, or $1.16 per diluted share.

  2. Did Zoom change its full-year outlook?

    Yes. Zoom raised its fiscal 2026 outlook for revenue, non-GAAP income from operations and free cash flow. Full-year revenue is now expected at $4.825 billion to $4.835 billion, and free cash flow at $1.740 billion to $1.780 billion.

  3. What is Zoom's guidance for the third quarter of fiscal 2026?

    Total revenue is expected to be between $1.210 billion and $1.215 billion, and non-GAAP income from operations between $465.0 million and $470.0 million. Non-GAAP diluted EPS is expected to be between $1.42 and $1.44 on approximately 307 million weighted average shares.

  4. How much cash does Zoom have and how is it returning capital?

    Total cash, cash equivalents and marketable securities were $7.8 billion as of July 31, 2025. Zoom repurchased about 6.0 million shares in the quarter, with $724.7 million of repurchase authorization remaining.

  5. What do the customer metrics show?

    The number of customers contributing more than $100,000 in trailing 12-month revenue rose 8.7% to 4,274. The trailing 12-month net dollar expansion rate for Enterprise customers was 98%, and Online average monthly churn was 2.9%, flat year over year.

04—Continue

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