Zoom (ZM) Q4 2025 earnings summary

Executive summary

• Q4 revenue reached $1,184.1 million, up 3.3% year-over-year, with enterprise revenue growing 6% and online churn stable at 2.8%.

• Full FY25 revenue increased 3.1%, with enterprise revenue up 5.2% and free cash flow up 22.9%.

• Major enterprise wins included Amazon and Delta Air Lines, with Workvivo chosen as Delta's global employee engagement platform.

• Product innovation focused on AI Companion, advanced agentic AI capabilities, and expansion of the Workplace platform.

• Strong cash position of $7.8 billion and share repurchases reduced common stock outstanding.

Financial highlights

• Q4 total revenue grew 3% year-over-year to $1.184 billion, exceeding guidance; constant currency revenue grew 4%.

• Q4 non-GAAP gross margin was 78.8% (down 32 bps YoY); non-GAAP operating margin improved to 39.5%.

• Q4 GAAP EPS was $1.16 (up 22% YoY); non-GAAP EPS was $1.41 (flat YoY).

• Q4 free cash flow was $416.2 million, up 25.1% year-over-year; operating cash flow increased 21% to $425 million.

• Deferred revenue grew 7% to $1.35 billion; RPO increased 6% to $3.8 billion.

Outlook and guidance

• Q1 FY26 revenue expected at $1.162–$1.167 billion; non-GAAP operating income $440–$445 million.

• FY26 revenue guidance: $4.785–$4.795 billion; non-GAAP operating income $1.85–$1.86 billion.

• FY26 non-GAAP EPS: $5.34–$5.37; free cash flow expected at $1.68–$1.72 billion.

• $1.6 billion remains authorized for share repurchases as of January 31, 2025.