ZoomInfo Technologies (ZI) Q1 2026 earnings summary

Executive summary

• Q1 2026 GAAP revenue reached $310.2 million, up 1.5% year-over-year, with adjusted operating income margin at 35% and GAAP operating income margin at 19%.

• Net income was $29.3 million, with diluted EPS of $0.10 and adjusted EPS of $0.28; adjusted EBITDA grew 10% to $118.2 million.

• Non-seat-based and Data as a Service (DaaS) offerings grew over 20% year-over-year, now nearly 20% of business.

• Major restructuring program approved in May 2026 to reduce operating costs, targeting a 20% global workforce reduction and closure of Israeli operations.

• Recognized as a leader by Forrester, Gartner, and G2 Spring 2026 Reports in B2B data and ABM platforms.

Financial highlights

• Gross profit was $259.2 million (84% margin); GAAP operating income was $57.9 million (19% margin); adjusted operating income was $109.7 million (35% margin).

• Cash flow from operations was $114.7 million; unlevered free cash flow was $119.7 million (39% margin).

• Adjusted net income was $87.5 million; stock-based compensation expense was $25.5 million, down 14% YoY.

• Upmarket ACV grew 5% YoY to represent 75% of total ACV; downmarket ACV declined 11% YoY.

• Net revenue retention rate was 90% for the third consecutive quarter.

Outlook and guidance

• FY 2026 revenue guidance revised to $1.185–$1.205 billion, a 4% YoY decline at midpoint; adjusted operating income guidance: $437–$447 million (37% margin midpoint).

• Non-GAAP net income expected at $1.10–$1.12 per share; unlevered free cash flow: $400–$420 million.

• Q2 2026 revenue guidance: $300–$303 million; adjusted operating income: $103–$106 million; adjusted EPS: $0.26–$0.28.

• The restructuring program is expected to be substantially complete by year-end 2026, with estimated pre-tax charges of $45–$60 million.

• Sustainable revenue growth expected to return by the second half of 2027.