ZoomInfo Technologies (ZI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $310.4 million, up 1.2% year-over-year, with adjusted operating income margin improving to 35% and unlevered free cash flow up 7% year-over-year.

• A $650.5 million goodwill impairment led to a GAAP operating loss of $622 million and a net loss per share of $(2.19).

• Strategic initiatives included launching GTM.AI, expanding flexible pricing models, and repurchasing equity and debt at a discount.

• Upmarket business now represents 76% of ACV, with 1,891 customers over $100,000 ACV, and strong growth in large customer cohorts.

• Major restructuring program initiated, reducing headcount by up to 20% and incurring significant related charges.

Financial highlights

• Adjusted operating income was $110 million, up 5% year-over-year, with a 35% margin.

• Unlevered free cash flow was $107.3 million, representing a 98% conversion from adjusted operating income.

• GAAP stock-based compensation expense was $25.7 million, down 13% year-over-year, at 8% of revenue.

• Net revenue retention was 89%, down from 90% in the prior three quarters.

• Gross margin was 83% in Q2 2026, down from 84% in Q2 2025.

Outlook and guidance

• Q3 2026 guidance: GAAP revenue of $298–$301 million, adjusted operating income of $113–$115 million, and adjusted net income per share of $0.28–$0.29.

• Full-year 2026 guidance raised: GAAP revenue of $1.207–$1.217 billion, adjusted operating income of $446–$451 million, adjusted net income per share of $1.12–$1.13, and unlevered free cash flow of $403–$423 million.

• Management expects near-term revenue headwinds and increased variability as it transitions to a hybrid pricing model.