Key Highlights

  • Revenue of USD 308.8 million compares with an estimate of USD 299.82 million and USD 318.0 million last year.
  • EPS of USD 0.29 matches the estimate of USD 0.29, while GAAP diluted EPS was USD 0.01 against USD 0.12.
  • Net Revenue retention stood at 88%, against 90% a year earlier, as a hybrid pricing model began in the quarter.
  • Cash and cash equivalents were USD 139.5 million, and USD 176.0 million was available under the first Lien revolver.

ZoomInfo (NASDAQ:GTM) reported third quarter revenue of USD 308.8 million, against an estimate of USD 299.82 million and USD 318.0 million a year earlier. EPS of USD 0.29 compares with an estimate of USD 0.29, and GAAP diluted EPS was USD 0.01 against USD 0.12. The go-to-market intelligence company said revenue was lower on subscription revenue, partly offset by an increase in usage-based revenue.

Quarter Results and Costs

Gross profit was USD 256.9 million against USD 266.3 million, with gross Margin at 83% against 84%. Operating expenses were USD 233.3 million against USD 198.8 million, and income from operations was USD 23.6 million against USD 67.5 million. Net Income was USD 2.2 million against USD 38.7 million.

Within expenses, Research and Development was USD 53.5 million against USD 44.1 million, and general and administrative expense was USD 72.7 million against USD 47.9 million. The company tied the general and administrative increase mainly to higher litigation settlement expense for the proposed settlement of the 2024 Securities Litigation, partly offset by lower bad debt expense. On October 16, 2026, it entered into a memorandum of understanding of terms with plaintiffs to settle that case.

For nine months, the net loss was USD 612.2 million after a Goodwill Impairment of USD 650.5 million. The 2026 Restructuring Program generated charges of USD 7.6 million in the quarter.

Retention, Customers and the Pricing Shift

Net revenue retention was 88% at September 30, against 90% a year earlier. Customers with annual contract value of USD 100,000 or more numbered 1,851, against 1,887, and the company said they make up over 50% of total annual contract value.

Beginning in the third quarter, the company introduced a hybrid pricing model made up of an annual platform fee, pre-purchased credits and other flexible arrangements, alongside traditional seat-based packages. Management said the model may over time reduce downsell pressure tied to seat compression and create expansion opportunities as customers use more data. It also said the transition may bring revenue headwinds and more period-to-period variability as adoption grows.

Cash, Debt and Capital Returns

Cash and cash equivalents were USD 139.5 million, with USD 23.3 million of restricted cash. Net cash from Operating Activities for nine months was USD 249.4 million against USD 321.9 million, which the company linked to higher restructuring, interest and litigation-related payments.

Debt included a first lien term Loan with a carrying amount of USD 575.3 million due February 28, 2030, USD 100.0 million drawn on the first lien revolver, due February 28, 2028, and USD 556.7 million of principal on 3.875% senior notes due February 1, 2029. During nine months the company repurchased USD 93.3 million of principal on the notes for USD 78.2 million. The net Leverage Ratio to Cash EBITDA stood at 2.2x, and the first lien ratio at 1.1x.

In the quarter the company repurchased and retired 2,549,649 shares for USD 7.5 million, and for nine months 21,902,952 shares for USD 126.2 million. Total share repurchase authorizations stand at USD 2.6 billion after a USD 1.0 billion addition in February.

Benchmarks Ahead

Revenue of USD 308.8 million sits alongside net revenue retention of 88%, cash of USD 139.5 million and total debt with a contractual Maturity of USD 1,234.4 million.

Management named the rollout of the hybrid pricing model, the progress of the litigation settlement and the shift toward larger customers as the items bearing on retention and revenue. It also noted the February 28, 2028 revolver maturity and the February 1, 2029 maturity of the senior notes.