Zoom Video Communications reported QQ3 2025 revenue of $1.178 billion, up 3.59% year over year and 1.29% quarter over quarter, led by sustained demand for its unified communications platform. The company delivered a solid gross margin of 75.9% and generated $207.1 million in net income with an accompanying diluted EPS of $0.66. Operating income reached $182.8 million, representing an operating margin of 15.5%, while EBITDA stood at $215.1 million. Free cash flow totaled $457.7 million, and cash flow from operations was $483.2 million, underscoring Zoom’s ability to convert operating performance into tangible liquidity.
Key Performance Indicators
Revenue
Increasing
1.18B
QoQ: 1.29% | YoY: 3.59%
Gross Profit
Increasing
893.66M
75.89% margin
QoQ: 1.85% | YoY: 3.23%
Operating Income
Increasing
182.84M
QoQ: -9.65% | YoY: 7.94%
Net Income
Increasing
207.05M
QoQ: -5.46% | YoY: 46.62%
EPS
Increasing
0.67
QoQ: -5.63% | YoY: 42.55%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $1.178B, YoY +3.59%, QoQ +1.29%; Gross Profit: $893.66M, Gross Margin 75.9%, YoY +3.23%, QoQ +1.85%; Operating Income: $182.84M, Operating Margin 15.5%, YoY +7.94%, QoQ -9.65%; Net Income: $207.05M, Net Margin 17.58%, YoY +46.62%, QoQ -5.46%; EBITDA: $215.13M; EPS (Basic): $0.67, EPS (Diluted): $0.66; Shares (Weighted Avg): 307.53M (outstanding), 314.19M (diluted); Cash Flow: CFO $483.22M, Free Cash Flow $457.73M, Capex $25.48M; Cash and cash equivalents: $1.283B; Short-Term Investments: $6.428B; Total Cash & ST Investments: $7.702B; Total Debt: $66.57M; Net Debt: -$1.208B (net cash); Free Cash Flow Yield and Cash Conversion: robust; Liquidity: Current Ratio 4.60; CCC ~32.3 days; DSO ~35 days; Enterprise Value Multiple: -5.61 (negative due to net cash position).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.18B
3.59%
1.29%
Gross Profit
893.66M
3.23%
1.85%
Operating Income
182.84M
7.94%
-9.65%
Net Income
207.05M
46.62%
-5.46%
EPS
0.67
42.55%
-5.63%
Key Financial Ratios
Gross Profit Margin
Excellent
75.90%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
15.50%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
17.60%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.94%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.39%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
4.60
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.01
Debt-to-equity shows conservative leverage and low financial risk
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Zoom Video Communications Inc (5ZM.F) QQ4 2025 Results: Solid Revenue Continuity, Strong Free Cash Flow, and a Prudent Balance Sheet on a Multiplatfor...