Zoom Video Communications delivered QQ4 2025 with stable top-line performance and robust cash generation, reinforcing its position as a leading cloud-based communications platform. Revenue of $1.184B marked a modest YoY increase of 3.3% and a sequential QoQ gain of 0.6%, supported by continued demand for Zoom Meetings, Zoom Phone, and expanding enterprise adoption across regions. Gross margin remained a strong 75.7%, underscoring the high-velocity software model and favorable mix, while operating margin/trend remained in the low-to-mid teens as the company continues strategic investments in product development and international growth.
Cash flow strength was a notable highlight: operating cash flow of $424.6M and free cash flow of $416.2M translated into a net cash position (net debt) of approximately -$1.28B, alongside $7.79B in cash and short-term investments. This liquidity supports a significant share repurchase program, with approximately $355M of common stock repurchased in the period, signaling confidence in the company’s long-term value creation. Net income of $367.9M boosted earnings per share (diluted) to $1.16, while basic EPS was $1.20, reflecting a favorable tax and non-operating income mix. Management commentary remains focused on product expansion and value delivery to customers, with a continued emphasis on profitability and capital efficiency against a backdrop of competitive dynamics in the cloud communications space.