Zoom Video Communications delivered QQ2 2025 with a resilient top-line and robust profitability. Revenue of $1.1625 billion increased modestly year over year (YoY) by 2.09% and grew 1.87% QoQ, underscoring steady demand for Zoom’s multi-product platform among enterprise customers. Gross margin stood at 75.5%, supporting an operating margin of 17.41% and net margin of 18.84%, with EBITDA of $231.5 million. The quarter featured strong cash flow generation, including operating cash flow of $449.3 million and free cash flow of $365.1 million, while maintaining a solid balance sheet with a net cash position of approximately $1.475 billion and total liquidity of about $7.52 billion (cash and short-term investments).
Capital allocation remained active: stock repurchases totaled $287.6 million, and the company issued $35.1 million of common stock, offset by substantial investing activity (purchases of investments totaling around $1.324 billion) and maturities of investments that supported net cash used in investing activity of $540.9 million. This combination leaves Zoom well positioned to continue investing in high-return product initiatives (e.g., AI-enabled features, Zoom IQ, and the Developer Platform) while sustaining capital return to shareholders. The balance sheet shows strong liquidity with deferred revenue of $1.391 billion, signaling durable revenue recognition from subscription-based contracts alongside a diversified product portfolio (Meetings, Phone, Chat, Rooms, Events, Webinars, OnZoom, and the Developer ecosystem).