Zoom Communications Inc
0A1O.L
$81.38 -4.63%
Exchange: LSE | Sector: Technology | Industry: Software Services
Q2 2025
Published: Aug 23, 2024

Earnings Highlights

  • Revenue of $1.16B up 2.1% year-over-year
  • EPS of $0.70 increased by 16.4% from previous year
  • Gross margin of 75.5%
  • Net income of 219.02M
  • "N/A" -

Zoom Video Communications Inc (0A1O.L) QQ2 2025 Results — Solid Profitability and Robust Cash Generation in Enterprise Collaboration

Executive Summary

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).

Key Performance Indicators

Revenue

1.16B
QoQ: 1.87% | YoY:2.09%

Gross Profit

877.43M
75.48% margin
QoQ: 8.74% | YoY:0.61%

Operating Income

202.37M
QoQ: -26.73% | YoY:13.94%

Net Income

219.02M
QoQ: 1.25% | YoY:20.36%

EPS

0.71
QoQ: 1.43% | YoY:16.39%

Revenue Trend

Margin Analysis

Key Insights

Revenue: $1,162.5M; YoY: 2.09%; QoQ: 1.87% Gross Profit: $877.431M; Margin: 75.50%; YoY: 0.61%; QoQ: 8.74% Operating Income: $202.37M; Margin: 17.41%; YoY: 13.94%; QoQ: -26.73% Net Income: $219.015M; Margin: 18.84%; YoY: 20.36%; QoQ: 1.25% EPS (Diluted): $0.70; Undiluted: $0.71; YoY: 16.39%; QoQ: 1.43% EBITDA: $231.454M; EBITDA Margin: 19.91% Free Cash Flow: $365.1M; Operating Cash Flow: $449.334M; CapEx: $84.234M Cash at End of Period: $1.549B; Cash + Short-Term Investments: $7.520B; Net Cash P...

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2026 1,217.23 1.16 +4.7% View
Q1 2026 1,174.72 0.81 +2.9% View
Q4 2025 1,184.14 1.16 +3.3% View
Q3 2025 1,177.54 0.66 +3.6% View
Q2 2025 1,162.52 0.70 +2.1% View