Zoom Communications Inc (ZM) Q4 2025 Earnings Report

Financial Metrics:
- Revenue: $1.184 billion (YoY: 3%, QoQ: 0.56%)
- Gross Profit: $896.8 million (Gross Profit Margin: 75.7%)
- Operating Income: $151.9 million (Operating Margin: 12.8%)
- Net Income: $367.9 million (Net Income Margin: 31.1%, YoY increase of 23.1%)
- EPS: $1.20 (Diluted EPS: $1.16, YoY increase of 22.5%)
- Cash Flow from Operations: $425 million (YoY increase of 21%)
- Free Cash Flow: $416 million (YoY increase of 25%)

Performance Trends:
- steady revenue growth in Enterprise business (6% YoY).
- reduction in churn rate to 2.8% represents operational stability.

Management cited efficiency gains from strategic investments in AI that aim to achieve an 80% gross margin over the long term, although current non-GAAP margins were slightly below that at 78.8%.