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
QoQ: -26.73% | YoY:13.94%
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...
Financial Highlights
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 Position: -$1.475B (net cash)
Current Ratio: 4.56; Quick Ratio: 4.56; Cash Ratio: 0.84
Deferred Revenue (Current): $1.391B; Total Assets: $10.507B; Total Liabilities: $1.982B; Shareholders’ Equity: $8.525B
Valuation (selected): Price-to-Sales ~16.23x; Enterprise Value Multiple ~75.14x; Price-to-Operating Cash Flows ~41.99x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.16B |
2.09% |
1.87% |
| Gross Profit |
877.43M |
0.61% |
8.74% |
| Operating Income |
202.37M |
13.94% |
-26.73% |
| Net Income |
219.02M |
20.36% |
1.25% |
| EPS |
0.71 |
16.39% |
1.43% |
Key Financial Ratios
operatingProfitMargin
17.4%
operatingCashFlowPerShare
$1.45
freeCashFlowPerShare
$1.18
Management Commentary
Earnings call transcript not provided in the data set. Consequently, no verbatim management quotes or theme-based highlights could be extracted. Please reference the company’s earnings call transcript for management commentary on strategy, operating discipline, and outlook.
Forward Guidance
There is no explicit forward guidance disclosed in the provided data set. Given Zoom’s solid quarterly profitability and ample liquidity, the company is well positioned to fund ongoing product development (including AI-enhanced capabilities through Zoom IQ and the Developer Platform), pursue selective strategic initiatives, and sustain capital returns. Key factors to monitor include: (1) ARR growth and cross-sell velocity across Meetings, Phone, Chat, and Events; (2) adoption and monetization of AI features and Zoom IQ; (3) trajectory of deferred revenue and renewal rates; (4) competitive dynamics with primary peers (e.g., Microsoft Teams, Google Meet) and any pricing/margin pressure; (5) international expansion and enterprise tier customer gains.