Executive Summary
Zoom’s QQ4 2025 results depict a financially resilient software-as-a-service (SaaS) business with solid monetization of its core platform and strong liquidity. Revenue of $1.184B marks a modest year-over-year uplift of 3.3% and a quarterly uptick of 0.6%, signaling ongoing demand for Zoom’s unified communications suite in a competitive landscape. Gross margin stood at 75.7%, supported by disciplined cost of revenue relative to scale, while operating margin approached 19.0% and net margin registered about 31.1%, aided by a notable contribution from non-operating income that significantly boosted pretax and net income metrics. The company reported net income of $367.9M and diluted EPS of $1.16, with cash from operations of $424.6M and free cash flow of $416.2M, underscoring robust cash generation and balance-sheet strength.
Zoom’s balance sheet remains exceptionally healthy, with cash and cash equivalents plus short-term investments totaling approximately $7.79B and a net cash position of roughly $1.28B. The current ratio of 4.46x and a debt footprint of just $64.4M further reinforce liquidity and financial flexibility to invest in product development, go-to-market initiatives, and strategic acquisitions or partnerships if opportunities arise. Management commentary (where available) did not emit forward-looking guidance in the provided dataset; absent explicit guidance, the near-term risk-reward hinges on sustaining revenue growth, expanding cross-sell of Zoom Phone/Zoom Rooms/Zoom Events, and managing competitive pricing pressure in a rapidly consolidating UC platform market.
In summary, QQ4 2025 demonstrates Zoom’s ability to translate scale into profitability while maintaining a pristine balance sheet. The key questions going forward concern the durability of non-operating income effects, the pace of core revenue growth amid fierce competition, and the company’s success in monetizing adjacent offerings and global expansion.
Key Performance Indicators
Key Insights
Revenue: $1,184.138M in QQ4 2025, YoY growth 3.29%, QoQ growth 0.56%. Gross Profit: $896.783M, margin 75.73%, YoY margin +3.06pp, QoQ margin +0.35pp. Operating Income: $225.063M, margin 19.00%, YoY growth +33.54%, QoQ growth +23.09%. Net Income: $367.865M, margin 31.07%, YoY growth +23.10%, QoQ growth +77.67%. EPS (diluted): $1.16, YoY growth +22.45%, QoQ growth +79.10%. EBITDA: $259.654M, EBITDA margin 21.93%. Pre-tax income: $450.319M, tax expense $82.454M. Cash from operations: $424.566M; Fre...
Financial Highlights
Revenue: $1,184.138M in QQ4 2025, YoY growth 3.29%, QoQ growth 0.56%. Gross Profit: $896.783M, margin 75.73%, YoY margin +3.06pp, QoQ margin +0.35pp. Operating Income: $225.063M, margin 19.00%, YoY growth +33.54%, QoQ growth +23.09%. Net Income: $367.865M, margin 31.07%, YoY growth +23.10%, QoQ growth +77.67%. EPS (diluted): $1.16, YoY growth +22.45%, QoQ growth +79.10%. EBITDA: $259.654M, EBITDA margin 21.93%. Pre-tax income: $450.319M, tax expense $82.454M. Cash from operations: $424.566M; Free cash flow: $416.232M. Cash at period end: $1.361B; Total cash and short-term investments: $7.791B; Net debt: -$1.285B (net cash).
Balance Sheet Health: Total assets $10.989B; Total liabilities $2.054B; Total stockholders’ equity $8.935B; Current assets $8.676B vs. current liabilities $1.903B (Current ratio 4.46x). Key liquidity and leverage metrics highlight a conservative capital structure with substantial liquidity to fund growth and potential shareholder-friendly actions. Valuation snapshot (implied): Price-to-Sales ~22.77x; Price-to-Earnings ~18.33x; Enterprise Value Multiple ~46.17x; Free Cash Flow Yield supportive given strong FCF generation.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.18B |
3.29% |
0.56% |
| Gross Profit |
896.78M |
3.06% |
0.35% |
| Operating Income |
225.06M |
33.54% |
23.09% |
| Net Income |
367.87M |
23.10% |
77.67% |
| EPS |
1.20 |
22.45% |
79.10% |
Key Financial Ratios
operatingProfitMargin
19%
operatingCashFlowPerShare
$1.39
freeCashFlowPerShare
$1.36
Management Commentary
No earnings call transcript data provided in the dataset. As a result, thematic management commentary, strategic guidance, or direct quotes are not available within this input. If you can supply the transcript, I will integrate quotes by theme (strategy, operations, market conditions) and map them to the financial outcomes.
Forward Guidance
No explicit forward guidance available in the provided data. Given Zoom’s strong quarterly cash flow generation, robust liquidity, and ongoing investments in platform capabilities (e.g., Zoom Phone, Zoom Rooms, Zoom Events, OnZoom, Developer Platform), a constructive outlook would emphasize continued growth in enterprise collaboration deployments and cross-sell opportunities. Potential targets mentioned by management (if disclosed externally) would ideally include ARR growth, expansion of high-margin add-ons, and diversification of revenue mix away from legacy usage. Watch for: (1) sustainability of non-operating income driving net income; (2) demand resilience in enterprise UCaaS as organizations re-evaluate cost structures; (3) competitive dynamics with major cloud players offering bundled collaboration suites; (4) cadence of product investments versus incremental revenue. The achievability of growth objectives will depend on product monetization, international expansion, security/privacy enhancements, and pricing discipline in a crowded market.