Executive Summary
Zoom Video Communications reported QQ3 2025 revenue of $1.178 billion, up 3.59% year over year and 1.29% quarter over quarter, led by sustained demand for its unified communications platform. The company delivered a solid gross margin of 75.9% and generated $207.1 million in net income with an accompanying diluted EPS of $0.66. Operating income reached $182.8 million, representing an operating margin of 15.5%, while EBITDA stood at $215.1 million. Free cash flow totaled $457.7 million, and cash flow from operations was $483.2 million, underscoring Zoom’s ability to convert operating performance into tangible liquidity.
Key Performance Indicators
Key Insights
Revenue: $1.178B, YoY +3.59%, QoQ +1.29%; Gross Profit: $893.66M, Gross Margin 75.9%, YoY +3.23%, QoQ +1.85%; Operating Income: $182.84M, Operating Margin 15.5%, YoY +7.94%, QoQ -9.65%; Net Income: $207.05M, Net Margin 17.58%, YoY +46.62%, QoQ -5.46%; EBITDA: $215.13M; EPS (Basic): $0.67, EPS (Diluted): $0.66; Shares (Weighted Avg): 307.53M (outstanding), 314.19M (diluted); Cash Flow: CFO $483.22M, Free Cash Flow $457.73M, Capex $25.48M; Cash and cash equivalents: $1.283B; Short-Term Investments...
Financial Highlights
Revenue: $1.178B, YoY +3.59%, QoQ +1.29%; Gross Profit: $893.66M, Gross Margin 75.9%, YoY +3.23%, QoQ +1.85%; Operating Income: $182.84M, Operating Margin 15.5%, YoY +7.94%, QoQ -9.65%; Net Income: $207.05M, Net Margin 17.58%, YoY +46.62%, QoQ -5.46%; EBITDA: $215.13M; EPS (Basic): $0.67, EPS (Diluted): $0.66; Shares (Weighted Avg): 307.53M (outstanding), 314.19M (diluted); Cash Flow: CFO $483.22M, Free Cash Flow $457.73M, Capex $25.48M; Cash and cash equivalents: $1.283B; Short-Term Investments: $6.428B; Total Cash & ST Investments: $7.702B; Total Debt: $66.57M; Net Debt: -$1.208B (net cash); Free Cash Flow Yield and Cash Conversion: robust; Liquidity: Current Ratio 4.60; CCC ~32.3 days; DSO ~35 days; Enterprise Value Multiple: -5.61 (negative due to net cash position).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.18B |
3.59% |
1.29% |
| Gross Profit |
893.66M |
3.23% |
1.85% |
| Operating Income |
182.84M |
7.94% |
-9.65% |
| Net Income |
207.05M |
46.62% |
-5.46% |
| EPS |
0.67 |
42.55% |
-5.63% |
Key Financial Ratios
operatingProfitMargin
15.5%
Management Commentary
No earnings call transcript data was provided in the input. Consequently, there are no management quotes or thematic highlights to quote or contextualize. If transcript access is provided, themes typically expected would include strategy execution (subscription revenue growth, ARPU progression), product mix developments (Zoom Phone, Zoom Events/Contact Center), and commentary on customer retention, international expansion, and cost discipline.
Forward Guidance
No formal forward guidance was disclosed in the provided data set. Based on QQ3 2025 results, Zoom exhibits strong free cash flow generation and a conservative balance sheet, suggesting the company will continue to prioritize profitability and cash efficiency while investing in product expansion (phone, events, contact center) and platform integrations. Key factors likely to influence the trajectory include: (i) ARR growth and customer retention rates across large enterprise deals, (ii) monetization of newer products and cross-sell opportunities, (iii) ongoing operating expense discipline to sustain margin expansion, and (iv) competitive dynamics and pricing pressure from MSFT Teams, Google Meet, and Cisco Webex.