Executive Summary
Zoom Video Communications delivered QQ4 2025 with stable top-line performance and robust cash generation, reinforcing its position as a leading cloud-based communications platform. Revenue of $1.184B marked a modest YoY increase of 3.3% and a sequential QoQ gain of 0.6%, supported by continued demand for Zoom Meetings, Zoom Phone, and expanding enterprise adoption across regions. Gross margin remained a strong 75.7%, underscoring the high-velocity software model and favorable mix, while operating margin/trend remained in the low-to-mid teens as the company continues strategic investments in product development and international growth.
Cash flow strength was a notable highlight: operating cash flow of $424.6M and free cash flow of $416.2M translated into a net cash position (net debt) of approximately -$1.28B, alongside $7.79B in cash and short-term investments. This liquidity supports a significant share repurchase program, with approximately $355M of common stock repurchased in the period, signaling confidence in the company’s long-term value creation. Net income of $367.9M boosted earnings per share (diluted) to $1.16, while basic EPS was $1.20, reflecting a favorable tax and non-operating income mix. Management commentary remains focused on product expansion and value delivery to customers, with a continued emphasis on profitability and capital efficiency against a backdrop of competitive dynamics in the cloud communications space.
Key Performance Indicators
QoQ: -16.93% | YoY:-9.88%
Key Insights
Revenue: $1.184B; YoY +3.29%, QoQ +0.56%
Gross Profit: $896.783M; Gross Margin 75.7%; YoY +3.06%, QoQ +0.35%
Operating Income: $151.883M; Operating Margin 12.83%; YoY -9.88%, QoQ -16.93%
EBITDA: $259.654M; EBITDA Margin 21.93%
Net Income: $367.865M; Net Margin 31.07%; YoY +23.10%, QoQ +77.67%
EPS (GAAP): $1.20; Diluted: $1.16; YoY +22.45%, QoQ +79.10%
Weighted Avg Shares: 306.554M (basic), 316.693M (diluted)
Operating Cash Flow: $424.566M; Free Cash Flow: $416.232M; Capex: $8.334M
Cash & Equ...
Financial Highlights
Revenue: $1.184B; YoY +3.29%, QoQ +0.56%
Gross Profit: $896.783M; Gross Margin 75.7%; YoY +3.06%, QoQ +0.35%
Operating Income: $151.883M; Operating Margin 12.83%; YoY -9.88%, QoQ -16.93%
EBITDA: $259.654M; EBITDA Margin 21.93%
Net Income: $367.865M; Net Margin 31.07%; YoY +23.10%, QoQ +77.67%
EPS (GAAP): $1.20; Diluted: $1.16; YoY +22.45%, QoQ +79.10%
Weighted Avg Shares: 306.554M (basic), 316.693M (diluted)
Operating Cash Flow: $424.566M; Free Cash Flow: $416.232M; Capex: $8.334M
Cash & Equivalents: $1.349B; Short-Term Investments: $6.442B; Total Cash & Investments: $7.792B
Total Assets: $10.988B; Total Liabilities: $2.053B; Total Stockholders’ Equity: $8.935B
Net Cash (Debt): -$1.285B; Current Ratio: 4.56; Cash Ratio: 0.709
Valuation (as of QQ4 2025): P/S 22.73, P/B 3.01, P/OCF 63.41, EV/Revenue ~9x (approximate based on disclosed multipliers); FCF Yield and other liquidity metrics remain robust.
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 |
151.88M |
-9.88% |
-16.93% |
| 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
Earnings call transcript data not provided in the input. Therefore, no verbatim management quotes or theme-by-theme quotes could be extracted. Based on the published results, key themes inferred for management commentary would likely center on: (1) continued monetization of Zoom’s multi-product platform (Meetings, Phone, Rooms, Events) to drive ARR and ARPU; (2) investments in product development and international expansion to sustain high gross margins and operating leverage; (3) disciplined capital allocation highlighted by substantial share repurchases and strong free cash flow generation. Note: actual quotes and themes from the call are not present in the provided data.
Forward Guidance
Forward-looking commentary is not included in the provided data. Given Zoom’s QQ4 2025 results, investors should monitor: (a) ARR trajectory and net retention across enterprise customers, (b) accelerating adoption of Zoom Phone and Zoom Events as cross-sell engines, (c) cross-region growth, particularly in Europe, the Middle East, Africa, and Asia-Pacific, and (d) continued emphasis on profitability versus growth investments. Absent explicit guidance, the implicit assumption is ongoing profitability, solid cash generation, and capital returns through buybacks. Key factors to watch include competitive pressure (MS Teams, Cisco WebEx, Google Meet), pricing dynamics, and any shifts in customer mix toward higher-margin, multi-product subscriptions.