Breaking Down ZoomInfo Technologies Inc. (ZI) Financial Health: Key Insights for Investors

You're looking at ZoomInfo Technologies Inc. (ZI) and wondering if the market's skepticism is missing the real story, especially with the stock's recent volatility. The direct takeaway is that while top-line revenue growth is slowing, the company's underlying profitability and cash generation are defintely a bedrock for stability. They've guided for a full-year 2025 revenue between $1.237 billion and $1.240 billion, which is modest growth, but look deeper: the real strength is in their Adjusted EPS guidance, now projected at $1.04 to $1.06 per share, and their monster free cash flow. We're talking about Unlevered Free Cash Flow (UFCF)-the cash a company generates before paying interest-expected to land between $424 million and $444 million for the year, which gives them serious financial firepower for buybacks and AI investments like their new GTM Workspace. Plus, the Q3 2025 results showed an Adjusted Operating Income margin of a stellar 37%, proving their pivot to higher-value, upmarket customers-those paying over $100,000 in Annual Contract Value, now totaling 1,887-is working to improve efficiency, even if their net revenue retention rate is still a tight 90%.

Revenue Analysis

You're looking for a clear picture of ZoomInfo Technologies Inc. (ZI)'s revenue engine, and the 2025 data shows a company in a deliberate, but challenging, transition. The core takeaway is that while overall growth is modest, the strategic shift toward higher-value enterprise customers-the 'Upmarket'-is paying off, offsetting a contraction in the smaller business segment.

For the full fiscal year 2025, ZoomInfo Technologies Inc. has tightened its GAAP revenue guidance to a range of Mission Statement, Vision, & Core Values of ZoomInfo Technologies Inc. (ZI). $1.237 billion to $1.240 billion. This is an important upward revision from earlier in the year, and it suggests the company is moving past the revenue contraction seen in late 2024. Honestly, that's a solid signal of stabilization in a tough macro environment.

The company's revenue is almost entirely subscription-based, coming from its Go-To-Market (GTM) Intelligence Platform, which provides sales, marketing, and operations teams with data and workflow tools. The significant change here is the strategic focus on the Upmarket segment-customers with an Annual Contract Value (ACV) of $100,000 or greater. This segment now represents the lion's share of their business.

• Q3 2025 GAAP Revenue: $318.0 million
• Q3 2025 Year-over-Year Growth: 5%
• Upmarket ACV Contribution: 73% of total ACV
• $100K+ ACV Customers (Q3 2025): 1,887

Here's the quick math on the growth trend: After a slight year-over-year decline of 1% in Q1 2025, revenue growth accelerated to 5% by Q3 2025, hitting $318.0 million. The trailing twelve months (TTM) revenue ending September 30, 2025, was $1.24 billion, showing a TTM growth rate of about 1.47%. The company is defintely prioritizing quality of revenue over sheer volume.

Segment Contribution and Strategic Shift

The revenue story for ZoomInfo Technologies Inc. in 2025 is really about the tale of two markets: Upmarket and Downmarket. The Upmarket segment is the growth engine, with its ACV growing 6% year-over-year in Q3 2025. This focus is why the company changed its trading symbol to GTM, signaling its identity as a core software platform for the entire Go-To-Market process.

What this estimate hides is the continued pressure on the smaller, or Downmarket, segment. This segment's ACV declined by 11% year-over-year in Q2 2025 and now accounts for only about 28% of total ACV. This contraction is a deliberate part of the strategy, as management shifts resources toward the more profitable, stickier enterprise business. New AI-powered products like Go-To-Market Studio and Copilot are key to this shift, driving deeper adoption among larger customers like Stripe and Intuit.

The net revenue retention rate (NRR) is a critical metric, and its sequential improvement to 90% in Q3 2025 is a positive sign. While still below the high-growth software benchmark of 110%+, the improvement suggests that while they are losing some smaller customers (the Downmarket contraction), the larger, more valuable Upmarket customers are renewing and spending more on the platform, validating the strategic shift.

Profitability Metrics

You need to know if ZoomInfo Technologies Inc. (ZI) is making money efficiently, especially as they shift their focus upmarket. The short answer is yes, they are highly profitable, particularly on an adjusted basis, which is common in the software sector. Their Q3 2025 results show strong margins that significantly outperform the industry average.

For the third quarter of 2025, ZoomInfo Technologies Inc. reported GAAP Revenue of $318.0 million. This revenue base supports impressive margins, which is the core of their operational efficiency.

• Gross Profit Margin: The company operates with a high gross margin, typical of a software-as-a-service (SaaS) business model. Based on Q1 2025 data, the gross margin was approximately 84.5% ($258.4 million gross profit on $305.7 million revenue), indicating that the cost to deliver their intelligence platform is very low relative to the price customers pay. This is a huge competitive advantage.
• Operating Profit Margin: The GAAP Operating Income Margin for Q3 2025 was 21%, but the Adjusted Operating Income Margin-which strips out non-cash expenses like stock-based compensation-hit a robust 37%. This adjusted figure is what management uses to track core operational performance.
• Net Profit Margin: The GAAP Net Income for Q3 2025 was $38.7 million, translating to a GAAP Net Profit Margin of about 12.2%. This is solid, but the non-GAAP net income per share of $0.28 gives a clearer picture of cash-generating profitability.

Here's the quick math on their core profitability for Q3 2025:

The trend in profitability is defintely positive and reflects a successful strategic focus. The Adjusted Operating Income Margin improved from 33% in Q1 2025 to 37% in Q3 2025. This expansion is a direct result of their shift toward larger, higher-value enterprise customers (the upmarket segment), which now accounts for 73% of their Annual Contract Value (ACV). This focus helps to drive higher margins even as overall revenue growth has moderated to 5% year-over-year in Q3 2025.

When you compare ZoomInfo Technologies Inc.'s profitability to the broader software industry, the strength of their operational efficiency really stands out. The average gross profit margin for the Internet Software sector was around 58.58% in 2024, which their estimated 84.5% gross margin easily surpasses. Furthermore, their 37% Adjusted Operating Margin is significantly higher than the average total market operating margin of 13.13%, and far above the negative net profit margin often seen in the high-growth software space. For the full year 2025, management expects Adjusted Operating Income in the range of $440 million to $443 million, which points to a sustained, high-margin business model. This level of cash generation-operating cash flow was $93.8 million in Q3 2025-is what separates a mature, financially healthy company from a cash-burning growth play. You can read more about this in Breaking Down ZoomInfo Technologies Inc. (ZI) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

ZoomInfo Technologies Inc. (ZI) leans toward debt financing more than many of its software peers, a strategy that juice returns but also adds risk. As of the most recent quarter in 2025, the company's total gross debt stood at approximately $1.56 billion, with the vast majority being long-term in nature. This debt load is a deliberate part of its capital structure, reflecting a willingness to use leverage to fund growth and acquisitions, but it's something you defintely need to watch.

The core metric here is the Debt-to-Equity (D/E) ratio, which tells you how much debt the company is using to finance its assets relative to the value of shareholders' equity. For ZoomInfo Technologies Inc., the D/E ratio for the most recent quarter in 2025 was approximately 1.02, or 102.07%. Here's the quick math: a ratio above 1.0 means the company has more debt than equity on its balance sheet. For a high-growth, asset-light software company, this is higher than what you typically see; many in the broader tech sector, like the Communication Equipment industry, average closer to 0.47, or even the Advertising Agencies industry at 0.79.

This higher leverage posture is why the company's credit rating is important. S&P Global Ratings affirmed ZoomInfo Technologies Inc.'s long-term credit rating at 'BB' in January 2025, with a stable outlook. This rating is considered non-investment grade, or 'junk,' meaning the debt is viewed as having a higher degree of risk, but the stable outlook suggests the rating agency believes the company can manage its obligations.

The company balances this debt with a clear focus on returning capital to shareholders, which is a key equity-side action. In February 2025, the board authorized an additional $500 million for share repurchases. This effectively reduces the number of outstanding shares, boosting earnings per share (EPS) and demonstrating management's confidence that the stock is undervalued, even with the debt. They also proactively manage the debt itself, like repricing their First Lien Term Loan Facility in June 2024 to reduce the interest rate by 50 basis points. You need to see this kind of active capital management from a leveraged company.

What this estimate hides is the impact of a high D/E ratio when revenue growth slows, which has been a near-term risk. The reliance on debt financing, especially with a floating rate structure, means higher interest rates directly hit the bottom line and reduce the cash flow available for other investments. This is a critical trade-off: debt turbocharges returns when things are good, but it acts as a significant drag when the market tightens. For a deeper look at the company's strategic position, check out the full post: Breaking Down ZoomInfo Technologies Inc. (ZI) Financial Health: Key Insights for Investors.

• Total Debt (MRQ 2025): $1.56 billion.
• Debt-to-Equity Ratio (MRQ 2025): 1.02.
• Q1 2025 Credit Rating: 'BB' (S&P Global Ratings).

Liquidity and Solvency

You're looking at ZoomInfo Technologies Inc. (ZI)'s balance sheet, and the first thing that jumps out is a set of liquidity ratios that look concerning on the surface. But for a subscription-based software company like this, you have to read the numbers differently. The key takeaway is that while the traditional ratios are low, the company's cash generation is robust, which is the real measure of its near-term financial health.

The company's ability to cover its short-term obligations (liquidity) is measured by the Current Ratio (Current Assets divided by Current Liabilities) and the Quick Ratio (Acid-Test Ratio). As of November 2025 (Trailing Twelve Months), the Current Ratio for ZoomInfo Technologies Inc. (ZI) stands at 0.67, and the Quick Ratio is also 0.67. This is a critical point. A ratio below 1.0 means current liabilities exceed current assets, suggesting a negative working capital position. However, since the company has negligible inventory, the two ratios are identical, which is common in the software industry.

Here's the quick math on why this isn't a red flag for a Software as a Service (SaaS) business:

• The low ratio is largely driven by Unearned Revenue (or deferred revenue), which was $484 million in Q1 2025.
• Unearned Revenue is a current liability, representing cash collected upfront for services yet to be delivered.
• This liability is satisfied by providing service, not by spending cash, so it's a source of strength, not a liquidity risk.

The real story is in the cash flow statement. ZoomInfo Technologies Inc. (ZI) is a cash-generating machine. In the first quarter of 2025 alone, GAAP Cash Flow from Operations (CFFO) was a healthy $119.2 million, leading to an Unlevered Free Cash Flow (UFFCF) of $124.5 million. This strong operational cash flow is what truly services their obligations, not just the static balance sheet ratios.

For the full fiscal year 2025, management expects Unlevered Free Cash Flow to fall in the range of $424 million to $444 million. This consistent and predictable cash generation is a massive strength that fundamentally mitigates the risk implied by the sub-1.0 liquidity ratios. The company is defintely using this cash to return value to shareholders, repurchasing $95.0 million worth of shares in Q1 2025.

Still, you can't ignore the debt. As of the end of Q1 2025, the company carried substantial gross debt of $1.24 billion, which is a long-term solvency consideration. While the net leverage ratio of 2.5 is manageable given the UFFCF, it's a constant weight on the balance sheet. The strategy here is clear: use the strong operating cash flow to fund growth, return capital via buybacks, and service the debt. You can read more about the company's long-term strategic direction in their Mission Statement, Vision, & Core Values of ZoomInfo Technologies Inc. (ZI).

Here is a summary of the key 2025 liquidity metrics:

This is a classic example where a traditional metric like the Current Ratio is misleading; cash flow is king in this business model.

Valuation Analysis

When you're assessing ZoomInfo Technologies Inc. (ZI), the question of whether it's overvalued or undervalued is complex, especially with the current market's cautious outlook on growth stocks. My view, looking at the latest data as of November 2025, is that the stock is trading at a premium on a trailing basis, but the forward-looking earnings guidance suggests a more reasonable, though still elevated, valuation.

The core of the issue lies in the valuation multiples (P/E, EV/EBITDA) being high against trailing earnings, but analysts are betting on a significant jump in profitability. For the 2025 fiscal year, ZoomInfo Technologies Inc. has projected adjusted Earnings Per Share (EPS) guidance between $1.04 and $1.06, which significantly beat the consensus estimate of $0.87. This expected jump in profit is what makes the trailing multiples look misleadingly high.

Key Valuation Multiples (November 2025)

As a seasoned analyst, I look at three key ratios to triangulate value. Here's the quick math based on the latest available trailing twelve months (TTM) data and the current stock price of approximately $9.47:

• Price-to-Earnings (P/E) Ratio: The P/E ratio is currently sitting in a wide range, with some sources citing a TTM P/E of around 29.26 to 33.36 as of November 2025. However, another TTM P/E is reported as high as 77.92. This wide variance defintely highlights the difficulty in valuing a growth company with fluctuating GAAP earnings.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio, which is often better for capital-intensive tech companies, is approximately 37.22 as of November 20, 2025. This is a high multiple, suggesting the market is still pricing in substantial future growth and profitability improvements.
• Price-to-Book (P/B) Ratio: The P/B ratio is a modest 1.72. This is a low number for a software company, which tells you that most of the company's value is in its intangible assets (like its proprietary data and platform), not its physical assets.

The high EV/EBITDA of 37.22 tells you the stock is not cheap. You are paying a premium for the projected growth and the strong gross margins, which were around 84.2% earlier in the year.

Stock Performance and Analyst Sentiment

The stock price trend over the last 12 months has been challenging. The stock has lost approximately 2.44% over the last year and 5.04% in the current year, as of a date close to November 2025, which is a disappointing performance for a growth name. The 52-week range has been between $7.01 and $13.67. This volatility reflects the market's uncertainty about the company's ability to maintain its growth trajectory, especially in the Small and Medium-sized Business (SMB) segment.

The Wall Street consensus echoes this uncertainty. The overall analyst rating is a 'Hold' or 'Neutral,' not a strong 'Buy.' Out of the analysts covering the stock, the ratings are split, with a mix of 'Buy,' 'Hold,' and 'Sell' recommendations. The average 12-month price target is set between $11.31 and $12.35, which suggests a potential upside of around 19.4% to 30.44% from the current price.

Regarding income, ZoomInfo Technologies Inc. is a growth company and does not pay a dividend. The dividend yield and payout ratio are therefore 0.00%. Any return you get will come from capital appreciation, not income. If you want to dig deeper into who is buying and why, you should check out Exploring ZoomInfo Technologies Inc. (ZI) Investor Profile: Who's Buying and Why?

The stock is neither a screaming buy nor an obvious short. It's a 'show me' stock right now, where the valuation hinges entirely on whether management can execute on that strong 2025 EPS guidance and deliver on the projected $1.2 billion in revenue.

Risk Factors

You're looking for the clear-eyed view on ZoomInfo Technologies Inc. (ZI), which now trades as GTM. The headline is this: the company is highly profitable and cash-flow positive, but it is navigating a tricky transition that creates near-term revenue risk and a significant leverage position you can't ignore.

I've spent two decades in this space, and the core risk here is a classic strategic pivot: moving upmarket while the foundational small-to-midsize business (SMB) segment contracts. This isn't a small thing; it's a headwind on their growth story.

Operational and Strategic Risks: The Upmarket Pivot

The biggest operational risk is the planned contraction in their downmarket business, which is the necessary pain of their strategic shift to focus on larger, higher-value enterprise customers. This downmarket segment currently accounts for 28% of total Annual Contract Value (ACV) and declined by 11% year-over-year in the second quarter of 2025.

• Revenue Headwind: The downmarket contraction is a direct drag on overall top-line growth, which is why the full-year 2025 GAAP revenue guidance is only for a modest positive growth, in the range of $1.237 - $1.240 billion.
• Retention Challenge: Their net revenue retention rate, rounding to 87% as of Q1 2025, is a key red flag for a subscription software business. This suggests that customers are either leaving or spending less, which flips the high lifetime value (LTV) equation that software investors love.
• Competition: The Go-To-Market (GTM) space is crowded. ZoomInfo faces intense external competition from giants like Salesforce and HubSpot, especially as AI-driven solutions become the new battleground. Their rivals' prominence could defintely impact ZoomInfo's win rates in the enterprise space.

Financial and External Risks

The financial risk for ZoomInfo is straightforward: leverage. Unlike many high-margin software peers who sit on net cash, ZoomInfo carries a substantial debt load. As of Q2 2025, the company had approximately $1.3 billion in gross debt, resulting in a net leverage ratio of 2.5x trailing twelve months adjusted EBITDA.

Here's the quick math on their leverage and profitability:

Also, don't forget the external market conditions. A tough macroeconomic environment means B2B companies pull back on sales and marketing headcount, which hits ZoomInfo's primary user base and subscription demand. Plus, given their data-centric model, regulatory changes around data privacy, like updates to GDPR and CCPA, are a constant, material risk that could force costly operational changes.

Mitigation Strategies and Clear Actions

The company is not sitting still; they are executing clear mitigation strategies to manage these risks. The entire shift upmarket is a mitigation plan, moving toward higher-margin, stickier enterprise contracts. This is the whole point.

• Cost Control: They executed a workforce reduction of approximately 6% in Q2 2025, which is expected to generate about $28 million in annual run-rate operating expense savings. That's a direct move to protect margins while revenue growth slows.
• Product Focus: The push into AI-first products like Go-To-Market Studio and ZoomInfo Copilot is their direct answer to competitive pressure, aiming to increase the value and stickiness of their platform for large customers.
• Capital Allocation: They are using their strong UFCF-guided at over $424 million for 2025-to repurchase shares. This boosts earnings per share and is a way to return capital to shareholders, though it means the debt remains a factor.

Your next step should be to look deeper into the profile of the new enterprise customer base and see if the upmarket growth is accelerating enough to offset the downmarket drag. You can start by Exploring ZoomInfo Technologies Inc. (ZI) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking past the current stock volatility and asking the right question: what is the actual growth engine for ZoomInfo Technologies Inc. (ZI)? The direct takeaway is that ZI is executing a deliberate, profitable pivot away from its legacy small-to-midsize business (SMB) market toward the high-value enterprise segment, which is where the real money is. This strategic shift is the single biggest driver of future revenue growth, even if it creates near-term revenue headwind.

Here's the quick math: the company's focus on the upmarket segment-customers with over $100,000 in Annual Contract Value (ACV)-is paying off, with net revenue retention (NRR) in that cohort running above 100% in Q3 2025. That's how you build a durable, high-margin business. The overall NRR improved to 90% in the third quarter of 2025, which is a key sign of stabilizing customer health.

Future Revenue and Earnings Estimates

The company's latest guidance for the full fiscal year 2025 is a clear map of this transition. While consolidated revenue growth is modest, the underlying profitability remains incredibly strong. Management is guiding for GAAP revenue between $1.237 billion and $1.240 billion for the full year 2025, which represents a positive 2% annual growth at the midpoint.

But look at the bottom line. The full-year 2025 Adjusted Operating Income (AOI) is projected to be between $440 million and $443 million, maintaining a healthy 36% margin at the midpoint. Plus, they expect Non-GAAP Net Income per Share to land between $1.04 and $1.06. That's a fundamentally profitable business, defintely not a growth-at-all-costs story.

The cash flow is also robust, with Unlevered Free Cash Flow (UFCF) expected in the range of $424 million to $444 million for the year. Strong cash generation allows for continued share repurchases, which is an immediate way to return value to shareholders.

Strategic Initiatives and Product Innovation

The future growth is tied directly to product innovation, especially around Artificial Intelligence (AI) and unifying the Go-To-Market (GTM) process. The company is actively repositioning itself, even changing its NASDAQ ticker symbol to 'GTM' to reflect this focus on being the core software platform for go-to-market teams.

The launch of Go-To-Market Studio (GTM Studio) is a critical initiative. This new product unifies a customer's own first-party data with ZI's proprietary third-party data, allowing for complex revenue orchestration. Management has called this one of the most innovative solutions they've built, and it has the potential to be a major revenue driver. Also, the expansion of the Copilot offering is a big deal, with the company seeing it as a potential '3x opportunity' within its existing customer base.

• Launch GTM Studio: Unify data and orchestrate revenue plays.
• Expand Copilot: Target broader AI-powered use cases beyond sales development representatives (SDRs).
• Grow Operations Suite: This segment grew over 20% year-over-year in Q3 2025.

Competitive Advantages and Market Position

ZoomInfo Technologies Inc. (ZI) maintains a strong competitive moat based on the scale and quality of its data universe and its deep integration into the enterprise workflow. The company is not just a data provider; it's a GTM Intelligence Platform that provides AI-ready insights.

This market leadership is quantified by its performance in the G2 Spring 2025 Reports, where ZI secured 150 No. 1 rankings, including 63 in Enterprise reports. This kind of consistent, high-level customer satisfaction and market presence is a huge barrier to entry for competitors. The proof is in the results: customers report growing their total pipeline by 32% and increasing their Total Addressable Market (TAM) by an average of 40% in the past year by leveraging ZI's insights. You can read more about their corporate direction here: Mission Statement, Vision, & Core Values of ZoomInfo Technologies Inc. (ZI).