Executive Summary

Q2 2025 delivered solid upside: revenue was $306.7M (+5% YoY), GAAP operating margin 18%, and adjusted operating margin 34%; adjusted EPS diluted was $0.25 .
Results beat Street: revenue vs consensus $296.4M* and adjusted EPS $0.25 vs $0.2303*, driving a clear top/bottom-line beat; management raised FY 2025 guidance to positive revenue growth (midpoint +0.5%) . Values retrieved from S&P Global.
Mix shift upmarket continued: upmarket ACV reached 72%, upmarket growth +4% YoY while downmarket declined 11%; net revenue retention improved to 89% .
Capital allocation: repurchased 15.9M shares at $9.22 ($146.3M); ended Q2 with $177M cash & investments and $1.3B gross debt; net leverage 2.5x TTM adjusted EBITDA .
Catalyst: largest TCV deal in company history signed just after quarter-end (nearly eight-figure annual contract over 4 years), reinforcing enterprise/AI data platform narrative .

What Went Well and What Went Wrong

What Went Well

Upmarket acceleration with stronger cohort expansion: upmarket revenue +4% YoY; 1,884 customers ≥$100k ACV (+16 seq; +87 YoY); million-dollar cohort ACV up >25% YoY; NRR improved to 89% .
AI portfolio traction: Copilot renewals “materially better than legacy” and active users increased monthly AI actions >40% since Q4’24; Go-to-Market Studio entered early access and is ahead of GA schedule .
Record capital return pace with buybacks and balance sheet flexibility: 15.9M shares retired at $9.22; net leverage 2.5x TTM adjusted EBITDA and RPO $1.15B with $842M expected in next 12 months .

Management quote: “We executed well… raised our guidance for the year, which now calls for positive revenue growth in 2025… positioned to play offense with accelerating product innovation” .

What Went Wrong

Downmarket weakness persisted: downmarket ACV now 28% of business and declined 11% YoY; management expects a “smaller and healthier” downmarket over time .
Cash flow compression YoY: Q2 operating cash flow $108.9M (-14% YoY) and unlevered FCF $99.9M (-17% YoY), reflecting higher capex and restructuring cash costs .
GAAP profitability still burdened by non-GAAP adjustments: Q2 GAAP operating income $53.7M vs adjusted $104.7M; equity-based comp $29.7M and restructuring/transaction-related expenses $5.1M weighed on GAAP results .

Financial Results

Q2 YoY Actuals

Metric	Q2 2024	Q2 2025
Revenue ($USD Millions)	$291.5	$306.7
GAAP Operating Income ($USD Millions)	$(20.0)	$53.7
GAAP Operating Margin (%)	(7%)	18%
Adjusted Operating Income ($USD Millions)	$81.6	$104.7
Adjusted Operating Margin (%)	28%	34%
GAAP Diluted EPS ($USD)	$(0.07)	$0.07
Adjusted Diluted EPS ($USD)	$0.17	$0.25

Q2 Actual vs Consensus (S&P Global)

Metric	Consensus	Actual	Beat/Miss
Revenue ($USD Millions)	296.4*	306.7	Beat +$10.3M
Adjusted Diluted EPS ($USD)	0.2303*	0.25	Beat +$0.0197
Values retrieved from S&P Global.

Sequential Trends

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$309.0	$306.0	$306.7
Adjusted Operating Income ($USD Millions)	$116.0	$101.0	$104.7
Adjusted Operating Margin (%)	37%	33%	34%

Segment/Mix and Cohorts (Q2 2025)

Metric	Q2 2024	Q2 2025
Upmarket ACV Mix (%)	—	72%
Upmarket Growth (YoY, %)	—	+4%
Downmarket Growth (YoY, %)	—	(11%)
Customers ≥$100k ACV (#)	1,797	1,884

KPIs and Balance Sheet

Metric	Q1 2025	Q2 2025
Net Revenue Retention (%)	87%	89%
Upmarket ACV Mix (%)	71%	72%
Shares Repurchased (#, M)	8.6 in Q1 @ $11.05	15.9 in Q2 @ $9.22 ($146.3M)
Cash + ST Investments ($M)	$143	$177
Gross Debt ($M)	$1,240	$1,300
Unearned Revenue, Current ($M)	$484	$473
RPO ($M)	$1,130; next 12 mo $837	$1,150; next 12 mo $842

Non-GAAP reconciliations and definitions provided in the press release .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
GAAP Revenue ($B)	FY 2025	$1.195 – $1.205	$1.215 – $1.225	Raised
Adjusted Operating Income ($M)	FY 2025	$426 – $436	$433 – $437	Raised (midpoint)
Adjusted Diluted EPS ($)	FY 2025	$0.96 – $0.98	$0.99 – $1.01	Raised
Unlevered Free Cash Flow ($M)	FY 2025	$420 – $440	$422 – $442	Raised (low end)
Weighted Avg Diluted Shares (M)	FY 2025	352	346	Lower (buybacks)
GAAP Revenue ($M)	Q3 2025	—	$302 – $305	New
Adjusted Operating Income ($M)	Q3 2025	—	$110 – $113	New
Adjusted Diluted EPS ($)	Q3 2025	—	$0.24 – $0.26	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
AI initiatives (Copilot, GTM Studio)	Copilot ACV >$150M; expanding into AE/AM/CSM personas; launched GTM Studio	Copilot renewals “materially better than legacy”; monthly AI actions +40% since Q4’24; GTM Studio in early access, GA ahead of schedule	Accelerating adoption and feature set
Upmarket shift and cohorts	Upmarket ~2/3 of business; path to mid-single-digit growth; 1,867 ≥$100k customers; NRR up to 87%	Upmarket is 72% ACV; +4% YoY growth; 1,884 ≥$100k customers; NRR 89%	Continued mix shift, improving retention
Downmarket stabilization	Downmarket down 9% in 2024; expected worse in 2025; disqualification policies	Downmarket down 11% YoY; aim to be smaller/healthier; PLG/self-serve motion continues	Managing decline; less strategic focus
Software vertical	Sequential retention improvement four quarters; still a drag in prior periods	Software returned to contributing growth in Q2 for the first time in a long time	Inflection to tailwind
Capital allocation	Aggressive buybacks; added $500M authorization; OCF/FCF strong in Q4	$146.3M repurchases; net leverage 2.5x; RPO visibility strong	Ongoing buybacks; balance sheet stable
Organization/CFO	Interim CFO guiding conservative transitions	Graham O’Brien named permanent CFO; comp and RSU details in 8-K	Leadership stabilized

Management Commentary

Strategy: “We continue to see great momentum… enterprises move beyond accessing data to demanding AI-powered systems that can think, predict, and act… positioning our solutions… as the intelligent backbone of their go-to-market operation” .
Product: “We will be GA’ing Go-to-Market Studio ahead of schedule… unprecedented opportunity to enable go-to-market leaders to actually deliver results with AI and automation” .
Upmarket validation: “Shortly after the close of the quarter, we signed the largest TCV deal in the history of ZoomInfo… nearly 8 figure annual contract across four years” .
CFO philosophy: “The ultimate arbiter… is long term free cash flow per share… reaccelerate revenue growth while prioritizing profitability” .
Capital return: “We were aggressive against our share buyback program, retiring 15.9M shares… average price of $9.22” .

Q&A Highlights

Largest TCV deal specifics: ACV “just below 8 figures,” significant growth from prior ACV; embedded Copilot into new CRM; consolidation of legacy tools .
RIF and margin outlook: 6% reduction in force in June viewed as proactive; sets up “meaningfully better margins in 2026”; margin expansion not perfectly linear to upmarket mix .
Pipeline and software vertical: Strong exit velocity/pipeline into H2; software vertical net dollar retention improved five straight quarters and contributed to growth in Q2 .
Retention trajectory: NRR 89% (+2 pts seq, +4 pts in three quarters); upmarket retention “highest in years” (high-90s trailing); persona expansion with Copilot/GTM Studio supports upsell .
Downmarket model: PLG/self-serve and business risk model stabilize downmarket; resource shift upmarket continues .

Estimates Context

Q2 2025 actuals beat consensus: revenue $306.7M vs $296.4M*, adjusted EPS $0.25 vs $0.2303* . Values retrieved from S&P Global.
Q3 2025 guidance ($302–$305M revenue; $0.24–$0.26 adjusted EPS) sits broadly in line with consensus revenue $303.8M* and EPS $0.2556*, implying modest conservatism amid upmarket pipeline strength . Values retrieved from S&P Global.
FY 2025 guide raised to positive revenue growth (+0.5% at midpoint), likely driving upward estimate revisions on revenue, adjusted EPS, and FCF; share count reduction (346M vs 352M) adds EPS leverage .

Key Takeaways for Investors

The upmarket mix and AI/data-led platform strategy are working: accelerating cohort growth, improved retention, and enterprise validations (largest TCV deal) should support revenue and margin trajectory into 2026 .
Results and raised FY guide were clear positives; expect estimate revisions higher and the narrative to center on sustained upmarket growth and AI adoption (Copilot/GTM Studio) .
Downmarket remains a controlled headwind; continued resource reallocation and PLG/self-serve should mitigate volatility while preserving profitability .
Capital returns are meaningful with leverage contained; buybacks drive EPS compounding and reduce diluted shares outstanding (guidance assumes 346M) .
Watch renewal cohorts for Copilot in H2 and pipeline conversion in Q4 (historically upmarket-weighted) as near-term trading catalysts .
Monitor cash flow normalization after elevated restructuring/capex; FCF guide slightly higher suggests stability despite near-term compression .
Leadership continuity with new CFO and disciplined guidance philosophy likely sustains credibility and focus on free cash flow per share growth .

Appendix: Other Q2 2025 Press Releases

CFO appointment press release (Exhibit 99.2): Graham O’Brien named permanent CFO effective Aug 1, 2025 .
Earnings release (Exhibit 99.1): detailed financials, non-GAAP definitions, reconciliations, and business outlook .

Notes: *Values retrieved from S&P Global.

ZoomInfo Technologies Inc. (GTM)·Q2 2025 Earnings Summary