Core Insights - ZoomInfo announced a strategic partnership with Markaaz to create an AI-powered B2B data solution that integrates sales intelligence with credit and risk data, marking the launch of the industry's first comprehensive end-to-end master data platform for enterprise organizations [1] Company Summary - The partnership aims to transform how companies identify and manage business relationships by providing a unified platform that combines various data sources [1]

Core Insights - ZoomInfo has launched the Copilot Workspace, an AI-powered execution engine designed to enhance how revenue teams implement Go-To-Market (GTM) strategies, shifting from reactive to proactive selling [1][4] - The complexity of execution in sales is a significant issue, with companies wasting an estimated $2 trillion due to ineffective GTM strategies, prompting a need for intelligent outbound sales approaches [2][3] - The Copilot Workspace integrates various GTM tools into a single platform, providing sales teams with comprehensive visibility and insights, thereby improving their effectiveness in managing accounts and advancing deals [3][4] Company Overview - ZoomInfo is recognized as a leader in Go-To-Market Intelligence, providing AI-ready insights and advanced automation to over 35,000 companies globally, including Fortune 500 firms [6] - The company emphasizes data privacy and compliance, holding industry-leading certifications for GDPR and CCPA [6] Industry Context - The sales landscape is evolving, with a predicted 25% drop in inbound search traffic by 2026 due to AI-driven customer acquisition strategies, necessitating a shift in demand generation [2] - The average enterprise utilizes 23 different GTM technologies, highlighting the fragmentation in the current sales tool ecosystem [3]

Core Insights - OpenAI, valued at $500 billion, is significantly influencing the stock market despite being privately held, with its announcements affecting various sectors, particularly e-commerce and software [3][6][12] - The company recently partnered with Advanced Micro Devices Inc. (AMD), leading to a 28% surge in AMD's shares, while negatively impacting competitors like Nvidia and Intel [2][3] - OpenAI's upcoming developer conference is anticipated to provide insights into its future plans, which could further affect stock movements in related industries [4][6] E-commerce Impact - OpenAI's introduction of an instant buy option in ChatGPT has positively impacted e-commerce stocks such as Shopify and Etsy [1] - The market's reaction indicates a strong correlation between OpenAI's innovations and the performance of e-commerce companies [1][3] Software Sector Reaction - Software stocks, including Atlassian and DocuSign, experienced declines of over 9% following OpenAI's internal feature announcements, reflecting investor concerns about AI disruption [9][11] - A Goldman Sachs index of software-as-a-service stocks saw a 3.3% drop, marking its worst week in two months [9] Future Developments - Analysts expect OpenAI to diversify its offerings beyond ChatGPT, potentially introducing new consumer AI agents and tools [4][5] - The company is exploring ways to monetize its large user base of over 700 million, as it reported $4.3 billion in revenue but incurred a loss of $2.5 billion in the first half of 2025 [7] Market Sentiment - There is a mixed sentiment regarding the threat posed by OpenAI, with some analysts suggesting that the negative stock reactions may not align with the underlying fundamentals of affected companies [10][11] - OpenAI's influence is expected to grow, with industry experts noting its agility and creativity as factors contributing to its market impact [12][13]

Core Insights - OpenAI, valued at $500 billion, is significantly influencing the stock market despite being privately held, with its announcements affecting e-commerce and software stocks [2][11] - The company is expected to diversify its offerings beyond ChatGPT subscriptions, with potential new consumer AI agents and tools being unveiled at its upcoming developer conference [3][4] Company Developments - OpenAI's recent introduction of an instant buy option in ChatGPT positively impacted shares of Shopify and Etsy [1] - The company reported $4.3 billion in revenue for the first half of 2025 but incurred a loss of $2.5 billion, highlighting the challenges of monetizing its user base of over 700 million [6] Market Reactions - Software stocks, including Atlassian and DocuSign, experienced significant declines, with some falling over 9% following OpenAI's announcements [8] - Despite fears of disruption from AI, some analysts believe the negative stock reactions may not align with the underlying fundamentals of the companies affected [10] Analyst Perspectives - Analysts are closely monitoring OpenAI's developments, with expectations that the company will reveal insights into its future plans at its third annual DevDay [3][5] - There is a consensus that OpenAI's influence will continue to grow, potentially making it one of the most impactful companies in the AI sector [11][12]

Core Insights - There is a significant change in traffic patterns for product-led growth and direct sales companies due to shifts in search engine optimization (SEO) and artificial intelligence (AI) engine optimization [1] Group 1 - Investors are increasingly inquiring about the impact of changing search patterns on companies' go-to-market strategies [1] - The decline in traditional SEO effectiveness is prompting companies to adapt their marketing approaches [2]

Core Insights - The conference has seen increased registration statistics, with a rise of 4% to 5%, exceeding 3,000 registrations, indicating strong interest in AI themes [1] Group 1 - The conference is action-packed and has received a record number of meeting requests, reflecting high client activity and enthusiasm [1] - The participation of various companies in the conference contributes significantly to its content and success [1]

Group 1 - The article emphasizes the importance of caution for investors in the current market, particularly with the S&P 500 reaching record valuation multiples [1] - Stocks retained in investment portfolios should demonstrate high-quality fundamentals to ensure sound investment decisions [1] - The author, Gary Alexander, has extensive experience in technology companies and has been a contributor to Seeking Alpha since 2017, indicating a strong background in industry analysis [1]

Company Performance - ZoomInfo reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, and up from $0.17 per share a year ago, representing an earnings surprise of +8.70% [1] - The company posted revenues of $306.7 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.37%, compared to year-ago revenues of $291.5 million [2] - Over the last four quarters, ZoomInfo has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - The immediate price movement of ZoomInfo's stock will largely depend on management's commentary during the earnings call, as the stock has underperformed the market with a loss of about 2.9% since the beginning of the year [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $297.86 million, and for the current fiscal year, it is $0.97 on revenues of $1.2 billion [7] Industry Context - The Internet - Software industry, to which ZoomInfo belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Cautionary Statement Regarding Forward-Looking Statements This statement advises readers about forward-looking information, highlighting inherent risks and uncertainties that could cause actual results to differ materially from projections PART I - FINANCIAL INFORMATION This section provides unaudited consolidated financial statements, management's discussion and analysis, and disclosures on market risk and internal controls [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents ZoomInfo's unaudited consolidated financial statements for Q2 2025, covering balance sheets, operations, comprehensive income, equity, cash flows, and notes [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's consolidated balance sheets as of June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | Change (2025 vs 2024) | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | | Total Assets | $6,452.8 | $6,467.6 | -$14.8 | | Total Liabilities | $4,900.8 | $4,774.1 | +$126.7 | | Total Stockholders' Equity | $1,552.0 | $1,693.5 | -$141.5 | | Cash and Cash Equivalents | $171.0 | $139.9 | +$31.1 | | Accounts Receivable, net | $192.0 | $246.1 | -$54.1 | | Long-term Debt, net | $1,320.0 | $1,221.8 | +$98.2 | | Common Stock Outstanding | 320,561,651 shares | 342,027,974 shares | -21,466,323 shares | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) This section presents the company's consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Revenue | $306.7 | $291.5 | $612.4 | $601.6 | | Gross Profit | $257.2 | $245.6 | $515.6 | $512.3 | | Income (Loss) from Operations | $53.7 | $(20.0) | $104.0 | $23.0 | | Net Income (Loss) | $24.0 | $(24.4) | $50.8 | $(9.3) | | Basic EPS | $0.07 | $(0.07) | $0.15 | $(0.02) | | Diluted EPS | $0.07 | $(0.07) | $0.15 | $(0.02) | - Total equity-based compensation expense decreased by **18%** for the three months ended June 30, 2025 (**$29.7 million**) compared to the same period in 2024 (**$36.4 million**), and by **12%** for the six months ended June 30, 2025 (**$59.3 million**) compared to 2024 (**$67.6 million**)[26](index=26&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=10&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) This section presents the company's consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024 | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | $24.0 | $(24.4) | $50.8 | $(9.3) | | Other comprehensive loss, net of tax | $(1.4) | $(3.0) | $(5.0) | $(2.8) | | Comprehensive income (loss) | $22.6 | $(27.4) | $45.8 | $(12.1) | [Consolidated Statements of Changes in Stockholders' Equity](index=11&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This section presents the company's consolidated statements of changes in stockholders' equity for the periods presented | Metric (in millions) | June 30, 2025 | December 31, 2024 | June 30, 2024 | December 31, 2023 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total Stockholders' Equity | $1,552.0 | $1,693.5 | $1,862.9 | $2,119.3 | | Common Stock Shares Outstanding (end of period) | 320,561,651 | 342,027,974 | 366,772,027 | 384,830,529 | | Repurchase of Common Stock (6 months) | $(244.3) | N/A | $(299.2) | N/A | | Net Income (6 months) | $50.8 | N/A | $(9.3) | N/A | - The company repurchased **24,474,847 shares** for **$241.3 million** during the six months ended June 30, 2025, compared to **20,423,046 shares** for **$300.5 million** in the same period of 2024[91](index=91&type=chunk) [Consolidated Statements of Cash Flows](index=13&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $228.1 | $242.2 | | Net cash provided by (used in) investing activities | $(43.3) | $44.6 | | Net cash used in financing activities | $(153.3) | $(348.2) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $31.5 | $(61.4) | | Cash, cash equivalents, and restricted cash at end of period | $180.5 | $394.8 | - Operating cash flow decreased by **$14.1 million (5.8%) YoY**, primarily due to changes in operating assets and liabilities, despite an increase in net income[35](index=35&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk) - Investing activities shifted from a net cash inflow of **$44.6 million** in H1 2024 to a net cash outflow of **$43.3 million** in H1 2025, mainly due to increased purchases of property and equipment and new investments[35](index=35&type=chunk)[285](index=285&type=chunk)[286](index=286&type=chunk) - Financing cash outflow significantly decreased from **$348.2 million** in H1 2024 to **$153.3 million** in H1 2025, driven by lower common stock repurchases and proceeds from revolving credit loans[35](index=35&type=chunk)[287](index=287&type=chunk)[289](index=289&type=chunk) [Notes to the Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed explanations of accounting policies, financial line items, and other disclosures supporting the consolidated financial statements [Note 1 Business, Basis of Presentation, and Summary of Significant Accounting Policies](index=16&type=section&id=Note%201%20Business%2C%20Basis%20of%20Presentation%2C%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note describes ZoomInfo's business as a go-to-market intelligence and engagement platform, outlines the basis of financial statement presentation, significant accounting policies including revenue recognition, cash and investments, fair value measurements, credit risk, property and equipment, deferred commissions, R&D, business combinations, goodwill, intangible assets, impairment, leases, derivatives, unearned revenue, debt issuance costs, tax receivable agreements, income taxes, equity-based compensation, share repurchase program, and recent restructuring activities - ZoomInfo provides a cloud-based go-to-market intelligence and engagement platform for sales, marketing, operations, and recruiting professionals, offering workflow tools with integrated, accurate, and comprehensive information[40](index=40&type=chunk) - The company primarily derives revenue from subscription services, typically one to three years in length, billed annually, semi-annually, or quarterly in advance, and recognized ratably over the contract term[47](index=47&type=chunk)[48](index=48&type=chunk) - In June 2025, the Company initiated a restructuring plan, reducing employees by approximately **6%** in Q2 2025,

Introduction and Q2 2025 Performance Overview [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) ZoomInfo reported strong financial results for Q2 2025, with GAAP revenue increasing by 5% year-over-year to $306.7 million, achieving a GAAP operating income of $53.7 million and an Adjusted operating income of $104.7 million, demonstrating improved profitability and efficiency Q2 2025 Financial Highlights (in millions, except percentages) | Metric | Q2 2025 (GAAP) | Change YoY | Q2 2025 (Non-GAAP) | Change YoY | | :-------------------------------- | :------------- | :--------- | :----------------- | :--------- | | Revenue | $306.7 million | 5% | - | - | | Operating Income | $53.7 million | NM* | $104.7 million | 28% | | Operating Income Margin | 18% | - | 34% | - | | Net Income Per Share (Diluted) | $0.07 | - | $0.25 | - | | Cash Flow from Operating Activities | $108.9 million | (14)% | - | - | | Unlevered Free Cash Flow | - | - | $99.9 million | (17)% | *Change YoY as a percentage is not meaningful due to the change from operating loss to income [Recent Business and Operating Highlights](index=1&type=section&id=Recent%20Business%20and%20Operating%20Highlights) ZoomInfo continued its innovation roadmap focused on AI and data, leading to improved renewal and retention rates, expanded relationships with large customers, and accelerated Upmarket growth, alongside key product updates and leadership appointments - CEO Henry Schuck highlighted continued delivery on **AI and data-focused innovation roadmap**, leading to **strong financial results**, **improved renewal and retention rates**, **expanded relationships with largest customers**, and **accelerated Upmarket growth**[3](index=3&type=chunk) - Earned **top ratings** in TrustRadius' **Customer-Verified Awards** for **AI-powered GTM solutions** and **product capabilities**[4](index=4&type=chunk) - Updated **Copilot solution** to deliver **AI-fueled account insights** with **improved signals**, **intelligence alerts**, and **automated account tracking agents**[4](index=4&type=chunk) Key Operational Metrics (in millions, except percentages) | Metric | Q2 2025 | Change YoY | Change QoQ | | :------------------------------------ | :------ | :--------- | :--------- | | Customers with $100,000+ ACV | 1,884 | +87 | +16 | | Upmarket ACV | 72% | - | - | | Net Revenue Retention Rate (sequential) | 89% | - | Improved | | Shares Repurchased (Q2 2025) | 15.9 million | - | - | | Aggregate Repurchase Amount (Q2 2025) | $146.3 million | - | - | Business Outlook [Q3 2025 Guidance](index=2&type=section&id=Q3%202025%20Guidance) ZoomInfo provided guidance for the third quarter of 2025, projecting GAAP Revenue between $302 million and $305 million, and Non-GAAP Adjusted Operating Income between $110 million and $113 million Q3 2025 Financial Guidance (in millions, except per share amounts) | Metric | Q3 2025 Guidance | | :------------------------------------ | :----------------- | | GAAP Revenue | $302 - $305 million | | Non-GAAP Adjusted Operating Income | $110 - $113 million | | Non-GAAP Adjusted Net Income Per Share (Diluted) | $0.24 - $0.26 | | Weighted Average Shares Outstanding | 342 million | [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) For the full year 2025, ZoomInfo updated its guidance, expecting GAAP Revenue to be between $1.215 billion and $1.225 billion, and Non-GAAP Adjusted Operating Income between $433 million and $437 million Full Year 2025 Financial Guidance (in millions, except per share amounts) | Metric | Prior FY 2025 Guidance | Updated FY 2025 Guidance | | :------------------------------------ | :--------------------- | :----------------------- | | GAAP Revenue | $1.195 - $1.205 billion | $1.215 - $1.225 billion | | Non-GAAP Adjusted Operating Income | $426 - $436 million | $433 - $437 million | | Non-GAAP Adjusted Net Income Per Share (Diluted) | $0.96 - $0.98 | $0.99 - $1.01 | | Non-GAAP Unlevered Free Cash Flow | $420 - $440 million | $422 - $442 million | | Weighted Average Shares Outstanding | 352 million | 346 million | Corporate Communications and Information [Conference Call and Webcast](index=3&type=section&id=Conference%20Call%20and%20Webcast) ZoomInfo hosted a conference call on August 4, 2025, to discuss its Q2 2025 results, with a live webcast available on its investor relations website - Conference call held on **August 4, 2025**, at **4:30 p.m. Eastern Time**[8](index=8&type=chunk) - **Live webcast** and related presentation materials available on the Company's **investor relations website**: **https://ir.zoominfo.com/**[9](index=9&type=chunk) [Upcoming Investor Events](index=3&type=section&id=Upcoming%20Investor%20Events) ZoomInfo executives are scheduled to participate in several investor conferences in August and September 2025, including KeyBanc, Canaccord, Stifel, Deutsche Bank, Goldman Sachs, and Piper Sandler events - ZoomInfo executives expect to participate in **six investor events** in **August and September 2025**[10](index=10&type=chunk) - Events include **KeyBanc Technology Leadership Forum (Aug. 11)**, **Canaccord Growth Conference (Aug. 12)**, **Stifel Technology Executive Summit (Aug. 25)**, **Deutsche Bank Technology Conference (Aug. 28)**, **Goldman Sachs Communacopia and Technology Conference (Sep. 9)**, and **Piper Sandler Growth Frontiers Conference (Sep. 11)**[12](index=12&type=chunk) [About ZoomInfo](index=5&type=section&id=About%20ZoomInfo) ZoomInfo is a Go-To-Market Intelligence Platform that leverages AI-ready insights, trusted data, and advanced automation to help businesses accelerate revenue growth, serving over 35,000 companies globally and recognized for its data privacy compliance - ZoomInfo (NASDAQ: GTM) is a **Go-To-Market Intelligence Platform** empowering businesses to **grow faster** with **AI-ready insights**, **trusted data**, and **advanced automation**[21](index=21&type=chunk) - Solutions provide **over 35,000 companies worldwide** with a **complete view of their customers**[21](index=21&type=chunk) - **Recognized leader in data privacy**, with **industry-leading GDPR and CCPA compliance** and **numerous data security and privacy certifications**[21](index=21&type=chunk) [Website Disclosure and Contacts](index=6&type=section&id=Website%20Disclosure%20and%20Contacts) ZoomInfo uses its investor relations website (https://ir.zoominfo.com/) as a primary channel for material company information, including financial data, press releases, SEC filings, and webcasts, also providing contact information for investor and media inquiries - ZoomInfo uses its **investor relations website (https://ir.zoominfo.com/)** as a **distribution channel for material company information**[22](index=22&type=chunk) - Investors can enroll for **email alerts** on the **investor relations page**[22](index=22&type=chunk) - Investor Contact: **Jeremiah Sisitsky (ir@zoominfo.com)**; Media Contact: **Meghan Barr (pr@zoominfo.com)**[23](index=23&type=chunk) Non-GAAP Financial Measures and Other Metrics [Rationale and Limitations](index=3&type=section&id=Rationale%20and%20Limitations) ZoomInfo presents non-GAAP financial measures to provide investors with additional insights into its operating performance by excluding certain items that affect period-over-period comparability, acknowledging these measures have limitations as they are not prepared in accordance with GAAP and may not be comparable to those of other companies - Non-GAAP measures (**Adjusted Operating Income**, **Adjusted Operating Income Margin**, **Adjusted Net Income**, **Adjusted Net Income Per Share**, **Unlevered Free Cash Flow**) are used to **evaluate operating performance** by **eliminating items affecting comparability** and providing **consistency with past financial performance**[11](index=11&type=chunk) - **Non-GAAP financial measures are supplemental information**, **not substitutes for GAAP measures**, and have **limitations** due to **potential differences in calculation methods and adjusted items** compared to other companies[13](index=13&type=chunk) - Quantitative reconciliation of forward-looking non-GAAP measures to GAAP is **not provided** due to **high variability** and **difficulty in predicting** certain excluded items like **stock-based compensation**, **taxes**, and **restructuring expenses**[13](index=13&type=chunk) [Key Non-GAAP Definitions](index=4&type=section&id=Key%20Non-GAAP%20Definitions) This section provides the specific definitions for key non-GAAP financial measures used by ZoomInfo, including Adjusted Operating Income, Adjusted Net Income, Unlevered Free Cash Flow, and Net Revenue Retention, outlining the adjustments made to their GAAP counterparts [Adjusted Operating Income](index=4&type=section&id=Adjusted%20Operating%20Income) - Adjusted Operating Income is defined as **income (loss) from operations** adjusted for **amortization of acquired technology and other acquired intangibles**, **equity-based compensation expense**, **restructuring and transaction-related expenses**, **integration costs and acquisition-related expenses**, and **legal settlement**[14](index=14&type=chunk) [Adjusted Net Income](index=4&type=section&id=Adjusted%20Net%20Income) - Adjusted Net Income is defined as **net income (loss)** adjusted for **loss on debt modification and extinguishment**, **amortization of acquired technology and other acquired intangibles**, **equity-based compensation expense**, **restructuring and transaction-related expenses**, **integration costs and acquisition-related expenses**, **legal settlement**, **TRA liability remeasurement (benefit) expense**, **other (income) loss, net**, and **tax impacts of adjustments to net income (loss)**[15](index=15&type=chunk) [Unlevered Free Cash Flow](index=4&type=section&id=Unlevered%20Free%20Cash%20Flow) - Unlevered Free Cash Flow is defined as **net cash provided by (used in) operating activities** less **purchases of property and equipment and other assets**, plus **cash interest expense**, **cash payments related to restructuring and transaction-related expenses**, **cash payments related to integration costs and acquisition-related compensation**, and **legal settlement payments**[16](index=16&type=chunk) [Net Revenue Retention](index=4&type=section&id=Net%20Revenue%20Retention) - Net revenue retention is calculated as the **total ACV for customers at the end of a twelve-month period** divided by the **total ACV for those same customers at the beginning of the period**[17](index=17&type=chunk) [Cautionary Statement Regarding Forward-Looking Information](index=5&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Information) This section serves as a cautionary statement regarding forward-looking statements, emphasizing that actual results may differ materially from projections due to various factors, including economic conditions, regulatory changes, and integration of acquired businesses, with the company disclaiming any obligation to update these statements - The press release contains **forward-looking statements**, and **actual results may differ materially** from those expressed or implied[19](index=19&type=chunk) - Factors that could cause actual results to differ include **future economic, competitive, and regulatory conditions**, **potential future uses of cash**, **successful integration of acquired businesses**, and **decisions by the company and competitors**[20](index=20&type=chunk) - The company undertakes **no obligation to update or revise any forward-looking statements**, **except as required by law**[20](index=20&type=chunk) Condensed Consolidated Financial Statements (Unaudited) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, ZoomInfo reported total assets of $6,452.8 million, a slight decrease from $6,467.6 million at December 31, 2024, with total liabilities increasing to $4,900.8 million and total stockholders' equity decreasing to $1,552.0 million Condensed Consolidated Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $171.0 | $139.9 | | Total current assets | $439.0 | $451.0 | | Total assets | $6,452.8 | $6,467.6 | | Total current liabilities | $619.4 | $652.1 | | Total liabilities | $4,900.8 | $4,774.1 | | Total stockholders' equity | $1,552.0 | $1,693.5 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, ZoomInfo's revenue grew to $306.7 million, up from $291.5 million in the prior year, achieving a net income of $24.0 million, a significant improvement from a net loss of $24.4 million in Q2 2024 Consolidated Statements of Operations Highlights (in millions, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $306.7 | $291.5 | $612.4 | $601.6 | | Gross profit | $257.2 | $245.6 | $515.6 | $512.3 | | Income (Loss) from operations | $53.7 | $(20.0) | $104.0 | $23.0 | | Net income (loss) | $24.0 | $(24.4) | $50.8 | $(9.3) | | Diluted Net income (loss) per share | $0.07 | $(0.07) | $0.15 | $(0.02) | | Total equity-based compensation expense | $29.7 | $36.4 | $59.3 | $67.6 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was $228.1 million, a decrease from $242.2 million in the prior year, with investing activities resulting in a net cash outflow of $43.3 million and financing activities using $153.3 million, primarily due to common stock repurchases Consolidated Statements of Cash Flows Highlights (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $228.1 | $242.2 | | Net cash provided by (used in) investing activities | $(43.3) | $44.6 | | Net cash used in financing activities | $(153.3) | $(348.2) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $31.5 | $(61.4) | | Cash, cash equivalents, and restricted cash at end of period | $180.5 | $394.8 | | Repurchase of common stock | $(244.3) | $(299.2) | Reconciliation of Non-GAAP Financial Measures (Unaudited) [Reconciliation of Unlevered Free Cash Flow](index=11&type=section&id=Reconciliation%20of%20Unlevered%20Free%20Cash%20Flow) The reconciliation shows that Unlevered Free Cash Flow for Q2 2025 was $99.9 million, derived from GAAP net cash provided by operating activities of $108.9 million, after adjustments for capital expenditures, interest paid, and restructuring/litigation payments Reconciliation of Unlevered Free Cash Flow (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | | Net cash provided by operating activities (GAAP) | $108.9 | $126.3 | | Purchases of property and equipment and other assets | $(22.0) | $(11.1) | | Interest paid in cash | $5.0 | $2.6 | | Restructuring and transaction-related expenses paid in cash | $7.5 | $1.7 | | Litigation settlement payments | $0.5 | $0.5 | | **Unlevered Free Cash Flow (Non-GAAP)** | **$99.9** | **$120.0** | [Reconciliation of Adjusted Operating Income](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Operating%20Income) Adjusted Operating Income for Q2 2025 was $104.7 million, a 28% increase year-over-year, resulting in an Adjusted Operating Income Margin of 34%, reconciled from a GAAP operating income of $53.7 million by adding back items such as amortization, equity-based compensation, and restructuring expenses Reconciliation of Adjusted Operating Income (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Income (Loss) from operations (GAAP) | $53.7 | $(20.0) | | Amortization of acquired technology | $9.4 | $9.6 | | Amortization of other acquired intangibles | $5.3 | $5.5 | | Equity-based compensation expense | $29.7 | $36.4 | | Restructuring and transaction-related expenses | $5.1 | $50.0 | | Litigation settlement | $1.5 | $0.0 | | **Adjusted Operating Income (Non-GAAP)** | **$104.7** | **$81.6** | | Operating Income Margin (GAAP) | 18% | (7)% | | Adjusted Operating Income Margin (Non-GAAP) | 34% | 28% | [Reconciliation of Adjusted Net Income](index=13&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income) Adjusted Net Income for Q2 2025 reached $86.1 million, up from $66.0 million in Q2 2024, leading to an Adjusted Net Income Per Share of $0.25, with this reconciliation from GAAP net income including adjustments for various non-cash and non-recurring items, as well as their tax impacts Reconciliation of Adjusted Net Income (in millions, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | | Net income (loss) (GAAP) | $24.0 | $(24.4) | | Amortization of acquired technology | $9.4 | $9.6 | | Amortization of other acquired intangibles | $5.3 | $5.5 | | Equity-based compensation expense | $29.7 | $36.4 | | Restructuring and transaction-related expenses | $5.1 | $50.0 | | Litigation settlement | $1.5 | $0.0 | | TRA liability remeasurement expense (benefit) | $(14.6) | $(0.2) | | Tax impacts of adjustments to net income (loss) | $25.8 | $(9.0) | | **Adjusted Net Income (Non-GAAP)** | **$86.1** | **$66.0** | | Diluted Net Income (Loss) Per Share (GAAP) | $0.07 | $(0.07) | | **Adjusted Net Income Per Share (Non-GAAP)** | **$0.25** | **$0.17** | | Shares for Adjusted Net Income Per Share | 343 | 387 | - Tax impacts of adjustments to net income (loss) for **Q2 2025** primarily relate to recognizing **$15.2 million of tax benefit** from **amortization of corporate structure simplification costs**, **adjusting out $14.6 million of tax expense** from **state tax law changes**, and **$4.0 million from non-deductible stock-based compensation**[42](index=42&type=chunk)