ZoomInfo Technologies (ZI) - 2025 Q4 - Annual Report

Financial Position - The company reported a total principal balance of $582.2 million on its First Lien Term Loan as of December 31, 2025[340]. - The company has a significant amount of goodwill and intangible assets, which may affect its results if not fully realized[28]. Interest Rate and Currency Risk - A hypothetical increase or decrease in the effective interest rate by 100 basis points would have caused an immaterial corresponding change in the company's financials over the next 12 months[340]. - The company has implemented a hedging strategy to mitigate interest rate risk on its First Lien Term Loan[340]. - The company re-initiated a foreign currency hedging program in Q2 2025 to mitigate potential adverse effects from significant currency movements[344]. - The impact of currency fluctuations on financial results has been immaterial in the past, and the company believes it will remain insignificant in the future, although no guarantees can be made[345]. - Monetary assets and liabilities of foreign subsidiaries are re-measured into U.S. dollars at the reporting date exchange rates, while revenue and expenses are re-measured at average exchange rates during each reporting period[345]. Foreign Operations - The company has foreign entities in Israel, Canada, the United Kingdom, Ireland, and India, with sales primarily denominated in U.S. dollars[343]. - A stronger U.S. dollar could reduce demand for the company's solutions outside the United States, while a weaker dollar could have the opposite effect[343]. Operational Challenges - The company anticipates increasing operating expenses in the future, which may impact profitability[28]. - The company is exposed to various risks that could materially affect its financial condition and results of operations, including competition and economic conditions[22]. - The company may face challenges in attracting new customers and retaining existing subscriptions, which could harm revenue growth[25]. - Changes in laws and regulations regarding data privacy could impact the company's ability to gather and process information efficiently[25]. Credit Risk Management - The company manages credit risk by concentrating cash deposits with multiple high-quality financial institutions and periodically evaluating their credit quality[346]. - Cash and cash equivalents, investments, and trade receivables are the primary financial instruments exposed to concentrations of credit risk[346].