Go-to-market intelligence provider ZoomInfo (NASDAQ: GTM) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, with sales up 3.2% year on year to $319.1 million. The company expects next quarter’s revenue to be around $307.5 million, close to analysts’ estimates. Its non-GAAP profit of $0.32 per share was 13.5% above analysts’ consensus estimates.
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ZoomInfo (GTM) Q4 CY2025 Highlights:
- Revenue: $319.1 million vs analyst estimates of $309.3 million (3.2% year-on-year growth, 3.2% beat)
- Adjusted EPS: $0.32 vs analyst estimates of $0.28 (13.5% beat)
- Revenue Guidance for Q1 CY2026 is $307.5 million at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for the upcoming financial year 2026 is $1.11 at the midpoint, in line with analyst estimates
- Operating Margin: 17%, up from 10% in the same quarter last year
- Free Cash Flow Margin: 42.4%, up from 30% in the previous quarter
- Market Capitalization: $2.28 billion
Company Overview
Operating a platform it calls "RevOS" - short for Revenue Operating System - ZoomInfo (NASDAQ: GTM) provides sales, marketing, and recruiting teams with business intelligence and analytics to identify prospects and deliver targeted outreach.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, ZoomInfo’s 21.1% annualized revenue growth over the last five years was decent. Its growth was slightly above the average software company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. ZoomInfo’s recent performance shows its demand has slowed as its revenue was flat over the last two years. 
This quarter, ZoomInfo reported modest year-on-year revenue growth of 3.2% but beat Wall Street’s estimates by 3.2%. Company management is currently guiding for flat sales next quarter.
Looking further ahead, sell-side analysts expect revenue to remain flat over the next 12 months. This projection is underwhelming and indicates its newer products and services will not catalyze better top-line performance yet.
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Customer Acquisition Efficiency
The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability.
It’s relatively expensive for ZoomInfo to acquire new customers as its CAC payback period checked in at 154.1 months this quarter. The company’s slow recovery of its sales and marketing expenses indicates it operates in a highly competitive market and must invest to stand out, even if the return on that investment is low.
Key Takeaways from ZoomInfo’s Q4 Results
It was encouraging to see ZoomInfo beat analysts’ revenue expectations this quarter. We were also glad its EPS guidance for next quarter slightly exceeded Wall Street’s estimates. On the other hand, its revenue guidance for next year suggests a significant slowdown in demand. Zooming out, we think this was a mixed quarter. The market seemed to be hoping for more, and the stock traded down 4% to $7.03 immediately after reporting.
Is ZoomInfo an attractive investment opportunity at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
