ZoomInfo Q3 Revenue Falls 3%, 2026 Guidance Increased

ZoomInfo (NASDAQ: GTM) reported lower third-quarter revenue and sharply weaker GAAP operating profit, but its adjusted operating margin widened as the go-to-market software company increased its full-year 2026 guidance ranges for revenue and adjusted operating income.

Revenue for the quarter ended September 30 fell 3% year over year to $308.8 million. Adjusted operating income rose 1% to $119.1 million, while the adjusted operating margin reached 39%, up from 37% a year earlier and an expansion of 160 basis points on an unrounded basis.

The contrast between GAAP and adjusted results was substantial. GAAP operating income declined 65% to $23.6 million, reducing the GAAP operating margin to 8% from 21%. The quarter included $25 million of restructuring and transaction-related expenses and a $27.3 million litigation settlement charge, compared with $4.7 million and $1 million, respectively, in the prior-year period. Equity-based compensation expense was $31.1 million.

GAAP net income was $2.2 million, or $0.01 per diluted share, compared with $38.7 million, or $0.12 per share, a year earlier. Adjusted net income was $91.1 million, or $0.29 per diluted share, up from adjusted earnings of $0.28 per share in the third quarter of 2025.

Cash Flow and Capital Allocation

Cash generation also declined. Net cash provided by operating activities fell 49% to $47.4 million. Non-GAAP unlevered free cash flow decreased 8% to $87.2 million, representing a 28% margin and 73% conversion of adjusted operating income. Those measures compared with a 30% margin and 81% conversion a year earlier. ZoomInfo paid $20.8 million of interest in cash during the quarter.

The company repurchased 2.5 million shares at an average price of $2.94 and retired $34.8 million of aggregate debt principal. Total contractual debt maturities stood at $1.23 billion at September 30, down from $1.33 billion at the end of 2025. Cash, cash equivalents and investments declined to $141.5 million from $179.9 million.

ZoomInfo’s total net leverage ratio, measured against both trailing-12-month adjusted EBITDA and cash EBITDA, was 2.2 times, compared with 2.4 times at year-end. Management said it continues to prioritize balance-sheet discipline while expanding its approach to capital allocation.

Larger Customers Take a Greater Share

ZoomInfo continued to shift its customer base toward larger organizations. Customers with at least 100 employees represented 77% of annual contract value, up from 73% in the third quarter of 2025 and 63% three years earlier. The company had 1,851 customers with more than $100,000 in annual contract value at quarter-end, while 70% of the Fortune 50 used its platform.

Management said its cohort of customers generating at least $1 million in annual contract value was the strongest in the company’s history by both contract value and number of customers. ZoomInfo is positioning its platform as a context and data layer for go-to-market teams and AI agents, connecting customer intelligence with workflows across sales and marketing systems.

Contracted revenue indicators, however, were lower than at the end of 2025. Current remaining performance obligations declined to $792.6 million from $887.4 million, while total remaining performance obligations fell to $1.08 billion from $1.25 billion. Unearned revenue decreased to $420.8 million from $477.8 million.

2026 Guidance Increased

ZoomInfo now expects full-year 2026 GAAP revenue of $1.2235 billion to $1.2265 billion, above its previous range of $1.207 billion to $1.217 billion. The company increased its adjusted operating income outlook to between $452 million and $455 million from $446 million to $451 million.

Full-year adjusted diluted earnings are expected to be $1.125 to $1.135 per share, compared with the prior range of $1.12 to $1.13. Management also lifted its unlevered free cash flow range to $405 million to $425 million from $403 million to $423 million. The guidance assumes 318 million weighted-average shares outstanding.

For the fourth quarter, ZoomInfo expects revenue of $294 million to $297 million, adjusted operating income of $113 million to $116 million and adjusted diluted earnings of $0.285 to $0.295 per share.

The company did not provide GAAP reconciliations for its forward-looking non-GAAP measures, citing the difficulty of forecasting items including equity-based compensation, taxes, restructuring costs and obligations under its tax receivable agreements.

Risks identified by ZoomInfo include economic and competitive conditions, pricing and its transition toward larger customers, the ability to attract and retain subscribers, subscription expansion, regulatory developments and the integration of acquired businesses. The company also carried a $2.73 billion non-current tax receivable agreement liability at September 30; its value and the timing of related payments can vary with profitability, tax rates and legislative changes.