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ZoomInfo Technologies Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 11 May 2026: press release. Guidance figures: 4 lowered, 4 new, 1 kept. The quarter’s numbers.

Key takeaways

  • Revenue rose 1.5% year-over-year: Revenue was $310.2 million, against $305.7 million a year earlier. The release does not break down the change by product or region. Source
  • Large-customer count fell by 21: Customers with $100,000 or greater ACV ended the quarter at 1,900, down from 1,921 in the fourth quarter and up 32 year-over-year. Source
  • Net revenue retention stayed at 90%: Net revenue retention was 90% as of March 31, 2026, the same rate the fourth-quarter release reported as of December 31, 2025. Source
  • Adjusted operating margin reached 35%: Adjusted operating income margin was 35%, against 33% a year earlier. GAAP operating income margin was 19%, against 16%. Source
  • Operating cash flow fell 4%: Cash flow from operations was $114.7 million, down from $119.2 million a year earlier, a 4% decline. Source
  • Full-year revenue range lowered: FY2026 GAAP revenue guidance is $1.185 to $1.205 billion, down from the earlier $1.247 to $1.267 billion range. Source
  • Full-year operating income range lowered: Adjusted operating income guidance is $437 to $447 million, against $456 to $466 million previously. Source
  • Full-year cash flow range lowered: Unlevered free cash flow guidance is $400 to $420 million, against $435 to $465 million previously. Source

“In a world that is increasingly driven by AI and intelligent automation, ZoomInfo data and our go-to-market context is the ultimate competitive advantage,”

Henry Schuck, ZoomInfo Founder and CEO

Guidance

AreaPeriodFigureAgainst last quarter
GAAP revenue SourceQ2 2026$300 - $303 millionNew
GAAP revenue SourceFY 2026$1.185 - $1.205 billionLowered from $1.247 - $1.267 billion
Non-GAAP adjusted operating income SourceQ2 2026$103 - $106 millionNew
Non-GAAP adjusted operating income SourceFY 2026$437 - $447 millionLowered from $456 - $466 million
Non-GAAP adjusted net income per share (diluted) SourceQ2 2026$0.26 - $0.28New
Non-GAAP adjusted net income per share (diluted) SourceFY 2026$1.10 - $1.12Kept
Non-GAAP unlevered free cash flow SourceFY 2026$400 - $420 millionLowered from $435 - $465 million
Weighted average shares outstanding SourceQ2 2026310 millionNew
Weighted average shares outstanding SourceFY 2026315 millionLowered from 325 million

What changed from last quarter

  • Guidance lowered: Full-year GAAP revenue range reduced from $1.247 to $1.267 billion to $1.185 to $1.205 billion. Source
  • Guidance lowered: Full-year adjusted operating income range reduced from $456 to $466 million to $437 to $447 million. Source
  • Guidance lowered: Full-year unlevered free cash flow range reduced from $435 to $465 million to $400 to $420 million. Source
  • Guidance lowered: Full-year weighted average share count lowered from 325 million to 315 million. Source
  • Guidance kept: Full-year adjusted diluted EPS range kept at $1.10 to $1.12. Source
  • New guidance: Second-quarter 2026 guidance given for GAAP revenue, adjusted operating income, adjusted EPS and share count. Source

Results and growth drivers

  • Revenue rose 1.5% year-over-year: Revenue was $310.2 million, against $305.7 million a year earlier. The release does not break down the change by product or region. Source
  • Operating income rose to $57.9 million: GAAP operating income was $57.9 million against $50.3 million. Adjusted operating income was $109.7 million, up 9% from $100.9 million. Source
  • Net income and diluted EPS rose: Net income was $29.3 million, or $0.10 diluted EPS, against $26.8 million and $0.08. Adjusted diluted EPS was $0.28, against $0.23. Source
  • Interest and tax costs rose: Interest expense, net was $13.5 million against $9.8 million. The provision for income taxes was $15.0 million against $12.8 million. Source

Customers and product mix

  • Upmarket share of ACV reached 75%: Upmarket accounted for 75% of company ACV, and Upmarket ACV grew 5% year-over-year. Source
  • Large-customer count fell by 21: Customers with $100,000 or greater ACV ended the quarter at 1,900, down from 1,921 in the fourth quarter and up 32 year-over-year. Source
  • Net revenue retention stayed at 90%: Net revenue retention was 90% as of March 31, 2026, the same rate the fourth-quarter release reported as of December 31, 2025. Source

“We are expanding where and how customers access our differentiated data, in ways that fit seamlessly into how they operate, while at the same time structuring our business around how customers leverage that data, wherever GTM work happens.”

Henry Schuck, ZoomInfo Founder and CEO

Margins and cost lines

  • Adjusted operating margin reached 35%: Adjusted operating income margin was 35%, against 33% a year earlier. GAAP operating income margin was 19%, against 16%. Source
  • Sales and marketing costs declined: Sales and marketing expense was $103.3 million against $106.0 million. Research and development was $42.1 million against $51.1 million. Source
  • G&A and cost of service increased: General and administrative expense rose to $50.8 million from $45.8 million. Cost of service rose to $43.5 million from $37.8 million. Source
  • Restructuring costs rose on lease charges: Restructuring and transaction-related expenses were $10.0 million against $5.4 million, mainly lease restructuring with asset impairments, plus severance. Source
  • Equity-based compensation fell: Equity-based compensation expense was $25.5 million, down from $29.6 million. It is excluded from adjusted operating income. Source

Cash flow and capital spending

  • Operating cash flow fell 4%: Cash flow from operations was $114.7 million, down from $119.2 million a year earlier, a 4% decline. Source
  • Unlevered free cash flow fell to $119.7M: Unlevered free cash flow was $119.7 million against $124.5 million. Interest paid in cash was $20.6 million, against $16.8 million. Source
  • Capital purchases rose to $24.1M: Purchases of property and equipment and other assets were $24.1 million, compared with $14.8 million a year earlier. Source
  • Restructuring cash payments increased: Restructuring and transaction-related expenses paid in cash were $7.1 million, against $2.1 million. Litigation settlement payments were $1.4 million. Source

Share repurchases and returns

  • Repurchased 13.1 million shares: The company repurchased 13.1 million shares at an average price of $6.91, for an aggregate amount of $90.5 million. Source
  • Cash paid for buybacks eased: Repurchase of common stock used $90.9 million of financing cash, against $95.0 million a year earlier. Net financing outflow was $93.2 million. Source
  • Adjusted EPS share count fell: Shares used for adjusted diluted EPS were 318 million, against 355 million a year earlier. Source
  • Authorization approved in February: The board approved an additional $1.0 billion repurchase authorization in February 2026, after $230.6 million remained outstanding at year-end 2025.

Balance sheet and liabilities

  • Cash balance declined slightly: Cash and cash equivalents were $171.2 million at March 31, 2026, against $175.9 million at December 31, 2025. Short-term investments were unchanged at $4.0 million. Source
  • Long-term debt little changed: Long-term debt, net of current portion, was $1,317.2 million, against $1,318.1 million. The tax receivable agreements liability was $2,730.4 million, against $2,731.9 million. Source
  • Receivables declined to $183.8M: Accounts receivable, net was $183.8 million against $225.6 million at year-end. Provision for bad debt expense in the quarter was $5.9 million. Source
  • Current unearned revenue edged up: Unearned revenue, current portion, was $476.1 million against $474.6 million at year-end. Total stockholders' equity fell to $1,473.6 million from $1,508.7 million. Source

Second-quarter and full-year guidance

  • Full-year revenue range lowered: FY2026 GAAP revenue guidance is $1.185 to $1.205 billion, down from the earlier $1.247 to $1.267 billion range. Source
  • Full-year operating income range lowered: Adjusted operating income guidance is $437 to $447 million, against $456 to $466 million previously. Source
  • Full-year cash flow range lowered: Unlevered free cash flow guidance is $400 to $420 million, against $435 to $465 million previously. Source
  • Full-year adjusted EPS range held: Full-year adjusted diluted EPS guidance stays at $1.10 to $1.12. Second-quarter adjusted diluted EPS is guided at $0.26 to $0.28. Source
  • Second-quarter ranges first given: Second-quarter guidance covers GAAP revenue of $300 to $303 million and adjusted operating income of $103 to $106 million. Unlevered free cash flow is not guided for the quarter. Source
  • Share count guidance lowered: Full-year weighted average shares are guided at 315 million, against 325 million previously. Second-quarter shares are guided at 310 million. Source

Recognition and product positioning

  • Forrester Wave leader placement: The company was named a Leader in the Forrester Wave for Marketing and Sales Data Providers for B2B, with the highest current offering category score and highest possible scores on 20 of 27 criteria. Source
  • No. 1 rankings in 142 G2 reports: The company ranked No. 1 in 142 G2 Spring 2026 Reports across sales intelligence, buyer intent data, and lead capture. Source

Coming up, as management said on 11 May 2026

  • Investor conferences through June: Executives expect to take part in investor events on May 14, May 18, May 27, June 2 and June 11, 2026. Source

Figures management reported

FigureReported
Net revenue retention rate Source90%
Customers with $100,000 or greater ACV Source1,900
Upmarket share of company ACV Source75%

Risks management discussed

  • Financial: Management said excluded items such as stock-based compensation, taxes, TRA amounts and restructuring may have a significant and potentially unpredictable effect on future GAAP results. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.