ZoomInfo Lifts Full-Year Revenue Outlook Though Third-Quarter Sales Fall 3%
Net income fell to $2.2 million, but adjusted operating income rose 1% and the company bought back shares and Senior Notes.
ZoomInfo, which sells cloud-based business data and software to sales and marketing teams, raised its 2026 revenue guidance to $1.2235 billion to $1.2265 billion even as third-quarter revenue fell 3% to $308.8 million. The company reported the results Wednesday.
Sales down, adjusted profit up
Quarterly revenue was $308.8 million against $318.0 million a year earlier. Operating income under standard accounting fell 65% to $23.6 million, and net income dropped to $2.2 million from $38.7 million, or $0.01 per diluted share.
On an adjusted basis the picture differs: adjusted operating income rose 1% to $119.1 million, a 39% margin, up from 37% a year earlier. The adjustments strip out stock pay of $31.1 million, restructuring and transaction costs of $25.0 million, a $27.3 million litigation settlement charge and acquired-asset amortization. The settlement charges mainly relate to the proposed settlement of the 2024 Securities Litigation.
Operating cash flow fell 49% to $47.4 million, and unlevered free cash flow fell 8% to $87.2 million. Cash paid for restructuring and transaction-related costs reached $26.8 million, against $4.5 million a year earlier, mainly tied to the 2026 Restructuring Program.
Customers and the guidance raise
The company ended the quarter with 1,851 customers paying $100,000 or more in annual contract value, down 2% from a year earlier, though their combined contract value rose 4%. Net revenue retention was 88%. Founder and CEO Henry Schuck said the million-dollar customer cohort is "the strongest it has ever been from an ACV and a logo perspective."
Fourth-quarter revenue is guided to $294 million to $297 million. The full-year range replaces $1.207 billion to $1.217 billion, and adjusted operating income guidance moves to $452 million to $455 million from $446 million to $451 million.
Buybacks, debt and an AI pivot
ZoomInfo repurchased 2.5 million shares at an average $2.94 for $7.5 million. It also bought back $34.8 million of Senior Notes for $31.1 million in cash, booking a $3.4 million gain and trimming annual cash interest by $1.3 million.
For the first nine months, a $650.5 million goodwill impairment pushed the net loss to $612.2 million. The company is pitching its data as a context layer for AI agents and announced Agent Teams, a multi-agent orchestration tool. A day earlier it launched an integration with Notion.
ZoomInfo holds its earnings call at 4:30 p.m. Eastern on Wednesday, and executives are due at Needham's virtual tech week on November 18.
Sources
- 8-K Filing — ZoomInfo Technologies Inc. (GTM) — SEC EDGAR
- Exhibit gtm-8kex991x20261104.htm — ZoomInfo Technologies Inc. 8-K exhibit — SEC EDGAR
- ZoomInfo Announces Third Quarter 2026 Financial Results — businesswire.com
- ZoomInfo Launches MCP Integration With Notion Through GTM.AI — businesswire.com
