ZoomInfo Technologies (ZI) Financials

ZoomInfo Technologies (NASDAQ: ZI) continues to generate solid cash from operations, but the latest quarter shows slower revenue growth, heavy share repurchases, and a balance sheet that remains burdened by debt and large deferred tax liabilities.

• Q1 2026 operating cash flow was strong at $114.7 million, up from $109.0 million in Q4 2025 and $119.2 million in Q1 2025, showing the business still converts earnings into cash.
• The company posted $29.3 million in net income in Q1 2026, reversing the weaker profitability seen in some earlier periods and keeping earnings positive.
• Gross margin remains very high: Q1 2026 gross profit was $259.2 million on $310.2 million of revenue, reflecting a software-like economics profile.
• Cash and equivalents remained healthy at $171.2 million, with an additional $4.0 million in short-term investments.
• Current deferred revenue of $476.1 million suggests a sizable backlog of customer cash already collected.
• The company’s interest expense has been manageable relative to operating profit, with Q1 2026 operating income of $57.9 million versus interest expense of $13.5 million.
• Revenue in Q1 2026 was $310.2 million, roughly flat versus the last year’s quarter range, indicating stability but not strong acceleration.
• Q1 2026 EBITDA-like cash generation was supported by non-cash add-backs, including $21.4 million of depreciation and $24.9 million of amortization.
• The company continues to carry a very large goodwill balance of $1.69 billion and $204.6 million in intangible assets, which is common for acquisition-heavy software companies but worth watching for impairment risk.
• Operating revenue declined slightly from $319.1 million in Q4 2025 to $310.2 million in Q1 2026, a modest sequential slowdown.
• ZoomInfo spent $90.9 million repurchasing common equity in Q1 2026, which helped earnings per share but also reduced cash.
• Financing cash flow was deeply negative at -$93.2 million in Q1 2026, driven mainly by buybacks and debt repayment.
• Long-term debt stood at $1.32 billion at quarter-end, leaving the company leveraged despite good operating cash flow.
• The balance sheet still includes a very large noncurrent deferred and payable income tax liability of $2.73 billion, which is a major long-term obligation investors should not ignore.
• Marketing expense remains substantial at $103.3 million in Q1 2026, limiting operating leverage despite strong gross margins.

Trend summary: Over the last several years, ZoomInfo has consistently produced positive operating cash flow and maintained strong gross margins, but revenue growth has cooled and shareholder returns have leaned heavily on buybacks rather than faster top-line expansion. At the same time, the balance sheet remains encumbered by debt and unusually large deferred tax liabilities.

Bottom line: ZoomInfo still looks like a cash-generating business with strong margins, but investors should weigh that against slower growth, aggressive repurchases, and a heavy liability structure.