Zoom Communications, Inc. · NASDAQ:ZM
Zoom Communications — Q2 2026 Earnings Presentation
20 slides from Zoom Communications's earnings presentation, Aug 21, 2025
Slide 1: Zoom Communications Q2 FY26 Earnings
Zoom Communications Q2 FY26 Earnings August 21, 2025 © 2025 Zoom Communications, Inc.
Slide 2: Use of non-GAAP financial measures
In addition to the financials presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation includes the following non-GAAP metrics: Revenue in Constant Currency, non-GAAP gross profit, non-GAAP gross Use of margin, non-GAAP R&D expense, non-GAAP S&M expense,
Slide 3: Safe Harbor Statement
This presentation and the accompanying oral presentation contain express and implied “forward-looking statementsˮ within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Zoom's financial outlook for the third quarter of fiscal year 2026 and full fis
Slide 4: Rapid AI innovation expands customer value
Rapid AI innovation expands customer value Millions of MAUs, up over 4x YoY ● Meeting prep and post-meeting task management ● AI-first Zoom Docs with advanced ● Call summaries for Zoom Phone content generation capabilities Custom AI AI driving ARR Virtual Agent Companion in ZCC 2.0 Paid add-on for S
Slide 5: Building out the collaboration experience with Zoom Workplace
Building out the collaboration experience with Zoom Workplace A Leader in The Forrester WINNER Best UC Platform Wave™: UCaaS 2025 WINNER Best UCaas Provider Americas) WINNER Best Contact Center Solution Insert UC Awards WINNER Most Innovative Product AI Companion] Q2 Workplace wins: *Forrester doe
Slide 6: Scaling high-growth department solutions
Scaling high-growth department solutions Customer Experience Employee Experience ● 168 Workvivo customers ● 229 ZCC customers with $100k+ ARR, 94% YoY with $100k+ ARR, ● 9/10 top ZCC deals were displacements of leading 142% YoY CCaaS players Q2 win: New collaboration: Q2 win: © 2025 Zoom Communica
Slide 7: Revenue acceleration in Q2; Online churn stabilizing
Revenue acceleration in Q2; Online churn stabilizing Total Revenue1 Enterprise Revenue (in millions) (in millions) 5% 7% Online Average Monthly Churn2 © 2025 Zoom Communications, Inc. For endnote descriptions, see final slide
Slide 8: Continued growth in the up-market and internationally
Continued growth in the up-market and internationally # of Customers Contributing >$100k Revenue by Region2 in TTM Revenue (in millions) YoY Growth APAC 9% 4% EMEA 6% 98% TTM Net Dollar Expansion Rate for Enterprise Customers1 Americas 5% © 2025 Zoom Communications, Inc. For endnote descriptions, se
Slide 9: Q2 FY26 expenses and margins
Q2 FY26 expenses and margins GAAP Non-GAAP1 Yr/Yr Yr/Yr Results Results Revenue $1,217 million 5% $1,217 million 5% Gross Profit 77.6% 208 bps 79.8% 128 bps As a % of Revenue R&D Expense 17.0% 82 bps 11.0% 61 bps S&M Expense 27.8% 301 bps) 22.3% 101 bps) G&A Expense 6.4% 301 bps) 5.2% 47 bp
Slide 10: Growth in Deferred Revenue & RPO
Growth in Deferred Revenue & RPO Total RPO1 YoY Growth Current2 & Non-Current RPO YoY Growth (in millions) (in millions) Total RPO Total RPO 5% 5% 39% 40% Unbilled Non-Current RPO 5% 4% 61% 60% Deferred Revenue Current RPO 5% 6% © 2025 Zoom Communications, Inc. For endnote descriptions, see final sli
Slide 11: Strong Cash Flow, ~$7.8B cash balance
Strong Cash Flow, ~$7.8B cash balance1, accelerated execution of share buyback in Q2 Share Repurchases under $2.7B authorization Operating Cash Flow $516M OCF Margin 42.4% Free Cash Flow2 $508M FCF Margin 41.7% 6.0M >27M Shares repurchased in Q2 Shares repurchased since Q1 FY25 © 2025 Zoom Communica
Slide 12: Q3 & raised fiscal year 2026 outlook
Q3 & raised fiscal year 2026 outlook Outlook1 Q3 FY26 FY26 Revenue $1,210 $1,215 million $4,825 $4,835 million Revenue $1,207 $1,212 million $4,817 $4,827 million Constant Currency) Non-GAAP Operating $465 $470 million $1,905 $1,915 million Income Weighted Average Share 307 million 308 m
Slide 13: © 2025 Zoom Communications, Inc.
© 2025 Zoom Communications, Inc.
Slide 14: Thank you
Thank you © 2025 Zoom Communications, Inc.
Slide 15: Appendix
Appendix © 2025 Zoom Communications, Inc.
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in Thousands) Q2 FY25 Q2 FY26 H1 FY25 H1 FY26 Gross Profit Total Revenue $1,162,520 $1,217,227 $2,303,754 $2,391,942 GAAP Gross Profit $877,431 $944,062 $1,745,363 $1,840,375 (+) Stock-based compensation expense and related payroll taxes $33,940 $26,582 $69,299 $58
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in Thousands except EPS Q2 FY25 Q2 FY26 H1 FY25 H1 FY26 Income from Operations Total Revenue $1,162,520 $1,217,227 $2,303,754 $2,391,942 GAAP Income from operations $202,370 $321,735 $405,392 $563,327 (+) Stock-based compensation expense and related payroll taxes
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in Thousands) Q2 FY25 Q2 FY26 H1 FY25 H1 FY26 Free Cash Flow Cash Flow from Operations $449,334 $515,940 $1,037,525 $1,005,201 (-) Purchases of PPE $84,234 $7,966 $102,742 $33,876 Free Cash Flow $365,100 $507,974 $934,783 $971,325 Operating Cash Flow Margin
Slide 19: Historic Metrics
Historic Metrics $ in millions) Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26. Revenue $1,136.7 $1,146.5 $1,141.2 $1,162.5 $1,177.5 $1,184.1 $1,174.7 $1,217.2 Y/Y growth 3.2% 2.6% 3.2% 2.1% 3.6% 3.3% 2.9% 4.7% GAAP Income from operations $169.4 $168.5 $203.0 $202.4 $182.8 $225.1 $
Slide 20: Endnotes
Endnotes Revenue acceleration in Q2; Online churn stabilizing Q2 FY26 expenses and margins 1. Not drawn to scale. Zoom defines revenue in constant currency as GAAP revenue adjusted for 1. See appendix for a reconciliation of non-GAAP to GAAP financial measures. revenue reported in currencies other t