May 11th, 2026

Balanced. The company reported a quarter that beat near-term guidance with strong profitability, cash generation and clear momentum in its higher-margin data/operations business and strategic partnerships. However, management lowered full-year revenue expectations, flagged material weakness in downmarket and software demand, announced a sizable workforce reduction and expects near-term revenue variability as it shifts pricing models. The call emphasized a proactive, long-term strategic pivot toward data-led, consumption-based monetization that supports margin expansion, but the near-term outlook is cautious and includes execution risk.

Company Guidance

ZoomInfo updated guidance calling for Q2 GAAP revenue of $300–303M, adjusted operating income (AOI) of $103–106M and Q2 non‑GAAP EPS $0.26–0.28; for FY2026 it now expects GAAP revenue $1.185–1.205B (≈‑4% YoY at the midpoint), AOI $437–447M (37% margin at midpoint, +130 bps YoY), non‑GAAP EPS $1.10–1.12 (based on ~315M shares), and unlevered free cash flow $400–420M, with a ~10% non‑GAAP tax rate and cash interest $60–62M. The company plans $45–60M of restructuring costs (mostly cash) in Q2–Q3 to drive ~$60M of annual OpEx savings, will reduce ~20% of headcount (~600 roles) and accelerate a shift toward consumption (targeting ~50/50 seat vs. non‑seat ACV in 12–24 months), and warned of near‑term revenue variability from the seat‑to‑consumption transition. Q1 actuals: revenue $310M (+1.5% YoY), AOI $110M (35% margin), unlevered FCF $120M (109% conversion, 39% margin), GAAP OCF $115M, net revenue retention 90% (3rd consecutive quarter), upmarket ACV +5% YoY (75% of business), downmarket ACV ‑11% YoY, operations ACV >20% YoY (~just under 20% of business), RPO $1.18B (unearned revenue $479M; $861M expected in next 12 months), cash $175M, gross debt $1.3B (net leverage ~2.4x), and Q1 buybacks of 13.1M shares for $90M (avg $6.91) with >$1B repurchase capacity remaining.