GAAP revenue for the second quarter was $310 million, up 1.2% year-over-year. We haven't finalized timing, pricing, or packaging, and we're being intentional to prioritize long-term customer health and the growth potential embedded in a hybrid consumption model. In the quarter, we closed our largest ACV deal ever, a multi-year renewal with a preeminent software customer that expanded their ZoomInfo implementation with both data and seats. Our ZoomInfo Operations business, which is primarily data and not tied to seats, continued to perform well, delivering 20% growth and underscoring the durability of that business.
We now have 1,891 customers with at least $100,000 in ACV, a year-over-year increase of nine customers. Our million-dollar customer count also grew year-over-year, with ACV from that cohort up 16% as our largest customers continue to expand with ZoomInfo. We execute against that transition, which we acknowledge creates near-term uncertainty, we will continue prioritizing profitability and a rigorous risk-adjusted approach to capital allocation. We are laser-focused on driving the maximum long-term free cash flow per share, the key output we can control.
Adjusted operating income was $110 million, up 5% year-over-year, with a margin of 35%. Unlevered free cash flow is $107 million, with $10 million in interest paid in cash during the quarter. Up-market mix of ACV is now 76%, and up-market ACV grew 3% year-over-year. Software is still challenged, in particular in the lowest end of up-market.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year 2026 GAAP revenue | FY2026 | $1.207B-$1.217B (raised; ~3% YoY decline at midpoint) |
| Full-year 2026 adjusted operating income | FY2026 | $446M-$451M (~37% margin, +130 bps YoY) |
| Full-year 2026 non-GAAP net income per share | FY2026 | $1.12-$1.13 (318M weighted diluted shares) |
| Full-year 2026 unlevered free cash flow | FY2026 | $403M-$423M |
| Q3 2026 GAAP revenue | Q3 2026 | $298M-$301M |
| Q3 2026 adjusted operating income | Q3 2026 | $113M-$115M |
| Q3 2026 non-GAAP EPS | Q3 2026 | $0.28-$0.29 |
| Adjusted levered free cash flow per share (run rate) | entering 2027 | at least $1.25 across a range of scenarios |
| Metric | YoY | Note |
|---|---|---|
| GAAP revenue | $310M (+1.2%) | Up-market and ZoomInfo Operations strength offset by down-market decline and software softness. |
| Adjusted operating income / margin | $110M (+5%); 35% margin (+130 bps) | Cost discipline, restructuring and shift to profitability focus. |
| Unlevered free cash flow | $107M (+7%); 35% margin | 98% conversion from adjusted operating income. |
| ZoomInfo Operations ACV | +20% | Durable, data-centric (non-seat) business. |
| Up-market ACV growth | +3% (76% of ACV) | Software footprint in the lower half of up-market a headwind; non-software verticals healthy. |
| Down-market ACV | -12% | Deliberate reduction of resources and shift to PLG, partly cushioned by gross-retention gains. |
| Net revenue retention | 89% (down from 90%) | Longer sales cycles and software softness pressuring up-sells. |
| GAAP operating result | large loss | $651M non-cash goodwill impairment plus $35M restructuring charge (no impact on cash, taxes, covenants or non-GAAP results). |
| Net leverage | 2.3x (from 2.4x) | Debt repurchase and free-cash-flow generation. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| GTM.AI / headless context layer | Seat-based platform | Launched GTM.AI, a headless go-to-market context layer with API, MCP and CLI connectors embedding ZoomInfo data natively into Codex, Cursor, Claude, Gemini, Amazon Q, Copilot and dozens more; healthy consumption growth, but no upside baked into guidance. | — |
| Hybrid consumption pricing | Per-seat model | Testing pre-bought consumption-based pricing/packaging with select cohorts (rolling out to new business late Q3, existing customers opportunistically into 2027); explicitly aimed at driving consumption, with near-term uncertainty acknowledged and no significant Q3 revenue impact assumed. | — |
| Up-market shift / customer quality | Broad customer base | 76% of ACV now up-market with a healthier, more resilient base (9 of Fortune 10, ~70% of Fortune 50); largest enterprises' net retention improving year-over-year while the lower end of up-market (software) drags. | — |
| Software-vertical weakness | Emerged in Q1 | Persisting (longer sales cycles, more downsell than churn) but not spreading; non-software verticals show consistent-to-improving gross retention, informing a deliberately conservative back-half posture. | — |
| Products (GTM Studio, Workspace, Agent Teams) | GTM Studio GA in February | Increasing velocity each quarter; customers build unique audiences with unique data attributes (300+ integrations) in Studio and action them in Workspace with governance/auditability; many ambitious releases lined up for the second half to let customers build custom workflows without long IT projects. | — |
| Capital allocation / capital structure | Buybacks | Opportunistic across the capital structure: $28M of buybacks at $4.51 plus a first-ever debt repurchase ($58.5M notes for $48M, $11M gain); comfortable maturity profile (revolver 2028, notes 2029, term loan 2030); TRA payments expected to stay modest for several years. | — |
| Restructuring / cost discipline | May restructuring program | Headcount down ~350 sequentially (15% YoY) with several hundred more to come; adjusted expenses plus SBC improved ~270 bps as a percent of revenue; the year-end cost base is the run-rate into 2027 with G&A/S&M/R&D growing slower than revenue. | — |
| Durable data-asset moat / AI-first demand | — | Management argues you 'cannot token your way' to its data asset, with 27 of the 27 B2B CNBC Disruptor 50 companies and numerous AI-native firms running on ZoomInfo; go-to-market work is increasing and shifting to new interfaces (LLMs, homegrown apps), which ZoomInfo aims to serve at lower prices than competitors given it owns the data. | — |