Company: ZM
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001585521-25-000202
Chunk: 416

Company: Zoom Communications, Inc.
Filing Date: 2025-11-25
Form: 10-Q
Item: Part I, Item 2
Chunk 416
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% Change(in thousands) Other income, net$247,398 $250,248 (1.1)%

Other income, net for the nine months ended October 31, 2025 decreased by $2.9 million, or 1.1%, compared to the nine months ended October 31, 2024. The decrease was primarily due to a $13.6 million decrease in interest income from cash and marketable securities resulting from the declining interest rate environment, largely offset by a $10.4 million increase from changes in foreign currency exchange rates.

Provision for Income Taxes

Nine Months Ended October 31,20252024% Change(in thousands) Provision for income taxes$332,568 $222,892 49.2 %

Provision for income taxes for the nine months ended October 31, 2025 increased by $109.7 million, or 49.2%, compared to the nine months ended October 31, 2024. The year-over-year change was due primarily to an increase in income before taxes offset by a decrease in tax shortfalls and increase in tax benefits related to stock-based compensation.

Liquidity and Capital Resources

As of October 31, 2025, our principal sources of liquidity were cash, cash equivalents, and marketable securities of $7.9 billion, which were held for working capital purposes and for investment in growth opportunities. Our marketable securities generally consist of high-grade commercial paper, corporate bonds, agency bonds, corporate and other debt securities, U.S. government agency securities, and treasury bills.

We finance our operations primarily through income from operations. Cash from operations may also be affected by various risks and uncertainties, including, but not limited to, macroeconomic factors, such as geopolitical conflicts, tariffs and 

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trade tensions, inflationary pressures, interest rate fluctuations, and the fluctuations in foreign currency exchange rates. These factors and other risks detailed in the section titled “Risk Factors” could impact the timing of cash collections from our customers. However, based on our current business plan and revenue prospects, we believe our existing cash, cash equivalents, and marketable securities, together with net cash provided by operations, will be sufficient to meet our needs for at least the next 12 months and allow us to capitalize on growth opportunities. We believe we will meet longer-term expected future cash requirements and obligations through a combination of cash flows from operating activities and available cash balances. Our future capital requirements will depend on