Company: ZM
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001585521-25-000202
Chunk: 278

Company: Zoom Communications, Inc.
Filing Date: 2025-11-25
Form: 10-Q
Item: Part I, Item 1
Chunk 278
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 decreased by $12.1 million, or 4.3%, compared to the three months ended October 31, 2024. The decline was mainly due to a $7.3 million reduction in stock-based compensation as well as lower hosting costs. The reduction in stock-based compensation is due to changes in our equity program, while the decrease in hosting costs was due to cloud optimizations and operational efficiencies.

Gross margin grew to 77.9% for the three months ended October 31, 2025, from 75.9% for the three months ended October 31, 2024. The increase in gross margin was mainly due to the reasons described above.

Operating Expenses

Research and DevelopmentThree Months Ended October 31,20252024% Change(in thousands) Research and development$210,097 $222,980 (5.8)%

Research and development expense for the three months ended October 31, 2025 decreased by $12.9 million, or 5.8%, compared to the three months ended October 31, 2024. The decrease was mainly driven by an $19.7 million decrease in stock-based compensation due to changes in our equity program partially offset by a $6.6 million increase in personnel-related expenses as a result of higher headcount as we invested in AI innovation.

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Sales and MarketingThree Months Ended October 31,20252024% Change(in thousands)Sales and marketing$342,814 $361,703 (5.2)%

Sales and marketing expense for the three months ended October 31, 2025 decreased by $18.9 million, or 5.2%, compared to the three months ended October 31, 2024. The decrease was primarily driven by lower stock-based compensation of $19.3 million due to changes in our equity program.

General and AdministrativeThree Months Ended October 31,20252024% Change(in thousands)General and administrative$94,740 $126,137 (24.9)%

General and administrative expense for the three months ended October 31, 2025 decreased by $31.4 million, or 24.9%, compared to the three months ended October 31, 2024. The favorable variance was primarily driven by the prior-year accrual of $18.0 million related to an SEC investigation and a $9.4 million decrease in stock-based compensation due to changes in our