Company: ZM
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001585521-25-000202
Chunk: 414

Company: Zoom Communications, Inc.
Filing Date: 2025-11-25
Form: 10-Q
Item: Part I, Item 2
Chunk 414
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 compared to the three months ended October 31, 2024. The decrease was primarily due to lower interest income from cash and marketable securities resulting from the declining interest rate rate environment.

Provision for Income TaxesThree Months Ended October 31,20252024% Change(in thousands) Provision for income taxes$181,836 $73,362 147.9 %

Provision for income taxes for the three months ended October 31, 2025 increased by $108.5 million, or 147.9%, compared to the three months ended October 31, 2024. The year-over-year change was primarily due to an increase in income before taxes partially offset by a decrease in tax shortfalls and increase in tax benefits related to stock-based compensation.

33

Comparison of the Nine Months Ended October 31, 2025 and 2024

RevenueNine Months Ended October 31,20252024% Change(in thousands) Revenue$3,621,777 $3,481,295 4.0 %

Revenue for the nine months ended October 31, 2025 increased by $140.5 million, or 4.0%, compared to the nine months ended October 31, 2024. The increase in revenue was due to a 6.3% growth in revenue from Enterprise customers, of which 47.0% and 53.0% was from new and existing customers, respectively. Revenue from Online customers remained relatively flat year over year.

Cost of RevenueNine Months Ended October 31,20252024% Change(in thousands)Cost of revenue$823,337 $842,272 (2.2)%Gross profit$2,798,440 $2,639,023 6.0 %Gross margin77.3 %75.8 %

Cost of revenue for the nine months ended October 31, 2025 decreased by $18.9 million, or 2.2%, compared to the nine months ended October 31, 2024. The decrease was primarily due to a $18.5 million reduction in stock-based compensation due to changes in our equity program.

Gross margin increased to 77.3% for the nine months ended October 31, 2025 from 75.8% for the nine months ended October 31, 2024, mainly due to a decrease in stock-based compensation.

Operating Expenses

Research and DevelopmentNine Months Ended October