Company: ZM
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001585521-25-000141
Chunk: 280

Company: Zoom Communications, Inc.
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 1
Chunk 280
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.8 million, including an $11.2 million decline in stock-based compensation, due to changes in our equity program.

Gross margin increased to 76.9% for the six months ended July 31, 2025 from 75.8% for the six months ended July 31, 2024, mainly due to a decrease in stock-based compensation.

Operating Expenses

Research and DevelopmentSix Months Ended July 31, 20252024% Change(in thousands) Research and development$411,863 $412,314 (0.1)%

Research and development expense for the six months ended July 31, 2025 decreased by $0.5 million, or 0.1%, compared to the six months ended July 31, 2024. A $20.8 million decrease in stock-based compensation was largely offset by continued investments in AI-innovation, including a $10.0 million increase in personnel related expenses from higher headcount, along with additional costs associated with AI-related software and facilities.

Sales and Marketing

Six Months Ended July 31, 20252024% Change(in thousands)Sales and marketing$685,965 $706,778 (2.9)%

Sales and marketing expense for the six months ended July 31, 2025 decreased by $20.8 million, or 2.9%, compared to the six months ended July 31, 2024. The decrease in sales and marketing expense was primarily due to lower personnel-related 

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expenses, including a $29.9 million decrease in stock-based compensation, partially offset by costs to support our customer engagement and growth initiatives.

General and AdministrativeSix Months Ended July 31, 20252024% Change(in thousands)General and administrative$179,220 $220,879 (18.9)%

General and administrative expense for the six months ended July 31, 2025 decreased by $41.7 million, or 18.9%, compared to the six months ended July 31, 2024. The reduction was primarily driven by the reversal of a previous accrual of $18.0 million related to an SEC investigation and a $23.9 million decrease in personnel-related expenses, including a $15.2 million reduction in stock-based compensation.

Gains on Strategic Investments, Net

Six Months Ended July 31, 20252024% Change(in thousands) Gains on strategic investments, net$31,437