Company: ZM
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001585521-25-000141
Chunk: 318

Company: Zoom Communications, Inc.
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 8
Chunk 318
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 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 $20,461 53.6 %

Gains on strategic investments, net for the six months ended July 31, 2025 and July 31, 2024 were primarily driven by changes in the fair value of our publicly and privately held securities.

Other Income, NetSix Months Ended July 31, 20252024% Change(in thousands) Other income, net$169,163 $159,000 6.4 %

Other income, net for the six months ended July 31, 2025 increased by $10.2 million, or 6.4%, compared to the six months ended July 31, 2024. The increase was primarily due to a $13.0 million increase from changes in foreign currency exchange rates, partially offset by a $3.3 million decrease in investment yields from cash and marketable securities.

Provision for Income Taxes

Six Months Ended July 31, 20252024% Change(in thousands) Provision for income taxes$150,732 $149,530 0.8 %

Provision for income taxes for the six months ended July 31, 2025 increased by $1.2 million, or 0.8%, compared to the six months ended July 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 July 31, 2025, our principal sources of liquidity were cash, cash equivalents, and marketable securities of $7.8 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 have financed our operations primarily through income from operations and sales of equity securities. Cash from operations could also be affected by various risks and uncertainties, including, but not limited to, macroeconomic factors, such as geopolitical conflicts, tariffs and trade tensions, inflationary pressures, interest