Company: ZM
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001585521-25-000202
Chunk: 281

Company: Zoom Communications, Inc.
Filing Date: 2025-11-25
Form: 10-Q
Item: Part I, Item 1
Chunk 281
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 The favorable variance was primarily driven by a $36.0 million change related to an SEC investigation accrual recorded in the prior year and reversed in the current year, as well as a $24.6 million reduction in stock-based compensation and a $7.7 million decrease in acquisition-related expenses.

Gains on Strategic Investments, Net

Nine Months Ended October 31,20252024% Change(in thousands) Gains on strategic investments, net$437,497 $26,785 NM

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

Other Income, NetNine Months Ended October 31,20252024% 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