Company: ZM
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001585521-25-000202
Chunk: 279

Company: Zoom Communications, Inc.
Filing Date: 2025-11-25
Form: 10-Q
Item: Part I, Item 1
Chunk 279
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 equity program.

Gains on Strategic Investments, Net

Three Months Ended October 31,20252024% Change(in thousands) Gains on strategic investments, net$406,060 $6,324 NM

Gains on strategic investments, net for the three 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, NetThree Months Ended October 31,20252024% Change(in thousands) Other income, net$78,235 $91,248 (14.3)%

Other income, net for the three months ended October 31, 2025 decreased by $13.0 million, or 14.3%, 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,