Company: ZM
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001585521-25-000202
Chunk: 412

Company: Zoom Communications, Inc.
Filing Date: 2025-11-25
Form: 10-Q
Item: Part I, Item 2
Chunk 412
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25.2 15.5 24.1 16.9 Gains on strategic investments, net33.0 0.5 12.1 0.8 Other income, net6.4 7.8 6.8 7.2 Income before provision for income taxes64.6 23.8 43.0 24.9 Provision for income taxes14.8 6.2 9.1 6.4 Net income49.8 %17.6 %33.9 %18.5 %

31

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

RevenueThree Months Ended October 31,20252024% Change(in thousands) Revenue$1,229,835 $1,177,541 4.4 %

Revenue for the three months ended October 31, 2025 increased by $52.3 million, or 4.4%, compared to the three months ended October 31, 2024. The increase was driven by 6.1% growth in revenue from Enterprise customers, of which 67% and 33% was from new and existing customers, respectively, and by a 2.0% increase in revenue from Online customers.

Cost of RevenueThree Months Ended October 31,20252024% Change(in thousands)Cost of revenue$271,770 $283,881 (4.3)%Gross profit958,065 893,660 7.2 %Gross margin77.9 %75.9 %

Cost of revenue for the three months ended October 31, 2025 decreased by $12.1 million, or 4.3%, compared to the three months ended October 31, 2024. The decline was mainly due to a $7.3 million reduction in stock-based compensation as well as lower hosting costs. The reduction in stock-based compensation is due to changes in our equity program, while the decrease in hosting costs was due to cloud optimizations and operational efficiencies.

Gross margin grew to 77.9% for the three months ended October 31, 2025, from 75.9% for the three months ended October 31, 2024. The increase in gross margin was mainly due to the reasons described above.

Operating Expenses

Research and DevelopmentThree Months Ended October 31,20252024% Change(in