GTM · 8-K

ZoomInfo Technologies Inc. [[GTM]]: Q3 Revenue Down 3%; FY2026 Outlook Raised, $34.8 Million of Notes Retired

### Executive Summary
ZoomInfo’s November 4, 2026 results show modest revenue contraction and sharply lower GAAP earnings, alongside higher full-year guidance and continued capital returns. The company repurchased $34.8 million in note principal for $31.1 million in cash and bought back $7.5 million of stock; cash was $139.5 million against $1.23 billion of reported long-term debt, including its current portion.

### What Happened
Revenue for the quarter ended September 30, 2026, was $308.8 million, down 3% year over year. GAAP net income fell to $2.2 million from $38.7 million, while adjusted operating income rose 1% to $119.1 million. Operating cash flow declined 49% to $47.4 million; non-GAAP unlevered free cash flow was $87.2 million, down 8%.

ZoomInfo raised its FY2026 guidance to revenue of $1.2235–$1.2265 billion, adjusted operating income of $452–$455 million, adjusted diluted EPS of $1.125–$1.135, and unlevered free cash flow of $405–$425 million. It also repurchased 2.5 million shares for $7.5 million, at an average $2.94 per share. Separately, it retired $34.8 million of Senior Notes principal for $31.1 million in cash, recording a $3.4 million extinguishment gain and reducing annual cash interest by $1.3 million. Exact prior-guidance ranges are not disclosed in the supplied filing materials.

### Why It Matters
The raised outlook and 39% adjusted operating margin provide a more favorable view than the GAAP results, but the gap is material: GAAP operating income fell 65% to $23.6 million, and GAAP operating margin declined to 8% from 21%. The release identifies substantial exclusions, including $31.1 million of equity compensation, $25.0 million of restructuring and transaction costs, and $27.3 million of litigation-related charges. Unlevered free cash flow also adds back cash interest and certain restructuring and litigation payments, so it should not be read as cash freely available for discretionary spending.

Customer metrics remain a concern: net revenue retention was 88%; customers with at least $100,000 in ACV fell 2% to 1,851, although their aggregate ACV grew 4%; and Upmarket ACV was flat year over year. Debt retirement modestly reduces interest expense, but quarter-end cash was down from $175.9 million at December 31, 2025, while reported long-term debt, including its current portion, was $1.23 billion.

### Context & Prior Filing Comparison
The October 19, 2026 filing described a proposed $44 million securities-litigation settlement, subject to court approval and other conditions. The Q3 release reports $27.3 million in litigation-related charges and $5.8 million of litigation settlement payments in its cash-flow reconciliation, primarily related to that proposed settlement; it does not establish that the settlement has closed or disclose the company’s net cost after insurance. The proposed settlement’s terms are not reported as changed here.

### What to Watch Next
- Whether ZoomInfo delivers against its raised FY2026 guidance and Q4 outlook; Q4 weighted-average shares are guided at 321 million.
- Whether net revenue retention and Upmarket ACV stabilize, and whether larger-customer ACV growth continues.
- Court approval and other conditions for the proposed securities-litigation settlement, including the ultimate payment and insurance recovery, which are not disclosed in this release.
- Cash levels, further debt retirement, and the effect of share repurchases on the share count.

[Generated on Edgar Tracker · edgartracker.com · AI summary · GPT 6 luna · selected parts]