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Zoom Communications (ZM) Q4 FY25 earnings results (fourth quarter fiscal 2025)

10-K filed Feb 28, 2025

Zoom Communications (ZM) reported revenue of $1.2B for the fourth quarter fiscal 2025 (Q4 FY25), +3% from a year earlier and +0.6% from the quarter before. Operating margin was 19.0%, net earnings $368M (31.1% of revenue).

Revenue$1.2B
Year over year+3%
Quarter over quarter+0.6%
Operating margin19.0%
Net earnings$368M

Zoom Communications, Q4 FY25: revenue $1.2B (+3% year over year), operating margin 19.0%, net earnings $368M, operating cash flow $425M. The chart follows the revenue to costs, profit and cash.

Q4 FY25AmountQ/QY/Y
Revenue$1.2B+0.6%+3%
Gross profit$897M+0.3%+3%
Operating profit$225M+23%+34%
Net earnings$368M+78%+23%
Operating cash flow$425M-12%+21%
Free cash flow$416M—+25%

What changed

Revenue was $1.2B in Q4 FY25, up 3% year over year and up 1% from the previous quarter.

Gross margin was 75.7%, down 0.2 points from a year earlier. Operating profit was $0.23B, a 19.0% margin (up 4.3 points year over year). Of the extra revenue versus a year earlier, 150% reached operating profit, above the 15% margin then. Operating expenses fell 4% while revenue rose 3%. Net earnings were $0.37B, up 23% year over year. The effective tax rate was 18.3%. Non-operating items added $0.23B, 50% of pre-tax earnings, so the bottom line overstates operating performance.

Operating cash flow was $0.42B (up 21% year over year), 115% of net earnings. Non-cash charges added back $0.03B of depreciation and amortization and $0.22B of share-based compensation. Working capital and other items used $0.20B. After purchases of property and equipment ($0.01B), free cash flow as the company reports it was $0.42B.

Questions

What was Zoom Communications' revenue in the fourth quarter fiscal 2025?

Zoom Communications (ZM) reported revenue of $1.2B for the fourth quarter fiscal 2025 (Q4 FY25), +3% from a year earlier and +0.6% from the quarter before.

Was Zoom Communications profitable in the fourth quarter fiscal 2025?

Operating profit was $225M (19.0% of revenue) and net earnings $368M.

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Source: Zoom Communications 10-K on SEC EDGAR.