Cautious Outlook on ZoomInfo: Sell Rating Amid uFCF Concerns and Customer Retention Challenges

Koji Ikeda, an analyst from Bank of America Securities, reiterated the Sell rating on ZoomInfo Technologies. The associated price target was raised to $12.00.

Koji Ikeda has given his Sell rating due to a combination of factors surrounding ZoomInfo Technologies’ financial performance. Despite the company reporting better-than-expected revenue and non-GAAP operating income for the third quarter of 2025, the unlevered free cash flow (uFCF) fell short of market expectations. This discrepancy between revenue growth and uFCF growth raises concerns about the company’s ability to maintain a balanced financial trajectory.
Moreover, while ZoomInfo has shown improvement in its upmarket execution, the addition of high-value customers was lower compared to the previous quarter, indicating potential challenges in customer retention and expansion. Although the company’s revenue growth and operating margins have returned to a Rule-of-40+ profile, the slower trajectory of uFCF growth compared to its peers suggests that ZoomInfo may underperform in the near term. Consequently, Ikeda maintains a cautious outlook, reiterating an Underperform rating with a slight increase in the price objective to $12.