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ZoomInfo Technologies
(NASDAQ:GTM)
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Rating:62Neutral
Price Target:
$3.00
▼(-51.69% Downside)
Action:Reiterated
Date:06/27/26
The score is held back primarily by weak technicals (below major moving averages with negative MACD) and cautious fundamentals from the latest call (lowered full-year revenue outlook and transition-driven variability). These are partially offset by solid underlying financial performance (high margins and cash generation) and supportive valuation (low P/E).
Positive Factors
Strong margins & cash generation
Sustained high cash generation and strong cash conversion provide durable financial flexibility. Robust operating cash flow and free cash flow margins support reinvestment in product, debt management, buybacks, and give management room to execute strategic pivots without immediate liquidity strain.
Negative Factors
Consumption pricing transition risk
Moving to consumption pricing can improve long‑term monetization but creates durable forecasting and recognition complexity. Breakage assumptions, timing of credit use, and variable consumption patterns may depress near‑term visibility and complicate sales motions for multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong margins & cash generation
Sustained high cash generation and strong cash conversion provide durable financial flexibility. Robust operating cash flow and free cash flow margins support reinvestment in product, debt management, buybacks, and give management room to execute strategic pivots without immediate liquidity strain.
Read all positive factors
ZoomInfo Technologies Key Performance Indicators (KPIs)
Any
Customers $100K
Counts the number of customers generating over $100K in revenue, highlighting the company’s success in securing high-value contracts and its market penetration.
Counts the number of customers generating over $100K in revenue, highlighting the company’s success in securing high-value contracts and its market penetration.
Data provided by:
The Fly
The FlyZoomInfo Technologies (GTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$860.58M
Dividend YieldN/A
Average Volume (3M)13.04M
Price to Earnings (P/E)7.4
Beta (1Y)1.80
Revenue Growth3.64%
EPS Growth230.24%
CountryUS
Employees3,508
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.39
Shares Outstanding294,718,050
10 Day Avg. Volume13,335,999
30 Day Avg. Volume13,036,750
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)2.17
Price to Sales (P/S)2.62
P/FCF Ratio8.44
Enterprise Value/Market Cap2.54
Enterprise Value/Revenue1.75
Enterprise Value/Gross Profit2.07
Enterprise Value/Ebitda6.76
Forecast
1Y Price Target
$5.19Price Target Upside-16.47% Downside
Rating ConsensusHold
Number of Analyst Covering18
EPS Forecast (FY)1.11
Revenue Forecast (FY)$1.20B
ZoomInfo Technologies Business Overview & Revenue Model
Company Description
ZoomInfo Technologies Inc., operating alongside its subsidiaries, delivers a sophisticated, cloud-based go-to-market intelligence and engagement platform. This robust solution is tailored for sales, marketing, operations, and talent acquisition pr...
How the Company Makes Money
ZoomInfo primarily makes money by selling subscriptions to its SaaS platform and data products. Its core revenue stream is recurring subscription revenue from customers who license access to ZoomInfo’s databases and GTM applications (e.g., sales i...
ZoomInfo Technologies Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Neutral
Balanced. The company reported a quarter that beat near-term guidance with strong profitability, cash generation and clear momentum in its higher-margin data/operations business and strategic partnerships. However, management lowered full-year revenue expectations, flagged material weakness in downmarket and software demand, announced a sizable workforce reduction and expects near-term revenue variability as it shifts pricing models. The call emphasized a proactive, long-term strategic pivot toward data-led, consumption-based monetization that supports margin expansion, but the near-term outlook is cautious and includes execution risk.Positive Updates
Q1 Revenue and Profitability Beat Guidance
Q1 revenue of $310M (+1.5% YoY) came in above the high end of guidance; adjusted operating income was $110M with a 35% AOI margin (up >2 percentage points YoY).
Negative Updates
Full-Year Revenue Guidance Reduced
FY 2026 revenue guidance cut to $1.185B–$1.205B, implying ~4% year-over-year decline at the midpoint; Q2 revenue guide $300M–$303M (year-over-year decline expected).
Read all updates
Q1-2026 Updates
Positive
Negative
Q1 Revenue and Profitability Beat Guidance
Q1 revenue of $310M (+1.5% YoY) came in above the high end of guidance; adjusted operating income was $110M with a 35% AOI margin (up >2 percentage points YoY).
Read all positive updates
Company Guidance
ZoomInfo updated guidance calling for Q2 GAAP revenue of $300–303M, adjusted operating income (AOI) of $103–106M and Q2 non‑GAAP EPS $0.26–0.28; for FY2026 it now expects GAAP revenue $1.185–1.205B (≈‑4% YoY at the midpoint), AOI $437–447M (37% margin at midpoint, +130 bps YoY), non‑GAAP EPS $1.10–1.12 (based on ~315M shares), and unlevered free cash flow $400–420M, with a ~10% non‑GAAP tax rate and cash interest $60–62M. The company plans $45–60M of restructuring costs (mostly cash) in Q2–Q3 to drive ~$60M of annual OpEx savings, will reduce ~20% of headcount (~600 roles) and accelerate a shift toward consumption (targeting ~50/50 seat vs. non‑seat ACV in 12–24 months), and warned of near‑term revenue variability from the seat‑to‑consumption transition. Q1 actuals: revenue $310M (+1.5% YoY), AOI $110M (35% margin), unlevered FCF $120M (109% conversion, 39% margin), GAAP OCF $115M, net revenue retention 90% (3rd consecutive quarter), upmarket ACV +5% YoY (75% of business), downmarket ACV ‑11% YoY, operations ACV >20% YoY (~just under 20% of business), RPO $1.18B (unearned revenue $479M; $861M expected in next 12 months), cash $175M, gross debt $1.3B (net leverage ~2.4x), and Q1 buybacks of 13.1M shares for $90M (avg $6.91) with >$1B repurchase capacity remaining.ZoomInfo Technologies Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.25B | 1.25B | 1.21B | 1.24B | 1.10B | 747.20M |
| Gross Profit | 1.06B | 1.05B | 1.02B | 1.06B | 909.30M | 610.50M |
| EBITDA | 324.00M | 325.70M | 156.30M | 514.60M | 330.00M | 214.20M |
| Net Income | 126.70M | 124.20M | 29.10M | 107.30M | 63.20M | 116.80M |
Balance Sheet | ||||||
| Total Assets | 6.37B | 6.44B | 6.47B | 6.87B | 7.14B | 6.85B |
| Cash, Cash Equivalents and Short-Term Investments | 175.20M | 179.90M | 139.90M | 529.30M | 545.70M | 326.70M |
| Total Debt | 1.57B | 1.81B | 1.39B | 1.33B | 1.31B | 1.30B |
| Total Liabilities | 4.90B | 4.93B | 4.77B | 4.75B | 4.86B | 4.86B |
| Stockholders Equity | 1.47B | 1.51B | 1.69B | 2.12B | 2.27B | 2.00B |
Cash Flow | ||||||
| Free Cash Flow | 375.00M | 388.80M | 301.10M | 408.40M | 388.10M | 275.80M |
| Operating Cash Flow | 460.90M | 465.40M | 369.40M | 434.90M | 417.00M | 299.40M |
| Investing Cash Flow | -88.00M | -80.80M | 13.40M | 24.40M | -281.10M | -695.80M |
| Financing Cash Flow | -339.20M | -347.90M | -690.00M | -427.20M | -25.50M | 439.50M |
ZoomInfo Technologies Technical Analysis
Negative
6.21
Price Trends
3.73
Negative
4.89
Negative
7.38
Negative
Market Momentum
-0.17
Negative
43.43
Neutral
55.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTM, the sentiment is Negative. The current price of 6.21 is above the 20-day moving average (MA) of 2.83, above the 50-day MA of 3.73, and below the 200-day MA of 7.38, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 43.43 is Neutral, neither overbought nor oversold. The STOCH value of 55.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GTM.
ZoomInfo Technologies Risk Analysis
ZoomInfo Technologies disclosed 41 risk factors in its most recent earnings report. ZoomInfo Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ZoomInfo Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.86B | 130.45 | 1.29% | ― | 9.58% | ― | |
66 Neutral | $2.00B | -356.16 | -2.53% | ― | 11.79% | 85.70% | |
63 Neutral | $1.36B | 9.87 | 179.00% | ― | -0.66% | ― | |
62 Neutral | $860.58M | 7.40 | 8.36% | ― | 3.64% | 230.24% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $1.71B | 66.30 | 7.70% | ― | 8.12% | -82.54% | |
58 Neutral | $1.69B | -10.62 | -92.84% | ― | 9.47% | 31.43% |
* Technology Sector Average
GTM
ZoomInfo Technologies
2.92
-7.63
-72.32%
BLKB
Blackbaud
29.59
-34.21
-53.62%
BL
BlackLine
29.13
-25.61
-46.78%
NCNO
nCino
16.99
-12.82
-43.01%
VERX
Vertex
12.38
-23.83
-65.81%
ASAN
Asana
7.33
-6.81
-48.16%
ZoomInfo Technologies Corporate Events
Business Operations and StrategyExecutive/Board Changes
ZoomInfo Sets 2026 Performance-Based Cash Bonus Plan
Positive
Jun 10, 2026
On June 5, 2026, ZoomInfo Technologies Inc.’s Compensation Committee unanimously approved a performance-based cash bonus opportunity for Chief Financial Officer Michael Graham O’Brien, setting a target award value of $500,000 tied to t...
Executive/Board ChangesShareholder Meetings
ZoomInfo Stockholders Approve Directors, Auditor and Pay
Positive
May 15, 2026
ZoomInfo Technologies Inc. held its 2026 Annual Meeting of Stockholders on May 14, 2026, where shareholders elected three Class III directors — Domenic J. Maida, Katie Rooney, and D. Randall Winn — to three-year terms ending at the 202...
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
ZoomInfo Reports Modest Q1 Growth and Strong Margins
Neutral
May 11, 2026
On May 8, 2026, ZoomInfo LLC amended its first-lien credit agreement to add $26 million in incremental revolving credit commitments, lifting total revolving capacity to $276 million under largely unchanged terms, bolstering its financial flexibili...
Business Operations and Strategy
ZoomInfo launches major global restructuring and workforce reductions
Negative
May 11, 2026
On May 5, 2026, ZoomInfo’s board approved a 2026 restructuring program aimed at cutting operating costs and improving operating leverage through a global reduction in force of about 600 employees, or roughly 20% of its first-quarter headcoun...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.