Zoom Corp. (6694) AI Stock Analysis

• Market Cap: ¥2.77B
• Dividend Yield: 4.68%
• Average Volume (3M): 6.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: 3.64%
• EPS Growth: 37.31%
• Country: JP
• Employees: 200
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -240.42
• Shares Outstanding: 4,594,824
• 10 Day Avg. Volume: 5,780
• 30 Day Avg. Volume: 6,790
• PEG Ratio: <0.01
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 13.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥678.00 ▲(6.77% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weak financial performance, including a recent net loss, compressed margins, and higher leverage. Offsetting this, technical indicators show a solid uptrend and positive momentum, while valuation is mixed due to a loss-driven negative P/E but supported by a relatively high dividend yield.

Positive Factors

Subscription revenue model

A subscription-based model produces recurring revenue and predictable cash flow, enabling multi-year visibility on customer value. Over 2-6 months this supports retention, upsell opportunities, and steady revenue backstop versus one-time sales, aiding long-term planning and investment.

Recent positive operating and free cash flow

Positive operating and free cash flow across recent years gives the company internal funding to sustain operations, invest in product development, and absorb cyclical shocks. Even if modest, sustained FCF reduces reliance on external financing and supports strategic flexibility over the medium term.

Underlying margin economics / positive EBITDA

Maintained positive EBITDA and historically strong gross margins indicate durable unit economics and scalable cost structure. These fundamentals suggest the business can restore operating profitability as revenue stabilizes and benefit from incremental operating leverage over time.

Negative Factors

Net loss and compressed margins

A recent material net loss and negative operating profit signal an earnings reset that erodes retained capital and constrains reinvestment capacity. Persistently compressed margins weaken the firm's ability to self-fund growth and heighten sensitivity to revenue cycles over the coming months.

Rising leverage and weaker equity

A materially higher debt-to-equity ratio and declining equity reduce financial flexibility and increase interest and refinancing risk. Elevated leverage limits capital allocation choices and raises downside risk if cash flows deteriorate, making the firm more vulnerable in stressed conditions.

Revenue downtrend and thin cash conversion

A declining revenue trend combined with volatile and thin cash conversion undermines long-term growth prospects and the firm's ability to invest. Weak top-line momentum risks prolonged margin pressure and forces tradeoffs between growth initiatives and near-term cash preservation.

Zoom Corp. Business Overview & Revenue Model

Company Description

Zoom Corp. (6694) is a technology company specializing in providing communication solutions, primarily through its cloud-based video conferencing platform. The company operates in the information technology sector, focusing on services that facilitate remote communication and collaboration for businesses and individuals. Core products include Zoom Meetings, Zoom Video Webinars, and Zoom Rooms, which cater to various needs ranging from virtual meetings to large-scale webinars and collaborative work environments.

How the Company Makes Money

Zoom Corp. generates revenue primarily through a subscription-based model, offering tiered pricing plans that cater to different user needs, from individual users to large enterprises. Key revenue streams include subscription fees from its various services, such as Zoom Meetings and Zoom Video Webinars, which are billed monthly or annually. Additionally, the company earns revenue from add-on features and services, such as increased cloud storage, enhanced webinar capabilities, and advanced analytics. Partnerships with educational institutions, corporations, and various organizations also contribute significantly to its earnings, as they often enter into bulk licensing agreements. The growing demand for remote communication solutions and the expansion of its user base during and after the COVID-19 pandemic have further enhanced Zoom's revenue potential.

Zoom Corp. Financial Statement Overview

Summary

Weak overall fundamentals: the latest year shows a sizable net loss and margin compression alongside slightly declining revenue. Balance sheet risk has increased with materially higher leverage and reduced equity, while cash flow is a partial offset (positive operating and free cash flow recently) but remains modest and volatile.

Income Statement

Profitability has deteriorated materially: the latest annual period shows a net loss (-9.9% net margin) and slightly negative operating profit, versus modest profitability in 2023–2024 and strong profitability in 2020–2021. Revenue has also turned down in the latest year (-2.2% growth), and margins have compressed from the earlier cycle (gross margin down from ~42.5% in 2021 to ~37.1% in 2025). Strengths include still-positive EBITDA and a historically solid gross margin profile, but the current earnings reset and declining trajectory weigh heavily on the score.

Balance Sheet

Leverage has increased meaningfully: debt-to-equity rose from ~0.44–0.57 (2021–2022) to ~1.14–1.66 (2024–2025), while equity declined from 2024 to 2025. Total assets have also drifted down from 2024 to 2025, suggesting a less robust balance sheet cushion than in prior years. The key positive is that equity remains sizable in absolute terms, but the higher leverage profile and weakening equity position increase financial risk.

Cash Flow

Cash generation is positive in recent years, with operating cash flow and free cash flow both positive in 2023–2025, providing some resilience despite weaker earnings. However, cash conversion looks thin relative to the scale of losses/profits: operating cash flow is modest versus revenue (around 3–5% of sales), free cash flow fell sharply in 2024, and 2022 showed negative operating and free cash flow. Overall, cash flow is a relative support but lacks consistent strength and has shown volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.83B	17.44B	18.07B	17.90B	13.24B	13.42B
Gross Profit	6.60B	6.47B	6.93B	7.07B	5.22B	5.70B
EBITDA	1.14B	787.00M	1.45B	1.54B	1.18B	1.65B
Net Income	-114.40M	-1.73B	40.88M	88.95M	377.54M	854.08M
Balance Sheet
Total Assets	18.84B	18.74B	20.09B	19.26B	13.65B	10.83B
Cash, Cash Equivalents and Short-Term Investments	3.32B	3.09B	3.32B	2.85B	2.17B	2.07B
Total Debt	8.08B	9.34B	8.16B	7.93B	3.73B	2.55B
Total Liabilities	10.89B	11.32B	11.47B	11.34B	7.06B	4.92B
Stockholders Equity	6.38B	5.64B	7.17B	6.66B	6.49B	5.84B
Cash Flow
Free Cash Flow	0.00	203.00M	346.10M	588.09M	-853.74M	408.26M
Operating Cash Flow	0.00	601.00M	584.57M	817.10M	-586.56M	637.06M
Investing Cash Flow	0.00	-690.00M	-241.61M	-2.44B	-175.71M	-478.30M
Financing Cash Flow	0.00	-113.00M	15.11M	2.23B	726.05M	-937.05M

Zoom Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 635.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6694, the sentiment is Positive. The current price of 635 is below the 20-day moving average (MA) of 650.70, below the 50-day MA of 643.11, and above the 200-day MA of 620.53, indicating a neutral trend. The MACD of 1.39 indicates Positive momentum. The RSI at 52.46 is Neutral, neither overbought nor oversold. The STOCH value of 79.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6694.

Zoom Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6952	74 Outperform	¥351.46B	18.65	5.53%	3.55%	-5.43%	55.21%
2469	73 Outperform	¥40.44B	13.95	―	2.40%	13.49%	9.05%
6794	73 Outperform	¥70.10B	17.44	―	2.73%	6.41%	16.71%
6632	66 Neutral	¥193.21B	10.26	13.53%	1.34%	0.48%	-1.86%
6810	66 Neutral	¥96.10B	20.05	―	1.99%	3.71%	-3.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6694	54 Neutral	¥2.77B	-1.63	―	4.68%	3.64%	37.31%

Zoom Corp. Corporate Events

Zoom Corporation Swings to Loss but Signals Profit Recovery in 2026 Forecast

Zoom Corporation reported a 3.5% decline in net sales to ¥17.44 billion for the fiscal year ended December 31, 2025, swinging to an operating loss of ¥56 million and a net loss attributable to owners of the parent of ¥1.73 billion. Profitability metrics deteriorated sharply, with return on equity falling to negative 21.2%, while total assets and equity both decreased and the equity-to-asset ratio slipped to 30.1%.

Despite the loss, the company maintained and slightly increased its annual dividend to ¥32 per share, signaling a continued commitment to shareholder returns even as net assets per share declined. For fiscal 2026, Zoom forecasts a modest recovery in sales to ¥17.5 billion and a return to profitability, with operating profit projected at ¥650 million and earnings per share at ¥46.24, suggesting management expects operational improvements and margin recovery after a challenging year.

The most recent analyst rating on (JP:6694) stock is a Hold with a Yen629.00 price target. To see the full list of analyst forecasts on Zoom Corp. stock, see the JP:6694 Stock Forecast page.