Zoom Reports 4.4% Revenue Growth to $1.23 Billion, Acquires BrightHire

Zoom Communications, Inc. reported a revenue of $1.23 billion for the three months ending October 31, 2025, marking a 4.4% increase from $1.18 billion in the same period last year. For the nine months ending October 31, 2025, revenue reached $3.62 billion, up 4.0% from $3.48 billion in the prior year. The company achieved a net income of $612.9 million for the third quarter, significantly higher than the $207.1 million reported in the same quarter of 2024. For the nine-month period, net income was $1.23 billion, compared to $642.4 million in the previous year.

The financial performance reflects a notable improvement in operational efficiency, with total operating expenses decreasing to $647.7 million in the third quarter from $710.8 million a year earlier. This reduction was driven by lower costs in research and development, sales and marketing, and general and administrative expenses. The gross profit margin also improved to 77.9% from 75.9% year-over-year, attributed to decreased stock-based compensation and optimized hosting costs.

In terms of strategic developments, Zoom announced the acquisition of BrightHire, Inc., a company specializing in AI-powered interview intelligence, which is expected to enhance Zoom's recruiting capabilities. The acquisition is anticipated to close in the fourth fiscal quarter. Additionally, the company has continued to innovate its product offerings, launching several AI-driven features and enhancements, including the AI Companion 3.0, which is set to be available for all paid users by December 2025.

Operationally, Zoom reported a customer base of 4,363 clients contributing over $100,000 in trailing twelve months revenue, an increase from 3,995 in the previous year. The company’s net dollar expansion rate for enterprise customers remained stable at 98%, indicating consistent growth in existing accounts. Revenue from enterprise customers accounted for 60.3% of total revenue in the third quarter, while online customers represented 39.7%. The company also reported a monthly average churn rate of 2.7% for online customers, consistent with the previous year.

Looking ahead, Zoom remains cautious about macroeconomic conditions, including geopolitical tensions and inflationary pressures, which may impact customer spending and sales cycles. However, the company believes its existing cash reserves, totaling approximately $1.22 billion in cash and cash equivalents, along with marketable securities of $6.73 billion, will support its operational needs and growth initiatives over the next year. The company is committed to expanding its platform and enhancing customer engagement through ongoing investments in AI and product innovation.