Q2 2026 Zoominfo Technologies Inc Earnings Call Transcript
Key Points
- ZoomInfo Technologies Inc (GTM) exceeded its Q2 guidance with GAAP revenue of $310 million, up 1.2% year over year, and raised its full-year 2026 revenue guidance.
- Adjusted operating income margin improved to 35%, up 130 basis points year over year, and unlevered free cash flow increased 7% to $107 million.
- The company launched GTM.AI, a headless go-to-market contact layer, and is expanding integrations with major AI platforms like Codex, Cursor, and Gemini, positioning itself for future growth.
- Closed its largest ACV deal ever with a multi-year renewal from a preeminent software customer, expanding both data and seats, and saw strong upmarket performance with 76% of business now upmarket.
- Operations business (primarily data) delivered 20% growth, and the company repurchased equity and retired debt at a discount, demonstrating confidence and improving its capital structure.
- Gross retention improved outside of software, and the company is testing flexible pricing and packaging to drive long-term customer health and retention.
- Net revenue retention declined to 89% in Q2, down from 90% in the prior three quarters, reflecting persistent longer sales cycles and softness in the software vertical.
- The company recorded a non-cash goodwill impairment charge of $651 million, driven by a decline in market capitalization following Q1 results.
- Downmarket ACV declined 12% year over year, and the company expects to intentionally shrink this segment further, reducing its overall business mix.
- Software vertical remains challenged, particularly in the lower end of upmarket, with upmarket ACV growth slowing to 3% year over year from 5-6% in prior quarters.
- The company incurred a $35 million restructuring charge, primarily for severance, and headcount is down 15% year over year, with further reductions expected.
- Full-year 2026 revenue is still expected to decline 3% year over year at the midpoint, indicating ongoing near-term uncertainty and headwinds.
Good day and thank you for standing by. Welcome to ZoomInfo, second quarter 2026 financial results conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To add a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised to withdraw your question, please press star 11 again. Please be advised that today's Conference calls being recorded. I would now like to hand the conference over to your first speaker today, Jerry Susitski, Vice President of Investor Relations.
Thanks Stephanie. Welcome to ZoomInfo's Q2 2026 financial results conference call. With me on the call today are Henry Shuck, founder and CEO, and Graham O'Brien, Chief Financial Officer. During this call, any forward-looking statements are made pursuant to the safe harbor provisions of US security laws, expressions of future goals, including business
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