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Get filing alertsZoomInfo cuts FY 2026 revenue guidance by ~$62M, reports 90% net revenue retention
Filed May 11, 2026 · Period ending May 8, 2026 · ~1 min read
Key Changes
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high
Full-year 2026 revenue guidance lowered to $1.185–$1.205B from prior $1.247–$1.267B (~$62M midpoint reduction); adjusted operating income cut to $437–$447M from $456–$466M; unlevered free cash flow reduced to $400–$420M from $435–$465M.
Exhibit 99.1 view on EDGAR → -
high
Net revenue retention rate was 90% as of March 31, 2026, indicating existing customers are reducing spending and the company is experiencing net contraction in its customer base revenue.
Exhibit 99.1 view on EDGAR → -
high
Q1 2026 revenue of $310.2M (up 1.5% YoY); GAAP operating income $57.9M (19% margin); adjusted operating income $109.7M (35% margin); operating cash flow $114.7M; unlevered free cash flow $119.7M.
Exhibit 99.1 view on EDGAR → -
medium
Increased revolving credit facility by $26M to $276M total on May 8, 2026, maintaining existing terms including pricing, interest rates, guarantees, and collateral.
Item 1.01 verify on EDGAR → -
medium
Restructuring expenses of $10.0M in Q1 2026 (up from $5.4M prior year), primarily for lease restructuring, right-of-use asset impairment, and employee severance.
Exhibit 99.1 view on EDGAR →
Summary
ZoomInfo disclosed a material reduction in its full-year 2026 outlook alongside first-quarter results that show slowing growth and customer contraction. The company cut revenue guidance by approximately $62 million at the midpoint, lowered adjusted operating income expectations by roughly $19 million, and reduced free cash flow guidance by $35 million.
The 90% net revenue retention rate signals that existing customers are spending less, a concerning trend for a subscription-based business model where retention above 100% typically indicates healthy expansion. First-quarter results showed modest 1.5% revenue growth to $310.2 million, with the company ending the period with 1,900 customers generating $100,000+ in annual contract value—down 21 sequentially.
While upmarket customers (75% of ACV) grew 5% year-over-year, the sequential decline and sub-100% retention rate suggest headwinds in customer spending. The company incurred $10 million in restructuring charges related to lease restructuring and employee severance, up from $5.4 million in the prior year. ZoomInfo also expanded its revolving credit facility by $26 million to $276 million total, maintaining existing terms. The additional capacity provides financial flexibility, though the timing alongside reduced guidance and customer contraction warrants attention to how the company deploys capital and manages its cost structure in a slower-growth environment.
Section-by-Section Diff
Event · Item 2.03 — Creation of a Direct Financial Obligation
Item 2.03 also reports this as a direct financial obligation (body incorporates the primary Item by reference).
Added in current filing · verify on EDGAR →
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 of this Current Report is incorporated by reference in this Item 2.03.
The company also filed this under Item 2.03, which means it is reporting the arrangement as a direct financial obligation. The Item 2.03 text refers back to the Item 1.01 entry for the terms rather than restating them.
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
The incremental revolving credit commitments provided under the Credit Agreement Amendment have the same terms, including with respect to guarantees, collateral, pricing, interest rates and rights to prepayment and repayment, as the revolving credit facility under the First Lien Credit Agreement immediately prior to the effective date of the Credit Agreement Amendment.
The amendment preserves all existing terms of the revolving credit facility. The new $26 million in commitments carries identical guarantees, collateral requirements, pricing, interest rates, and prepayment rights as the prior facility, indicating the company secured additional capacity without negotiating new or potentially less favorable terms.
Event · Exhibit 99.1
ZoomInfo reported Q1 2026 results with 1.5% revenue growth, 90% net revenue retention, and lowered full-year guidance.
Added in current filing · view on EDGAR →
GAAP Revenue of $310.2 million, an increase of 1.5% year-over-year.
•GAAP Operating income of $57.9 million and Adjusted operating income of $109.7 million.
•GAAP Operating income margin of 19% and Adjusted operating income margin of 35%.
•GAAP Cash flow from operations of $114.7 million and Unlevered free cash flow of $119.7 million.
ZoomInfo reported first quarter 2026 revenue of $310.2 million, up 1.5% year-over-year, with GAAP operating income of $57.9 million (19% margin) and adjusted operating income of $109.7 million (35% margin). Operating cash flow was $114.7 million and unlevered free cash flow was $119.7 million. The company repurchased 13.1 million shares for $90.5 million at an average price of $6.91 per share.
Added in current filing · view on EDGAR →
Closed the quarter with 1,900 customers with $100,000 or greater in annual contract value, a decrease of 21 from the prior quarter, and an increase of 32 year-over-year. ... •75% of the Company’s ACV was Upmarket, and Upmarket ACV grew 5% year-over-year.
ZoomInfo ended Q1 2026 with 1,900 customers generating $100,000 or more in annual contract value, down 21 sequentially but up 32 year-over-year. Upmarket customers (those with larger contracts) represented 75% of total ACV and grew 5% year-over-year, indicating the company is maintaining its focus on larger enterprise customers despite the sequential decline in customer count.
Added in current filing · view on EDGAR →
Based on information available as of May 11, 2026, ZoomInfo is providing guidance for the second quarter and full year 2026 as follows:
Q2 2026 Prior FY 2026 FY 2026
GAAP Revenue $300 - $303 million $1.247 - $1.267 billion $1.185 - $1.205 billion
Non-GAAP Adjusted Operating Income $103 - $106 million $456 - $466 million $437 - $447 million
Non-GAAP Adjusted Net Income Per Share (Diluted) $0.26 - $0.28 $1.10 - $1.12 $1.10 - $1.12
Non-GAAP Unlevered Free Cash Flow Not Guided $435 - $465 million $400 - $420 million
ZoomInfo lowered its full-year 2026 revenue guidance to $1.185-$1.205 billion from the prior range of $1.247-$1.267 billion, a reduction of approximately $62 million at the midpoint. The company also reduced its adjusted operating income guidance to $437-$447 million from $456-$466 million, and lowered unlevered free cash flow guidance to $400-$420 million from $435-$465 million. Adjusted net income per share guidance remained unchanged at $1.10-$1.12. For Q2 2026, the company expects revenue of $300-$303 million.
Added in current filing · view on EDGAR → · paraphrased
Restructuring and transaction-related expenses(1) 10.0 5.4
__________________
(1)Represents costs directly associated with acquisition or disposal activities, including employee severance and termination benefits, contract termination fees and penalties, and other exit or disposal costs. For the three months ended March 31, 2026, this expense is primarily related to lease restructuring activities, including right-of-use asset and the related leasehold improvements impairment charges, and employee severance and termination benefits.
ZoomInfo incurred $10.0 million in restructuring and transaction-related expenses in Q1 2026, up from $5.4 million in the prior-year quarter. These costs were primarily related to lease restructuring activities, including right-of-use asset and leasehold improvements impairment charges, as well as employee severance and termination benefits. The company also recorded a $4.0 million charge for asset impairments and lease abandonment.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 14, 2026 · How we verify