Key Highlights

  • Net income was USD 2.2 million, or USD 0.01 per diluted share (GAAP), in the third quarter of 2026, compared with USD 38.7 million, or USD 0.12 per share, a year earlier.
  • Revenue fell 3% to USD 308.8 million from USD 318.0 million, as lower subscription Revenue was partly offset by higher usage-based revenue, and gross Margin eased to 83% from 84%.
  • ZoomInfo Technologies (NASDAQ:GTM) agreed in principle on October 16, 2026 to a USD 44.0 million settlement of its 2024 securities class action, part of which insurance funds are expected to cover.
  • Net revenue retention was 88% at September 30, 2026 versus 90% a year earlier, and customers with at least USD 100,000 of annual contract value numbered 1,851 against 1,887.

Profit Drops as Revenue Slips and Costs Climb

ZoomInfo Technologies (NASDAQ:GTM) filed its Quarterly Report for the period ended September 30, 2026 on November 4, 2026. The go-to-market intelligence software provider reported revenue of USD 308.8 million, down USD 9.2 million, while income from operations fell to USD 23.6 million from USD 67.5 million. General and administrative expense rose to USD 72.7 million from USD 47.9 million, which the filing attributes mainly to litigation settlement expense for the proposed 2024 Securities Litigation settlement, partly offset by lower bad debt. Research and Development rose 21% to USD 53.5 million. Net interest expense was USD 15.0 million against USD 11.5 million, and a USD 3.4 million gain on Debt extinguishment offset part of it.

Restructuring, Goodwill Charge and Share Repurchases

The nine-month picture is far weaker. A goodwill Impairment of USD 650.5 million produced a net loss of USD 612.2 million for the nine months, against Net Income of USD 89.5 million a year earlier. A restructuring program approved in May 2026 is expected to cut about 600 employees, roughly 20% of headcount, including closing operations in Israel, and it cost USD 7.6 million in the quarter and USD 29.2 million year to date. Weighted diluted shares fell to 292.9 million from 317.0 million. The company repurchased 2,549,649 shares in the quarter at an average USD 2.94 for USD 7.5 million, and 21.9 million shares for USD 126.2 million over nine months.

New Pricing Model, Cash Flow and Mounting Legal Claims

Management said a hybrid pricing model of platform fees and pre-purchased credits began in the third quarter, which may reduce seat-compression downsell over time but could bring revenue headwinds and variability in the near term. Nine-month Operating Cash Flow was USD 249.4 million versus USD 321.9 million, with cash and equivalents at USD 139.5 million. The company repurchased USD 93.3 million of senior notes for USD 78.2 million. Risks it lists include competition from large-language-model providers, and further lawsuits filed on August 5 and October 30, 2026 by Investment funds on claims similar to the class action. The filing gives no revenue or Earnings guidance.

Where Things Stand

Partly, but not only. ZoomInfo Technologies (NASDAQ:GTM) booked higher litigation settlement expense tied to the USD 44.0 million proposed settlement, yet restructuring costs, higher research spending and a 3% revenue decline also pulled net income down to USD 2.2 million. Offsetting that, gross margin held at 83% and the share count fell. Next markers are court approval of the settlement, the two newer fund lawsuits, how the hybrid pricing model affects net revenue retention, and completion of the restructuring by the end of 2026.