The company exhibits a high OCF/NI conversion ratio of 3.91x in 2026Q1, yet liquidity remains pressured as evidenced by a current ratio that has declined to 0.69.
| Cash from Operations | 460.8M | 465.4M | 369.4M | 434.9M | 417M | 299.4M | 169.6M | 44.4M | 43.8M |
| Operating CF Margin % | - | 37.25% | 30.42% | 35.09% | 37.98% | 40.07% | 35.62% | 15.14% | 30.35% |
| Operating CF Growth % | 429.39% | 25.99% | -15.06% | 4.29% | 39.28% | 76.53% | 281.98% | 1.37% | - |
| Net Income | 126.7M | 124.2M | 29.1M | 107.3M | 63.2M | 94.9M | -36.4M | -78M | -28.6M |
| Depreciation & Amortization | 111.8M | 88.8M | 85.7M | 80.6M | 156.7M | 69.3M | 50.8M | 48.7M | 17.3M |
| Stock-Based Compensation | 59.6M | 116.2M | 138M | 167.6M | 192.3M | 93M | 121.6M | 25.1M | 32.7M |
| Deferred Taxes | 34.3M | 61.4M | -5.9M | 116M | 0 | -54M | -17.5M | -7.2M | -3M |
| Other Non-Cash Items | 198.1M | 132.5M | 207.5M | 121M | 63.6M | 59.3M | 46.6M | 27.2M | 20.3M |
| Working Capital Changes | -69.7M | -57.7M | -85M | -157.6M | -58.8M | 36.9M | 4.5M | 28.6M | 5.1M |
| Change in Receivables | -1.5M | -400K | -20.1M | -80.4M | -40M | -68.4M | -32.9M | -36.4M | -8.9M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 17.5M | 0 | 2.6M |
| Change in Payables | 3.7M | 10.3M | -17.7M | -1.8M | 19.5M | 4.6M | -200K | 5.1M | -300K |
| Cash from Investing | -88M | -80.8M | 13.4M | 24.4M | -281.1M | -695.8M | -113.3M | -736.7M | -13.1M |
| Capital Expenditures | -85.9M | -76.6M | -68.3M | -26.5M | -28.9M | -23.6M | -16.8M | -13.6M | -4.6M |
| CapEx % of Revenue | 6.85% | 6.13% | 5.62% | 2.14% | 2.63% | 3.16% | 3.53% | 4.64% | 3.19% |
| Acquisitions | 0 | 0 | -500K | 0 | -143.7M | -684.2M | -65.9M | -723.1M | -8.5M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -1.9M | 0 | 0 | 0 | 0 | 0 | -16.8M | 0 | 0 |
| Cash from Financing | -339.2M | -347.9M | -690M | -427.2M | -25.5M | 439.5M | 172.2M | 725.8M | -29.9M |
| Debt Issued (Net) | 94M | 94M | -5.9M | -6M | 0 | 490.4M | -475.9M | 571M | 63.6M |
| Equity Issued (Net) | -407.6M | -411.1M | -565.6M | -424.6M | -16.4M | -10M | 691.3M | 388.5M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -19.9M | -9.9M | -16.5M | -93.4M |
| Share Repurchases | -407.6M | -411.1M | -565.6M | -400.1M | 0 | 0 | -332.4M | -11.9M | 0 |
| Other Financing | -25.6M | -30.8M | -118.5M | 3.4M | -9.1M | -21M | -33.3M | -217.2M | -100K |
| Net Change in Cash | 33.3M | 36.7M | -307.2M | 32.1M | 110M | 43.1M | 228.5M | 33.5M | 800K |
| Free Cash Flow | 375M | 388.8M | 301.1M | 408.4M | 388.1M | 275.8M | 152.8M | 30.8M | 39.2M |
| FCF Margin % | 29.9% | 31.12% | 24.8% | 32.95% | 35.35% | 36.91% | 32.09% | 10.5% | 27.17% |
| FCF Growth % | 24.01% | 29.13% | -26.27% | 5.23% | 40.72% | 80.5% | 396.1% | -21.43% | - |
| FCF per Share | 1.18 | 1.23 | 0.83 | 1.03 | 0.98 | 0.68 | 0.88 | 0.21 | 0.27 |
| FCF Conversion (FCF/Net Income) | 2.96x | 3.75x | 12.69x | 4.05x | 6.60x | 2.56x | -18.64x | -0.57x | -1.53x |
| Interest Paid | 23.4M | 0 | 44M | 48.5M | 50M | 33.3M | 66.5M | 95M | 0 |
| Taxes Paid | 5M | 0 | 13.8M | 12.2M | 11.6M | 18.1M | 1.9M | 0 | 0 |
SaaS seat contraction
As reported in financial statements, the company exhibits a significant divergence between net income and operating cash flow, with OCF/NI ratios frequently exceeding 4.0x, suggesting that reported earnings are heavily influenced by non-cash charges and do not fully reflect the underlying cash-generating capacity of the business.
The consistent gap between net income and operating cash flow indicates that accounting earnings are a poor proxy for the company's actual liquidity generation. Investors should monitor whether this disconnect is driven by aggressive capitalization of development costs or simply the timing of subscription-based revenue recognition versus cash collection.
Based on recent SEC filings, free cash flow margins have shown notable volatility, ranging from -0.9% to 39.7% over the last ten quarters, which highlights the company's sensitivity to shifting customer demand and the ongoing need for high-touch sales investment to maintain its current market position.
While the company remains cash-flow positive in most periods, the lack of a stable FCF trajectory suggests that the business model is not yet fully optimized for mature, predictable cash generation. The sharp fluctuations in FCF margins appear to correlate with periods of aggressive capital allocation and potential shifts in customer retention rates.
According to quarterly data, capital expenditures as a percentage of revenue have fluctuated between 2.8% and 7.8%, indicating that the company continues to prioritize significant investment in its data-ingestion infrastructure and AI-driven platform features to defend its competitive moat against emerging technological alternatives.
The variability in capital intensity suggests that management is actively managing its asset base to support the transition toward the 'Copilot' AI offering. Analysts should investigate whether these expenditures are primarily maintenance-oriented or if they represent a sustained commitment to growth-focused R&D that may pressure near-term cash flows.
As indicated by reported figures, working capital changes have been highly erratic, with significant outflows such as the $98.5 million observed in 2024Q3, suggesting that the company's cash conversion cycle is susceptible to timing differences in customer payments and potential delays in collections from its SMB base.
The erratic nature of working capital movements warrants further investigation into the company's credit terms and the health of its customer base. Large swings in cash flow from operations often stem from these working capital fluctuations, which may obscure the true underlying trend in recurring subscription cash receipts.
Based on financial statements, the company has consistently utilized cash for share repurchases, including a notable $243.4 million outflow in 2024Q3, which suggests a management preference for returning capital to shareholders even as organic growth rates have decelerated to low single digits.
The aggressive pace of share buybacks relative to net income may indicate that management views the current valuation as attractive, or it could reflect a lack of high-return internal investment opportunities. Investors should consider whether this capital allocation strategy is sustainable if the current growth headwinds persist and cash flow generation remains volatile.
Quick answers to the most common questions about buying GTM stock.
ZoomInfo Technologies Inc. (GTM) generated $465.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ZoomInfo Technologies Inc. (GTM) generated $388.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
ZoomInfo Technologies Inc. (GTM) spent $76.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, ZoomInfo Technologies Inc. (GTM) spent $411.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.