How Zoom Communications (ZM) Makes Money: A Visual Guide
Zoom Communications (ZM) generated $4.87B in revenue (TTM through Q1 2026), earning $1.90B in net profit (39% margin). Its largest revenue source is Reportable Segment (100% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.
Zoom Communications (ZM) Income Statement Flow
Frequently asked questions
How does Zoom Communications (ZM) make money?
- Zoom Communications (ZM) primarily makes money through Reportable Segment, which accounts for 100% of total revenue. For TTM through Q1 2026, Zoom Communications generated $4.87B in total revenue with a net profit margin of 39%.
What is Zoom Communications (ZM) gross profit margin?
- Zoom Communications (ZM) reported a gross profit margin of 77% for TTM through Q1 2026, equivalent to $3.75B in gross profit. This means Zoom Communications retains 77% of each revenue unit after direct costs of production.
What is Zoom Communications (ZM) operating profit margin?
- Zoom Communications (ZM) reported an operating profit margin of 23.1% for TTM through Q1 2026, equivalent to $1.12B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Zoom Communications (ZM) net profit margin?
- Zoom Communications (ZM) reported a net profit margin of 39% for TTM through Q1 2026, equivalent to $1.90B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Zoom Communications (ZM) invest in R&D?
- Zoom Communications (ZM) invested $844.88M in research and development in TTM through Q1 2026 (17.4% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Zoom Communications (ZM) spend on capital expenditures?
- Zoom Communications (ZM) spent $65.46M on capital expenditures in TTM through Q1 2026 (1.3% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Zoom Communications (ZM) free cash flow?
- Zoom Communications (ZM) generated $1.92B in free cash flow for TTM through Q1 2026 (39.5% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Zoom Communications (ZM) effective tax rate?
- Zoom Communications (ZM) had an effective tax rate of 21.6% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.
Data & methodology
What is a Sankey diagram?
- A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?
- We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?
- Based on company filings through TTM through Q1 2026.
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