Zoom Communications, Inc.

Highly profitable, fortress-balance-sheet communications platform with elite FCF but slow growth.

Strengths

• Elite profitability and FCF — operating margin 23.1% (72nd), FCF margin 39.5% (94th), FCF $1.92B (90th)
• Strong returns — ROE 19.4%, ROA 15.9% (80th)
• Fortress balance sheet — current ratio 4.33 (85th)

Risks

• Low growth — revenue +4.4% (36th)
• Net margin aided by interest income/tax — per 10-K
• Post-pandemic normalization and competition — per 10-K

Notable findings

• Restatement• The dual class structure of our common stock, as contained in our amended and restated certificate of incorporation, has the effect of concentrating voting control with those stockholders who held o 8-K ↗
• Customer concentration~33% of revenue from one customer/distributor — Revenue from these customers represented 32
• Exec changeRecent 8-K item 5.02 8-K ↗
• Fund exitedNotable fund(s) exited this quarter: VANGUARD GROUP INC, Bridgewater Associates, LP
• Strong balance sheetStrong balance sheet — $9.4B cash & investments
• Notable holderHeld by 5 notable fund(s): STATE STREET CORP, FMR LLC, CITADEL ADVISORS LLC +2 more (as of 2026-03-31)
• Insider sellingInsider selling — 98 open-market sale(s) by 5 insider(s) (cluster of 5 insiders, ~$27M, last 6mo) Form 4 ↗