Form 4: Zoom CEO Sells Shares Under Pre-Arranged 10b5-1 Plan

Zoom Communications CEO Eric S. Yuan executed planned sales of Class A Common Stock totaling 146,756 shares over two days in November 2025, pursuant to a Rule 10b5-1 trading plan.

Summary

• Eric S. Yuan, CEO and Director of Zoom Communications, Inc. (ZM), reported transactions involving Class A Common Stock on November 3 and November 4, 2025.
• On both November 3 and November 4, 2025, Mr. Yuan converted 73,378 shares of Class B Common Stock into Class A Common Stock.
• Immediately following each conversion, Mr. Yuan sold all 73,378 shares of the newly converted Class A Common Stock on the open market.
• The sales were executed under a Rule 10b5-1 trading plan adopted by Mr. Yuan on June 20, 2025.
• The total number of Class A Common Stock shares sold across both days was 146,756.
• The sales on November 3, 2025, occurred at weighted average prices ranging from $85.8666 to $88.4117 per share.
• The sales on November 4, 2025, occurred at weighted average prices ranging from $83.7943 to $85.3132 per share.
• Following these transactions, Mr. Yuan's indirect beneficial ownership of Class A Common Stock from these specific conversions was 0 shares.
• His indirect beneficial ownership of Class B Common Stock decreased to 21,325,968 shares after the transactions.
• Mr. Yuan also holds 114,844 and 90,518 Restricted Stock Units directly, which vest in quarterly installments over four and three years, respectively, from their award dates in July 2022 and July 2023.

Sentiment

Score: 5

Explanation: The filing details routine, pre-scheduled insider stock sales by the CEO under a Rule 10b5-1 trading plan. These transactions are a common occurrence for executives managing personal liquidity and do not inherently indicate a positive or negative shift in company fundamentals or management's confidence.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which enhances transparency and mitigates concerns about insider trading based on material non-public information.
• The transactions represent a planned liquidity event for the CEO, which is a common and legitimate financial strategy for executives.

Negatives

• Insider selling, even if pre-planned, can sometimes be perceived negatively by the market, potentially leading to short-term investor sentiment shifts.

Future Outlook

This Form 4 filing is a report of past insider transactions and does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.

Management Comments

• The sales reported on this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on June 20, 2025.

Industry Context

This filing reports routine insider stock transactions by a key executive. Such transactions are common across all publicly traded companies and do not inherently reflect broader industry trends or competitive positioning. The use of a 10b5-1 plan is a standard practice for executives to manage personal finances while adhering to insider trading regulations.

Related Party Transactions

• The shares are held of record by Zheng Yuan and Hongyu Zhang, co-trustees of the 2018 Yuan and Zhang Revocable Trust, for which the Reporting Person and the Reporting Person's spouse serve as co-trustees, indicating indirect beneficial ownership.

Stakeholder Impact

• Shareholders: May view the planned insider sales as a routine liquidity event, though some might interpret it as a slight negative if not fully understanding the 10b5-1 context. The sales are not indicative of a change in company strategy or performance.
• Employees: No direct impact from these transactions.

Next Steps

• Continued vesting of the 114,844 Restricted Stock Units awarded on July 8, 2022, in equal quarterly installments over four years.
• Continued vesting of the 90,518 Restricted Stock Units awarded on July 11, 2023, in equal quarterly installments over three years.

Key Dates

Recommendation

The filing details routine, pre-scheduled insider stock sales by the CEO under a Rule 10b5-1 trading plan. These transactions do not reflect a change in the company's fundamental outlook or the CEO's confidence, but rather a planned liquidity event. Therefore, the filing itself does not warrant a change in investment recommendation.

Keywords

Zoom Communications, ZM, Eric S. Yuan, Insider Trading, Form 4, Stock Sale, 10b5-1 Plan, CEO, Equity Transaction, Class A Common Stock, Class B Common Stock, Restricted Stock Units