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Ziff Davis's $1.2B Deal: A Masterclass in Unlocking ValueZiff Davis NASDAQ: ZD said its second-quarter results reflected continued pressure in search-driven advertising businesses, partially offset by growth in several operating areas, while the company moved to reshape its capital structure following the sale of its Connectivity business.

During the quarter, Ziff Davis completed the sale of its Connectivity business to Accenture for $1.2 billion. Chief Executive Officer Vivek Shah described the transaction as transformative and said the purchase price represented a 14.5-times multiple of the business’s trailing 12-month adjusted EBITDA less capital expenditures.

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Shah said the sale demonstrated the company’s willingness to monetize portfolio assets where it sees a gap between its market valuation and the value of its underlying businesses. The company plans to use part of its cash for approximately $200 million in tax obligations related to the transaction and to repay $149 million of convertible debt maturing Nov. 1, 2026.

Second-Quarter Financial Results For continuing operations, Ziff Davis reported second-quarter revenue of $286.7 million, down 2.7% from $294.8 million a year earlier. Adjusted EBITDA declined 3.7% to $76.8 million, while adjusted EBITDA margin was 26.8%, compared with 27.1% in the prior-year period.

Adjusted diluted earnings per share rose 13.2% to $1.03 from $0.91, primarily due to a reduced share count following buyback activity, according to Chief Financial Officer Bret Richter. Free cash flow was $54 million, up 100% from the second quarter of 2025.

Advertising and performance-marketing revenue declined 6% year over year. Subscription and licensing revenue was essentially flat. Other revenue more than doubled, increasing about $3.7 million, largely due to the contribution from Semantic Labs in the MarTech group. As of June 30, the company held $1.6 billion in cash and cash equivalents and $100 million in long-term investments. Cash and cash equivalents exceeded outstanding debt by $734 million, Richter said.

Buybacks and Capital Allocation Ziff Davis accelerated its share repurchases during the quarter, buying back 2.6 million shares under a 10b5-1 plan and deploying $121.5 million. Since July 1, the company has repurchased another 700,000 shares in the open market.

Shah said the company had deployed more than $200 million in 2026 to repurchase 4.5 million shares, reducing outstanding shares by nearly 11% over seven months. Since the beginning of 2024, Ziff Davis has repurchased almost 13 million shares. Approximately 7 million shares remain available under the board’s current authorization.

The company also completed two small acquisitions in the second quarter and has deployed $9.2 million for mergers and acquisitions year to date. Shah said Ziff Davis will continue to consider acquisitions, asset monetizations and repurchases, but will remain disciplined and patient in evaluating opportunities.

Segment Performance and Search Traffic Pressure Tech & Shopping revenue declined 5% year over year, an improvement from a 13% decline in the first quarter and an 18% decline in the fourth quarter. Segment adjusted EBITDA rose more than 8%, aided by lower expenses and cost-saving measures implemented in the second half of 2025.

Shah said traditional search traffic remains under pressure, with the share of relevant search queries presenting Google AI Overviews rising to roughly 50% from approximately 36% when he last provided the metric. The company has sought to offset search declines through Instagram, Facebook, TikTok, YouTube, connected television, events, newsletters and native applications.

He also said CNET, PCMag and IGN were among the most-cited information sources in a Semrush AI Visibility Index report, which has prompted marketer interest in aligning with trusted editorial brands. Ziff Davis has begun generating what Shah called meaningful affiliate commissions directly through social channels.

Gaming & Entertainment revenue rose nearly 1%, as a record quarter at Humble Bundle offset advertising declines at IGN. Shah attributed IGN’s advertising weakness primarily to the current video-game release slate rather than traffic trends. He said the planned November launch of Grand Theft Auto VI could help drive activity for IGN, while Humble Bundle is preparing to roll out product features more quickly through an agentic coding-based platform redevelopment effort.

Health & Wellness revenue declined nearly 5% and adjusted EBITDA fell nearly 10%, primarily because of lower healthcare professional advertising revenue at MedPage Today. Shah said some large pharmaceutical customers have reduced spending and shifted budgets toward lower-cost, including AI-based, platforms. However, MedPage grew sequentially from the first quarter, and management expects sequential growth through the remainder of 2026.

Consumer direct-to-consumer advertising and subscription businesses benefited from growth in GLP-1 prescriptions and associated promotional spending. The company also added GLP-1 support to its Lose It! application and expanded Health eCareers’ association partnerships.

Cybersecurity & MarTech revenue and adjusted EBITDA each grew nearly 1%. IPVanish posted year-over-year growth for a fifth consecutive quarter, while smtp.com continued to deliver double-digit growth, management said.

AI Development and Outlook Shah said AI has become central to the company’s product-development process. The proportion of released code authored by AI roughly doubled during the quarter, and a majority of newly released or updated code is now written by AI. Ziff Davis is targeting nearly all code being AI-authored before the end of 2026.

The company released 24% more code in the second quarter than in the first quarter despite lower engineering headcount, Shah said, with initial quality metrics holding steady. He said the effort is intended to lower the cost per feature delivered and support a wider product roadmap without proportionately increasing resources.

For the third quarter, Ziff Davis expects revenue to increase sequentially but decline by the low- to mid-single digits year over year. The company expects a modest improvement in adjusted EBITDA margin from the second quarter. For the fourth quarter, management expects a lower rate of revenue decline than in the third quarter, while adjusted EBITDA margins are expected to be slightly below the prior-year level.

Regarding AI content licensing, Shah said Ziff Davis is not inclined to enter agreements focused on retrieval-augmented generation that could compromise its ability to seek compensation for foundational model training. He said the company’s litigation with OpenAI is continuing and that management is waiting for greater legal clarity before pursuing what it views as a rational licensing market.

About Ziff Davis (NASDAQ:ZD)Ziff Davis, Inc is a digital media and internet company that operates a diverse portfolio of online brands, subscription-based services and performance marketing platforms. The company specializes in technology publishing and digital marketing solutions, offering content, reviews and insights tailored to consumer and enterprise audiences. Ziff Davis's flagship media properties include PCMag, which provides expert reviews and comparisons of consumer electronics and software, as well as IGN, a leading destination for gaming news, reviews and entertainment coverage.

Founded in 1927 by William B.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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NEW YORK--(BUSINESS WIRE)--Ziff Davis, Inc. (NASDAQ: ZD) (“Ziff Davis” or “the Company”) today reported unaudited financial results for the second quarter ended June 30, 2026.

“With the successful sale of our Connectivity business, our significant share repurchases, and our robust free cash flow, Ziff Davis is in a very strong financial position,” said Vivek Shah, CEO of Ziff Davis. “We are focused on deploying capital strategically to maximize long-term shareholder returns.”

SECOND QUARTER 2026 RESULTS

During the second quarter of 2026, the Company completed the sale of its Connectivity business. The results of the Connectivity business are classified as discontinued operations for all periods presented in this press release. Unless otherwise noted, all amounts, percentages, and any discussion in this press release reflect the results from continuing operations, except for the Statements of Cash Flows and Free cash flow, which are presented on a combined continuing and discontinued operations basis. Furthermore, upon the classification of Connectivity as a discontinued operation, the Company determined that Connectivity was no longer a reportable segment.

Revenues (1) decreased to $286.7 million compared to $294.8 million for Q2 2025. Operating (loss) income decreased to an operating loss of $(44.7) million compared to operating income of $13.8 million for Q2 2025. This includes a $54.8 million goodwill impairment recognized in Q2 2026 compared to none in Q2 2025. Net (loss) income from continuing operations (2) decreased to $(52.2) million compared to $14.3 million for Q2 2025. Net (loss) income per diluted share from continuing operations (2) decreased to $(1.43) compared to $0.34 for Q2 2025. Adjusted EBITDA (3) decreased to $76.8 million compared to $79.8 million for Q2 2025. Adjusted net income (2) (3) decreased to $37.8 million compared to $38.1 million for Q2 2025. Adjusted net income per diluted share (2) (3) (or “Adjusted diluted EPS”) increased 13.2% to $1.03 compared to $0.91 for Q2 2025. Net cash provided by operating activities from continuing and discontinued operations increased 55.9% to $89.0 million compared to $57.1 million in Q2 2025. Free cash flow from continuing and discontinued operations (3) increased 100.3% to $54.0 million compared to $26.9 million in Q2 2025. Ziff Davis completed the sale of its Connectivity division for total proceeds of approximately $1,216.1 million, consisting of approximately $1,179.1 million cash received at closing, or $1,134.1 million net of cash divested, and $37.0 million held in escrow. Ziff Davis deployed approximately $9.2 million for current and prior year acquisitions during the quarter and $121.5 million related to share repurchases in Q2 2026. The following table reflects results from continuing operations, except for Net cash provided by operating activities and Free cash flow which are on combined basis of continuing and discontinued operations, for the three and six months ended June 30, 2026 and 2025, respectively (in millions, except per share amounts).

(Unaudited)

Three months ended June 30,

% Change

Six months ended June 30,

% Change

2026

2025

2026

2025

Revenues (1)

Technology & Shopping

$

76.7

$

80.8

(5.0

)%

$

147.9

$

162.4

(9.0

)%

Gaming & Entertainment

$

46.6

$

46.2

0.9

%

$

87.4

$

84.3

3.7

%

Health & Wellness

$

94.7

$

99.5

(4.8

)%

$

180.6

$

185.2

(2.5

)%

Cybersecurity & Martech

$

68.7

$

68.3

0.5

%

$

138.5

$

135.7

2.1

%

Total revenues (1)

$

286.7

$

294.8

(2.7

)%

$

554.4

$

567.6

(2.3

)%

Operating (loss) income

$

(44.7

)

$

13.8

NM (4)

$

(41.8

)

$

28.2

NM (4)

Operating (loss) income margin

(15.6

)%

4.7

%

(20.3

)%

(7.5

)%

5.0

%

(12.5

)%

Net (loss) income from continuing operations (2)

$

(52.2

)

$

14.3

NM (4)

$

(52.9

)

$

24.1

NM (4)

Net (loss) income per diluted share from continuing operations (2)

$

(1.43

)

$

0.34

NM (4)

$

(1.43

)

$

0.57

NM (4)

Adjusted EBITDA (3)

$

76.8

$

79.8

(3.7

)%

$

140.2

$

151.2

(7.3

)%

Adjusted EBITDA margin (3)

26.8

%

27.1

%

(0.3

)%

25.3

%

26.6

%

(1.3

)%

Adjusted net income (2)(3)

$

37.8

$

38.1

(0.6

)%

$

65.4

$

71.1

(8.0

)%

Adjusted diluted EPS (2)(3)

$

1.03

$

0.91

13.2

%

$

1.75

$

1.68

4.2

%

Net cash provided by operating activities from continuing and discontinued operations

$

89.0

$

57.1

55.9

%

$

118.9

$

77.7

53.1

%

Free cash flow from continuing and discontinued operations (3)

$

54.0

$

26.9

100.3

%

$

50.8

$

21.9

131.5

%

Notes:

(1)

The revenues associated with each of the reportable segments may have been rounded when presented independently so they foot precisely to Total Revenues.

(2)

GAAP effective tax rates were approximately (1.8)% and (0.8)% for the three months ended June 30, 2026 and 2025, respectively, and (6.6)% and 22.3% for the six months ended June 30, 2026 and 2025, respectively. Adjusted effective tax rates were approximately 23.9% and 24.2% for the three months ended June 30, 2026 and 2025, respectively, and 23.9% and 23.9% for the six months ended June 30, 2026 and 2025, respectively.

(3)

For definitions of non-GAAP financial measures and reconciliations of GAAP to non-GAAP financial measures refer to section “Non-GAAP Financial Measures” further in this release.

(4)

NM: Not meaningful.

EARNINGS CONFERENCE CALL AND AUDIO WEBCAST

Ziff Davis will host a live audio webcast and conference call discussing its second quarter 2026 financial results on Friday, August 7, 2026, at 8:30AM ET. The live webcast and call will be accessible by phone by dialing (844) 985-2014 or via www.ziffdavis.com. Following the event, the audio recording and presentation materials will be archived and made available at www.ziffdavis.com.

ABOUT ZIFF DAVIS

Ziff Davis, Inc. (NASDAQ: ZD) is a vertically focused digital media and internet company whose portfolio includes leading brands in technology, shopping, gaming and entertainment, health and wellness, cybersecurity, and martech. For more information, visit www.ziffdavis.com.

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including those contained in Vivek Shah’s quote. These forward-looking statements are based on management’s current expectations or beliefs and are subject to numerous assumptions, risks, and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties include, among other items: the Company’s ability to grow advertising, licensing, and subscription revenues, profitability, and cash flows, particularly in light of an uncertain U.S. or worldwide economy, including the possibility of economic downturn or recession; the Company’s ability to make interest and debt payments; the Company’s ability to identify, close, and successfully transition acquisitions or divestitures; the Company’s ability to realize the anticipated benefits from the divestiture of the Connectivity business; customer growth and retention; the Company’s ability to create compelling content; our reliance on third-party platforms; the threat of content piracy and developments related to artificial intelligence; increased competition and rapid technological changes; variability of the Company’s revenue based on changing conditions in particular industries and the economy generally; protection of the Company’s proprietary technology; the risk of alleged infringement by the Company of intellectual property of others; the risk of losing critical third-party vendors or key personnel; the risks associated with fraudulent activity, system failure, or a security breach; risks related to our ability to adhere to our internal controls and procedures; the risk of adverse changes in the U.S. or international regulatory environments, including but not limited to the imposition or increase of taxes or regulatory-related fees; the risks related to supply chain disruptions, increased tariffs and trade protection measures, inflationary conditions, and rising interest rates; the risk of liability for legal and other claims; our ability to consummate a sale of one or more of our business lines pursuant to our announced review of potential value-creating opportunities; and the numerous other factors set forth in the Company’ filings with the Securities and Exchange Commission (“SEC”). For a more detailed description of the risk factors and uncertainties affecting the Company, refer to our most recent Annual Report on Form 10-K and the other reports filed by the Company from time-to-time with the SEC, each of which is available at www.sec.gov. The forward-looking statements provided in this press release, including those contained in Vivek Shah’s quote are based on limited information available to the Company at this time, which is subject to change. Although management’s expectations may change after the date of this press release, the Company undertakes no obligation to revise or update these statements.

  ZIFF DAVIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED, IN THOUSANDS)

  June 30, 2026

December 31, 2025

ASSETS

Cash and cash equivalents

$

1,606,112

$

573,777

Accounts receivable, net of allowances of $6,343 and $8,141, respectively

418,846

623,441

Prepaid expenses and other current assets

59,804

81,964

Current assets - discontinued operations

—

91,217

Total current assets

2,084,762

1,370,399

Long-term investments

99,936

93,228

Property and equipment, net of accumulated depreciation of $419,396 and $382,187, respectively

171,481

162,130

Intangible assets, net

293,773

338,178

Goodwill

1,291,002

1,346,964

Deferred income taxes

5,444

5,107

Other assets

51,629

24,523

Noncurrent assets - discontinued operations

—

322,777

TOTAL ASSETS

$

3,998,027

$

3,663,306

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable and accrued expenses

$

489,554

$

696,918

Income taxes payable, current

185,637

7,345

Deferred revenue, current

126,974

129,700

Current portion of long-term debt

148,937

148,685

Other current liabilities

12,228

16,089

Current liabilities - discontinued operations

—

76,216

Total current liabilities

963,330

1,074,953

Long-term debt

718,703

717,815

Deferred revenue, noncurrent

5,903

6,518

Liability for uncertain tax positions

19,619

19,733

Deferred income taxes

20,773

41,116

Other noncurrent liabilities

32,241

33,055

Noncurrent liabilities - discontinued operations

—

16,541

TOTAL LIABILITIES

1,760,569

1,909,731

Common stock

350

384

Additional paid-in capital

436,450

472,723

Retained earnings

1,867,704

1,337,542

Accumulated other comprehensive loss

(67,046

)

(57,074

)

TOTAL STOCKHOLDERS’ EQUITY

2,237,458

1,753,575

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

3,998,027

$

3,663,306

  ZIFF DAVIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED, IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)

  Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Total revenues

$

286,738

$

294,803

$

554,379

$

567,619

Operating costs and expenses:

Direct costs

45,711

40,663

90,028

81,064

Sales and marketing

122,172

127,044

237,405

239,455

Research, development, and engineering

14,369

14,197

28,006

28,117

General, administrative, and other related costs

47,496

48,794

94,140

91,957

Depreciation and amortization

46,874

50,335

91,752

98,787

Goodwill impairment

54,839

—

54,839

—

Total operating costs and expenses

331,461

281,033

596,170

539,380

Operating (loss) income

(44,723

)

13,770

(41,791

)

28,239

Interest expense, net

(5,770

)

(6,584

)

(12,666

)

(12,778

)

Gain on investments, net

—

4,340

—

4,340

Other (loss) income, net

(586

)

(2,402

)

102

(3,877

)

(Loss) income from continuing operations before income tax expense and income from equity method investment

(51,079

)

9,124

(54,355

)

15,924

Income tax (expense) benefit

(941

)

69

(3,578

)

(3,549

)

(Loss) income from equity method investment, net of tax

(133

)

5,115

5,005

11,745

Net (loss) income from continuing operations

(52,153

)

14,308

(52,928

)

24,120

Net income from discontinued operations, net of tax

676,614

12,035

699,650

26,462

Net income

$

624,461

$

26,343

$

646,722

$

50,582

Net (loss) income per common share from continuing operations:

Basic

$

(1.43

)

$

0.34

$

(1.43

)

$

0.57

Diluted

$

(1.43

)

$

0.34

$

(1.43

)

$

0.57

Net income per common share from discontinued operations:

Basic

$

18.60

$

0.29

$

18.92

$

0.63

Diluted

$

18.60

$

0.29

$

18.92

$

0.63

Net income per common share:

Basic

$

17.16

$

0.63

$

17.49

$

1.20

Diluted

$

17.16

$

0.63

$

17.49

$

1.20

Weighted average shares outstanding:

Basic

36,381,271

41,732,800

36,985,872

42,143,165

Diluted

36,381,271

41,750,114

36,985,872

42,257,116

  ZIFF DAVIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED, IN THOUSANDS)

  Six months ended June 30,

2026

2025

Cash flows from operating activities:

Net income

$

646,722

$

50,582

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

96,656

113,438

Non-cash operating lease costs

3

4,325

Share-based compensation

23,897

21,479

Provision for credit losses on accounts receivable

1,994

1,012

Deferred income taxes, net

(22,542

)

(7,320

)

Gain on sale of businesses

(860,597

)

—

Goodwill impairment

54,839

—

Changes in fair value of contingent consideration

124

(2,318

)

Income from equity method investments, net of tax

(5,005

)

(11,745

)

Gain on investments, net

—

(4,340

)

Other

3,826

1,701

Decrease (increase) in:

Accounts receivable

204,820

147,417

Prepaid expenses and other current assets

(2,972

)

(523

)

Other assets

3,480

1,900

Increase (decrease) in:

Accounts payable and accrued expenses

(230,206

)

(209,583

)

Income taxes payable

204,345

(21,482

)

Deferred revenue

7,402

464

Other current liabilities

(7,870

)

(7,320

)

Net cash provided by operating activities

118,916

77,687

Cash flows from investing activities:

Purchases of property and equipment

(68,126

)

(55,752

)

Acquisitions, net of cash received

(8,030

)

(50,345

)

Distribution from equity method investment

—

9,196

Proceeds from sale of equity investments

—

25,250

Proceeds from sale of businesses, net of cash divested

1,134,081

—

Other

(209

)

51

Net cash provided by (used in) investing activities

1,057,716

(71,600

)

Cash flows from financing activities:

Repurchase of common stock

(173,058

)

(68,834

)

Issuance of common stock under employee stock purchase plan

3,477

3,751

Deferred payments for acquisitions

(1,162

)

(213

)

Other

(3,041

)

(1,592

)

Net cash used in financing activities

(173,784

)

(66,888

)

Effect of exchange rate changes on cash and cash equivalents

(3,747

)

12,180

Net change in cash and cash equivalents

999,101

(48,621

)

Cash and cash equivalents at beginning of period

607,011

505,880

Cash and cash equivalents at beginning of period associated with discontinued operations

33,234

18,380

Cash and cash equivalents at beginning of period associated with continuing operations

573,777

487,500

Cash and cash equivalents at end of period

1,606,112

457,259

Cash and cash equivalents at end of period associated with discontinued operations

—

18,141

Cash and cash equivalents at end of period associated with continuing operations

$

1,606,112

$

439,118

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), we use the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income (loss), Adjusted net income (loss) per diluted share, Free cash flow from continuing and discontinued operations, and Adjusted effective tax rate (collectively the “non-GAAP financial measures”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use these non-GAAP financial measures for financial and operational decision making and as means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results or, in certain cases, may be non-cash in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, (2) certain measures are used to determine the amount of annual incentive compensation paid to our named executive officers, and (3) they are used by the analyst community to help them analyze the health of our business.

These non-GAAP financial measures are not measures presented in accordance with GAAP, and our use of these terms may vary from that of other companies, limiting their usefulness for comparison purposes. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. These non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations determined in accordance with GAAP.

Non-GAAP financial measures exclude the certain items listed below. We believe that excluding these items from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which exclude similar items. We believe that non-GAAP financial measures provide meaningful supplemental information regarding operational performance. We further believe these measures are useful to investors in that they allow for greater transparency of certain line items in the Company’s financial statements.

Adjusted EBITDA is defined as Net income (loss) from continuing operations with adjustments to reflect the addition or elimination of certain items including, but not limited to:

Interest expense, net. Interest expense is generated primarily from interest due on outstanding debt, partially offset by interest income generated from the interest earned on cash, cash equivalents, and investments; (Gain) loss on debt extinguishment, net. This is a non-cash expense that relates to extinguishments of long-term debt obligations. We believe this (gain) loss does not represent recurring core business operating results of the Company; (Gain) loss on sale of businesses. This gain or loss relates to the sales of businesses and does not represent recurring core business operating results of the Company; (Gain) loss on investments, net. This item includes realized gains and losses, unrealized gains and losses, and impairment charges on debt and equity investments. The amount of gain or loss depends on the share price for investments with readily determinable fair value and on observable price changes for investments without a readily determinable fair value, and does not represent core business operating results of the Company; Provision for credit losses on investments. This is a non-cash expense that includes changes in the provision for credit losses on investments of the Company in debt and equity instruments and does not represent recurring core business operating results of the Company; Other (income) loss, net. This income or expense relates to other non-operating items and does not represent recurring core business operating results of the Company; Income tax (benefit) expense. This benefit or expense depends on the pre-tax loss or income of the Company, statutory tax rates, tax regulations, and different tax rates in various jurisdictions in which the Company operates and which the Company does not have the control over; (Income) loss from equity method investment, net of tax. This is a non-cash income or expense as it relates primarily to our investment in OCV Fund I, LP (the “OCV Fund”). We believe that gain or loss resulting from our equity method investment does not represent core business operating results of the Company; Depreciation and amortization. This is a non-cash expense at it relates to use and associated reduction in value of certain assets including equipment, fixtures, and certain capitalized internal-use software and website development costs, and identifiable definite-lived intangible assets of the acquired businesses; Share-based compensation. This is a non-cash expense as it relates to awards granted under the various share-based incentive plans of the Company. We view the economic cost of share-based awards to be the dilution to our share base; Transaction, integration, and other charges. This includes expenses associated with the acquisition or disposal of certain businesses, lease agreement terminations, retention bonuses, and other transaction-specific items, as well as certain other items, such as severance, adjustments to contingent consideration, third-party debt modification costs, litigation costs from discrete, complex, or unusual proceedings, and legal settlements. These expenses do not represent core business operating results of the Company; Long-lived asset impairments and other charges. These expenses are incurred in connection with impaired long-lived assets, including right-of-use (“ROU”) assets of the Company. Associated expenses are comprised of insurance, utility, and other charges related to assets that are no longer in use, and partially offset by the sublease income earned. These expenses do not represent core business operating results of the Company; and Goodwill impairment. This is a non-cash expense that is recorded when the carrying value of the reporting unit exceeds its fair value and does not represent core business operating results of the Company. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Total Revenues.

Adjusted net income (loss) is defined as Net income (loss) from continuing operations with adjustments to reflect the addition or elimination of certain statement of operations items including, but not limited to:

Interest, net. This reflects the difference between the imputed and coupon interest expense associated with the 4.625% Senior Notes and a charge that the Company determined to be penalty interest associated with the 1.75% Convertible Notes, offset in part by a certain interest income earned by the Company. These net expenses do not represent core business operating results of the Company; (Gain) loss on debt extinguishment, net. This is a non-cash expense that relates to extinguishments of long-term debt obligations. We believe this gain or loss does not represent recurring core business operating results of the Company; (Gain) loss on sale of businesses. This gain or loss relates to the sales of businesses and does not represent recurring core business operating results of the Company; (Gain) loss on investments, net. This item includes realized gains and losses, unrealized gains and losses, and impairment charges on debt and equity investments. The amount of gain or loss depends on the share price for investments with readily determinable fair value and on observable price changes for investments without a readily determinable fair value, and does not represent core business operating results of the Company; Provision for credit losses on investments. This is a non-cash expense that includes changes in the provision for credit losses on investments of the Company in debt and equity instruments and does not represent recurring core business operating results of the Company; (Income) loss from equity method investment, net of tax. This is a non-cash income or expense as it relates primarily to our investment in the OCV Fund. We believe that gains or losses resulting from our equity method investment do not represent core business operating results of the Company; Amortization. Includes the amortization of patents and intangible assets that we acquired. This is a non-cash expense as it primarily relates to identifiable definite-lived intangible assets of the acquired businesses. We believe that acquired intangible assets represent cost incurred by the acquiree to build value prior to the acquisition and the amortization of this cost does not represent core business operating results of the Company; Share-based compensation. This is a non-cash expense as it relates to awards granted under the various share-based incentive plans of the Company. We view the economic cost of share-based awards to be the dilution to our share base; Transaction, integration, and other charges. This includes expenses associated with the acquisition or disposal of certain businesses, lease agreement terminations, retention bonuses, and other transaction-specific items, as well as certain other items, such as severance, adjustments to contingent consideration, third-party debt modification costs, litigation costs from discrete, complex, or unusual proceedings, and legal settlements. These expenses do not represent core business operating results of the Company; Long-lived asset impairments and other charges. These expenses are incurred in connection with impaired long-lived assets, including ROU assets of the Company. Associated expenses are comprised of insurance, utility, and other charges related to assets that are no longer in use, and partially offset by the sublease income earned. These expenses do not represent core business operating results of the Company; and Goodwill impairment. This is a non-cash expense that is recorded when the carrying value of the reporting unit exceeds its fair value and does not represent core business operating results of the Company. Adjusted net income (loss) per diluted share is calculated by dividing Adjusted net income (loss) from continuing operations by the diluted weighted average shares of common stock outstanding excluding the effect of convertible debt dilution.

Free cash flow from continuing and discontinued operations is defined as Net cash provided by operating activities, which includes both continuing and discontinued operations, less purchases of property and equipment, plus changes in contingent consideration (if any).

Adjusted effective tax rate is calculated based upon the GAAP effective tax rate with adjustments for the tax applicable to non-GAAP adjustments to Net income (loss) from continuing operations, generally based upon the effective marginal tax rate of each adjustment.

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

  The following table sets forth a reconciliation of Net (loss) income from continuing operations to Adjusted EBITDA:

  Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Net (loss) income from continuing operations

$

(52,153

)

$

14,308

$

(52,928

)

$

24,120

Interest expense, net

5,770

6,584

12,666

12,778

Gain on investment, net

—

(4,340

)

—

(4,340

)

Other loss (income), net

586

2,402

(102

)

3,877

Income tax (benefit) expense

941

(69

)

3,578

3,549

Income (loss) from equity method investment, net of tax

133

(5,115

)

(5,005

)

(11,745

)

Depreciation and amortization

46,874

50,334

91,752

98,787

Share-based compensation

11,520

10,848

20,068

19,930

Transaction, integration, and other charges

5,092

3,980

11,724

3,339

Long-lived asset impairments and other charges

3,242

851

3,609

871

Goodwill impairment

54,839

—

54,839

—

Adjusted EBITDA

$

76,844

$

79,783

$

140,201

$

151,166

  ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

  The following tables set forth Revenues and a reconciliation of Operating (loss) income to Adjusted EBITDA by segment:

Three months ended June 30, 2026

Technology &
Shopping

Gaming &
Entertainment

Health &
Wellness

Cybersecurity &
Martech

Corporate

Total

Revenues

$

76,757

$

46,619

$

94,658

$

68,704

$

—

$

286,738

Operating (loss) income

$

(3,306

)

$

9,017

$

(42,291

)

$

13,378

$

(21,521

)

$

(44,723

)

Depreciation and amortization

20,500

3,385

13,440

9,372

177

46,874

Share-based compensation

1,681

658

2,095

1,366

5,720

11,520

Transaction, integration, and other charges

897

177

378

(656

)

4,296

5,092

Long-lived asset impairments and other charges

66

1,302

1,734

140

—

3,242

Goodwill impairment

—

—

54,839

—

—

54,839

Adjusted EBITDA

$

19,838

$

14,539

$

30,195

$

23,600

$

(11,328

)

$

76,844

  Three months ended June 30, 2025

Technology &
Shopping

Gaming &
Entertainment

Health &
Wellness

Cybersecurity &
Martech

Corporate (1)

Total

Revenues

$

80,776

$

46,226

$

99,452

$

68,349

$

—

$

294,803

Operating (loss) income

$

(7,944

)

$

11,255

$

16,018

$

12,235

$

(17,794

)

$

13,770

Depreciation and amortization

23,049

3,054

14,371

9,821

39

50,334

Share-based compensation

1,437

449

1,626

1,135

6,201

10,848

Transaction, integration, and other charges

1,720

331

771

79

1,079

3,980

Long-lived asset impairments and other charges

4

100

653

99

(5

)

851

Adjusted EBITDA

$

18,266

$

15,189

$

33,439

$

23,369

$

(10,480

)

$

79,783

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

  The following tables set forth a reconciliation of Net (loss) income from continuing operations to Adjusted net income with adjustments presented on after-tax basis:

  Three months ended June 30,

2026

Per diluted
share (1)

2025

Per diluted
share (1)

Net (loss) income from continuing operations

$

(52,153

)

$

(1.43

)

$

14,308

$

0.34

Interest, net

75

—

61

—

Gain on investments, net

—

—

(4,340

)

(0.10

)

Income from equity method investment, net

133

—

(5,115

)

(0.13

)

Amortization

19,249

0.52

22,397

0.54

Share-based compensation

9,120

0.25

7,051

0.17

Transaction, integration, and other charges

4,116

0.11

3,045

0.07

Long-lived asset impairment and other charges

2,468

0.07

676

0.02

Goodwill impairment

54,839

1.49

—

—

Adjusted net income

$

37,847

$

1.03

$

38,083

$

0.91

  Six months ended June 30,

2026

Per diluted
share (1)

2025

Per diluted
share (1)

Net (loss) income from continuing operations

$

(52,928

)

$

(1.43

)

$

24,120

$

0.57

Interest, net

170

—

122

—

Gain on investments, net

—

—

(4,340

)

(0.10

)

Income from equity method investment, net

(5,005

)

(0.13

)

(11,745

)

(0.29

)

Amortization

38,812

1.04

43,504

1.03

Share-based compensation

16,710

0.45

16,277

0.39

Transaction, integration, and other charges

10,021

0.27

2,438

0.06

Long-lived asset impairment and other charges

2,774

0.07

703

0.02

Goodwill impairment

54,839

1.47

—

—

Adjusted net income

$

65,393

$

1.75

$

71,079

$

1.68

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

  The following are the adjustments to certain statement of operations items used to derive Adjusted net income, which we believe provide useful information about our operating results and enhance the overall understanding of past financial performance and future prospects of the Company.

  Three months ended June 30, 2026

GAAP amount

Adjustments

Adjusted
non-GAAP
amount

Interest, net

(Income) loss
from equity
method
investments, net

Amortization

Share-based
compensation

Transaction,
integration, and
other
charges

Long-lived asset
impairments and
other charges

Goodwill
impairment

Direct costs

$

(45,711

)

$

—

$

—

$

—

$

81

$

122

$

—

$

—

$

(45,508

)

Sales and marketing

$

(122,172

)

—

—

—

1,444

771

—

—

$

(119,957

)

Research, development, and engineering

$

(14,369

)

—

—

—

980

479

—

—

$

(12,910

)

General, administrative, and other related costs

$

(47,496

)

—

—

—

9,015

3,722

3,242

—

$

(31,517

)

Depreciation and amortization

$

(46,874

)

—

—

25,769

—

—

—

—

$

(21,105

)

Goodwill impairment

$

(54,839

)

—

—

—

—

—

—

54,839

$

—

Interest expense, net

$

(5,770

)

100

—

—

—

—

—

—

$

(5,670

)

Other loss, net

$

(586

)

—

—

—

—

281

—

—

$

(305

)

Income tax expense (1)

$

(941

)

(25

)

—

(6,520

)

(2,400

)

(1,259

)

(774

)

—

$

(11,919

)

Income from equity method investment, net of tax

$

(133

)

—

133

—

—

—

—

—

$

—

Total non-GAAP adjustments

$

75

$

133

$

19,249

$

9,120

$

4,116

$

2,468

$

54,839

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

  Three months ended June 30, 2025

GAAP amount

Adjustments

Adjusted
non-GAAP
amount

Interest, net

(Gain) loss
on investments, net

(Income) loss
from equity
method
investments, net

Amortization

Share-based
compensation

Transaction,
integration, and
other charges

Long-lived asset
impairments and
other charges

Direct costs

$

(40,663

)

$

—

$

—

$

—

$

—

$

46

$

(3

)

$

—

$

(40,620

)

Sales and marketing

$

(127,044

)

—

—

—

—

1,062

1,240

—

$

(124,742

)

Research, development, and engineering

$

(14,197

)

—

—

—

—

810

288

—

$

(13,099

)

General, administrative, and other related costs

$

(48,794

)

—

—

—

—

8,930

2,455

851

$

(36,558

)

Depreciation and amortization

$

(50,335

)

—

—

—

29,727

—

—

—

$

(20,608

)

Interest expense, net

$

(6,584

)

82

—

—

—

—

—

—

$

(6,502

)

Gain on investments, net

$

4,340

—

(4,340

)

—

—

—

—

—

$

—

Other loss, net

$

(2,402

)

—

—

—

—

—

—

—

$

(2,402

)

Income tax expense (1)

$

69

(21

)

—

—

(7,330

)

(3,797

)

(935

)

(175

)

$

(12,189

)

Income from equity method investment, net of tax

$

5,115

—

—

(5,115

)

—

—

—

—

$

—

Total non-GAAP adjustments

$

61

$

(4,340

)

$

(5,115

)

$

22,397

$

7,051

$

3,045

$

676

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

  Six months ended June 30, 2026

GAAP amount

Adjustments

Adjusted non-
GAAP amount

Interest, net

(Income) loss
from equity
method
investments, net

Amortization

Share-based
compensation

Transaction,
integration, and
other charges

Long-lived asset
impairments and
other charges

Goodwill
impairment

Direct costs

$

(90,028

)

$

—

$

—

$

—

$

133

$

212

$

—

$

—

$

(89,683

)

Sales and marketing

$

(237,405

)

—

—

—

2,433

2,246

—

—

$

(232,726

)

Research, development, and engineering

$

(28,006

)

—

—

—

1,658

1,310

—

—

$

(25,038

)

General, administrative, and other related costs

$

(94,140

)

—

—

—

15,844

7,961

3,609

—

$

(66,726

)

Depreciation and amortization

$

(91,752

)

—

—

49,316

—

—

—

—

$

(42,436

)

Goodwill impairment

$

(54,839

)

—

—

—

—

—

—

54,839

$

—

Interest expense, net

$

(12,666

)

226

—

—

—

—

—

—

$

(12,440

)

Other income, net

$

102

—

—

—

—

515

—

—

$

617

Income tax expense (1)

$

(3,578

)

(56

)

—

(10,504

)

(3,358

)

(2,223

)

(835

)

—

$

(20,554

)

Loss from equity method investment, net

$

5,005

—

(5,005

)

—

—

—

—

—

$

—

Total non-GAAP adjustments

$

170

$

(5,005

)

$

38,812

$

16,710

$

10,021

$

2,774

$

54,839

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

  Six months ended June 30, 2025

GAAP amount

Adjustments

Adjusted non-GAAP amount

Interest, net

(Gain) loss on investments, net

(Income) loss from equity method investments, net

Amortization

Share-based compensation

Transaction, integration, and other charges

Long-lived asset impairments and other charges

Direct costs

$

(81,064

)

$

—

$

—

$

—

$

—

$

98

$

57

$

—

$

(80,909

)

Sales and marketing

$

(239,455

)

—

—

—

—

1,860

2,143

—

$

(235,452

)

Research, development, and engineering

$

(28,117

)

—

—

—

—

1,491

223

—

$

(26,403

)

General, administrative, and other related costs

$

(91,957

)

—

—

—

—

16,481

915

871

$

(73,690

)

Depreciation and amortization

$

(98,787

)

—

—

—

57,504

—

—

—

$

(41,283

)

Interest expense, net

$

(12,778

)

163

—

—

—

—

—

—

$

(12,615

)

Gain on investments, net

$

4,340

—

(4,340

)

—

—

—

—

—

$

—

Other loss, net

$

(3,877

)

—

—

—

—

—

—

—

$

(3,877

)

Income tax expense (1)

$

(3,549

)

(41

)

—

—

(14,000

)

(3,653

)

(900

)

(168

)

$

(22,311

)

Income from equity method investment, net

$

11,745

—

—

(11,745

)

—

—

—

—

$

—

Total non-GAAP adjustments

$

122

$

(4,340

)

$

(11,745

)

$

43,504

$

16,277

$

2,438

$

703

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

  The following tables set forth a reconciliation of Net cash provided by operating activities from continuing and discontinued operations to Free cash flow from continuing and discontinued operations:

2026

Q1

Q2

Q3

Q4

Full Year

Net cash provided by operating activities from continuing and discontinued operations

$

29,953

$

88,963

$

—

$

—

$

118,916

Less: Purchases of property and equipment

(33,127

)

(34,999

)

—

—

(68,126

)

Free cash flow from continuing and discontinued operations

$

(3,174

)

$

53,964

$

—

$

—

$

50,790

  2025

Q1

Q2

Q3

Q4

Full Year

Net cash provided by operating activities from continuing and discontinued operations

$

20,613

$

57,074

$

138,299

$

191,082

$

407,068

Less: Purchases of property and equipment

(25,619

)

(30,133

)

(30,136

)

(33,310

)

(119,198

)

Free cash flow from continuing and discontinued operations

$

(5,006

)

$

26,941

$

108,163

$

157,772

$

287,870

More News From Ziff Davis, Inc.

NEW YORK--(BUSINESS WIRE)--Ziff Davis, Inc. (NASDAQ: ZD) will release its Second Quarter 2026 Earnings at 6:00PM ET on Thursday, August 6, 2026. Additionally, Ziff Davis invites the public, members of the press, the financial community, stockholders, and other interested parties to listen to a live audio Webcast of its Second Quarter 2026 Earnings Call at 8:30AM ET on Friday, August 7, 2026. Vivek Shah, Chief Executive Officer, and Bret Richter, Chief Financial Officer, will host the call. Mate.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Ziff Davis, Inc.:

Due to the forgoing, The Gross Law Firm is investigating potential securities fraud claims on behalf of certain Ziff Davis, Inc. investors. If you incurred a loss on your ZD investment, please contact us using the link below to discuss your rights.

https://securitiesclasslaw.com/securities/ziff-davis-inc-loss-submission-form/?id=184470&from=4

WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: [email protected]
Phone: (646) 453-8903

SOURCE The Gross Law Firm

Also from this source

Levi & Korsinsky, LLP investigates whether Ziff Davis management misled investors with repeated growth assurances before the Q4 2025 earnings miss

, /PRNewswire/ -- Ziff Davis, Inc. (NASDAQ: ZD) investors lost more than 10% of their holdings after the Company reported Q4 2025 results that contradicted months of management assurances about accelerating revenue growth. Shareholders who lost money on ZD are encouraged to submit their information here. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.

On August 8, 2025, during the Q2 2025 earnings call, CEO Vivek Shah told investors: "we currently anticipate at least mid-single-digit revenue growth for both Q3 and Q4 2025, with Q4 potentially being a bit stronger than Q3." On the same call, Shah reaffirmed the Company's fiscal year 2025 guidance range, stating: "We are not altering the range at this time." On November 7, 2025, Shah went further: "We are confident that revenue growth will accelerate in the fourth quarter, not just from timing benefits, but underlying strength in the pipeline and the introduction of new products." CFO Bret Richter separately reaffirmed the fiscal year 2025 guidance range on the same call.

When Q4 2025 results were released, ZD reported revenue that declined approximately 1.5% year-over-year -- not the mid-single-digit growth or acceleration that management had projected. Adjusted Diluted earnings per share came in at $2.56, compared to consensus estimates of $2.70. The stock fell more than 10% following the announcement.

If you purchased Ziff Davis shares and suffered a loss, click here to discuss your legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.

WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

[email protected]

Tel: (212) 363-7500

Fax: (212) 363-7171

SOURCE Levi & Korsinsky, LLP

Ziff Davis, Inc. (NASDAQ: ZD - Get Free Report) saw a significant decline in short interest during the month of March. As of March 13th, there was short interest totaling 4,048,253 shares, a decline of 29.9% from the February 26th total of 5,772,729 shares. Currently, 11.0% of the shares of the company are sold short. Based

, /PRNewswire/ -- Levi & Korsinsky notifies investors that it has commenced an investigation of Ziff Davis, Inc. ("Ziff Davis, Inc.") (NASDAQ: ZD) concerning possible violations of federal securities laws.

Throughout 2025, Ziff Davis highlighted adjusted EBITDA and adjusted diluted EPS as key performance measures in its earnings presentations and calls. On the Q2 2025 earnings call on August 8, 2025, CFO Bret Richter reported adjusted diluted EPS of $1.24, noting that the figure reflected higher adjusted EBITDA and lower diluted shares outstanding. The Company's GAAP results, which included foreign-exchange-related losses and other items excluded from adjusted figures, painted a different picture of the Company's financial health -- a gap investors could not easily see from the headline numbers presented each quarter.  When Q4 2025 results were released, reported revenue declined 1.5% year-over-year to $406.7 million and adjusted EPS missed consensus and internal projections. The stock fell double digits in a single session. . To obtain additional information, go to:

https://zlk.com/pslra-1/ziff-davis-inc-lawsuit-submission-form?prid=185155&wire=4

or contact Joseph E. Levi, Esq. either via email at [email protected] or by telephone at (212) 363-7500.

WHY LEVI & KORSINSKY: Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
www.zlk.com

SOURCE Levi & Korsinsky, LLP

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NEW YORK--(BUSINESS WIRE)--Ziff Davis, Inc. (NASDAQ: ZD) today announced its participation in one investor conference in May.

Details of the conference are as follows:

J.P. Morgan 54th Annual Global Technology, Media and Communications Conference

Location: The Westin Boston Seaport District, Boston, MA

Date and time: May 18, 2026, 8:25 am (ET)

Webcast: https://jpmorgan.metameetings.net/events/tmc26/sessions/318680-ziff-davis-inc/webcast/public

About Ziff Davis

Ziff Davis (NASDAQ: ZD) is a vertically focused digital media and internet company whose portfolio includes leading brands in technology, shopping, gaming and entertainment, health and wellness, connectivity, cybersecurity, and martech. For more information, visit www.ziffdavis.com.

More News From Ziff Davis, Inc.

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Ziff Davis (ZD - Free Report) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $1.14 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +1.39%. A quarter ago, it was expected that this internet and cloud services company would post earnings of $2.71 per share when it actually produced earnings of $2.56, delivering a surprise of -5.54%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Ziff Davis, which belongs to the Zacks Internet - Software industry, posted revenues of $267.64 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.88%. This compares to year-ago revenues of $328.64 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Ziff Davis shares have added about 24.3% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for Ziff Davis?While Ziff Davis has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Ziff Davis was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.87 on $293.87 million in revenues for the coming quarter and $4.91 on $1.23 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Zoom Communications (ZM - Free Report) , is yet to report results for the quarter ended April 2026. The results are expected to be released on May 21.

This video-conferencing company is expected to post quarterly earnings of $1.41 per share in its upcoming report, which represents a year-over-year change of -1.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Zoom Communications' revenues are expected to be $1.22 billion, up 4.2% from the year-ago quarter.

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MSA Safety Incorporporated (NYSE:MSA) CFO Acquires $71,093.12 in StockMarketBeat

MSA Safety Incorporporated (NYSE:MSA - Get Free Report) CFO Julie Beck bought 448 shares of the stock in a transaction dated Thursday, June 11th. The stock was acquired at an average price of $158.69 per share, with a total value of $71,093.12. Following the completion of the purchase, the chief financial officer owned 3,825 shares of the company's stock, valued at $606,989.25. This represents a 13.27% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.

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IGM Financial Inc. (TSE:IGM - Get Free Report) Director Douglas Milne sold 1,600 shares of the business's stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of C$80.61, for a total value of C$128,976.00. Following the sale, the director directly owned 800 shares in the company, valued at C$64,488. The trade was a 66.67% decrease in their ownership of the stock.

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Ziff Davis, Inc. (ZD) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript

On May 22, 2026, Ziff Davis Inc ZD shares rose 4.8% to a current price of $43.73, following a trend of positive momentum over the past week, where shares increased by 7.8%. The stock has experienced a 52-week range between $22.45 and $50.55. The recent price increase is a notable reaction in a year where ZD has gained 24.3% year-to-date and 41.5% over the past year.

GF Value™ verdict: Current price of $43.73 is 24.8% undervalued compared to a GF Value™ estimate of $58.15.GF Score™ of 78/100 indicates that ZD is above average in quality and has potential for higher long-term returns.Notable signal: No insider transactions have been reported in the last three months, suggesting stability in insider sentiment. Is ZD Overvalued or Undervalued? According to the GF Value™, Ziff Davis Inc is currently undervalued, with a fair value estimate of $58.15, indicating a 24.8% margin of safety at the current trading price of $43.73. This suggests that there is potential for price appreciation as the market may eventually recognize the intrinsic value of the company. The GF Valuation label describes ZD as "Modestly Undervalued," which supports the notion that the stock is trading below its intrinsic value. However, investors should consider the company's financial health and market conditions, as there are inherent risks associated with any investment, especially in a volatile market.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The margin of safety implies that, while the stock appears to be a good opportunity, investors should conduct thorough research and consider potential market shifts that could impact future performance.

How Does ZD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 38.7x 30.2x Forward P/E 7.6x N/A Currently, ZD's P/E (TTM) of 38.7x is significantly above its 5-year median P/E of 30.2x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis suggests a divergence from the GF Value™ verdict, which posits that the stock is undervalued. The elevated P/E ratio may reflect market optimism or potential growth factors not fully captured in the valuation estimates, warranting cautious consideration.

What Does ZD's GF Score™ Tell Us? Metric Rating GF Score™ 78 Financial Strength 6/10 Profitability 7/10 Growth 4/10 Valuation 8/10 Momentum 9/10 The GF Score™ of 78 reflects above-average quality, with strengths in Valuation (8/10) and Momentum (9/10), suggesting that ZD may experience continued price appreciation in the near term. However, the Growth score of 4/10 indicates that there may be challenges in expanding the business or revenues, which could be a factor to watch. Financial Strength is rated at 6/10, indicating a moderate level of stability, while Profitability at 7/10 shows that the company is effectively managing its profit margins.

What Are Insiders Doing with ZD Stock? In the last three months, there have been no reported insider transactions for Ziff Davis Inc. This lack of activity may suggest a level of confidence from insiders in the company's current valuation and future performance, as they have not been active in buying or selling shares. Nevertheless, the absence of transactions also means there is no additional insight into insiders' perceptions of the stock's value or potential, which could be a point of consideration for investors.

What This Means for Investors Based on the analysis, Ziff Davis Inc ZD is currently undervalued according to GF Value™, suggesting potential for price appreciation. However, investors should remain vigilant regarding market conditions and the company's performance metrics, especially given the elevated P/E ratio compared to historical values. Overall, ZD presents an intriguing opportunity, but careful consideration of various factors is essential.

For the complete analysis, visit the Ziff Davis Inc ZD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is ZD's GF Score™?

ZD's GF Score™ is 78/100, indicating that the stock is above average in quality and has the potential for higher long-term returns based on historical data.

Is ZD overvalued or undervalued?

ZD is currently undervalued, with a GF Value™ estimate of $58.15, suggesting that the stock has a margin of safety of 24.8% at its current price.

What is ZD's P/E ratio?

ZD's P/E (TTM) ratio is 38.7x, which is significantly above its historical 5-year median of 30.2x, indicating that it is trading at a premium compared to its past valuations.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Jeremy Rossen, Executive Vice President and General Counsel, reported the sale of 4,347 shares of Ziff Davis (ZD +1.07%) for a total of ~$199,000 on May 28, 2026, according to a SEC Form 4 filing.

Transaction summaryMetricValueShares sold (direct)4,347Transaction value~$199,000Post-transaction shares (direct)22,462Post-transaction shares (indirect)2,000Post-transaction value (direct ownership)~$1.0 millionTransaction value based on SEC Form 4 reported price ($45.75); post-transaction value based on the transaction date closing price.

Key questionsWhat proportion of Rossen's Ziff Davis holdings were sold in this transaction?
The sale accounted for 17.8% of his combined direct and indirect position as of the transaction date.Did this activity affect Rossen's indirect holdings or only his direct stake?
Only directly held shares were disposed; the 2,000 shares held indirectly through The Jeremy and Gina Rossen Family Trust remain unchanged.What is Rossen's remaining exposure to Ziff Davis following the transaction?
Post-sale, Rossen retains 22,462 shares directly and 2,000 shares indirectly, for a total of 24,462 shares in Common Stock, maintaining a meaningful ongoing exposure to the company.Company overviewMetricValueRevenue (TTM)$1.45 billionNet income (TTM)$45.38 millionEmployees3,8001-year price change41.60%* 1-year performance as of May 28, 2026.

Company snapshotZiff Davis operates a portfolio of digital media properties and cloud-based subscription services, including IGN, PCMag, RetailMeNot, Speedtest, and various health and wellness platforms.It generates revenue primarily through digital advertising, affiliate marketing, e-commerce, and recurring subscription fees for cybersecurity and marketing technology solutions.The company serves a global customer base of consumers, businesses, and advertisers across technology, entertainment, shopping, and healthcare verticals.Ziff Davis operates at scale in the digital media and cloud-based services landscape, leveraging a diverse portfolio of high-traffic web properties and subscription platforms.

The company’s dual-segment strategy — digital media and cybersecurity/martech — enables multiple revenue streams and cross-vertical reach. Its competitive advantage lies in its well-known brands, international footprint, and ability to monetize both consumer and enterprise audiences through technology-driven solutions.

What this transaction means for investorsZiff Davis General Counsel Jeremy Rossen’s May 28 sale of company shares came at a time when the stock was up. Shares rose in March to a 52-week high of $50.55 after the company announced it was selling its connectivity division for $1.2 billion in cash.

This windfall is significant since the transaction alone nearly equaled the company’s June 4 market cap of $1.7 billion. It seems Rossen’s sale was capitalizing on the elevated share price. He still retained over 22,000 shares after the disposition, suggesting he is not in a rush to eliminate his holdings. So this transaction isn’t necessarily a cause for investor concern.

Ziff Davis announced first-quarter revenue of $267.6 million for its continuing operations, which represents a 2% year-over-year decline. It also reported a Q1 net loss of $0.8 million, a substantial decline from net income of $9.8 million in the prior year. The company is engaging with outside advisors to evaluate how to return the operations to growth, and as a result, has deferred providing 2026 guidance.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.