Ziff Davis Reports Third Quarter 2025 Financial Results and Reaffirms 2025 Guidance
Ziff Davis, Inc. (NASDAQ: ZD) (“Ziff Davis” or “the Company”) today reported unaudited financial results for the third quarter ended September 30, 2025. In addition, consistent with ongoing e...
NEW YORK: Ziff Davis, Inc. (NASDAQ: ZD) (“Ziff Davis” or “the Company”) today reported unaudited financial results for the third quarter ended September 30, 2025.
In addition, consistent with ongoing efforts to maximize value for shareholders, and following inbound interest from third parties regarding certain of our businesses, Ziff Davis has engaged outside advisors to assist in evaluating value-creating opportunities, including the potential sale of entire divisions of the Company. No final decisions have been made to date, and there is no assurance that any transactions will occur. The Company also intends to continue its share repurchase program.
“During the third quarter, we delivered our fifth consecutive quarter of revenue growth and generated strong free cash flow,” said Vivek Shah, Chief Executive Officer of Ziff Davis. “In addition, we continue to pursue multiple avenues to create value for our shareholders and look forward to working with our advisors to assess interest in certain of our businesses.”
THIRD QUARTER 2025 RESULTS
- Q3 2025 quarterly revenues (1) increased 2.9% to $363.7 million compared to $353.6 million for Q3 2024.
- Income (loss) from operations increased 197.0% to $28.4 million compared to $(29.3) million for Q3 2024. This includes a $17.6 million goodwill impairment recognized in Q3 2025 compared to a $85.3 million goodwill impairment recognized in Q3 2024.
- Net loss (2) decreased to $(3.6) million compared to $(48.6) million for Q3 2024. This includes a $17.6 million goodwill impairment recognized in Q3 2025 compared to a $85.3 million goodwill impairment recognized in Q3 2024.
- Net loss per diluted share (2) decreased to $(0.09) in Q3 2025 compared to $(1.11) for Q3 2024.
- Adjusted EBITDA (3) for the quarter decreased to $124.1 million compared to $124.7 million for Q3 2024.
- Adjusted net income (2) (3) decreased to $71.5 million compared to $72.1 million for Q3 2024.
- Adjusted net income per diluted share (2)(3) (or “Adjusted diluted EPS”) for the quarter increased 7.3% to $1.76 compared to $1.64 for Q3 2024.
- Net cash provided by operating activities was $138.3 million in Q3 2025 compared to $106.0 million in Q3 2024. Free cash flow (3) was $108.2 million in Q3 2025 compared to $80.1 million in Q3 2024.
- Ziff Davis deployed approximately $16.7 million for current and prior year acquisitions during the quarter and $44.4 million related to share repurchases in Q3 2025.
The following table reflects results for the three and nine months ended September 30, 2025 and 2024, respectively (in millions, except per share amounts).
(Unaudited) | Three months ended | % Change | Nine months ended | % Change | ||
2025 | 2024 | 2025 | 2024 | |||
Revenues (1) |
|
|
|
|
|
|
Technology & Shopping | $85.2 | $87.1 | (2.2)% | $247.7 | $229.0 | 8.2% |
Gaming & Entertainment | $47.6 | $49.7 | (4.3)% | $131.9 | $129.3 | 1.9% |
Health & Wellness | $102.3 | $90.8 | 12.7% | $287.5 | $256.7 | 12.0% |
Connectivity | $57.2 | $56.0 | 2.2% | $170.4 | $159.4 | 6.9% |
Cybersecurity & Martech | $71.4 | $70.0 | 2.0% | $207.1 | $214.5 | (3.4)% |
Total revenues (1) | $363.7 | $353.6 | 2.9% | $1,044.6 | $988.9 | 5.6% |
Income (loss) from operations | $28.4 | $(29.3) | 197.0% | $97.0 | $35.1 | 176.3% |
Operating income margin | 7.8% | (8.3)% | 16.1% | 9.3% | 3.6% | 5.7% |
Net (loss) income (2) | $(3.6) | $(48.6) | 92.6% | $47.0 | $(1.0) | NM |
Net (loss) income per diluted share (2) | $(0.09) | $(1.11) | 91.9% | $1.13 | $(0.02) | NM |
Adjusted EBITDA (3) | $124.1 | $124.7 | (0.5)% | $331.9 | $321.7 | 3.2% |
Adjusted EBITDA margin (3) | 34.1% | 35.3% | (1.2)% | 31.8% | 32.5% | (0.7)% |
Adjusted net income (2)(3) | $71.5 | $72.1 | (0.8)% | $172.0 | $184.3 | (6.6)% |
Adjusted diluted EPS (2)(3) | $1.76 | $1.64 | 7.3% | $4.12 | $4.08 | 1.0% |
Net cash provided by operating activities | $138.3 | $106.0 | 30.5% | $216.0 | $232.1 | (6.9)% |
Free cash flow (3) | $108.2 | $80.1 | 35.0% | $130.1 | $152.6 | (14.7)% |
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. Prior period segment information is presented on a comparable basis to conform to our new segment presentation with no effect on previously reported consolidated results. |
(2) |
| GAAP effective tax rates were approximately 139.8% and (34.9)% for the three months ended September 30, 2025 and 2024, respectively, and 42.2% and 149.0% for the nine months ended September 30, 2025 and 2024, respectively. Adjusted effective tax rates were approximately 25.2% and 24.3% for the three months ended September 30, 2025 and 2024, respectively, and 24.6% and 23.9% for the nine months ended September 30, 2025 and 2024, 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. |
ZIFF DAVIS GUIDANCE
The Company reaffirms its guidance for fiscal year 2025 as follows (in millions, except per share data):
| 2025 Range of Estimates | ||||
| Low |
| High | ||
Revenues | $ | 1,442 |
| $ | 1,502 |
Adjusted EBITDA | $ | 505 |
| $ | 542 |
Adjusted diluted EPS (1) | $ | 6.64 |
| $ | 7.28 |
____________________ | ||
(1) |
| It is anticipated that the Adjusted effective tax rate for 2025 will be between 23.25% and 25.25%. |
A reconciliation of forward-looking Adjusted EBITDA and Adjusted diluted EPS to the corresponding GAAP financial measures is not available without unreasonable effort due primarily to variability and difficulty in making accurate forecasts and projections of certain non-operating items such as (Gain) loss on investments, net, Other (income) loss, net, and other unanticipated items that may arise in the future.
EARNINGS CONFERENCE CALL AND AUDIO WEBCAST
Ziff Davis will host a live audio webcast and conference call discussing its third quarter 2025 financial results on Friday, November 7, 2025, 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, connectivity, 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, and the “Ziff Davis Guidance” section regarding the Company’s expected fiscal 2025 financial performance. 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; 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 Ziff Davis’ filings with the Securities and Exchange Commission (“SEC”). For a more detailed description of the risk factors and uncertainties affecting Ziff Davis, refer to our most recent Annual Report on Form 10-K and the other reports filed by Ziff Davis 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 and in the “Ziff Davis Guidance” portion regarding the Company’s expected fiscal 2025 financial performance 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) | |||||||
| |||||||
| September 30, 2025 |
| December 31, 2024 | ||||
ASSETS |
|
|
| ||||
Cash and cash equivalents | $ | 503,368 |
|
| $ | 505,880 |
|
Accounts receivable, net of allowances of $8,430 and $8,148, respectively |
| 473,159 |
|
|
| 660,223 |
|
Prepaid expenses and other current assets |
| 148,022 |
|
|
| 105,966 |
|
Total current assets |
| 1,124,549 |
|
|
| 1,272,069 |
|
Long-term investments |
| 119,557 |
|
|
| 158,187 |
|
Property and equipment, net of accumulated depreciation of $443,246 and $361,710, respectively |
| 207,854 |
|
|
| 197,216 |
|
Intangible assets, net |
| 375,321 |
|
|
| 425,749 |
|
Goodwill |
| 1,606,184 |
|
|
| 1,580,258 |
|
Deferred income taxes |
| 7,515 |
|
|
| 7,487 |
|
Other assets |
| 35,954 |
|
|
| 63,368 |
|
TOTAL ASSETS | $ | 3,476,934 |
|
| $ | 3,704,334 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
| ||||
Accounts payable and accrued expenses | $ | 472,066 |
|
| $ | 670,769 |
|
Income taxes payable, current |
| 5,508 |
|
|
| 19,715 |
|
Deferred revenue, current |
| 203,141 |
|
|
| 199,664 |
|
Other current liabilities |
| 17,291 |
|
|
| 9,499 |
|
Total current liabilities |
| 698,006 |
|
|
| 899,647 |
|
Long-term debt |
| 865,937 |
|
|
| 864,282 |
|
Deferred revenue, noncurrent |
| 5,622 |
|
|
| 5,504 |
|
Liability for uncertain tax positions |
| 24,163 |
|
|
| 30,296 |
|
Deferred income taxes |
| 45,398 |
|
|
| 46,018 |
|
Other noncurrent liabilities |
| 38,899 |
|
|
| 47,705 |
|
TOTAL LIABILITIES |
| 1,678,025 |
|
|
| 1,893,452 |
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