Ziff Davis Reports Third Quarter 2026 Financial Results
Ziff Davis, Inc. (NASDAQ: ZD) (“Ziff Davis” or “the Company”) today reported unaudited financial results for the third quarter ended September 30, 2026. “We delivered third quarter results i...
NEW YORK: Ziff Davis, Inc. (NASDAQ: ZD) (“Ziff Davis” or “the Company”) today reported unaudited financial results for the third quarter ended September 30, 2026.
“We delivered third quarter results in line with the expectations we set last quarter, including sequential revenue growth despite a challenging operating environment,” said Vivek Shah, CEO of Ziff Davis. “Through the first three quarters of 2026, we repurchased approximately $265 million of our shares, reducing our share count by nearly 14%, and we will keep pursuing opportunities to unlock additional shareholder value.”
THIRD QUARTER 2026 RESULTS
Revenues (1) decreased to $289.3 million compared to $306.5 million for Q3 2025.
- Operating (loss) income decreased to an operating loss of $(33.6) million compared to operating income of $11.4 million for Q3 2025. This includes a $29.6 million goodwill impairment recognized in Q3 2026 compared to $17.6 million in Q3 2025 and a $14.6 million long-lived assets impairment recognized in Q3 2026 which did not occur in Q3 2025.
- Net loss from continuing operations (2)(3) increased to $(28.7) million compared to $(16.0) million for Q3 2025.
- Net loss per diluted share from continuing operations (2)(3) increased to $(0.85) compared to $(0.39) for Q3 2025.
- Adjusted EBITDA (4) decreased to $82.2 million compared to $97.8 million for Q3 2025.
- Adjusted net income (2) (4) decreased to $48.3 million compared to $56.8 million for Q3 2025.
- Adjusted net income per diluted share (2) (4) (or “Adjusted diluted EPS”) decreased to $1.39 compared to $1.40 for Q3 2025.
- Net cash (used in) provided by operating activities from continuing and discontinued operations (3) decreased to $(77.1) million compared to $138.3 million in Q3 2025. Free cash flow from continuing and discontinued operations (4) decreased to $(100.1) million compared to $108.2 million in Q3 2025. Transaction adjusted free cash flow from continuing and discontinued operations (4) decreased to $(10.0) million compared to $108.2 million in Q3 2025.
- Ziff Davis deployed approximately $7.0 million for current and prior year acquisitions during the quarter and $92.0 million related to share repurchases in Q3 2026.
The following table reflects results from continuing operations (3), except for Net cash (used in) provided by operating activities and Free cash flow which are on combined basis of continuing and discontinued operations (3), for the three and nine months ended September 30, 2026 and 2025, respectively (in millions, except per share amounts).
(Unaudited) | Three months ended | % | Nine months ended | % | ||
2026 | 2025 | 2026 | 2025 | |||
Revenues (1) |
|
|
|
|
|
|
Technology & Shopping | $82.0 | $85.2 | (3.8)% | $229.9 | $247.7 | (7.2)% |
Gaming & Entertainment | $46.6 | $47.6 | (2.1)% | $134.0 | $131.9 | 1.6% |
Health & Wellness | $92.5 | $102.3 | (9.5)% | $273.1 | $287.5 | (5.0)% |
Cybersecurity & Martech | $68.2 | $71.4 | (4.6)% | $206.7 | $207.1 | (0.2)% |
Total revenues (1) | $289.3 | $306.5 | (5.6)% | $843.7 | $874.2 | (3.5)% |
Operating (loss) income | $(33.6) | $11.4 | NM (5) | $(75.4) | $39.7 | NM (5) |
Operating (loss) income margin | (11.6)% | 3.7% | (15.3)% | (8.9)% | 4.5% | (13.4)% |
Net (loss) income from continuing operations (2) | $(28.7) | $(16.0) | (79.8)% | $(81.6) | $8.2 | NM (5) |
Net (loss) income per diluted share from continuing operations (2) | $(0.85) | $(0.39) | NM (5) | $(2.27) | $0.20 | NM (5) |
Adjusted EBITDA (4) | $82.2 | $97.8 | (16.0)% | $222.4 | $249.0 | (10.7)% |
Adjusted EBITDA margin (4) | 28.4% | 31.9% | (3.5)% | 26.4% | 28.5% | (2.1)% |
Adjusted net income (2)(4) | $48.3 | $56.8 | (15.0)% | $113.7 | $127.9 | (11.1)% |
Adjusted diluted EPS (2)(4) | $1.39 | $1.40 | (0.7)% | $3.12 | $3.07 | 1.6% |
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities from continuing and discontinued operations | $(77.1) | $138.3 | NM (5) | $41.8 | $216.0 | (80.6)% |
Free cash flow from continuing and discontinued operations (4) | $(100.1) | $108.2 | NM (5) | $(49.3) | $130.1 | NM (5) |
Transaction adjusted free cash flow from continuing and discontinued operations (4) | $(10.0) | $108.2 | NM (5) | $50.1 | $130.1 | (61.5)% |
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 10.4% and (101.0)% for the three months ended September 30, 2026 and 2025, respectively, and (0.3)% and 145.4% for the nine months ended September 30, 2026 and 2025, respectively. Adjusted effective tax rates were approximately 23.2% and 24.7% for the three months ended September 30, 2026 and 2025, respectively, and 23.6% and 24.2% for the nine months ended September 30, 2026 and 2025, respectively. |
(3) |
| 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, Free cash flow, and Transaction adjusted free cash flow from continuing and discontinued operations, 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. |
(4) |
| 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. |
(5) |
| NM: Not meaningful. |
EARNINGS CONFERENCE CALL AND AUDIO WEBCAST
Ziff Davis will host a live audio webcast and conference call discussing its third quarter 2026 financial results on Friday, November 6, 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’s 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 | |||||||
| September 30, 2026 |
| December 31, 2025 | ||||
ASSETS |
|
|
| ||||
Cash and cash equivalents | $ | 1,407,680 |
|
| $ | 573,777 |
|
Accounts receivable, net of allowances of $5,662 and $8,141, respectively |
| 400,424 |
|
|
| 623,441 |
|
Prepaid expenses and other current assets |
| 60,364 |
|
|
| 81,964 |
|
Current assets - discontinued operations |
| - |
|
|
| 91,217 |
|
Total current assets |
| 1,868,468 |
|
|
| 1,370,399 |
|
Long-term investments |
| 99,869 |
|
|
| 93,228 |
|
Property and equipment, net of accumulated depreciation of $419,157 and $382,187, respectively |
| 164,433 |
|
|
| 162,130 |
|
Intangible assets, net |
| 263,880 |
|
|
| 338,178 |
|
Goodwill |
| 1,261,142 |
|
|
| 1,346,964 |
|
Deferred income taxes |
| 5,456 |
|
|
| 5,107 |
|
Other assets |
| 56,461 |
|
|
| 24,523 |
|
Noncurrent assets - discontinued operations |
| - |
|
|
| 322,777 |
|
TOTAL ASSETS | $ | 3,719,709 |
|
| $ | 3,663,306 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
| ||||
Accounts payable and accrued expenses | $ | 388,496 |
|
| $ | 696,918 |
|
Income taxes payable, current |
| 130,842 |
|
|
| 7,345 |
|
Deferred revenue, current |
| 121,801 |
|
|
| 129,700 |
|
Current portion of long-term debt |
| 149,065 |
|
|
| 148,685 |
|
Other current liabilities |
| 5,364 |
|
|
| 16,089 |
|
Current liabilities - discontinued operations |
| - |
|
|
| 76,216 |
|
Total current liabilities |
| 795,568 |
|
|
| 1,074,953 |
|
Long-term debt |
| 719,154 |
|
|
| 717,815 |
|
Deferred revenue, noncurrent |
| 5,939 |
|
|
| 6,518 |
|
Liability for uncertain tax positions |
| 19,112 |
|
|
| 19,733 |
|
Deferred income taxes |
| 16,306 |
|
|
| 41,116 |
|
Other noncurrent liabilities |
| 34,491 |
|
|
| 33,055 |
|
Noncurrent liabilities - discontinued operations |
|
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