Companies /Communication Services

Ziff Davis Inc

NASDAQ: ZD Advertising Agencies
$56.03
▼ $0.28 (−0.51%) today
Markets open · 2:25pm ET

Q4 2025 Earnings

Reported Feb 23, 2026, 3:23pm ET · SEC source
$2.56
Miss −5.13%
EPS · est. $2.70
$406.7M
Miss −2.38%
Revenue · est. $416.6M
+50.8%
Beating market
ZD vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−15%−10%−5%0Feb 23Feb 24report 3:23pm ETearnings+0.9%−13.1%
−15%−10%−5%0Feb 23Feb 24earnings+0.9%−13.1%
ZD −13.1%S&P 500 +0.9%
−15%−10%−5%0Feb 23Feb 24report 3:23pm ETearnings+1.3%−13.1%
−15%−10%−5%0Feb 23Feb 24earnings+1.3%−13.1%
ZD −13.1%NASDAQ +1.3%
0+30%+60%Feb 23Mar 3report 3:23pm ETearnings−0.5%+40.4%
0+30%+60%Feb 23Mar 3earnings−0.5%+40.4%
ZD +40.4%S&P 500 −0.5%
0+30%+60%Feb 23Mar 3report 3:23pm ETearnings−0.1%+40.4%
0+30%+60%Feb 23Mar 3earnings−0.1%+40.4%
ZD +40.4%NASDAQ −0.1%
−5.86%
Day of report
−10.29%
Next session
−5.21%
One week
+47.07%
30 days

S&P 500 over the same 30 days: −3.75%.

Did ZD Beat Earnings? Q4 2025 Results

Ziff Davis closed out Q4 2025 with a double miss, reporting adjusted diluted EPS of $2.56 against a consensus estimate of $2.71 — a 5.54% shortfall — while revenue of $406.71 million fell 2.39% below the $416.68 million analysts had expected and slipped 1.5% from the year-ago period. The headline numbers, however, only tell part of the story: beneath the misses, a strategic transformation is underway that sent shares surging after the company announced a $1.2 billion deal to sell its Connectivity division to Accenture. The quarter itself was weighed down by a $57.99 million pre-tax loss on a business sale and a $19.73 million loss on an equity method investment, which collapsed GAAP net income to just $370,000. Segment performance was sharply uneven, with Technology & Shopping revenue plunging 18.0% while Health & Wellness grew 8.6%. With outside advisors engaged to evaluate further divisional sales, Ziff Davis is <a href="https://247wallst.com/investing/2026/02/26/one-quarter-ago-zoom-beat-by-148-this-quarter-it-missed/">withholding its 2026 guidance</a>, signaling that the company's shape could look meaningfully different before the year is out.

Key Takeaways
  • Health & Wellness segment revenue grew 8.6% in Q4 and 11.0% for the full year, driven by advertising and performance marketing growth
  • Connectivity segment revenue grew 11.2% in Q4 and 8.0% for the full year, driven by subscription and licensing growth
  • Free cash flow increased 20.4% in Q4 to $157.8 million driven by strong operating cash flow
  • Subscription and licensing revenues grew 4.0% in Q4 and 2.2% for the full year
  • Advertising and performance marketing revenues declined 4.4% in Q4 but grew 5.9% for the full year
  • Health & Wellness net advertising revenue retention reached 102.3% in Q4 2025

“In 2025, Ziff Davis grew Revenues, Adjusted EBITDA, and Adjusted diluted EPS, while generating almost $290 million in Free cash flow.”

Ziff Davis CEO, on the earnings call

Forward Guidance & Outlook

Ziff Davis has engaged outside advisors to assist in evaluating value-creating opportunities, including the potential sale of entire divisions of the company. As this process is ongoing, the company is deferring its fiscal 2026 guidance.

ZD YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$200.0M$400.0M$412.8M$406.7MRevenue$365.4M$349.4MGross Profit$78.5M$86.0MOperating Income$63.8M$370,000Net Income
$0$200.0M$400.0MRevenueGross ProfitOperating IncomeNet Income

ZD Revenue by Segment

Health & Wellness$114.8M+8.6%
Technology & Shopping$108.9M−18.0%
Cybersecurity & Martech$70.9M+2.7%
Connectivity$60.3M+11.2%
Gaming & Entertainment$51.7M+1.5%

Figures from SEC filings and company reports. Not investment advice.