Zeta Global (ZETA) Q1 2026 earnings summary

Executive summary

• Achieved 19 consecutive quarters of exceeding and raising guidance, with Q1 2026 revenue growing 50% year-over-year to $396 million, driven by structural market shifts toward AI-driven marketing and the Marigold acquisition.

• Athena, the AI-powered platform, accelerated adoption, drove over 7x more agent interactions, and contributed to major enterprise wins and deeper customer engagement.

• Super-scaled customer count increased 19% year-over-year to 189, with ARPU up 21% to $1.7 million.

• Forrester recognized the platform as a leader, with a 600% average marketing ROI for customers and a 23% YoY increase in NPS.

• Net loss narrowed to $13.2 million from $21.6 million YoY, reflecting improved operating leverage.

Financial highlights

• Q1 2026 revenue reached $396 million, up 50% YoY, with adjusted EBITDA of $66.1 million (16.7% margin), and free cash flow of $41.7 million (10.5% margin), all showing strong YoY growth.

• GAAP net loss improved to $13.2 million, or 3.3% of revenue, including $53 million in stock-based compensation.

• Cash from operations reached $50 million, and cash and cash equivalents were $288.8 million at quarter-end.

• Direct revenue was 75% of total, up from 73% YoY.

• Cost of revenue was 41%, up 190 bps YoY, mainly due to new agency wins and higher social channel mix.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $1,785 million at midpoint, representing 37% growth, with adjusted EBITDA guidance increased to $397 million (22.3% margin) and free cash flow guidance to $235 million.

• Q2 2026 revenue expected at $420 million, up 36% YoY.

• Guiding to positive GAAP Net Income for full year 2026 and tracking to the high end of GAAP EPS range of $0.02 to $0.04.

• 2028 targets: $2.3B+ revenue, $573M+ adjusted EBITDA (25% margin), $371M+ FCF (65% conversion).

• Management expects continued growth in super-scaled customers and ARPU, supported by AI-driven platform enhancements.