Ziff Davis (ZD) Q3 2026 earnings summary

Executive summary

• Q3 continuing-operations revenue fell 5.6% YoY to $289.326M; Adjusted EBITDA declined 16.0% to $82.220M, while adjusted diluted EPS was $1.39 vs. $1.40.

• Sequential revenue growth and a 160 bps QoQ improvement in Adjusted EBITDA margin came amid ongoing search and advertising pressure.

Financial highlights

• Q3 continuing-operations net loss was $28.692M vs. net income of $14.308M; operating loss was $33.6M, including impairment charges.

• Adjusted net income was $48.304M vs. $56.818M YoY; adjusted diluted EPS was $1.39 vs. $1.40.

• Q3 free cash flow was negative $100.065M; transaction-adjusted free cash flow was negative $9.981M.

• Nine-month net income was $618.0M, including $699.7M of discontinued-operations income and an $860.6M pretax gain on the Connectivity sale.

Outlook and guidance

• Q4 revenue expected to rise double digits sequentially and decline low- to mid-single digits YoY, with the YoY decline similar to or better than Q3.

• Q4 Adjusted EBITDA margin expected to improve sequentially but decline YoY to the low- to mid-30s; adjusted diluted EPS expected to rise slightly YoY.

• Tech and shopping trends expected to improve into Q4; MedPage sequential growth expected to continue through year-end. Gaming ad demand may improve in 2027 as the game-release slate strengthens.