Ziff Davis (ZD) Q4 2025 earnings summary

Executive summary

• Fiscal year 2025 revenue grew 3.5% year-over-year to $1,451.3 million, with adjusted EBITDA up to $495.1 million and free cash flow reaching $287.9 million.

• Q4 2025 revenues declined 1.5% year-over-year to $406.7 million, with adjusted EBITDA down 5% to $163.2 million.

• Net income for 2025 decreased 24.8% to $47.4 million, impacted by a $58.0 million pre-tax loss on sale of business and $7.9 million loss on equity method investment.

• Share repurchases totaled $174 million, reducing shares outstanding by over 10%.

• Seven acquisitions were completed in 2025, totaling $68.7 million net of cash received.

Financial highlights

• Adjusted diluted EPS for FY 2025 was $6.63, up slightly from 2024; adjusted net income was $272.5 million, down 7.4%.

• Free cash flow for FY 2025 was $287.9 million, up from $283.7 million in 2024.

• Adjusted EBITDA margin for FY 2025 was 34.1%.

• Operating income margin improved to 12.6% for 2025 from 8.1% in 2024.

• Advertising and performance marketing revenues for FY 2025 rose 5.9% to $824 million; subscription and licensing revenues increased 2.2% to $599 million.

Outlook and guidance

• No formal 2026 guidance due to ongoing strategic review and evaluation of value-creating opportunities, including potential sale of divisions.

• Tech and Shopping expected to decline double digits in H1 2026, improving in H2; full-year decline forecasted as mid-single digits.

• Other segments (Gaming & Entertainment, Health & Wellness, Cybersecurity & MarTech) expected to grow low to mid-single digits; Connectivity to see double-digit growth.

• Q1 2026 revenue expected to be flat or slightly negative year-over-year; Q1 adjusted EBITDA margin to be about 3 points lower.

• Management highlighted risks from economic uncertainty, inflation, interest rates, and potential recession impacting growth and profitability.