Ziff Davis (ZD) AI Stock Analysis

• Market Cap: $1.59B
• Dividend Yield: N/A
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 30.4
• Beta (1Y): 1.26
• Revenue Growth: 5.70%
• EPS Growth: 97.88%
• Country: US
• Employees: 3,800
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 2.56
• Shares Outstanding: 37,654,434
• 10 Day Avg. Volume: 2,396,269
• 30 Day Avg. Volume: 1,379,064
• PEG Ratio: -1.66
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 5.00
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 1.73
• Enterprise Value/Ebitda: 5.74
• 1Y Price Target: $43.17
• Price Target Upside: 2.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 6.83
• Revenue Forecast (FY): $1.47B

• Rating: 63 Neutral
• Price Target: $44.00 ▲(4.64% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven primarily by strong cash flow and a generally manageable balance sheet, supported by a constructive earnings narrative around capital returns. Offsetting these positives are weaker momentum indicators, a high P/E with no dividend yield, and elevated uncertainty from Tech & Shopping pressure and the pending divestiture reshaping the business.

Positive Factors

Cash generation

Sustained high free cash flow provides durable financial flexibility: it funds buybacks, disciplined M&A, and organic investment without relying on external financing. Strong cash conversion also cushions operational volatility and supports debt servicing during cyclical ad and commerce downturns.

Balance sheet strength

Low net leverage and sizable liquidity create a resilient capital structure that supports capital returns and opportunistic M&A while limiting refinancing risk. This balance-sheet flexibility is a durable advantage for executing strategy amid industry cyclicality.

Diversified recurring businesses

Multiple growing, recurring revenue pillars—Health & Wellness strength, DTC momentum, and rising cybersecurity/Martech—reduce dependence on any single ad or affiliate channel. This mix increases revenue resilience and supports margin sustainability over a multi-quarter horizon.

Negative Factors

Affiliate commerce exposure

A material decline in affiliate commissions highlights structural sensitivity to search and referral traffic. Reliance on organic search-driven commerce makes revenue vulnerable to platform algorithm changes and retailer program shifts, posing a persistent top-line risk until revenue mix further diversifies.

Tech & Shopping cyclicality

Sharp segment-level declines demonstrate that certain verticals remain cyclical and highly traffic-dependent. Prolonged weakness in Tech & Shopping can pressure consolidated revenue growth and introduce margin volatility, limiting visibility for multi-quarter planning and capital allocation.

Strategic and AI licensing uncertainty

Uncertain AI licensing terms and a cautious approach to training/compensation create multi-quarter revenue and legal risk. Delays or restrictive frameworks could constrain new monetization paths for content assets and complicate partnerships, affecting long-term growth options and earnings predictability.

Ziff Davis Business Overview & Revenue Model

Company Description

Ziff Davis, Inc., together with its subsidiaries, provides internet information and services in the United States, Canada, Ireland, and internationally. It operates in two segments, Digital Media, and Cybersecurity and Martech. The Digital Media segment operates a portfolio of web properties and apps, which include IGN, RetailMeNot, Mashable, PCMag, Humble Bundle, Speedtest, Offers, Black Friday, MedPageToday, Everyday Health, BabyCenter, and What to Expect, among others in the technology, shopping, entertainment, and health and wellness markets. The Cybersecurity and Martech segment offers cloud-based subscription services to consumers and businesses, including cybersecurity, privacy, and marketing technology. The company was formerly known as j2 Global, Inc. and changed its name to Ziff Davis, Inc. in October 2021. Ziff Davis, Inc. was incorporated in 2014 and is headquartered in New York, New York.

How the Company Makes Money

Ziff Davis generates revenue primarily through advertising, affiliate marketing, and subscription services. The company's advertising model includes display ads, sponsored content, and integrated marketing solutions that allow brands to reach target audiences across its extensive network of websites. Affiliate marketing plays a significant role in ZD's earnings, where the company earns commissions by promoting third-party products and services, particularly in the technology and gaming sectors. Additionally, ZD has subscription-based offerings and premium services that contribute to its revenue. Strategic partnerships with various brands and companies enhance its market reach and revenue potential, while ZD's focus on data analytics allows it to optimize its revenue streams effectively.

Ziff Davis Financial Statement Overview

Summary

Strong cash generation is the standout (rising free cash flow and healthy cash conversion), with manageable leverage and improving profitability. The main drag is the pronounced TTM revenue decline and historical margin volatility, which raises risk if top-line pressure persists.

Income Statement

Profitability is solid for the industry, with high gross profitability and a healthy EBITDA margin in TTM (Trailing-Twelve-Months). Net income improved versus recent annual periods, supporting better bottom-line momentum. The key offset is growth: TTM revenue shows a sharp contraction versus the prior period, and margins have been more volatile over the last several years (including an unusually strong 2021 that did not persist). Overall, strong underlying margin structure but weakened top-line trajectory.

Balance Sheet

Leverage appears manageable with debt under half of equity in TTM (Trailing-Twelve-Months), improving from earlier years when leverage was higher. Equity remains sizable relative to total assets, and return on equity has rebounded versus 2022–2024 levels (though still well below the 2021 peak). Main watch-items are the still-meaningful absolute debt load and the fact that returns have not yet demonstrated consistent, multi-year strength.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are strong in TTM (Trailing-Twelve-Months), and free cash flow increased materially versus the prior period. Cash conversion is generally healthy, with free cash flow tracking well relative to earnings across periods. The primary concern is that operating cash flow is not consistently covering total debt at a high level (coverage remains moderate), which makes sustained cash generation important if revenue pressure continues.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.45B	1.40B	1.36B	1.39B	1.42B
Gross Profit	1.02B	1.20B	1.18B	1.21B	1.23B
EBITDA	327.40M	319.10M	331.97M	398.39M	681.68M
Net Income	47.35M	63.05M	41.50M	63.76M	496.71M
Balance Sheet
Total Assets	3.66B	3.70B	3.47B	3.53B	3.77B
Cash, Cash Equivalents and Short-Term Investments	607.01M	505.88M	764.72M	711.21M	924.04M
Total Debt	891.71M	894.75M	1.00B	999.05M	1.17B
Total Liabilities	1.91B	1.89B	1.58B	1.64B	1.80B
Stockholders Equity	1.75B	1.81B	1.89B	1.89B	1.97B
Cash Flow
Free Cash Flow	287.87M	283.68M	211.23M	230.29M	402.80M
Operating Cash Flow	407.07M	390.31M	319.96M	336.44M	516.54M
Investing Cash Flow	-145.75M	-297.45M	-127.41M	-220.77M	59.09M
Financing Cash Flow	-170.29M	-320.99M	-114.79M	-140.83M	-113.09M

Ziff Davis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZD, the sentiment is Positive. The current price of 42.05 is above the 20-day moving average (MA) of 35.04, above the 50-day MA of 35.49, and above the 200-day MA of 34.76, indicating a bullish trend. The MACD of 2.10 indicates Negative momentum. The RSI at 63.67 is Neutral, neither overbought nor oversold. The STOCH value of 39.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZD.

Ziff Davis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRTO	67 Neutral	$921.76M	7.45	13.04%	―	0.32%	69.78%
MNTN	65 Neutral	$722.48M	-945.84	-3.69%	―	31.28%	-22.05%
ZD	63 Neutral	$1.59B	30.42	2.62%	―	5.70%	97.88%
CMPR	62 Neutral	$1.77B	8.29	-4.18%	―	3.65%	-76.96%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
STGW	57 Neutral	$1.54B	24.30	4.42%	―	6.76%	1841.46%

Ziff Davis Corporate Events

Ziff Davis Divests Connectivity Division in $1.2B Deal

On March 2, 2026, Ziff Davis agreed to sell its Connectivity division to Accenture Inc. for $1.2 billion in cash, subject to customary adjustments, under a Securities Purchase Agreement unanimously approved by Ziff Davis’s board. The deal, expected to close in the coming months, includes non-compete and non-solicitation commitments, ordinary-course operating covenants until closing, mutual indemnification for certain breaches, and a transition services agreement to support the transfer of the business.

The purchase agreement allows either party to terminate under specified conditions, including certain uncured breaches, closing delays beyond December 2, 2026, with a possible extension to March 2, 2027, or legal prohibitions on the transaction. The extensive representations, warranties, and survival periods primarily serve to allocate risk between Ziff Davis and Accenture, underscoring a structured and risk-managed divestiture that could reshape Ziff Davis’s portfolio and sharpen its strategic focus while expanding Accenture’s connectivity capabilities.

The most recent analyst rating on (ZD) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Ziff Davis stock, see the ZD Stock Forecast page.

Ziff Davis Divests Connectivity Unit in Strategic Shift

On March 2, 2026, Ziff Davis agreed to sell its Connectivity division to Accenture for $1.2 billion in cash, in a deal that management described as a transformative realization of value for shareholders. Connectivity’s globally recognized brands, including Ookla, Speedtest, Ekahau, Downdetector, and RootMetrics, provide network design, intelligence, testing, insights, and incident detection services across fixed broadband, mobile, and Wi-Fi.

The transaction, which remains subject to customary closing conditions and regulatory approvals, will see Ziff Davis retain and operate the business until completion, while using sale proceeds for general corporate purposes and capital allocation within the constraints of its debt agreements. Connectivity generated $231 million of revenue in 2025, about 16% of Ziff Davis’ total, and its results are expected to be reclassified as discontinued operations from the first quarter of fiscal 2026, underscoring a strategic portfolio shift that could reshape the company’s earnings profile and capital deployment options.

The most recent analyst rating on (ZD) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Ziff Davis stock, see the ZD Stock Forecast page.

Ziff Davis to Join Susquehanna Technology Investor Conference

On February 26, 2026, Ziff Davis, Inc., a diversified digital media and internet services company, is scheduled to participate in the Susquehanna 15th Annual Technology Conference, underscoring its position within the broader technology and digital content ecosystem. While no webcast will be available, the company’s presence at this investor-focused event signals ongoing engagement with the institutional investment community and indicates continued interest in its technology, digital media, and online services strategy.

The most recent analyst rating on (ZD) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Ziff Davis stock, see the ZD Stock Forecast page.

Ziff Davis Reports 2025 Results, Begins Strategic Review

Ziff Davis reported unaudited fourth-quarter and full-year 2025 results on February 23, 2026, showing modest full-year revenue growth of 3.5% to $1.45 billion and a 61.1% rise in income from operations, helped by lower goodwill impairment charges versus 2024. However, net income fell to $47.4 million for 2025 and dropped sharply in Q4 due to a $58 million loss on a business sale and losses on an equity method investment, while adjusted metrics were broadly flat, with adjusted EBITDA up 0.3% and adjusted diluted EPS edging to $6.63.

The company generated strong cash flows in 2025, with free cash flow rising to $287.9 million and operating cash flow up 4.3%, and it returned $173.8 million to shareholders through buybacks while spending $68.7 million on acquisitions. Against this backdrop, Ziff Davis has hired outside advisers to evaluate value-creation options including potential divestitures of entire divisions and, citing this ongoing strategic review, has deferred issuing fiscal 2026 guidance, signaling possible portfolio reshaping that could alter its business mix and capital allocation priorities.

The most recent analyst rating on (ZD) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Ziff Davis stock, see the ZD Stock Forecast page.

Ziff Davis to Attend Barclays Tech Conference

Ziff Davis, Inc. will participate in the Barclays Global Technology Conference on December 10, 2025, indicating its active engagement in the technology sector. The absence of a webcast suggests limited public access to the event, potentially affecting stakeholder insights.

The most recent analyst rating on (ZD) stock is a Hold with a $37.00 price target. To see the full list of analyst forecasts on Ziff Davis stock, see the ZD Stock Forecast page.