Ziff Davis, Inc. (ZD)
NASDAQ:ZD
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Ziff Davis
(NASDAQ:ZD)
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Rating:62Neutral
Price Target:
$43.00
▼(-9.57% Downside)
Action:Reiterated
Date:05/09/26
ZD scores moderately due to strong cash flow generation and a stable, improving leverage profile, partially offset by soft/declining revenue and compressed profitability. The earnings outlook is mixed—shareholder returns and margin stability are supported, but guidance deferral and Tech & Shopping weakness reduce near-term confidence. Technicals further weigh on the score as the stock trades below key short-term moving averages despite oversold readings.
Positive Factors
Free Cash Flow Generation
Sustained, high free cash flow (~$288M in 2025) provides durable internal capital for buybacks, disciplined M&A, and working-capital needs. Strong cash conversion (FCF well above net income) cushions the business against ad and affiliate cyclicality and funds strategic investments without adding leverage.
Negative Factors
Affiliate Commerce Decline
A meaningful Y/Y decline (~$25M) in affiliate commissions signals structural vulnerability tied to search/social traffic shifts. Loss of high-margin commerce revenue reduces cashflow resiliency and increases reliance on slower-growing ad and subscription segments, pressuring long-term revenue and margin stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Sustained, high free cash flow (~$288M in 2025) provides durable internal capital for buybacks, disciplined M&A, and working-capital needs. Strong cash conversion (FCF well above net income) cushions the business against ad and affiliate cyclicality and funds strategic investments without adding leverage.
Read all positive factors
Ziff Davis (ZD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.56B
Dividend YieldN/A
Average Volume (3M)571.44K
Price to Earnings (P/E)17.7
Beta (1Y)1.13
Revenue Growth-1.81%
EPS Growth-35.73%
CountryUS
Employees3,800
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)1.14
Shares Outstanding36,835,400
10 Day Avg. Volume643,061
30 Day Avg. Volume571,444
Financial Highlights & Ratios
PEG Ratio-1.66
Price to Book (P/B)0.82
Price to Sales (P/S)0.99
P/FCF Ratio5.00
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue1.36
Enterprise Value/Gross Profit1.84
Enterprise Value/Ebitda6.26
Forecast
1Y Price Target
$49.29Price Target Upside3.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)5.26
Revenue Forecast (FY)$1.22B
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 s...
How the Company Makes Money
Ziff Davis makes money through a mix of advertising, subscriptions, e-commerce/affiliate revenue, and software/services—augmented by acquisitions that add recurring B2B and consumer revenue streams.
1) Digital advertising and sponsorships: A sign...
Ziff Davis Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented a mixed but overall constructive picture: management reported modest full-year revenue growth (3.5%), solid adjusted EBITDA and robust free cash flow generation, a strong balance sheet and active share repurchases, and notable strength across several segments (Health & Wellness, Connectivity, DTC and Cybersecurity). However, material near-term headwinds remain in the Tech & Shopping segment driven by an 18% Q4 decline and a $25M YoY drop in affiliate commerce, along with short-term guidance deferral and AI licensing uncertainty. Management expects the Tech & Shopping pain to moderate in H2 2026 and reiterated confidence in profitable growth, margin stability (~34%) and continued M&A activity.Positive Updates
Full-Year Revenue and Adjusted EBITDA Growth
Fiscal year 2025 total revenue grew 3.5% to $1,451.3 (as reported) and adjusted EBITDA increased to $495.1 million, with a full-year adjusted EBITDA margin of 34.1%.
Negative Updates
Tech & Shopping Segment Weakness
Tech & Shopping revenues declined 18% in Q4 2025, driving a significant portion of the company's Q4 softness. Management attributed the decline largely to a drop in web search traffic that materially impacted affiliate commerce commissions.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and Adjusted EBITDA Growth
Fiscal year 2025 total revenue grew 3.5% to $1,451.3 (as reported) and adjusted EBITDA increased to $495.1 million, with a full-year adjusted EBITDA margin of 34.1%.
Read all positive updates
Company Guidance
Ziff Davis deferred formal 2026 guidance while providing a high‑level outlook: Tech & Shopping is expected to be down mid‑single digits for the year (double‑digit decline in H1 with improvement in H2), Gaming & Entertainment, Health & Wellness and Cybersecurity & Martech are each forecast to grow low‑ to mid‑single digits, and Connectivity is expected to deliver continued double‑digit revenue growth; consolidated Q1 2026 revenue is expected to be relatively flat to slightly negative YoY, Q1 adjusted EBITDA margins about 3 percentage points lower YoY, and full‑year adjusted EBITDA margins should hover around ~34% (vs. 34.1% in FY25 and a 40.1% Q4 margin). Management also emphasized strong cash and capital flexibility, citing 2025 free cash flow of $287.9M (≈58.1% of FY25 adjusted EBITDA of $495.1M), $607M cash and $93M long‑term investments, gross leverage of ~1.8x TTM adjusted EBITDA and net leverage of ~0.5x (0.3x including investments), plus active buybacks (≈4.8M shares repurchased in 2025, ~$174M deployed, 1.75M shares/$60.6M in Q4, ~740k shares repurchased since Jan 1, 2026, and a board repurchase authorization now totaling 10.7M shares).Ziff Davis Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
68
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.39B | 1.45B | 1.40B | 1.36B | 1.39B | 1.42B |
| Gross Profit | 1.03B | 1.02B | 1.20B | 1.18B | 1.21B | 1.23B |
| EBITDA | 300.74M | 327.40M | 319.10M | 331.97M | 398.39M | 681.68M |
| Net Income | 45.38M | 47.35M | 63.05M | 41.50M | 63.76M | 496.71M |
Balance Sheet | ||||||
| Total Assets | 3.39B | 3.66B | 3.70B | 3.47B | 3.53B | 3.77B |
| Cash, Cash Equivalents and Short-Term Investments | 519.72M | 607.01M | 505.88M | 764.72M | 711.21M | 924.04M |
| Total Debt | 867.07M | 891.71M | 894.75M | 1.00B | 999.05M | 1.17B |
| Total Liabilities | 1.67B | 1.91B | 1.89B | 1.58B | 1.64B | 1.80B |
| Stockholders Equity | 1.72B | 1.75B | 1.81B | 1.89B | 1.89B | 1.97B |
Cash Flow | ||||||
| Free Cash Flow | 289.70M | 287.87M | 283.68M | 211.23M | 230.29M | 402.80M |
| Operating Cash Flow | 416.41M | 407.07M | 390.31M | 319.96M | 336.44M | 516.54M |
| Investing Cash Flow | -114.13M | -145.75M | -297.45M | -127.41M | -220.77M | 59.09M |
| Financing Cash Flow | -188.78M | -170.29M | -320.99M | -114.79M | -140.83M | -113.09M |
Ziff Davis Technical Analysis
Positive
47.55
Price Trends
43.66
Negative
39.38
Positive
37.52
Positive
Market Momentum
-0.83
Positive
45.81
Neutral
44.75
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 47.55 is above the 20-day moving average (MA) of 43.84, above the 50-day MA of 43.66, and above the 200-day MA of 37.52, indicating a neutral trend. The MACD of -0.83 indicates Positive momentum. The RSI at 45.81 is Neutral, neither overbought nor oversold. The STOCH value of 44.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZD.
Ziff Davis Risk Analysis
Ziff Davis disclosed 54 risk factors in its most recent earnings report. Ziff Davis reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ziff Davis Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $595.83M | 18.55 | 8.30% | ― | 21.51% | ― | |
67 Neutral | $2.37B | 31.99 | -8.24% | ― | 8.76% | -69.73% | |
62 Neutral | $1.56B | 17.72 | 2.55% | ― | -1.81% | -35.73% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $863.69M | 28.87 | 10.17% | ― | -0.43% | -15.84% | |
55 Neutral | $1.54B | ― | 2.52% | ― | 4.48% | 868.83% |
* Communication Services Sector Average
ZD
Ziff Davis
41.72
10.83
35.06%
STGW
Stagwell
6.29
1.53
32.14%
CMPR
Cimpress
95.17
52.11
121.02%
CRTO
Criteo SA
17.17
-9.32
-35.18%
MNTN
MNTN, Inc Class A
8.14
-19.57
-70.62%
Ziff Davis Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial DisclosuresM&A TransactionsShareholder Meetings
Ziff Davis Highlights Q1 Results and Strategic Portfolio Shift
Negative
May 8, 2026
Ziff Davis held its 2026 annual stockholders’ meeting virtually on May 6, 2026, where shareholders elected eight directors for one-year terms, ratified KPMG LLP as independent auditor for 2026, and approved on an advisory basis the compensat...
Business Operations and StrategyM&A Transactions
Ziff Davis Divests Connectivity Division in $1.2B Deal
Positive
Mar 4, 2026
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, e...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Ziff Davis Divests Connectivity Unit in Strategic Shift
Positive
Mar 3, 2026
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 br...
Business Operations and Strategy
Ziff Davis to Join Susquehanna Technology Investor Conference
Neutral
Feb 26, 2026
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 digita...
Business Operations and StrategyStock BuybackFinancial Disclosures
Ziff Davis Reports 2025 Results, Begins Strategic Review
Neutral
Feb 24, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.