Ziff Davis (ZD) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: N/A
• Average Volume (3M): 533.18K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 1.53
• 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: 39,504,870
• 10 Day Avg. Volume: 483,069
• 30 Day Avg. Volume: 533,182
• PEG Ratio: -0.74
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 5.00
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 1.43
• Enterprise Value/Ebitda: 3.43
• 1Y Price Target: $37.33
• Price Target Upside: 40.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $28.00 ▲(5.62% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is supported primarily by solid underlying financial quality—especially strong free cash flow and manageable leverage—plus a generally constructive (though cautious) earnings outlook with continued buybacks. It is held back by very weak technicals (deeply oversold and below major moving averages) and only moderate valuation support, alongside uncertainty tied to Tech & Shopping pressure and deferred formal guidance.

Positive Factors

Strong free cash flow generation

Consistently strong free cash flow provides durable internal funding for buybacks, disciplined M&A and product investment. This reduces dependence on external financing, supports capital returns and gives flexibility to navigate revenue softness without sacrificing strategic initiatives.

Low net leverage and ample liquidity

A conservative leverage profile and sizable cash/investments give the company durable balance-sheet flexibility to fund acquisitions, sustain capex for product launches, and maintain buybacks during cyclical ad/commerce weakness, lowering refinancing and solvency risk.

Growth in high-margin segments and product innovation

Expansion in Health & Wellness and Connectivity — plus new diagnostic and certification products — drives recurring, higher-margin revenue streams. This diversification into SaaS-like and B2B offerings improves revenue quality and reduces reliance on volatile affiliate/advertising income.

Negative Factors

Concentrated affiliate commerce exposure

Meaningful dependence on affiliate commerce tied to organic search makes revenue vulnerable to platform/search algorithm shifts. A multi‑tens‑of‑millions decline can persist, pressuring top-line and requiring strategic repositioning toward more stable recurring revenues.

Sharp Tech & Shopping segment decline

A double‑digit contraction in a major segment reduces overall scale and advertising/commerce leverage, increasing margin volatility. Recovery depends on traffic normalization or product pivoting, which can take multiple quarters and weigh on consolidated growth durability.

AI content licensing and litigation uncertainty

Unclear licensing regimes and legal risk constrain monetization of content for AI training and products. A cautious stance may delay or limit new AI-related revenue streams and create protracted legal costs, reducing upside from emerging AI market opportunities.

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 and improving profitability support the score (cash flow is a standout), with leverage described as manageable. The main offset is the pronounced TTM revenue decline and historical margin volatility, which increase 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	0.00	1.20B	1.18B	1.21B	1.23B
EBITDA	335.35M	319.10M	331.97M	398.39M	681.68M
Net Income	106.19M	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	717.82M	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: Negative
• Last Price: 26.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZD, the sentiment is Negative. The current price of 26.51 is below the 20-day moving average (MA) of 33.28, below the 50-day MA of 35.04, and below the 200-day MA of 34.41, indicating a bearish trend. The MACD of -1.99 indicates Positive momentum. The RSI at 27.61 is Positive, neither overbought nor oversold. The STOCH value of 31.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZD.

Ziff Davis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRTO	69 Neutral	$896.18M	6.60	13.16%	―	0.32%	69.78%
STGW	65 Neutral	$1.14B	58.80	3.80%	―	6.76%	1841.46%
MNTN	65 Neutral	$719.15M	-98.46	―	―	31.28%	-22.05%
CMPR	62 Neutral	$1.74B	74.33	―	―	3.65%	-76.96%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ZD	60 Neutral	$1.05B	23.95	6.26%	―	5.70%	97.88%

Ziff Davis Corporate Events

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.

Ziff Davis Joins UBS Global Tech and AI Conference

Ziff Davis, Inc. will participate in the UBS Global Technology and AI Conference on December 3, 2025. This participation highlights the company’s engagement with key industry events, potentially impacting its visibility and positioning in the technology and AI sectors.

The most recent analyst rating on (ZD) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Ziff Davis stock, see the ZD Stock Forecast page.