Ziff Davis, Inc. (ZD)
NASDAQ:ZD
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Ziff Davis
(NASDAQ:ZD)
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Rating:63Neutral
Price Target:
$44.00
▼(-0.68% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Ziff Davis (ZD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.67B
Dividend YieldN/A
Average Volume (3M)1.41M
Price to Earnings (P/E)30.4
Beta (1Y)1.19
Revenue Growth5.70%
EPS Growth97.88%
CountryUS
Employees3,800
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)2.56
Shares Outstanding37,654,434
10 Day Avg. Volume641,922
30 Day Avg. Volume1,413,557
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 Cap1.16
Enterprise Value/Revenue1.34
Enterprise Value/Gross Profit1.72
Enterprise Value/Ebitda5.69
Forecast
1Y Price Target
$43.17Price Target Upside-2.55% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)6.83
Revenue Forecast (FY)$1.47B
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 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 targ...
Ziff Davis Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 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
62
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| 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
Positive
44.30
Price Trends
37.51
Positive
36.23
Positive
35.65
Positive
Market Momentum
1.59
Positive
65.51
Neutral
73.07
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 44.3 is above the 20-day moving average (MA) of 42.43, above the 50-day MA of 37.51, and above the 200-day MA of 35.65, indicating a bullish trend. The MACD of 1.59 indicates Positive momentum. The RSI at 65.51 is Neutral, neither overbought nor oversold. The STOCH value of 73.07 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 53 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $926.87M | 7.45 | 13.04% | ― | 0.32% | 69.78% | |
65 Neutral | $651.56M | -945.84 | -3.69% | ― | 31.28% | -22.05% | |
63 Neutral | $1.67B | 30.42 | 2.62% | ― | 5.70% | 97.88% | |
62 Neutral | $1.64B | 24.30 | 4.42% | ― | 6.76% | 1841.46% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $1.82B | 8.29 | -4.18% | ― | 3.65% | -76.96% |
* Communication Services Sector Average
ZD
Ziff Davis
43.72
11.96
37.66%
STGW
Stagwell
6.27
1.09
21.04%
CMPR
Cimpress
76.70
32.93
75.23%
CRTO
Criteo SA
17.82
-10.57
-37.23%
MNTN
MNTN, Inc Class A
8.40
-19.31
-69.69%
Ziff Davis Corporate Events
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 ...
Business Operations and Strategy
Ziff Davis to Attend Barclays Tech Conference
Neutral
Dec 10, 2025
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 affec...
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.