Zeta Global Holdings Corp (ZETA) AI Stock Analysis

• Market Cap: $6.00B
• Dividend Yield: N/A
• Average Volume (3M): 5.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.33
• Revenue Growth: 35.87%
• EPS Growth: 85.20%
• Country: US
• Employees: 2,191
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.20
• Shares Outstanding: 222,304,640
• 10 Day Avg. Volume: 9,424,218
• 30 Day Avg. Volume: 5,943,445
• PEG Ratio: 0.70
• Price to Book (P/B): 4.94
• Price to Sales (P/S): 3.33
• P/FCF Ratio: 36.33
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 3.46
• Enterprise Value/Gross Profit: 6.26
• Enterprise Value/Ebitda: 95.34
• 1Y Price Target: $29.00
• Price Target Upside: 19.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $26.00 ▲(7.08% Upside)

The score is driven primarily by improving fundamentals (growth and strengthening cash flow) and strong technical momentum, reinforced by a positive earnings call with raised guidance. These positives are offset by ongoing GAAP profitability challenges and a weak valuation signal due to negative earnings.

Positive Factors

Improving Free Cash Flow

Sustained free cash flow growth (FCF +83% YoY to $47M, 14% margin) indicates improving cash generation and conversion. Durable cash inflows provide funding for product investment, M&A, and debt management, reducing reliance on external capital over the medium term.

High Gross Margin and Revenue Traction

Top-line growth (5.96% TTM) combined with a high gross margin (~59%) shows the platform can scale revenue with efficient direct costs. This structural margin at the gross level supports long-term profitability once operating expenses are controlled and adoption expands.

Strategic Acquisition Expands Capabilities

The Marigold Enterprise acquisition broadens enterprise software capabilities and subscription revenue, enhancing penetration into Fortune 500 clients. If integration is successful, this materially strengthens product breadth, cross-sell opportunities, and recurring revenue durability over the next several quarters.

Negative Factors

Ongoing GAAP Losses

A GAAP net loss (‑$3.6M in Q3) highlights persistent accounting losses despite operational improvements. Continued GAAP losses constrain retained earnings and investor returns, requiring sustained margin improvement to convert operational gains into lasting profitability.

Negative Return on Equity

Negative ROE (‑3.36%) signals the company is not generating adequate returns on shareholder capital. Over time this reflects inefficient capital deployment and could pressure financing flexibility or investor confidence until sustained net income and ROE improvement are achieved.

Working Capital Pressure from Agency Cycles

Longer agency payment cycles created an 18-point working capital headwind, weakening cash flow timing. In agency-driven revenue models this structural receivables dynamic can compress liquidity, increase short-term financing needs, and limit ability to reinvest in growth initiatives.

Zeta Global Holdings Corp Business Overview & Revenue Model

Company Description

Zeta Global Holdings Corp. operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally. Its Zeta Marketing Platform analyzes billions of structured and unstructured data points to predict consumer intent by leveraging sophisticated machine learning algorithms and the industry's opted-in data set for omnichannel marketing; and Consumer Data platform ingests, analyzes, and distills disparate data points to generate a single view of a consumer, encompassing identity, profile characteristics, behaviors, and purchase intent. It also offers various types of product suites, such as opportunity explorer, and CDP+, which helps in consolidating multiple databases and internal and external data feeds and organize data based on needs and performance metrics. The company was incorporated in 2007 and is headquartered in New York, New York.

How the Company Makes Money

Zeta Global generates revenue through a combination of subscription-based services, performance-based marketing solutions, and data analytics offerings. The company charges clients for access to its marketing technology platform, which includes tools for customer segmentation, campaign management, and reporting. Additionally, Zeta earns revenue from performance marketing by delivering measurable results for its clients, such as increased customer acquisition or engagement. Strategic partnerships with other tech and marketing firms also enhance Zeta's service offerings and revenue potential, as they allow for integrated solutions that attract a broader client base.

Zeta Global Holdings Corp Financial Statement Overview

Summary

Zeta Global Holdings Corp demonstrates solid revenue growth and effective cash flow management, which are positive indicators of future potential. However, persistent profitability issues and negative returns on equity suggest that operational efficiencies need to be improved to enhance shareholder value. The company's financial health is stable, with a balanced capital structure and manageable debt levels.

Income Statement

Zeta Global Holdings Corp has shown a positive revenue growth rate of 5.96% TTM, indicating a strong upward trajectory in sales. However, profitability remains a concern with a negative net profit margin of -1.86% and an EBIT margin of -1.80%, reflecting ongoing operational challenges. The gross profit margin of 59.41% is healthy, suggesting efficient cost management at the gross level.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.29, indicating a manageable level of debt relative to equity. However, the return on equity is negative at -3.36%, highlighting challenges in generating returns for shareholders. The equity ratio stands at 59.89%, suggesting a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth rate of 10.45% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.78 suggests strong cash conversion, while the free cash flow to net income ratio of 0.87 highlights effective cash management despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.22B	1.01B	728.72M	590.96M	458.34M	368.12M
Gross Profit	675.97M	550.10M	403.09M	323.62M	237.70M	179.18M
EBITDA	44.39M	-11.70M	-124.36M	-221.55M	-197.21M	4.01M
Net Income	-22.81M	-69.77M	-187.48M	-279.24M	-249.56M	-53.23M
Balance Sheet
Total Assets	1.15B	1.13B	564.78M	480.01M	402.07M	289.80M
Cash, Cash Equivalents and Short-Term Investments	385.18M	366.16M	131.73M	121.11M	103.86M	50.73M
Total Debt	196.88M	196.29M	184.15M	183.95M	183.61M	189.69M
Total Liabilities	461.56M	454.36M	384.26M	351.98M	311.59M	374.81M
Stockholders Equity	689.21M	676.80M	180.52M	128.03M	90.49M	-85.01M
Cash Flow
Free Cash Flow	155.69M	92.09M	54.55M	39.25M	17.54M	10.33M
Operating Cash Flow	178.45M	133.86M	90.52M	78.49M	44.29M	35.54M
Investing Cash Flow	-94.89M	-97.59M	-54.22M	-48.45M	-46.85M	-25.21M
Financing Cash Flow	-116.88M	197.92M	-25.65M	-12.63M	55.73M	2.78M

Zeta Global Holdings Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZETA, the sentiment is Positive. The current price of 24.28 is above the 20-day moving average (MA) of 20.32, above the 50-day MA of 19.16, and above the 200-day MA of 16.85, indicating a bullish trend. The MACD of 1.44 indicates Negative momentum. The RSI at 71.44 is Negative, neither overbought nor oversold. The STOCH value of 90.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZETA.

Zeta Global Holdings Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRM	80 Outperform	$243.56B	34.68	12.18%	0.63%	8.41%	22.92%
CXM	77 Outperform	$1.88B	17.97	21.35%	―	6.48%	168.94%
GTM	71 Outperform	$3.24B	33.05	6.51%	―	1.47%	1077.70%
ZETA	70 Outperform	$6.00B	-209.13	-3.92%	―	35.87%	85.20%
HUBS	65 Neutral	$19.46B	-5,409.50	-0.20%	―	19.21%	75.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$634.13M	-12.53	-26.69%	―	13.09%	32.34%

Zeta Global Holdings Corp Corporate Events

Zeta Global Completes Marigold Acquisition for $325 Million

On November 24, 2025, Zeta Global completed its acquisition of the Marigold Enterprise Business for up to $325 million, enhancing its AI-powered marketing capabilities and expanding its global footprint. This acquisition is expected to strengthen Zeta’s position in the industry by increasing its penetration among Fortune 500 brands and boosting subscription revenue streams. Following the acquisition, Zeta updated its financial guidance for the fourth quarter of 2025 and full years 2025 and 2026, projecting significant growth in revenue, adjusted EBITDA, and free cash flow, indicating a positive impact on the company’s operations and market positioning.

The most recent analyst rating on (ZETA) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Zeta Global Holdings Corp stock, see the ZETA Stock Forecast page.