Zeta Global Holdings Corp (ZETA) AI Stock Analysis

• Market Cap: $4.61B
• Dividend Yield: N/A
• Average Volume (3M): 9.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.38
• Revenue Growth: 35.87%
• EPS Growth: 85.20%
• Country: US
• Employees: 2,191
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.28
• Shares Outstanding: 222,304,640
• 10 Day Avg. Volume: 10,241,207
• 30 Day Avg. Volume: 9,332,150
• PEG Ratio: 2.27
• Price to Book (P/B): 5.63
• Price to Sales (P/S): 3.47
• P/FCF Ratio: 24.46
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 3.45
• Enterprise Value/Gross Profit: 5.69
• Enterprise Value/Ebitda: 113.37
• 1Y Price Target: $29.25
• Price Target Upside: 62.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 0.95
• Revenue Forecast (FY): $1.72B

• Rating: 69 Neutral
• Price Target: $18.50 ▲(2.55% Upside)
• Action: Downgraded Date: 02/25/26
• Date: Action: Downgraded 02/25/26

Score is driven primarily by improving fundamentals (strong growth, de-risked balance sheet, and robust rising free cash flow) and a notably upbeat earnings call with raised 2026 guidance and a path to GAAP profitability. Offsetting these positives are currently weak technical momentum and valuation headwinds implied by a negative P/E and no dividend support.

Positive Factors

Multi-year Revenue Scaling

Sustained high-teens/30%+ revenue growth over multiple years indicates durable market adoption of Zeta's platform and expanding wallet share. Growth is broad-based across verticals and tied to scaled customers and rising ARPU, supporting predictable top-line expansion over the medium term.

Strengthened Balance Sheet

Material deleveraging and higher equity materially improve financial flexibility and reduce solvency risk. With no reported debt, Zeta can invest in product, pursue tuck-ins, fund working capital, or repurchase shares without near-term refinancing pressure, supporting durable operational resilience.

Robust Free Cash Flow Generation

Consistent positive and rising free cash flow—even while GAAP net loss persisted—demonstrates strong cash conversion and internal funding capacity. High FCF supports reinvestment, buybacks, and margin initiatives and provides a buffer against cyclical ad-spend swings over the next several quarters.

Negative Factors

Bottom-Line Profitability Not Yet Consistent

Although operating profitability inflected toward breakeven, full-year net losses imply returns on equity remain negative. Sustained shareholder value requires converting improved EBITDA and cash flow into consistent GAAP profits; failure to do so would limit long-term ROE and capital returns.

High Customer Concentration

Heavy reliance on super-scaled accounts concentrates revenue risk: a small number of large customers drive most growth. This increases sensitivity to churn, pricing pressure, or contract renegotiation and makes future revenue durability contingent on deepening relationships rather than broad-based customer diversification.

Channel Mix and Margin Pressure

A structural shift toward lower-margin channels (social, connected TV) has increased cost of revenue and can compress gross margins unless offset by price or efficiency gains. As client activation shifts across channels, sustaining margin expansion will require product mix optimization and pricing power.

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

Strong multi-year revenue scaling with improving gross margin and a sharp operating-profitability inflection toward breakeven. Balance sheet risk improved materially with debt reduced to zero and higher equity. Cash flow is a standout with rising operating and free cash flow, but GAAP profitability is still not consistently positive (net loss in 2025 despite Q4 GAAP profit), keeping the score below the top tier.

Income Statement

Revenue growth is strong over the multi-year period (from ~$368M in 2020 to ~$1.30B in 2025), with 2025 growth accelerating versus 2024. Gross margin improved meaningfully (about 61% in 2025 vs ~55% in 2023–2024), and operating profitability has sharply inflected upward, moving from sizeable operating losses in 2021–2024 to roughly breakeven operating results in 2025. The key weakness is that the company is still loss-making at the bottom line in 2025 (about -2.4% net margin), so the model is not yet consistently producing net earnings.

Balance Sheet

The balance sheet has strengthened materially: equity expanded significantly (to ~$805M in 2025 from ~$677M in 2024 and much lower levels earlier), and reported debt is reduced to zero in 2025 from ~$196M in 2024, implying sharply improved financial flexibility and lower balance-sheet risk. Total assets increased alongside this strengthening. The main drawback is profitability still lags—returns on equity remain negative in 2025—so improved capitalization has not yet translated into positive shareholder returns.

Cash Flow

Cash generation is a standout: operating cash flow and free cash flow are solid and rising (free cash flow ~$185M in 2025, up strongly year over year), indicating good cash conversion and increasing internal funding capacity. Free cash flow remains positive across the period shown, even while net income is negative, which supports liquidity and resilience. The primary watch item is that cash flow relative to sales is moderate rather than exceptional, so sustaining this trajectory likely depends on continued margin improvement and disciplined spending.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.30B	1.01B	728.72M	590.96M	458.34M
Gross Profit	791.08M	550.10M	403.09M	323.62M	237.70M
EBITDA	39.32M	-11.70M	-124.36M	-221.55M	-197.21M
Net Income	-31.51M	-69.77M	-187.48M	-279.24M	-249.56M
Balance Sheet
Total Assets	1.50B	1.13B	564.78M	480.01M	402.07M
Cash, Cash Equivalents and Short-Term Investments	319.76M	366.16M	131.73M	121.11M	103.86M
Total Debt	197.08M	196.29M	184.15M	183.95M	183.61M
Total Liabilities	698.93M	454.36M	384.26M	351.98M	311.59M
Stockholders Equity	804.59M	676.80M	180.52M	128.03M	90.49M
Cash Flow
Free Cash Flow	185.09M	92.09M	54.55M	39.25M	17.54M
Operating Cash Flow	198.90M	133.86M	90.52M	78.49M	44.29M
Investing Cash Flow	-124.21M	-97.59M	-54.22M	-48.45M	-46.85M
Financing Cash Flow	-120.82M	197.92M	-25.65M	-12.63M	55.73M

Zeta Global Holdings Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 18.04 is above the 20-day moving average (MA) of 16.65, below the 50-day MA of 19.14, and above the 200-day MA of 17.79, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 83.43 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
CXM	73 Outperform	$1.47B	167.44	21.35%	―	6.48%	168.94%
CRM	71 Outperform	$180.95B	27.05	12.40%	0.63%	8.41%	22.92%
HUBS	70 Outperform	$14.52B	458.50	2.31%	―	19.21%	75.32%
ZETA	69 Neutral	$4.61B	-143.66	-4.25%	―	35.87%	85.20%
GTM	66 Neutral	$1.90B	26.41	7.76%	―	1.47%	1077.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	59 Neutral	$408.54M	-15.25	-23.42%	―	13.09%	32.34%