NEW YORK--(BUSINESS WIRE)--May 07, 2026--
Ziff Davis, Inc. (NASDAQ: ZD) ("Ziff Davis" or "the Company") today reported unaudited financial results for the first quarter ended March 31, 2026.
"We remain focused on unlocking value for our shareholders as we look to complete the divestiture of the Connectivity business as well as explore additional value-creating transactions," said Vivek Shah, CEO of Ziff Davis. "Our first quarter results demonstrate the strength of many of our businesses while we manage through the headwinds challenging other parts of our portfolio."
FIRST QUARTER 2026 RESULTS
During the first quarter of 2026, the Company entered into a definitive agreement to sell its Connectivity business. The results of the Connectivity business are classified as discontinued operations for all periods presented in this press release. Unless otherwise noted, all amounts, percentages, and any discussion in this press release reflect the results from continuing operations, except for the Statements of Cash Flows and Free cash flow, which are presented on a combined continuing and discontinued operations basis. Furthermore, upon the classification of Connectivity as discontinued operation, the Company determined that Connectivity is no longer a reportable segment. The Company will continue to own and operate the Connectivity business in the ordinary course until the closing of the transaction.
-- Revenues (1) decreased to $267.6 million compared to $272.8 million for
Q1 2025.
-- Operating income decreased to $2.9 million compared to $14.5 million
for Q1 2025.
-- Net (loss) income from continuing operations (2) decreased to $(0.8)
million compared to $9.8 million for Q1 2025.
-- Net (loss) income per diluted share from continuing operations (2)
decreased to $(0.02) compared to $0.23 for Q1 2025.
-- Adjusted EBITDA (3) decreased to $63.4 million compared to $71.4
million for Q1 2025.
-- Adjusted net income (2) (3) decreased to $27.5 million compared to
$33.0 million for Q1 2025.
-- Adjusted net income per diluted share (2) (3) (or "Adjusted diluted
EPS") decreased to $0.73 compared to $0.77 for Q1 2025.
-- Net cash provided by operating activities from continuing and
discontinued operations increased 45.3% to $30.0 million compared to
$20.6 million in Q1 2025. Free cash flow from continuing and discontinued
operations (3) increased 36.6% to $(3.2) million compared to $(5.0)
million in Q1 2025.
-- Ziff Davis deployed approximately $51.6 million related to share
repurchases in Q1 2026.
The following table reflects results from continuing operations, except for Net cash provided by operating activities and Free cash flow which are on combined basis of continuing and discontinued operations, for the three months ended March 31, 2026 and 2025, respectively (in millions, except per share amounts).
Three months ended March 31,
------------------------------------ ------------------------------ --------
(Unaudited) 2026 2025 % Change
------------------------------------ ---------------- ------------ --------
Revenues (1)
------------------------------------ ---------------- ------------ --------
Technology & Shopping $71.1 $81.7 (12.9)%
------------------------------------ ---------------- ------------ --------
Gaming & Entertainment $40.8 $38.0 7.2%
------------------------------------ ---------------- ------------ --------
Health & Wellness $85.9 $85.8 0.2%
------------------------------------ ---------------- ------------ --------
Cybersecurity & Martech $69.8 $67.3 3.6%
------------------------------------ ---------------- ------------ --------
Total revenues (1) $267.6 $272.8 (1.9)%
------------------------------------ ---------------- ------------ --------
Operating income $2.9 $14.5 (79.7)%
------------------------------------ ---------------- ------------ --------
Operating income margin 1.1% 5.3% (4.2)%
------------------------------------ ---------------- ------------ --------
Net (loss) income from continuing
operations (2) $(0.8) $9.8 (107.9)%
------------------------------------ ---------------- ------------ --------
Net (loss) income per diluted share
from continuing operations (2) $(0.02) $0.23 (108.7)%
------------------------------------ ---------------- ------------ --------
Adjusted EBITDA (3) $63.4 $71.4 (11.2)%
------------------------------------ ---------------- ------------ --------
Adjusted EBITDA margin (3) 23.7% 26.2% (2.5)%
------------------------------------ ---------------- ------------ --------
Adjusted net income (2)(3) $27.5 $33.0 (16.5)%
------------------------------------ ---------------- ------------ --------
Adjusted diluted EPS (2)(3) $0.73 $0.77 (5.2)%
------------------------------------ ---------------- ------------ --------
Net cash provided by operating
activities from continuing and
discontinued operations $30.0 $20.6 45.3%
------------------------------------ ---------------- ------------ --------
Free cash flow from continuing and
discontinued operations (3) $(3.2) $(5.0) 36.6%
------------------------------------ ---------------- ------------ --------
Notes:
(1) The revenues associated with each of the reportable segments may have
been rounded when presented independently so they foot precisely to
Total Revenues.
(2) GAAP effective tax rates were approximately (80.5)% and 53.2% for the
three months ended March 31, 2026 and 2025, respectively. Adjusted
effective tax rates were approximately 23.9% and 23.5% for the three
months ended March 31, 2026 and 2025, respectively.
(3) For definitions of non-GAAP financial measures and reconciliations of
GAAP to non-GAAP financial measures refer to section "Non-GAAP
Financial Measures" further in this release.
ZIFF DAVIS GUIDANCE
As noted in the Company's Third Quarter 2025 earnings release, Ziff Davis has engaged outside advisors to assist in evaluating value-creating opportunities, including the recently announced sale of its Connectivity business. As this process is ongoing, the Company is deferring its fiscal 2026 guidance.
EARNINGS CONFERENCE CALL AND AUDIO WEBCAST
Ziff Davis will host a live audio webcast and conference call discussing its first quarter 2026 financial results on Friday, May 8, 2026, at 8:30AM ET. The live webcast and call will be accessible by phone by dialing (844) 985-2014 or via www.ziffdavis.com. Following the event, the audio recording and presentation materials will be archived and made available at www.ziffdavis.com.
ABOUT ZIFF DAVIS
Ziff Davis, Inc. (NASDAQ: ZD) is a vertically focused digital media and internet company whose portfolio includes leading brands in technology, shopping, gaming and entertainment, health and wellness, connectivity, cybersecurity, and martech. For more information, visit www.ziffdavis.com.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including those contained in Vivek Shah's quote and the "Ziff Davis Guidance" section. These forward-looking statements are based on management's current expectations or beliefs and are subject to numerous assumptions, risks, and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties include, among other items: the Company's ability to grow advertising, licensing, and subscription revenues, profitability, and cash flows, particularly in light of an uncertain U.S. or worldwide economy, including the possibility of economic downturn or recession; the Company's ability to make interest and debt payments; the Company's ability to identify, close, and successfully transition acquisitions or divestitures; the Company's ability to complete the proposed divestiture of its Connectivity business on anticipated terms and timing, or at all; the Company's ability to realize the anticipated benefits from the divestiture of the Connectivity business; customer growth and retention; the Company's ability to create compelling content; our reliance on third-party platforms; the threat of content piracy and developments related to artificial intelligence; increased competition and rapid technological changes; variability of the Company's revenue based on changing conditions in particular industries and the economy generally; protection of the Company's proprietary technology; the risk of alleged infringement by the Company of intellectual property of others; the risk of losing critical third-party vendors or key personnel; the risks associated with fraudulent activity, system failure, or a security breach; risks related to our ability to adhere to our internal controls and procedures; the risk of adverse changes in the U.S. or international regulatory environments, including but not limited to the imposition or increase of taxes or regulatory-related fees; the risks related to supply chain disruptions, increased tariffs and trade protection measures, inflationary conditions, and rising interest rates; the risk of liability for legal and other claims; our ability to consummate a
sale of one or more of our business lines pursuant to our announced review of potential value-creating opportunities; and the numerous other factors set forth in the Company' filings with the Securities and Exchange Commission ("SEC"). For a more detailed description of the risk factors and uncertainties affecting the Company, refer to our most recent Annual Report on Form 10-K and the other reports filed by the Company from time-to-time with the SEC, each of which is available at www.sec.gov. The forward-looking statements provided in this press release, including those contained in Vivek Shah's quote and the "Ziff Davis Guidance" section are based on limited information available to the Company at this time, which is subject to change. Although management's expectations may change after the date of this press release, the Company undertakes no obligation to revise or update these statements.
ZIFF DAVIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
March 31, 2026 December 31, 2025
---------------- ---------------------
ASSETS
Cash and cash equivalents $ 519,718 $ 573,777
Accounts receivable, net of
allowances of $6,633 and $8,141,
respectively 397,456 623,441
Prepaid expenses and other
current assets 83,101 81,964
Current assets - held for sale 435,223 91,217
----------- --------------
Total current assets 1,435,498 1,370,399
Long-term investments 100,075 93,228
Property and equipment, net of
accumulated depreciation of
$399,945 and $382,187,
respectively 166,924 162,130
Intangible assets, net 314,134 338,178
Goodwill 1,343,817 1,346,964
Deferred income taxes 5,419 5,107
Other assets 28,418 24,523
Noncurrent assets - held for sale -- 322,777
----------- --------------
TOTAL ASSETS $ 3,394,285 $ 3,663,306
=========== ==============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable and accrued
expenses $ 450,266 $ 696,918
Income taxes payable, current 2,706 7,345
Deferred revenue, current 132,048 129,700
Current portion of long-term debt 148,810 148,685
Other current liabilities 15,521 16,089
Current liabilities - held for
sale 114,365 76,216
----------- --------------
Total current liabilities 863,716 1,074,953
Long-term debt 718,257 717,815
Deferred revenue, noncurrent 6,105 6,518
Liability for uncertain tax
positions 20,150 19,733
Deferred income taxes 30,157 41,116
Other noncurrent liabilities 34,392 33,055
Noncurrent liabilities - held for
sale -- 16,541
----------- --------------
TOTAL LIABILITIES 1,672,777 1,909,731
----------- --------------
Common stock 374 384
Additional paid-in capital 454,325 472,723
Retained earnings 1,332,193 1,337,542
Accumulated other comprehensive
loss (65,384) (57,074)
----------- --------------
TOTAL STOCKHOLDERS' EQUITY 1,721,508 1,753,575
----------- --------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 3,394,285 $ 3,663,306
=========== ==============
ZIFF DAVIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
Three months ended March 31,
----------------------------------
2026 2025
------------ -----------
Total revenues $ 267,641 $ 272,816
Operating costs and expenses:
Direct costs 44,317 40,401
Sales and marketing 115,233 112,411
Research, development, and
engineering 13,637 13,920
General, administrative, and
other related costs 46,644 43,163
Depreciation and amortization 44,878 48,452
------------ -----------
Total operating costs and expenses 264,709 258,347
------------ -----------
Operating income 2,932 14,469
Interest expense, net (6,896) (6,194)
Other income (loss), net 688 (1,475)
------------ -----------
(Loss) income from continuing
operations before income tax
expense and income from equity
method investment (3,276) 6,800
Income tax expense (2,637) (3,618)
Income from equity method
investment, net of tax 5,138 6,630
------------ -----------
Net (loss) income from continuing
operations (775) 9,812
Net income from discontinued
operations, net of tax 23,036 14,427
------------ -----------
Net income $ 22,261 $ 24,239
============ ===========
Net (loss) income per common share
from continuing operations:
Basic $ (0.02) $ 0.23
Diluted $ (0.02) $ 0.23
Net income per common share from
discontinued operations:
Basic $ 0.61 $ 0.34
Diluted $ 0.61 $ 0.34
Net income per common share:
Basic $ 0.59 $ 0.57
Diluted $ 0.59 $ 0.57
Weighted average shares outstanding:
Basic 37,597,190 42,558,090
Diluted 37,597,190 42,768,678
ZIFF DAVIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED, IN THOUSANDS)
Three months ended March 31,
----------------------------------
2026 2025
------------ -----------
Cash flows from operating
activities:
Net income $ 22,261 $ 24,239
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 49,783 55,832
Non-cash operating lease costs 2,037 2,034
Share-based compensation 10,913 9,752
Provision for credit losses on
accounts receivable 1,129 160
Deferred income taxes, net (12,323) 548
Changes in fair value of
contingent consideration 124 (1,803)
Income from equity method
investments, net of tax (5,138) (6,630)
Other 1,129 912
Decrease (increase) in:
Accounts receivable 195,297 143,721
Prepaid expenses and other
current assets (3,826) (17,709)
Other assets (1,813) 7,252
Increase (decrease) in:
Accounts payable (247,695) (210,857)
Deferred revenue 22,894 18,493
Accrued liabilities and other
current liabilities (4,819) (5,331)
------------ -----------
Net cash provided by operating
activities 29,953 20,613
------------ -----------
Cash flows from investing
activities:
Purchases of property and
equipment (33,127) (25,619)
Acquisitions, net of cash
received -- (39,198)
Other (80) (12)
------------ -----------
Net cash used in investing
activities (33,207) (64,829)
------------ -----------
Cash flows from financing
activities:
Repurchase of common stock (51,594) (34,900)
Other (1,901) (106)
------------ -----------
Net cash used in financing
activities (53,495) (35,006)
------------ -----------
Effect of exchange rate changes on
cash and cash equivalents (4,446) 4,349
------------ -----------
Net change in cash and cash
equivalents (61,195) (74,873)
------------ -----------
Cash and cash equivalents at
beginning of period 607,011 505,880
------------ -----------
Cash and cash equivalents at
beginning of period associated with
discontinued operations 33,234 18,380
Cash and cash equivalents at
beginning of period associated with
continuing operations 573,777 487,500
------------ -----------
Cash and cash equivalents at end of
period 545,816 431,007
------------ -----------
Cash and cash equivalents at end of
period associated with discontinued
operations 26,098 19,090
------------ -----------
Cash and cash equivalents at end of
period associated with continuing
operations $ 519,718 $ 411,917
============ ===========
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), we use the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income (loss), Adjusted net income (loss) per diluted share, Free cash flow from continuing and discontinued operations, and Adjusted effective tax rate (collectively the "non-GAAP financial measures"). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use these non-GAAP financial measures for financial and operational decision making and as means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results or, in certain cases, may be non-cash in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, (2) certain measures are used to determine the amount of annual incentive compensation paid to our named executive officers, and (3) they are used by the analyst community to help them analyze the health of our business.
These non-GAAP financial measures are not measures presented in accordance with GAAP, and our use of these terms may vary from that of other companies, limiting their usefulness for comparison purposes. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. These non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.
Non-GAAP financial measures exclude the certain items listed below. We believe that excluding these items from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which exclude similar items. We believe that non-GAAP financial measures provide meaningful supplemental information regarding operational performance. We further believe these measures are useful to investors in that they allow for greater transparency of certain line items in the Company's financial statements.
Adjusted EBITDA is defined as Net income (loss) from continuing operations with adjustments to reflect the addition or elimination of certain items including, but not limited to:
-- Interest expense, net. Interest expense is generated primarily from
interest due on outstanding debt, partially offset by interest income
generated from the interest earned on cash, cash equivalents, and
investments;
-- (Gain) loss on debt extinguishment, net. This is a non-cash expense
that relates to extinguishments of long-term debt obligations. We believe
this (gain) loss does not represent recurring core business operating
results of the Company;
-- (Gain) loss on sale of businesses. This gain or loss relates to the
sales of businesses and does not represent recurring core business
operating results of the Company;
-- (Gain) loss on investments, net. This item includes realized gains and
losses, unrealized gains and losses, and impairment charges on debt and
equity investments. The amount of gain or loss depends on the share price
for investments with readily determinable fair value and on observable
price changes for investments without a readily determinable fair value,
and does not represent core business operating results of the Company;
-- Provision for credit losses on investments. This is a non-cash expense
that includes changes in the provision for credit losses on investments
of the Company in debt and equity instruments and does not represent
recurring core business operating results of the Company;
-- Other (income) loss, net. This income or expense relates to other
non-operating items and does not represent recurring core business
operating results of the Company;
-- Income tax (benefit) expense. This benefit or expense depends on the
pre-tax loss or income of the Company, statutory tax rates, tax
regulations, and different tax rates in various jurisdictions in which
the Company operates and which the Company does not have the control
over;
-- (Income) loss from equity method investment, net of tax. This is a
non-cash income or expense as it relates primarily to our investment in
OCV Fund I, LP (the "OCV Fund"). We believe that gain or loss resulting
from our equity method investment does not represent core business
operating results of the Company;
-- Depreciation and amortization. This is a non-cash expense at it relates
to use and associated reduction in value of certain assets including
equipment, fixtures, and certain capitalized internal-use software and
website development costs, and identifiable definite-lived intangible
assets of the acquired businesses;
-- Share-based compensation. This is a non-cash expense as it relates to
awards granted under the various share-based incentive plans of the
Company. We view the economic cost of share-based awards to be the
dilution to our share base;
-- Transaction, integration, and other charges. This includes expenses
associated with the acquisition or disposal of certain businesses, lease
agreement terminations, retention bonuses, and other transaction-specific
items, as well as certain other items, such as severance, adjustments to
contingent consideration, third-party debt modification costs, litigation
costs from discrete, complex, or unusual proceedings, and legal
settlements. These expenses do not represent core business operating
results of the Company;
-- Lease asset impairments and other charges. These expenses are incurred
in connection with impaired right-of-use ("ROU") assets of the Company.
Associated expenses are comprised of insurance, utility, and other
charges related to assets that are no longer in use, and partially offset
by the sublease income earned. These expenses do not represent core
business operating results of the Company; and
-- Goodwill impairment. This is a non-cash expense that is recorded when
the carrying value of the reporting unit exceeds its fair value and does
not represent core business operating results of the Company.
Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Total Revenues.
Adjusted net income (loss) is defined as Net income (loss) from continuing operations with adjustments to reflect the addition or elimination of certain statement of operations items including, but not limited to:
-- Interest, net. This reflects the difference between the imputed and
coupon interest expense associated with the 4.625% Senior Notes and a
charge that the Company determined to be penalty interest associated with
the 1.75% Convertible Notes, offset in part by a certain interest income
earned by the Company. These net expenses do not represent core business
operating results of the Company;
-- (Gain) loss on debt extinguishment, net. This is a non-cash expense
that relates to extinguishments of long-term debt obligations. We believe
this gain or loss does not represent recurring core business operating
results of the Company;
-- (Gain) loss on sale of businesses. This gain or loss relates to the
sales of businesses and does not represent recurring core business
operating results of the Company;
-- (Gain) loss on investments, net. This item includes realized gains and
losses, unrealized gains and losses, and impairment charges on debt and
equity investments. The amount of gain or loss depends on the share price
for investments with readily determinable fair value and on observable
price changes for investments without a readily determinable fair value,
and does not represent core business operating results of the Company;
-- Provision for credit losses on investments. This is a non-cash expense
that includes changes in the provision for credit losses on investments
of the Company in debt and equity instruments and does not represent
recurring core business operating results of the Company;
-- (Income) loss from equity method investment, net of tax. This is a
non-cash income or expense as it relates primarily to our investment in
the OCV Fund. We believe that gains or losses resulting from our equity
method investment do not represent core business operating results of the
Company;
-- Amortization. Includes the amortization of patents and intangible
assets that we acquired. This is a non-cash expense as it primarily
relates to identifiable definite-lived intangible assets of the acquired
businesses. We believe that acquired intangible assets represent cost
incurred by the acquiree to build value prior to the acquisition and the
amortization of this cost does not represent core business operating
results of the Company;
-- Share-based compensation. This is a non-cash expense as it relates to
awards granted under the various share-based incentive plans of the
Company. We view the economic cost of share-based awards to be the
dilution to our share base;
-- Transaction, integration, and other charges. This includes expenses
associated with the acquisition or disposal of certain businesses, lease
agreement terminations, retention bonuses, and other transaction-specific
items, as well as certain other items, such as severance, adjustments to
contingent consideration, third-party debt modification costs, litigation
costs from discrete, complex, or unusual proceedings, and legal
settlements. These expenses do not represent core business operating
results of the Company;
-- Lease asset impairments and other charges. These expenses are incurred
in connection with impaired ROU assets of the Company. Associated
expenses are comprised of insurance, utility, and other charges related
to assets that are no longer in use, and partially offset by the sublease
income earned. These expenses do not represent core business operating
results of the Company; and
-- Goodwill impairment. This is a non-cash expense that is recorded when
the carrying value of the reporting unit exceeds its fair value and does
not represent core business operating results of the Company.
Adjusted net income (loss) per diluted share is calculated by dividing Adjusted net income (loss) from continuing operations by the diluted weighted average shares of common stock outstanding excluding the effect of convertible debt dilution.
Free cash flow from continuing and discontinued operations is defined as Net cash provided by operating activities, which includes both continuing and discontinued operations, less purchases of property and equipment, plus changes in contingent consideration (if any).
Adjusted effective tax rate is calculated based upon the GAAP effective tax rate with adjustments for the tax applicable to non-GAAP adjustments to Net income (loss) from continuing operations, generally based upon the effective marginal tax rate of each adjustment.
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
The following table sets forth a reconciliation of Net (loss) income from
continuing operations to Adjusted EBITDA:
Three months ended March 31,
------------------------------------
2026 2025
--- ----------- ----------
Net (loss) income from continuing
operations $ (775) $ 9,812
Interest expense, net 6,896 6,194
Other (income) loss, net (688) 1,475
Income tax expense 2,637 3,618
Income from equity method
investment, net of tax (5,138) (6,630)
Depreciation and amortization 44,878 48,452
Share-based compensation 8,548 9,082
Transaction, integration, and
other charges 6,632 (641)
Lease asset impairments and other
charges 367 20
--- ----------- ----------
Adjusted EBITDA $ 63,357 $ 71,382
=== =========== ==========
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
The following tables set forth Revenues and a reconciliation of Operating (loss) income to
Adjusted EBITDA by segment:
Three months ended March 31, 2026
-------------------------------------------------------------------------------
Technology & Gaming & Health & Cybersecurity
Shopping Entertainment Wellness & Martech Corporate Total
------------ --------------- -------- --------------- --------- ----------
Revenues $ 71,159 $ 40,764 $85,950 $ 69,768 $ -- $267,641
Operating (loss)
income $ (6,458) $ 7,884 $ 8,624 $ 13,697 $(20,815) $ 2,932
Depreciation
and
amortization 20,637 3,168 13,846 7,076 151 44,878
Share-based
compensation 1,344 405 1,466 1,007 4,326 8,548
Transaction,
integration,
and other
charges 1,430 776 670 2 3,754 6,632
Lease asset
impairments
and other
charges -- 431 (108) 44 -- 367
------- ---- --------- ------ ---- --------- ------- -------
Adjusted EBITDA $ 16,953 $ 12,664 $24,498 $ 21,826 $(12,584) $ 63,357
======= ==== ========= ====== ==== ========= ======= =======
Three months ended March 31, 2025
----------------------------------------------------------------------------------
Technology & Gaming & Health & Cybersecurity Corporate
Shopping Entertainment Wellness & Martech (1) Total
------------ --------------- -------- ----------------- --------- -----------
Revenues $ 81,690 $ 38,026 $85,786 $ 67,314 $ -- $272,816
Operating (loss)
income $ (3,963) $ 8,774 $16,962 $ 11,323 $(18,627) $ 14,469
Depreciation
and
amortization 22,405 2,618 12,928 10,387 114 48,452
Share-based
compensation 1,153 329 1,363 967 5,270 9,082
Transaction,
integration,
and other
charges 1,652 338 (1,812) (754) (65) (641)
Lease asset
impairments
and other
charges (241) 87 (86) 255 5 20
------- ---- --------- ------ ------- ---- ------- -------
Adjusted EBITDA $ 21,006 $ 12,146 $29,355 $ 22,178 $(13,303) $ 71,382
======= ==== ========= ====== ======= ==== ======= =======
____________________
(1) Includes certain allocated overhead expenses previously reported in the
Connectivity reportable segment.
Figures above are net of inter-segment revenues and operating costs and
expenses.
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
The following tables set forth a reconciliation of Net (loss)
income from continuing operations to Adjusted net income with
adjustments presented on after-tax basis:
Three months ended March 31,
--------------------------------------------
Per
diluted Per diluted
2026 share (1) 2025 share (1)
------ ---------- ------ ------------
Net (loss)
income from
continuing
operations $ (775) $ (0.02) $ 9,812 $ 0.23
Interest, net 95 -- 61 --
Income from
equity
method
investment,
net (5,138) (0.14) (6,630) (0.16)
Amortization 19,563 0.52 21,107 0.49
Share-based
compensation 7,590 0.20 9,226 0.22
Transaction,
integration,
and other
charges 5,905 0.16 (607) (0.01)
Lease asset
impairment
and other
charges 306 0.01 27 --
------ ------
Adjusted net
income $27,546 $ 0.73 $32,996 $ 0.77
====== ======
____________________
(1) The reconciliation of Net (loss) income from continuing operations per
diluted share to Adjusted net income per diluted share may not foot
since each is calculated independently.
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
The following are the adjustments to certain statement of operations items used to derive Adjusted net income, which we believe provide useful
information about our operating results and enhance the overall understanding of past financial performance and future prospects of the Company.
Three months ended March 31, 2026
--------------------------------------------------------------------------------------------------------------------------------
Adjustments
------------------------------------------------------------------------------------------------------
(Income) loss
from equity
method Transaction, Lease asset Adjusted
GAAP investments, Share-based integration, and impairments and non-GAAP
amount Interest, net net Amortization compensation other charges other charges amount
---------- ------------- ---------------- ---------------- ---------------- ---------------- --------------- ------------
Direct costs $ (44,317) $ -- $ -- $ -- $ 52 $ 89 $ -- $ (44,176)
Sales and
marketing $(115,233) -- -- -- 989 1,474 -- $(112,770)
Research,
development,
and
engineering $ (13,637) -- -- -- 678 831 -- $ (12,128)
General,
administrative,
and other
related costs $ (46,644) -- -- -- 6,829 4,238 367 $ (35,210)
Depreciation and
amortization $ (44,878) -- -- 23,550 -- -- -- $ (21,328)
Interest
expense, net $ (6,896) 126 -- -- -- -- -- $ (6,770)
Other income,
net $ 688 -- -- -- -- 234 -- $ 922
Income tax
benefit
(expense) (1) $ (2,637) (31) -- (3,987) (958) (961) (61) $ (8,635)
Income from
equity method
investment, net
of tax $ 5,138 -- (5,138) -- -- -- -- $ --
---- --- ------- ------- --- ------ ---- ------ ---- ---- -----
Total non-GAAP
adjustments $ 95 $ (5,138) $ 19,563 $ 7,590 $ 5,905 $ 306
==== === ======= ======= === ====== ==== ====== ==== ==== =====
____________________
(1) Adjusted effective tax rate was approximately 23.9% for the three months
ended March 31, 2026. The calculation is based on a ratio where the
numerator is the adjusted income tax expense of $8,635 and the
denominator is $36,181, which equals adjusted net income of $27,546 plus
adjusted income tax expense.
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
Three months ended March 31, 2025
----------------------------------------------------------------------------------------------------------------------------
Adjustments
--------------------------------------------------------------------------------------------------
(Income) loss
from equity Lease asset
method Transaction, impairments Adjusted
GAAP investments, Share-based integration, and and other non-GAAP
amount Interest, net net Amortization compensation other charges charges amount
---------- ------------- ---------------- ---------------- -------------- ---------------- ------------- ------------
Direct costs $ (40,401) $ -- $ -- $ -- $ 52 $ 60 $ -- $ (40,289)
Sales and
marketing $(112,411) -- -- -- 798 903 -- $(110,710)
Research,
development,
and
engineering $ (13,920) -- -- -- 681 (65) -- $ (13,304)
General,
administrative,
and other
related costs $ (43,163) -- -- -- 7,551 (1,539) 20 $ (37,131)
Depreciation and
amortization $ (48,452) -- -- 27,777 -- -- -- $ (20,675)
Interest
expense, net $ (6,194) 81 -- -- -- -- -- $ (6,113)
Income tax
expense (1) $ (3,618) (20) -- (6,670) 144 34 7 $ (10,123)
Income from
equity method
investment, net
of tax $ 6,630 -- (6,630) -- -- -- -- $ --
---- --- ------- ------- --- ---- -------- ------- --- ----- ------
Total non-GAAP
adjustments $ 61 $ (6,630) $ 21,107 $ 9,226 $ (607) $ 27
==== === ======= ======= === ==== ======== ======= ===== ======
____________________
(1) Adjusted effective tax rate was approximately 23.5% for the three months
ended March 31, 2025. The calculation is based on a ratio where the
numerator is the adjusted income tax expense of $10,123 and the
denominator is $43,119, which equals adjusted net income of $32,996 plus
adjusted income tax expense.
ZIFF DAVIS, INC. AND SUBSIDIARIES RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED, IN
THOUSANDS)
The following tables set forth a reconciliation of
Net cash provided by operating activities from
continuing and discontinued operations to Free cash
flow from continuing and discontinued operations:
2026 Q1 Q2 Q3 Q4 Full Year
------------- --------- --- --- --- -----------
Net cash
provided by
operating
activities
from
continuing
and
discontinued
operations $ 29,953 $-- $-- $-- $ 29,953
Less:
Purchases of
property and
equipment (33,127) -- -- -- (33,127)
------- -------
Free cash
flow from
continuing
and
discontinued
operations $ (3,174) $-- $-- $-- $ (3,174)
======= =======
2025 Q1 Q2 Q3 Q4 Full Year
------------- --------- --------- --------- --------- ------------
Net cash
provided by
operating
activities
from
continuing
and
discontinued
operations $ 20,613 $ 57,074 $138,299 $191,082 $ 407,068
Less:
Purchases of
property and
equipment (25,619) (30,133) (30,136) (33,310) (119,198)
------- ------- ------- ------- --------
Free cash
flow from
continuing
and
discontinued
operations $ (5,006) $ 26,941 $108,163 $157,772 $ 287,870
======= ======= ======= ======= ========
View source version on businesswire.com: https://www.businesswire.com/news/home/20260507890518/en/
CONTACT: Investor Relations
Ziff Davis, Inc.
investor@ziffdavis.com
Corporate Communications
Ziff Davis, Inc.
press@ziffdavis.com
(END) Dow Jones Newswires
May 07, 2026 18:00 ET (22:00 GMT)