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Ziff Davis (ZD) AI Stock Analysis
Ziff Davis
(NASDAQ:ZD)
ZD scores 65 primarily because financial performance is stable with strong free cash flow and manageable/improving leverage, but growth and profitability consistency are weaker (recent revenue declines and thin net margins/low ROE). Technicals add support with a clear uptrend and positive momentum signals. Offsetting those positives, valuation is the biggest drag given the high P/E, which increases downside risk if the guided revenue pressure persists; the earnings call was mildly supportive due to the divestiture-driven cash strength and buybacks despite ongoing top-line headwinds and near-term tax/fee impacts on cash conversion.
Ziff Davis (ZD) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $1.88B
- Dividend Yield
- ―
- Average Volume (3M)
- 584.67K
- Price to Earnings (P/E)
- 3.1
- Beta (1Y)
- 0.98
- Revenue Growth
- -8.46%
- EPS Growth
- -157.54%
- Country
- US
- Employees
- 3,900
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Advertising Agencies
Ziff Davis Business Overview & Revenue Model
Company Description
Ziff Davis, Inc. operates internationally, delivering online information and services to users in the United States, Canada, Ireland, and other global regions. The company's operations are divided into two primary divisions: Digital Media, and Cybers...
How the Company Makes Money
Ziff Davis primarily makes money through a mix of advertising, performance marketing (affiliate/commerce), and subscription and licensing-based services. (1) Advertising and marketing services: ZD sells digital advertising inventory across its owned-...
Ziff Davis Earnings Call Summary
The call communicated a mix of strategic and operational positives — a transformative $1.2B divestiture, a strong cash position, aggressive share repurchases that materially reduced share count and lifted adjusted EPS, doubled free cash flow YoY, pockets of segment growth (Humble Bundle, IPVanish, SMTP.com) and material AI-driven engineering productivity gains — while acknowledging continuing top-line pressure driven by advertising weakness, a 2.7% consolidated revenue decline, segment-specific softness (Health & Wellness and Tech & Shopping), and near-term free cash flow conversion headwinds from taxes and transaction-related fees. Management framed the results as delivering shareholder value and positioned the firm to pursue disciplined M&A and capital return options, suggesting the positives modestly outweigh the negatives in the near term.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management guided that Q3 should see sequential revenue growth but a low- to mid-single‑digit year‑over‑year decline, with adjusted EBITDA margin modestly improving versus Q2’s 26.8% (Q2 revenue $286.7M, -2.7% YoY; Q2 adjusted EBITDA $76.8M vs. $79.8M prior year; Q2 adjusted diluted EPS $1.03, +13.2% YoY), and that Q4 should improve versus Q3 with a lower rate of revenue decline though adjusted EBITDA margin may be slightly down year‑over‑year; adjusted EPS is expected to keep benefiting from share repurchases (>$200M deployed YTD to buy 4.5M shares, $121.5M/2.6M in Q2, ~700k repurchased since July 1, ~13M repurchased since 2024, ~7M shares remaining under authorization). They expect to pay approximately $200M of taxes related to the $1.2B Connectivity sale (sold at a 14.5x trailing‑12m adjusted EBITDA less CapEx), to repay $149M of convertible debt maturing Nov 1, 2026, and to remain in a strong cash position (cash & equivalents $1.6B + $100M long‑term investments; cash exceeds debt by $734M; gross leverage 2.4x TTM adjusted EBITDA). Q2 free cash flow was ~$54M (up 100% YoY); management noted H2 adjusted‑EBITDA‑to‑FCF conversion will be negatively impacted by transaction‑related fees and taxes but, excluding discrete items, they expect continued strong FCF conversion and a non‑GAAP tax rate of ~24–25% annually (excluding transaction taxes).
Ziff Davis Financial Statement Overview
Summary
Financials are stable but not firing on all cylinders. Cash flow is the main strength (TTM FCF ~$317M; FCF up ~9.3% in the dataset), and leverage looks manageable with improving debt (TTM debt ~$719M vs. higher in 2023–2024). Offsetting this, recent demand is weaker (TTM revenue down ~4.7%) and profitability is thin/uneven (TTM net margin ~3.3%; low ROE ~2.6%), limiting overall quality.
Income Statement
58NeutralBalance Sheet
66PositiveCash Flow
72Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.32B | 1.45B | 1.40B | 1.36B | 1.39B | 1.42B |
| Gross Profit | 1.02B | 1.02B | 1.20B | 1.18B | 1.21B | 1.23B |
| EBITDA | 223.27M | 327.40M | 319.10M | 331.97M | 398.39M | 681.68M |
| Net Income | 643.49M | 47.35M | 63.05M | 41.50M | 63.76M | 496.71M |
Balance Sheet | ||||||
| Total Assets | 4.00B | 3.66B | 3.70B | 3.47B | 3.53B | 3.77B |
| Cash, Cash Equivalents and Short-Term Investments | 1.61B | 607.01M | 505.88M | 764.72M | 711.21M | 924.04M |
| Total Debt | 867.64M | 891.71M | 894.75M | 1.00B | 999.05M | 1.17B |
| Total Liabilities | 1.76B | 1.91B | 1.89B | 1.58B | 1.64B | 1.80B |
| Stockholders Equity | 2.24B | 1.75B | 1.81B | 1.89B | 1.89B | 1.97B |
Cash Flow | ||||||
| Free Cash Flow | 316.73M | 287.87M | 283.68M | 211.23M | 230.29M | 402.80M |
| Operating Cash Flow | 448.30M | 407.07M | 390.31M | 319.96M | 336.44M | 516.54M |
| Investing Cash Flow | 983.56M | -145.75M | -297.45M | -127.41M | -220.77M | 59.09M |
| Financing Cash Flow | -277.19M | -170.29M | -320.99M | -114.79M | -140.83M | -113.09M |
Ziff Davis Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZD, the sentiment is Neutral. The current price of 54.79 is below the 20-day moving average (MA) of 56.67, below the 50-day MA of 56.50, and above the 200-day MA of 47.39, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 41.04 is Neutral, neither overbought nor oversold. The STOCH value of 22.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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.
Latest Risks Added
0 New RisksZiff Davis Peers Comparison
Overall Rating
MGNI84Outperform
QNST73Outperform
TTD70Outperform
NEXN66Neutral- ZD65Neutral
CRTO64Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| MGNI | 84Outperform | $3.08B | 18.37 | 18.62% | ― | 8.32% | 280.46% |
| QNST | 73Outperform | $995.69M | 12.26 | 27.66% | ― | 18.29% | 1634.10% |
| TTD | 70Outperform | $5.81B | 14.63 | 16.09% | ― | 11.61% | 0.19% |
| NEXN | 66Neutral | $500.60M | 37.73 | 2.77% | ― | 2.99% | -70.00% |
| ZD | 65Neutral | $1.88B | 3.10 | 34.27% | ― | -8.46% | -157.54% |
| CRTO | 64Neutral | $717.81M | 7.25 | 9.20% | ― | -4.24% | -20.11% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| ZD | Ziff Davis, Inc. | 54.79 | 20.80 | 61.19% | |
| QNST | Quinstreet | 17.40 | 2.36 | 15.69% | |
| CRTO | Criteo S.A. | 14.65 | -7.69 | -34.42% | |
| MGNI | Magnite, Inc. | 21.49 | 3.75 | 21.14% | |
| TTD | Trade Desk | 12.29 | -36.83 | -74.98% | |
| NEXN | Nexxen International Ltd. | 8.79 | 0.38 | 4.52% |
Ziff Davis Corporate Events
Ziff Davis Reports Q2 2026 Results After Connectivity Sale
NeutralZiff Davis, Inc., the New York-based digital media and internet company with brands in technology, shopping, gaming, entertainment, health, cybersecurity, and martech, reported unaudited financial results for the quarter ended June 30, 2026, on Augus...
Ziff Davis Completes Sale of Connectivity Division to Accenture
PositiveOn March 2, 2026, Ziff Davis agreed to sell its Connectivity division to Accenture Inc. for $1.2 billion in cash, marking a major divestiture of its communications-focused business. On June 15, 2026, the company secured lender consent under its exist...
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.
Date of analysis: Aug 08, 2026