Ziff Davis, Inc. (ZD)
NASDAQ:ZD
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Ziff Davis
(NASDAQ:ZD)
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Rating:64Neutral
Price Target:
$48.00
▲(0.95% Upside)
Action:Reiterated
Date:06/01/26
The score is driven primarily by solid cash flow generation and a stable balance sheet, supported by constructive technical momentum. Offsetting these positives are weak recent revenue trends and margin compression, plus a relatively high P/E with no dividend support; earnings-call commentary suggests near-term pressure with an H2 improvement thesis that is not yet reflected in results.
Positive Factors
Free Cash Flow Generation
Consistently strong trailing‑12‑month free cash flow and high FCF conversion provide durable internal funding for buybacks, M&A and product investment. This cash generation cushions earnings volatility and supports long‑term capital allocation without relying on external financing.
Negative Factors
Top-line Softness
A multi-year flat-to-declining revenue trend signals durable demand challenges in core advertising and commerce channels. Without sustained top-line growth, margin and return metrics will remain constrained and limit the company’s ability to scale fixed-cost investments profitably.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Consistently strong trailing‑12‑month free cash flow and high FCF conversion provide durable internal funding for buybacks, M&A and product investment. This cash generation cushions earnings volatility and supports long‑term capital allocation without relying on external financing.
Read all positive factors
Ziff Davis (ZD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.77B
Dividend YieldN/A
Average Volume (3M)570.34K
Price to Earnings (P/E)38.0
Beta (1Y)1.12
Revenue Growth-1.81%
EPS Growth-35.73%
CountryUS
Employees3,800
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)1.14
Shares Outstanding36,835,400
10 Day Avg. Volume589,638
30 Day Avg. Volume570,343
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 Cap1.14
Enterprise Value/Revenue1.44
Enterprise Value/Gross Profit1.96
Enterprise Value/Ebitda6.68
Forecast
1Y Price Target
$53.00Price Target Upside11.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)5.26
Revenue Forecast (FY)$1.22B
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 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 own...
Ziff Davis Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: several strong operational wins (notably in Gaming, Cybersecurity, off-platform/social monetization, AI-driven product velocity, record results in select product businesses, a strong cash position and active buybacks and accretive M&A) are offset by near-term financial pressures (overall revenue down 1.9%, adjusted EBITDA down ~11.2%, margin contraction of 2.5 percentage points, Tech & Shopping down ~13%, and advertising revenue softness). Management’s proactive capital allocation (monetizations and buybacks), product/AI initiatives and expectations for sequential improvement in 2H 2026 are positive, but near-term profitability and margin headwinds and the margin impact from the Connectivity sale temper the outlook.Positive Updates
Solid Cash Position and Strong Free Cash Flow Trailing 12 Months
Cash and cash equivalents of $520.0M and $100.0M of long-term investments (excluding ~$26M associated with Connectivity). Trailing 12-month free cash flow of nearly $290M with free cash flow conversion from adjusted EBITDA of ~60% (including Connectivity).
Negative Updates
Consolidated Revenue Decline
Q1 2026 revenues of $267.6M, down 1.9% versus $272.8M in Q1 2025.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid Cash Position and Strong Free Cash Flow Trailing 12 Months
Cash and cash equivalents of $520.0M and $100.0M of long-term investments (excluding ~$26M associated with Connectivity). Trailing 12-month free cash flow of nearly $290M with free cash flow conversion from adjusted EBITDA of ~60% (including Connectivity).
Read all positive updates
Company Guidance
Management did not provide full-year guidance but gave directional guidance: Q2 2026 is expected to largely mirror Q1 results, with revenues down at a slightly higher year‑over‑year rate than Q1 and Q2 adjusted EBITDA margins expected to reflect a similar YoY decline as in Q1; for context Q1 continuing‑operations revenue was $267.6M (down 1.9% vs $272.8M), adjusted EBITDA was $63.4M (vs $71.4M), adjusted EBITDA margin was 23.7% (down 2.5 percentage points), and adjusted diluted EPS was $0.73 (vs $0.77). Management reiterated a goal to return to total YoY revenue growth in H2 2026 (with Q4 stronger than Q3) and to improve adjusted EBITDA margins toward H2 2025 levels; Q1 revenue mix showed advertising & performance marketing down 5.1%, subscription & licensing up 1.9%, and other revenue up about $1.8M. They noted a strong balance sheet with $520M cash, $100M long‑term investments (excl. ~ $26M connectivity cash), Q1 free cash flow of -$3.2M (TTM FCF ~ $290M) and ~60% FCF conversion (including Connectivity), active buybacks (Q1 repurchases ~1.2M shares for $51.6M plus ~560k shares since Apr 1, >15M cumulative repurchased, ~9.7M shares remaining authorized), and that the pending Connectivity sale (expected to close in coming months) will affect margins and temporarily reduce FCF conversion due to associated fees and taxes.Ziff Davis Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
68
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.39B | 1.45B | 1.40B | 1.36B | 1.39B | 1.42B |
| Gross Profit | 1.03B | 1.02B | 1.20B | 1.18B | 1.21B | 1.23B |
| EBITDA | 300.74M | 327.40M | 319.10M | 331.97M | 398.39M | 681.68M |
| Net Income | 45.38M | 47.35M | 63.05M | 41.50M | 63.76M | 496.71M |
Balance Sheet | ||||||
| Total Assets | 3.39B | 3.66B | 3.70B | 3.47B | 3.53B | 3.77B |
| Cash, Cash Equivalents and Short-Term Investments | 519.72M | 607.01M | 505.88M | 764.72M | 711.21M | 924.04M |
| Total Debt | 867.07M | 891.71M | 894.75M | 1.00B | 999.05M | 1.17B |
| Total Liabilities | 1.67B | 1.91B | 1.89B | 1.58B | 1.64B | 1.80B |
| Stockholders Equity | 1.72B | 1.75B | 1.81B | 1.89B | 1.89B | 1.97B |
Cash Flow | ||||||
| Free Cash Flow | 289.70M | 287.87M | 283.68M | 211.23M | 230.29M | 402.80M |
| Operating Cash Flow | 416.41M | 407.07M | 390.31M | 319.96M | 336.44M | 516.54M |
| Investing Cash Flow | -114.13M | -145.75M | -297.45M | -127.41M | -220.77M | 59.09M |
| Financing Cash Flow | -188.78M | -170.29M | -320.99M | -114.79M | -140.83M | -113.09M |
Ziff Davis Technical Analysis
Positive
47.55
Price Trends
44.35
Positive
40.47
Positive
38.06
Positive
Market Momentum
0.68
Negative
55.35
Neutral
70.96
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 47.55 is above the 20-day moving average (MA) of 43.34, above the 50-day MA of 44.35, and above the 200-day MA of 38.06, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 55.35 is Neutral, neither overbought nor oversold. The STOCH value of 70.96 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 54 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $716.32M | 29.53 | 8.30% | ― | 21.51% | ― | |
64 Neutral | $1.77B | 37.96 | 2.55% | ― | -1.81% | -35.73% | |
61 Neutral | $2.35B | 50.41 | -8.24% | ― | 8.76% | -69.73% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $866.20M | 7.80 | 10.17% | ― | -0.43% | -15.84% | |
55 Neutral | $1.66B | 84.80 | 2.52% | ― | 4.48% | 868.83% |
* Communication Services Sector Average
ZD
Ziff Davis
45.81
12.51
37.57%
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43.43%
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108.95%
CRTO
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17.73
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MNTN
MNTN, Inc Class A
9.37
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Ziff Davis Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial DisclosuresM&A TransactionsShareholder Meetings
Ziff Davis Highlights Q1 Results and Strategic Portfolio Shift
Negative
May 8, 2026
Ziff Davis held its 2026 annual stockholders’ meeting virtually on May 6, 2026, where shareholders elected eight directors for one-year terms, ratified KPMG LLP as independent auditor for 2026, and approved on an advisory basis the compensat...
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...
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.