Ziff Davis Reports Third Quarter 2026 Financial Results
NEW YORK, NY -- November 5, 2026 -- Ziff Davis, Inc. (NASDAQ: ZD) (“Ziff Davis” or “the Company”) today reported unaudited financial results for the third quarter ended September 30, 2026.
“We delivered third quarter results in line with the expectations we set last quarter, including sequential revenue growth despite a challenging operating environment,” said Vivek Shah, CEO of Ziff Davis. “Through the first three quarters of 2026, we repurchased approximately $265 million of our shares, reducing our share count by nearly 14%, and we will keep pursuing opportunities to unlock additional shareholder value.”
THIRD QUARTER 2026 RESULTS
Revenues (1) decreased to $289.3 million compared to $306.5 million for Q3 2025.
•Operating (loss) income decreased to an operating loss of $(33.6) million compared to operating income of $11.4 million for Q3 2025. This includes a $29.6 million goodwill impairment recognized in Q3 2026 compared to $17.6 million in Q3 2025 and a $6.4 million long-lived assets impairment recognized in Q3 2026 which did not occur in Q3 2025.
•Net loss from continuing operations (2)(3) increased to $(28.7) million compared to $(16.0) million for Q3 2025.
•Net loss per diluted share from continuing operations (2)(3) increased to $(0.85) compared to $(0.39) for Q3 2025.
•Adjusted EBITDA (4) decreased to $82.2 million compared to $97.8 million for Q3 2025.
•Adjusted net income (2) (4) decreased to $48.3 million compared to $56.8 million for Q3 2025.
•Adjusted net income per diluted share (2) (4) (or “Adjusted diluted EPS”) decreased to $1.39 compared to $1.40 for Q3 2025.
•Net cash (used in) provided by operating activities from continuing and discontinued operations (3) decreased to $(77.1) million compared to $138.3 million in Q3 2025. Free cash flow from continuing and discontinued operations (4) decreased to $(100.1) million compared to $108.2 million in Q3 2025. Transaction adjusted free cash flow from continuing and discontinued operations (4) decreased to $(10.0) million compared to $108.2 million in Q3 2025.
•Ziff Davis deployed approximately $7.0 million for current and prior year acquisitions during the quarter and $92.0 million related to share repurchases in Q3 2026.
The following table reflects results from continuing operations (3), except for Net cash (used in) provided by operating activities and Free cash flow which are on combined basis of continuing and discontinued operations (3), for the three and nine months ended September 30, 2026 and 2025, respectively (in millions, except per share amounts).
(Unaudited)
Three months ended September 30,
% Change
Nine months ended September 30,
% Change
2026
2025
2026
2025
Revenues (1)
Technology & Shopping
$82.0
$85.2
(3.8)%
$229.9
$247.7
(7.2)%
Gaming & Entertainment
$46.6
$47.6
(2.1)%
$134.0
$131.9
1.6%
Health & Wellness
$92.5
$102.3
(9.5)%
$273.1
$287.5
(5.0)%
Cybersecurity & Martech
$68.2
$71.4
(4.6)%
$206.7
$207.1
(0.2)%
Total revenues (1)
$289.3
$306.5
(5.6)%
$843.7
$874.2
(3.5)%
Operating (loss) income
$(33.6)
$11.4
NM (5)
$(75.4)
$39.7
NM (5)
Operating (loss) income margin
(11.6)%
3.7%
(15.3)%
(8.9)%
4.5%
(13.4)%
Net (loss) income from continuing operations (2)
$(28.7)
$(16.0)
(79.8)%
$(81.6)
$8.2
NM (5)
Net (loss) income per diluted share from continuing operations (2)
$(0.85)
$(0.39)
NM (5)
$(2.27)
$0.20
NM (5)
Adjusted EBITDA (4)
$82.2
$97.8
(16.0)%
$222.4
$249.0
(10.7)%
Adjusted EBITDA margin (4)
28.4%
31.9%
(3.5)%
26.4%
28.5%
(2.1)%
Adjusted net income (2)(4)
$48.3
$56.8
(15.0)%
$113.7
$127.9
(11.1)%
Adjusted diluted EPS (2)(4)
$1.39
$1.40
(0.7)%
$3.12
$3.07
1.6%
Net cash (used in) provided by operating activities from continuing and discontinued operations
$(77.1)
$138.3
NM (5)
$41.8
$216.0
(80.6)%
Free cash flow from continuing and discontinued operations (4)
$(100.1)
$108.2
NM (5)
$(49.3)
$130.1
NM (5)
Transaction adjusted free cash flow from continuing and discontinued operations (4)
$(10.0)
$108.2
NM (5)
$50.1
$130.1
(61.5)%
1
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 10.4% and (101.0)% for the three months ended September 30, 2026 and 2025, respectively, and (0.3)% and 145.4% for the nine months ended September 30, 2026 and 2025, respectively. Adjusted effective tax rates were approximately 23.2% and 24.7% for the three months ended September 30, 2026 and 2025, respectively, and 23.6% and 24.2% for the nine months ended September 30, 2026 and 2025, respectively.
(3)
During the second quarter of 2026, the Company completed the sale of 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, Free cash flow, and Transaction adjusted free cash flow from continuing and discontinued operations, which are presented on a combined continuing and discontinued operations basis. Furthermore, upon the classification of Connectivity as a discontinued operation, the Company determined that Connectivity was no longer a reportable segment.
(4)
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.
(5)
NM: Not meaningful.
EARNINGS CONFERENCE CALL AND AUDIO WEBCAST
Ziff Davis will host a live audio webcast and conference call discussing its third quarter 2026 financial results on Friday, November 6, 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, cybersecurity, and martech. For more information, visit www.ziffdavis.com.
CONTACT:
Investor Relations
Ziff Davis, Inc.
investor@ziffdavis.com
Corporate Communications
Ziff Davis, Inc.
press@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. 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 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’s 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 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.
2
ZIFF DAVIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
September 30, 2026
December 31, 2025
ASSETS
Cash and cash equivalents
$
1,407,680
$
573,777
Accounts receivable, net of allowances of $5,662 and $8,141, respectively
400,424
623,441
Prepaid expenses and other current assets
60,364
81,964
Current assets - discontinued operations
—
91,217
Total current assets
1,868,468
1,370,399
Long-term investments
99,869
93,228
Property and equipment, net of accumulated depreciation of $419,157 and $382,187, respectively
164,433
162,130
Intangible assets, net
263,880
338,178
Goodwill
1,261,142
1,346,964
Deferred income taxes
5,456
5,107
Other assets
56,461
24,523
Noncurrent assets - discontinued operations
—
322,777
TOTAL ASSETS
$
3,719,709
$
3,663,306
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses
$
388,496
$
696,918
Income taxes payable, current
130,842
7,345
Deferred revenue, current
121,801
129,700
Current portion of long-term debt
149,065
148,685
Other current liabilities
5,364
16,089
Current liabilities - discontinued operations
—
76,216
Total current liabilities
795,568
1,074,953
Long-term debt
719,154
717,815
Deferred revenue, noncurrent
5,939
6,518
Liability for uncertain tax positions
19,112
19,733
Deferred income taxes
16,306
41,116
Other noncurrent liabilities
34,491
33,055
Noncurrent liabilities - discontinued operations
—
16,541
TOTAL LIABILITIES
1,590,570
1,909,731
Common stock
331
384
Additional paid-in capital
427,502
472,723
Retained earnings
1,769,129
1,337,542
Accumulated other comprehensive loss
(67,823)
(57,074)
TOTAL STOCKHOLDERS’ EQUITY
2,129,139
1,753,575
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
3,719,709
$
3,663,306
3
ZIFF DAVIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
Three months ended September 30,
Nine months ended September 30,
2026
2025
2026
2025
Total revenues
$
289,326
$
306,532
$
843,705
$
874,151
Operating costs and expenses:
Direct costs
43,640
44,009
133,668
125,073
Sales and marketing
126,149
122,308
363,554
361,763
Research, development, and engineering
13,629
13,319
41,635
41,436
General, administrative, and other related costs
64,286
47,703
158,426
139,660
Depreciation and amortization
45,682
50,203
137,434
148,990
Goodwill impairment
29,550
17,579
84,389
17,579
Total operating costs and expenses
322,936
295,121
919,106
834,501
Operating (loss) income
(33,610)
11,411
(75,401)
39,650
Interest income (expense), net
1,825
(6,541)
(10,841)
(19,319)
Gain on investments, net
—
678
—
5,018
Provision for credit losses on investments
—
(17,566)
—
(17,566)
Other (loss) income, net
(179)
4,060
(77)
183
(Loss) income from continuing operations before income tax benefit (expense) and (loss) income from equity method investment
(31,964)
(7,958)
(86,319)
7,966
Income tax benefit (expense)
3,335
(8,037)
(243)
(11,586)
(Loss) income from equity method investment, net of tax
(63)
38
4,942
11,783
Net (loss) income from continuing operations
(28,692)
(15,957)
(81,620)
8,163
Net income from discontinued operations, net of tax
—
12,359
699,650
38,821
Net (loss) income
$
(28,692)
$
(3,598)
$
618,030
$
46,984
Net (loss) income per common share from continuing operations:
Basic
$
(0.85)
$
(0.39)
$
(2.27)
$
0.20
Diluted
$
(0.85)
$
(0.39)
$
(2.27)
$
0.20
Net income per common share from discontinued operations:
Basic
$
—
$
0.30
$
19.49
$
0.93
Diluted
$
—
$
0.30
$
19.49
$
0.93
Net (loss) income per common share:
Basic
$
(0.85)
$
(0.09)
$
17.22
$
1.13
Diluted
$
(0.85)
$
(0.09)
$
17.22
$
1.13
Weighted average shares outstanding:
Basic
33,753,136
40,558,629
35,896,452
41,609,182
Diluted
33,753,136
40,558,629
35,896,452
41,710,958
4
ZIFF DAVIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED, IN THOUSANDS)
Nine months ended September 30,
2026
2025
Cash flows from operating activities:
Net income
$
618,030
$
46,984
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
142,339
170,757
Non-cash operating lease costs
1,402
5,603
Share-based compensation
36,738
33,676
Provision for credit losses on accounts receivable
2,785
2,493
Provision for credit losses on investments
—
17,566
Deferred income taxes, net
(27,043)
1,167
Gain on sale of businesses
(860,597)
—
Long-lived asset impairment
16,561
1,064
Goodwill impairment
84,389
17,579
Changes in fair value of contingent consideration
124
(2,834)
Income from equity method investment, net of tax
(4,942)
(11,783)
Gain on investments, net
—
(5,018)
Other
1,645
1,339
Decrease (increase) in:
Accounts receivable
221,734
187,760
Prepaid expenses and other current assets
(3,575)
(10,325)
Other assets
2,112
14,658
Increase (decrease) in:
Accounts payable and accrued expenses
(172,412)
(240,398)
Deferred revenue
2,406
(4,708)
Other current liabilities
(19,879)
(9,594)
Net cash provided by operating activities
41,817
215,986
Cash flows from investing activities:
Purchases of property and equipment
(91,092)
(85,888)
Acquisitions, net of cash received
(8,030)
(67,086)
Distribution from equity method investment
—
10,756
Proceeds from sale of equity method investment
—
860
Proceeds from sale of equity investments
—
25,250
Proceeds from sale of businesses, net of cash divested
1,134,081
—
Other
(209)
(263)
Net cash provided by (used in) investing activities
1,034,750
(116,371)
Cash flows from financing activities:
Repurchase of common stock
(265,043)
(113,221)
Issuance of common stock under employee stock purchase plan
3,477
3,751
Deferred payments for acquisitions
(8,121)
(213)
Other
(3,059)
(1,783)
Net cash used in financing activities
(272,746)
(111,466)
Effect of exchange rate changes on cash and cash equivalents
(3,152)
9,339
Net change in cash and cash equivalents
800,669
(2,512)
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
1,407,680
503,368
Cash and cash equivalents at end of period associated with discontinued operations
—
17,304
Cash and cash equivalents at end of period associated with continuing operations
$
1,407,680
$
486,064
5
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, Transaction adjusted 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 (income) 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 as 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;
6
•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;
•Long-lived asset impairments and other charges. These expenses are incurred in connection with impaired long-lived assets, including 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 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;
•Long-lived asset impairments and other charges. These expenses are incurred in connection with impaired long-lived assets, including 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.
7
Free cash flow from continuing and discontinued operations is defined as Net cash provided by (used in) operating activities, which includes both continuing and discontinued operations, less purchases of property and equipment, plus changes in contingent consideration (if any).
Transaction adjusted free cash flow from continuing and discontinued operations is defined as Net cash provided by (used in) operating activities, which includes both continuing and discontinued operations, less purchases of property and equipment, plus changes in contingent consideration (if any), and adjusted for cash payments related to the sale of the Connectivity business, including taxes, advisory fees, employee incentives, as well as certain other costs related to the sale.
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.
8
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 September 30,
Nine months ended September 30,
2026
2025
2026
2025
Net (loss) income from continuing operations
$
(28,692)
$
(15,957)
$
(81,620)
$
8,163
Interest (income) expense, net
(1,825)
6,541
10,841
19,319
Gain on investments, net
—
(678)
—
(5,018)
Provision for credit losses on investments
—
17,566
—
17,566
Other loss (income), net
179
(4,060)
77
(183)
Income tax (benefit) expense
(3,335)
8,037
243
11,586
Loss (income) from equity method investment, net of tax
63
(38)
(4,942)
(11,783)
Depreciation and amortization
45,682
50,203
137,434
148,990
Share-based compensation
12,841
11,312
32,909
31,242
Transaction, integration, and other charges
13,219
6,619
24,943
9,958
Long-lived asset impairments and other charges
14,538
721
18,147
1,592
Goodwill impairment
29,550
17,579
84,389
17,579
Adjusted EBITDA
$
82,220
$
97,845
$
222,421
$
249,011
9
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 September 30, 2026
Technology & Shopping
Gaming & Entertainment
Health & Wellness
Cybersecurity & Martech
Corporate
Total
Revenues
$
81,980
$
46,599
$
92,545
$
68,202
$
—
$
289,326
Operating (loss) income
$
(38,798)
$
11,057
$
17,312
$
4,081
$
(27,262)
$
(33,610)
Depreciation and amortization
20,284
3,479
12,576
9,185
158
45,682
Share-based compensation
1,883
677
2,360
1,368
6,553
12,841
Transaction, integration, and other charges
1,530
811
306
(189)
10,761
13,219
Long-lived asset impairments and other charges
7,350
(1,041)
—
8,229
—
14,538
Goodwill impairment
29,550
—
—
—
—
29,550
Adjusted EBITDA
$
21,799
$
14,983
$
32,554
$
22,674
$
(9,790)
$
82,220
Three months ended September 30, 2025
Technology & Shopping
Gaming & Entertainment
Health & Wellness
Cybersecurity & Martech
Corporate (1)
Total
Revenues
$
85,189
$
47,578
$
102,306
$
71,459
$
—
$
306,532
Operating income (loss)
$
48
$
14,688
$
22,858
$
(6,425)
$
(19,758)
$
11,411
Depreciation and amortization
22,599
2,949
13,406
11,121
128
50,203
Share-based compensation
1,422
429
1,698
1,235
6,528
11,312
Transaction, integration, and other charges
2,640
507
152
505
2,815
6,619
Long-lived asset impairments and other charges
684
100
(106)
43
—
721
Goodwill impairment
—
—
—
17,579
—
17,579
Adjusted EBITDA
$
27,393
$
18,673
$
38,008
$
24,058
$
(10,287)
$
97,845
(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.
10
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 September 30,
2026
Per diluted share (1)
2025
Per diluted share (1)
Net loss from continuing operations
$
(28,692)
$
(0.85)
$
(15,957)
$
(0.39)
Interest, net
65
—
62
—
Gain on investments, net
—
—
(678)
(0.02)
Provision for credit losses on investments
—
—
17,566
0.43
Loss (income) from equity method investment, net
63
—
(38)
—
Amortization
17,807
0.51
23,453
0.58
Share-based compensation
9,561
0.28
8,866
0.22
Transaction, integration, and other charges
10,693
0.31
5,366
0.13
Long-lived asset impairments and other charges
10,741
0.31
599
0.02
Goodwill impairment
28,066
0.81
17,579
0.43
Adjusted net income
$
48,304
$
1.39
$
56,818
$
1.40
Nine months ended September 30,
2026
Per diluted share (1)
2025
Per diluted share (1)
Net (loss) income from continuing operations
$
(81,620)
$
(2.27)
$
8,163
$
0.20
Interest, net
235
0.01
184
—
Gain on investments, net
—
—
(5,018)
(0.12)
Provision for credit losses on investments
—
—
17,566
0.42
Income from equity method investment, net
(4,942)
(0.14)
(11,783)
(0.28)
Amortization
56,619
1.55
66,957
1.61
Share-based compensation
26,271
0.72
25,143
0.60
Transaction, integration, and other charges
20,714
0.57
7,804
0.19
Long-lived asset impairments and other charges
13,515
0.37
1,302
0.03
Goodwill impairment
82,905
2.28
17,579
0.42
Adjusted net income
$
113,697
$
3.12
$
127,897
$
3.07
(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.
11
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 September 30, 2026
GAAP amount
Adjustments
Adjusted
non-GAAP amount
Interest, net
(Income) loss from equity method investments, net
Amortization
Share-based compensation
Transaction, integration, and other charges
Long-lived asset impairments and other charges
Goodwill impairment
Direct costs
$
(43,640)
$
—
$
—
$
—
$
70
$
173
$
—
$
—
$
(43,397)
Sales and marketing
$
(126,149)
—
—
—
1,411
2,032
—
—
$
(122,706)
Research, development, and engineering
$
(13,629)
—
—
—
1,076
750
—
—
$
(11,803)
General, administrative, and other related costs
$
(64,286)
—
—
—
10,284
10,259
14,538
—
$
(29,205)
Depreciation and amortization
$
(45,682)
—
—
24,595
—
—
—
—
$
(21,087)
Goodwill impairment
$
(29,550)
—
—
—
—
—
—
29,550
$
—
Interest income, net
$
1,825
87
—
—
—
—
—
—
$
1,912
Other loss, net
$
(179)
—
—
—
—
—
—
—
$
(179)
Income tax benefit (expense) (1)
$
3,335
(22)
—
(6,788)
(3,280)
(2,521)
(3,797)
(1,484)
$
(14,557)
Loss from equity method investment, net of tax
$
(63)
—
63
—
—
—
—
—
$
—
Total non-GAAP adjustments
$
65
$
63
$
17,807
$
9,561
$
10,693
$
10,741
$
28,066
(1) Adjusted effective tax rate was approximately 23.2% for the three months ended September 30, 2026. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $14,557 and the denominator is $62,861, which equals adjusted net income of $48,304 plus adjusted income tax expense.
12
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
Three months ended September 30, 2025
GAAP amount
Adjustments
Adjusted non-GAAP amount
Interest, net
(Gain) loss on investments, net
Provision for credit losses on investments
(Income) loss from equity method investments, net
Amortization
Share-based compensation
Transaction, integration, and other charges
Long-lived asset impairments and other charges
Goodwill impairment
Direct costs
$
(44,009)
$
—
$
—
$
—
$
—
$
—
$
56
$
—
$
—
$
—
$
(43,953)
Sales and marketing
$
(122,308)
—
—
—
—
—
1,019
2,741
—
—
$
(118,548)
Research, development, and engineering
$
(13,319)
—
—
—
—
—
810
391
—
—
$
(12,118)
General, administrative, and other related costs
$
(47,703)
—
—
—
—
—
9,427
3,486
721
—
$
(34,069)
Depreciation and amortization
$
(50,203)
—
—
—
—
30,328
—
—
—
—
$
(19,875)
Goodwill impairment
$
(17,579)
—
—
—
—
—
—
—
—
17,579
$
—
Interest expense, net
$
(6,541)
83
—
—
—
—
—
—
—
—
$
(6,458)
Gain on investments, net
$
678
—
(678)
—
—
—
—
—
—
—
$
—
Provision for credit losses on investments
$
(17,566)
—
—
17,566
—
—
—
—
—
—
$
—
Other income, net
$
4,060
—
—
—
—
—
—
—
(119)
—
$
3,941
Income tax expense (1)
$
(8,037)
(21)
—
—
—
(6,875)
(2,446)
(1,252)
(3)
—
$
(18,634)
Income from equity method investment, net of tax
$
38
—
—
—
(38)
—
—
—
—
—
$
—
Total non-GAAP adjustments
$
62
$
(678)
$
17,566
$
(38)
$
23,453
$
8,866
$
5,366
$
599
$
17,579
(1) Adjusted effective tax rate was approximately 24.7% for the three months ended September 30, 2025. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $18,634 and the denominator is $75,452, which equals adjusted net income of $56,818 plus adjusted income tax expense.
13
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
Nine months ended September 30, 2026
GAAP amount
Adjustments
Adjusted non-GAAP amount
Interest, net
(Income) loss from equity method investments, net
Amortization
Share-based compensation
Transaction, integration, and other charges
Long-lived asset impairments and other charges
Goodwill impairment
Direct costs
$
(133,668)
$
—
$
—
$
—
$
203
$
385
$
—
$
—
$
(133,080)
Sales and marketing
$
(363,554)
—
—
—
3,844
4,278
—
—
$
(355,432)
Research, development, and engineering
$
(41,635)
—
—
—
2,734
2,060
—
—
$
(36,841)
General, administrative, and other related costs
$
(158,426)
—
—
—
26,128
18,220
18,147
—
$
(95,931)
Depreciation and amortization
$
(137,434)
—
—
73,911
—
—
—
—
$
(63,523)
Goodwill impairment
$
(84,389)
—
—
—
—
—
—
84,389
$
—
Interest expense, net
$
(10,841)
313
—
—
—
—
—
—
$
(10,528)
Other (loss) income, net
$
(77)
—
—
—
—
515
—
—
$
438
Income tax expense (1)
$
(243)
(78)
—
(17,292)
(6,638)
(4,744)
(4,632)
(1,484)
$
(35,111)
Income from equity method investment, net of tax
$
4,942
—
(4,942)
—
—
—
—
—
$
—
Total non-GAAP adjustments
$
235
$
(4,942)
$
56,619
$
26,271
$
20,714
$
13,515
$
82,905
(1) Adjusted effective tax rate was approximately 23.6% for the nine months ended September 30, 2026. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $35,111 and the denominator is $148,808, which equals adjusted net income of $113,697 plus adjusted income tax expense.
14
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
Nine months ended September 30, 2025
GAAP amount
Adjustments
Adjusted non-GAAP amount
Interest, net
(Gain) loss on investments, net
Provision for credit losses on investments
(Income) loss from equity method investments, net
Amortization
Share-based compensation
Transaction, integration, and other charges
Long-lived asset impairments and other charges
Goodwill impairment
Direct costs
$
(125,073)
$
—
$
—
$
—
$
—
$
—
$
154
$
57
$
—
$
—
$
(124,862)
Sales and marketing
$
(361,763)
—
—
—
—
—
2,879
4,884
—
—
$
(354,000)
Research, development, and engineering
$
(41,436)
—
—
—
—
—
2,301
614
—
—
$
(38,521)
General, administrative, and other related costs
$
(139,660)
—
—
—
—
—
25,908
4,402
1,592
—
$
(107,758)
Depreciation and amortization
$
(148,990)
—
—
—
—
87,832
—
—
—
—
$
(61,158)
Goodwill impairment
$
(17,579)
—
—
—
—
—
—
—
—
17,579
$
—
Interest expense, net
$
(19,319)
246
—
—
—
—
—
—
—
—
$
(19,073)
Gain on investments, net
$
5,018
—
(5,018)
—
—
—
—
—
—
—
$
—
Provision for credit losses on investments
$
(17,566)
—
—
17,566
—
—
—
—
—
—
$
—
Other income, net
$
183
—
—
—
—
—
—
—
(119)
—
$
64
Income tax expense (1)
$
(11,586)
(62)
—
—
—
(20,875)
(6,099)
(2,153)
(171)
—
$
(40,946)
Income from equity method investment, net
$
11,783
—
—
—
(11,783)
—
—
—
—
—
$
—
Total non-GAAP adjustments
$
184
$
(5,018)
$
17,566
$
(11,783)
$
66,957
$
25,143
$
7,804
$
1,302
$
17,579
(1) Adjusted effective tax rate was approximately 24.2% for the nine months ended September 30, 2025. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $40,946 and the denominator is $168,843, which equals adjusted net income of $127,897 plus adjusted income tax expense.
15
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
The following tables set forth reconciliations of Net cash provided by (used in) operating activities from continuing and discontinued operations to Free cash flow from continuing and discontinued operations and Transaction adjusted free cash flow from continuing and discontinued operations:
2026
Q1
Q2
Q3
Q4
Full Year
Net cash provided by (used in) operating activities from continuing and discontinued operations
$
29,953
$
88,963
$
(77,099)
$
—
$
41,817
Less: Purchases of property and equipment
(33,127)
(34,999)
(22,966)
—
(91,092)
Free cash flow from continuing and discontinued operations
(3,174)
53,964
(100,065)
—
(49,275)
Cash taxes related to sale of the Connectivity business
—
—
54,994
—
54,994
Cash paid for transaction costs related to sale of the Connectivity business
2,744
6,509
35,090
—
44,343
Transaction adjusted free cash flow from continuing and discontinued operations
$
(430)
$
60,473
$
(9,981)
$
—
$
50,062
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
Cash taxes related to sale of the Connectivity business
—
—
—
—
—
Cash paid for transaction costs related to sale of the Connectivity business
—
—
34
674
708
Transaction adjusted free cash flow from continuing and discontinued operations