Ziff Davis, Inc.

What they do

Ziff Davis operates five reportable segments: Technology & Shopping, Gaming & Entertainment, Health & Wellness, Connectivity, and Cybersecurity & Martech. Digital media segments generate revenue from advertising, performance marketing, and subscriptions; Connectivity provides broadband network intelligence; Cybersecurity & Martech offers cloud-based subscription and licensed security, privacy, and marketing tools. As of Q2 2026, the Connectivity business has been sold and is reported as discontinued operations.

Revenue drivers

• Health & Wellness — Largest digital media segment with 2025 revenue of $402.4M, driven by advertising/performance marketing ($335.7M) and subscription/licensing ($53.7M).
• Technology & Shopping — 2025 revenue of $356.6M, primarily from advertising/performance marketing ($351.0M) with a small subscription/licensing component ($10.4M).
• Cybersecurity & Martech — Subscription-based segment; Q2 2026 revenue of $68.7M, roughly flat year-over-year (0.5% growth).
• Gaming & Entertainment — 2025 revenue of $183.6M, combining advertising/performance marketing ($124.2M) and subscription/licensing ($59.3M).

Recent performance

For Q2 2026, revenue from continuing operations was $286.7M, down 2.7% from $294.8M in Q2 2025. Operating loss widened to $(44.7)M due to a $54.8M goodwill impairment; net loss from continuing operations was $(52.2)M versus income of $14.3M in the prior year. Adjusted EBITDA declined 3.7% to $76.8M, while adjusted diluted EPS rose 13.2% to $1.03 on share repurchases. Operating cash flow (continuing and discontinued) increased 55.9% to $89.0M.

Strategy

Management emphasizes a capital allocation strategy focused on M&A, share repurchases, and balance sheet strength. In Q2 2026, the company completed the sale of its Connectivity business for total proceeds of approximately $1,216.1M, deployed $9.2M for acquisitions, and spent $121.5M on share repurchases. The CEO stated the company is focused on deploying capital strategically to maximize long-term shareholder returns.

Risks

• Acquisition execution risk — Inability to identify or execute acquisitions could negatively impact growth, and acquisitions may disrupt operations or harm results.
• Advertising revenue dependence — Digital Media segments derive most revenue from short-term advertising arrangements, which could be lost if advertisers cut budgets or content fails to attract users.
• Cybersecurity and system failures — System failures, cybersecurity breaches, or technological issues could disrupt operations and damage the company's reputation.
• Generative AI and intellectual property — Unauthorized use of content and infringement of intellectual property by generative AI developers could adversely affect the business.

Outlook

Management did not provide specific forward guidance in the latest release. The company highlighted its 'robust free cash flow' and 'significant share repurchases' as positioning it strongly. Future priorities include deploying capital strategically to enhance shareholder returns, likely through continued M&A and buybacks.