Zeta Global Holdings Corp.

What they do

Zeta operates the Zeta Marketing Platform (ZMP), an AI-powered marketing platform built on identity data that processes structured and unstructured data signals to predict consumer intent and personalize messaging across email, social media, web, chat, Connected TV, and video. The platform includes Zeta SuperGraph for identity resolution and Zeta Answers, an intelligence suite that synthesizes proprietary and customer data into targeted audience insights. Revenue comes primarily from subscription fees, volume-based utilization fees, and professional services.

Revenue drivers

• Direct platform revenue — Subscription and utilization fees from customers using Zeta's own technology platform; represented 73% of revenues for the six months ended June 30, 2026 (versus 74% in the prior-year period).
• Integrated platform revenue — Revenue leveraging API integrations with third parties; represented 27% of revenues for the six months ended June 30, 2026 (versus 26% in the prior-year period).
• Super-scaled customers — Customers generating at least $1 million in trailing-twelve-month revenues; count grew 17% to 197 as of June 30, 2026, with ARPU of $1.8 million for the second quarter, up 17% year-over-year.
• Professional services — Fees for professional services adjacent to platform subscriptions and utilization.

Recent performance

Second quarter 2026 revenue was $443 million, up 44% year-over-year and $23 million above the midpoint of guidance. The company reported positive GAAP net income of $8 million and GAAP EPS of $0.03, with adjusted EBITDA of $92 million and adjusted EBITDA margin of 20.7%. Operating cash flow was $69 million, up 65% year-over-year, and free cash flow was $58 million, up 73%. For the first six months of 2026, 73% of revenues came from direct platforms and 27% from integrated platforms.

Strategy

Zeta is focused on adding and growing super-scaled customers, increasing its sales team (up 36 sales employees between January 1, 2025 and December 31, 2025), and investing in go-to-market efforts in 2026. The company highlights collaborations with OpenAI, Snowflake, and Palantir and describes its Data Cloud and Athena intelligence layer as central to enterprise decision-making. It is introducing an initial framework to measure adoption and monetization of its AI, and cites the Marigold Enterprise Business acquisition as part of its strategy. It positions Zeta Answers as a low-cost entry point for landing scaled customers.

Risks

• Super-scaled customer dependence — Revenue growth depends on the company's ability to add, grow, and retain super-scaled customers, a concentrated group of 197 accounts as of June 30, 2026.
• Long sales cycles — Significant time can elapse between initial customer contact and a signed agreement, making it difficult to project when revenue will be generated.
• Election-year revenue fluctuation — Operating results vary, with higher revenues generally in presidential and, to a lesser extent, midterm election years, complicating comparisons and forecasting.
• Acquisition integration — The company has pursued acquisitions including Marigold's Enterprise Business, which could be difficult to identify and integrate, divert management attention, or disrupt operations.

Outlook

Management raised full-year 2026 revenue guidance to a range of $1,811 million to $1,824 million, representing 39% to 40% year-over-year growth, and increased adjusted EBITDA guidance to $404.1 million to $406.3 million. Free cash flow guidance was raised to $254.8 million to $255.8 million, and GAAP EPS guidance to $0.09 to $0.11. For the third quarter of 2026, the company guides revenue of $469 million to $472 million and adjusted EBITDA of $115.0 million to $116.0 million.