Ziff Davis, Inc.

Q2 2026 revenue was $286.7 million, down 2.7% from $294.8 million in Q2 2025. Adjusted EBITDA was $76.8 million versus $79.8 million last year, and adjusted EBITDA margin was 26.8% compared with 27.1% a year ago. Adjusted diluted EPS was $1.03, up 13.2% from $0.91, helped mainly by share repurchases. Free cash flow was $54 million, up 100% year over year. Looking ahead, management said Q3 2026 revenue should increase sequentially but decline low- to mid-single digits year over year, with adjusted EBITDA margin modestly better than Q2; Q4 should improve versus Q3 with a lower revenue decline rate and adjusted EBITDA margin slightly down year over year. They also expect the non-GAAP tax rate to stay in the 24% to 25% range excluding Connectivity-related tax payments.

Vivek Shah framed the Connectivity sale as a transformative monetization event that underscored the value of the portfolio and gave the company more flexibility on capital allocation. He said the company will continue buying back stock, pursuing selective monetizations, and remaining a disciplined acquirer of attractive assets, while emphasizing patience and pragmatism. Strategically, he highlighted AI-driven operating leverage, stronger brand value in an AI content environment, and the opportunity to use trusted brands and data assets to grow across changing search and distribution channels.

Bret Richter focused on the quarter’s financial outcomes and balance sheet strength. He noted $286.7 million of revenue, $76.8 million of adjusted EBITDA, a 26.8% margin, and $54 million of free cash flow, and said the margin outcome improved versus the company’s Q2 expectations. He highlighted $1.6 billion of cash and cash equivalents, $100 million of long-term investments, gross leverage of 2.4x trailing 12 months adjusted EBITDA, and cash exceeding debt by $734 million. He also said the company expects about $200 million of cash tax payments related to the Connectivity sale, plans to pay the $149 million convertible debt due November 1, 2026 with cash, and expects the vast majority of tax payments to be completed by the end of Q1 2027.

Analysts pressed management on HCP advertising softness, gaming catalysts, the capital deployment pipeline, Martech data monetization, Tech & Shopping’s search-traffic decline, and AI licensing. Management said MedPage HCP advertising improved sequentially in Q1 and should continue improving through 2026, but large pharma clients have cut spend and shifted to lower-cost, often AI-based platforms. On gaming, Vivek Shah pointed to GTA 6’s expected November launch as a potential catalyst, while saying Humble Bundle remains a strong contributor. On capital allocation, management said all options remain open but decisions will be case by case, with stock buybacks competing against acquisitions; on AI licensing, they said they are not willing to sign a RAG-focused deal that compromises fair compensation for training, and litigation with OpenAI is ongoing.