Ziff Davis (NASDAQ: ZD) posts Q2 core loss, gains $1,216M from sale
Rhea-AI Filing Summary
Ziff Davis reported preliminary Q2 2026 results with the sale of its Connectivity business completed and classified as discontinued operations. From continuing operations, revenue was $286.7 million, down 2.7% year over year, and the company posted an operating loss of $(44.7) million, including a $54.8 million goodwill impairment. Net loss from continuing operations was $(52.2) million, or $(1.43) per diluted share, while net income from discontinued operations related to Connectivity was $676.6 million.
On a non-GAAP basis, Adjusted EBITDA was $76.8 million and Adjusted net income was $37.8 million, with Adjusted diluted EPS increasing 13.2% to $1.03. Free cash flow from continuing and discontinued operations doubled to $54.0 million and operating cash flow reached $89.0 million. The Connectivity sale generated approximately $1,216.1 million of proceeds, lifting cash and long-term investments to $1,706 million against gross debt of $872 million, leaving Ziff Davis in a net cash position.
Positive
- Completed the sale of the Connectivity division for approximately $1,216.1 million, including $1,179.1 million cash at closing, producing $676.6 million net income from discontinued operations and a net cash position of $734 million.
- Cash generation was strong, with Q2 operating cash flow rising 55.9% to $89.0 million and free cash flow from continuing and discontinued operations doubling 100.3% to $54.0 million.
Negative
- Continuing operations swung to a Q2 net loss of $(52.2) million, or $(1.43) per diluted share, from $14.3 million income a year earlier, driven by a $54.8 million goodwill impairment and a 2.7% revenue decline.
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8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 revenues from continuing operations: $286.7 million
Q2 2026 net loss from continuing operations: $(52.2) million
Q2 2026 Adjusted EBITDA: $76.8 million
+5 more
8 metrics
Q2 2026 revenues from continuing operations
$286.7 million
Decreased 2.7% from $294.8 million in Q2 2025
Q2 2026 net loss from continuing operations
$(52.2) million
Compared with net income of $14.3 million in Q2 2025
Q2 2026 Adjusted EBITDA
$76.8 million
Down 3.7% from $79.8 million in Q2 2025; margin 26.8%
Q2 2026 Adjusted diluted EPS
$1.03
Increased 13.2% from $0.91 in Q2 2025
Q2 2026 free cash flow (continuing and discontinued)
$54.0 million
Increased 100.3% from $26.9 million in Q2 2025
Connectivity division sale proceeds
approximately $1,216.1 million
Includes $1,179.1 million cash at closing and $37.0 million held in escrow
Cash and investments at June 30, 2026
$1,706 million
Total cash, cash equivalents, and long-term investments
Gross debt at June 30, 2026
$872 million
Principal of 4.625% Senior Notes and 1.75% and 3.625% Convertible Notes
Key Terms
discontinued operations, goodwill impairment, Adjusted EBITDA, free cash flow, +1 more
5 terms
discontinued operations financial
"The results of the Connectivity business are classified as discontinued operations"
Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.
goodwill impairment financial
"This includes a $54.8 million goodwill impairment recognized in Q2 2026"
Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.
Adjusted EBITDA financial
"Adjusted EBITDA (3) decreased to $76.8 million compared to $79.8 million for Q2 2025"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow from continuing and discontinued operations (3) increased 100.3% to $54.0 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
equity method investment financial
"Income (loss) from equity method investment, net of tax"
An equity method investment is an accounting way to report ownership in another company when an investor has significant influence (commonly around 20–50% of voting rights). Instead of listing the other company’s full assets and debts, the investor records its share of that company’s profits or losses on its own income statement—like keeping track of your share of a neighborhood bakery’s monthly earnings. Investors care because those shared profits, losses and changes in the investee’s value directly affect the investor’s reported earnings and balance sheet, so this method can materially change a company’s financial picture and valuation.
Earnings Snapshot
Revenues from continuing operations: $286.7 million
three months ended June 30, 2026
Revenues from continuing operations
$286.7 million
decreased 2.7% from $294.8 million in Q2 2025
Operating (loss) income
$(44.7) million
compared with operating income of $13.8 million in Q2 2025; includes $54.8 million goodwill impairment
Net (loss) income from continuing operations
$(52.2) million
compared with $14.3 million of net income in Q2 2025
Adjusted EBITDA
$76.8 million
decreased 3.7% from $79.8 million in Q2 2025
Adjusted net income
$37.8 million
slightly below $38.1 million in Q2 2025
Adjusted diluted EPS
$1.03
increased 13.2% from $0.91 in Q2 2025
Free cash flow (continuing and discontinued)
$54.0 million
up 100.3% from $26.9 million in Q2 2025
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Ziff Davis (ZD) Q2 2026 revenues from continuing operations?
Ziff Davis reported Q2 2026 revenue from continuing operations of $286.7 million, a 2.7% decrease from $294.8 million in Q2 2025. Segment trends were mixed, with Technology & Shopping and Health & Wellness down, and Gaming & Entertainment and Cybersecurity & Martech slightly higher.
How profitable were Ziff Davis (ZD) continuing operations in Q2 2026?
Continuing operations recorded a Q2 2026 net loss of $(52.2) million, or $(1.43) per diluted share, versus $14.3 million income a year earlier. The decline primarily reflects a non-cash $54.8 million goodwill impairment and modestly lower revenue.
What impact did the Connectivity business sale have on Ziff Davis (ZD)?
Ziff Davis completed the sale of its Connectivity division for approximately $1,216.1 million, including $1,179.1 million cash and $37.0 million in escrow. The divested unit generated $676.6 million net income from discontinued operations and helped move the company into a net cash position.
How did Ziff Davis (ZD) Q2 2026 non-GAAP metrics perform?
In Q2 2026, Ziff Davis posted $76.8 million of Adjusted EBITDA, down 3.7% from $79.8 million a year earlier. Adjusted net income was $37.8 million versus $38.1 million, while Adjusted diluted EPS increased 13.2% to $1.03 from $0.91.
What was Ziff Davis (ZD) Q2 2026 cash flow and balance sheet position?
Net cash from operating activities reached $89.0 million and free cash flow from continuing and discontinued operations was $54.0 million. As of June 30, 2026, cash and long-term investments totaled $1,706 million against gross debt of $872 million, yielding $734 million in net cash.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (date of earliest event reported) August 6, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||||||||
(Address of principal executive offices)
(212 ) 503-3500
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On August 6, 2026, Ziff Davis, Inc. (the “Company”) issued a press release (the “Press Release”) announcing its preliminary unaudited financial results for the second quarter ended June 30, 2026.
A copy of the Press Release is furnished as Exhibit 99.1 to this Form 8-K.
Item 7.01 Regulation FD Disclosure.
On August 7, 2026, at 8:30 a.m. Eastern Time, the Company will host its second quarter 2026 earnings conference call and webcast. Via the webcast, the Company will present portions of its August 2026 Investor Presentation, which contains a summary of the Company’s preliminary unaudited financial results for the fiscal quarter ended June 30, 2026 and certain other financial and operating information regarding the Company. A copy of this presentation is furnished as Exhibit 99.2 to this Form 8-K.
NOTE: The information in Item 2.02 and Item 7.01 and the accompanying exhibits 99.1 and 99.2 are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”) or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Description | |||||||
99.1 | Press Release dated August 6, 2026 | |||||||
99.2 | August 2026 Investor Presentation | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Such forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such forward-looking statements are based on management’s expectations or beliefs as of August 6, 2026. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive, and regulatory factors, many of which are beyond the Company’s control and are described in our most recent Annual Report on Form 10-K filed by us with the Securities and Exchange Commission (the “SEC”) and the other reports we file from time to time with the SEC. We undertake no obligation to revise or publicly release any updates to such statements based on future information or actual results.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Ziff Davis, Inc. (Registrant) | |||||||||||
| Date: | August 6, 2026 | By: | /s/ Jeremy Rossen | ||||||||
| Jeremy Rossen Executive Vice President, General Counsel and Secretary | |||||||||||
Exhibit 99.1
Ziff Davis Reports Second Quarter 2026 Financial Results
NEW YORK, NY -- August 6, 2026 -- Ziff Davis, Inc. (NASDAQ: ZD) (“Ziff Davis” or “the Company”) today reported unaudited financial results for the second quarter ended June 30, 2026.
“With the successful sale of our Connectivity business, our significant share repurchases, and our robust free cash flow, Ziff Davis is in a very strong financial position,” said Vivek Shah, CEO of Ziff Davis. “We are focused on deploying capital strategically to maximize long-term shareholder returns.”
SECOND QUARTER 2026 RESULTS
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 and Free cash flow, 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.
•Revenues (1) decreased to $286.7 million compared to $294.8 million for Q2 2025.
•Operating (loss) income decreased to an operating loss of $(44.7) million compared to operating income of $13.8 million for Q2 2025. This includes a $54.8 million goodwill impairment recognized in Q2 2026 compared to none in Q2 2025.
•Net (loss) income from continuing operations (2) decreased to $(52.2) million compared to $14.3 million for Q2 2025.
•Net (loss) income per diluted share from continuing operations (2) decreased to $(1.43) compared to $0.34 for Q2 2025.
•Adjusted EBITDA (3) decreased to $76.8 million compared to $79.8 million for Q2 2025.
•Adjusted net income (2) (3) decreased to $37.8 million compared to $38.1 million for Q2 2025.
•Adjusted net income per diluted share (2) (3) (or “Adjusted diluted EPS”) increased 13.2% to $1.03 compared to $0.91 for Q2 2025.
•Net cash provided by operating activities from continuing and discontinued operations increased 55.9% to $89.0 million compared to $57.1 million in Q2 2025. Free cash flow from continuing and discontinued operations (3) increased 100.3% to $54.0 million compared to $26.9 million in Q2 2025.
•Ziff Davis completed the sale of its Connectivity division for total proceeds of approximately $1,216.1 million, consisting of approximately $1,179.1 million cash received at closing, or $1,134.1 million net of cash divested, and $37.0 million held in escrow.
•Ziff Davis deployed approximately $9.2 million for current and prior year acquisitions during the quarter and $121.5 million related to share repurchases in Q2 2026.
The following table reflects results from continuing operations, except for Net cash provided by operating activities and Free cash flow which are on combined basis of continuing and discontinued operations, for the three and six months ended June 30, 2026 and 2025, respectively (in millions, except per share amounts).
(Unaudited) | Three months ended June 30, | % Change | Six months ended June 30, | % Change | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
Revenues (1) | ||||||||||||||||||||
| Technology & Shopping | $76.7 | $80.8 | (5.0)% | $147.9 | $162.4 | (9.0)% | ||||||||||||||
| Gaming & Entertainment | $46.6 | $46.2 | 0.9% | $87.4 | $84.3 | 3.7% | ||||||||||||||
| Health & Wellness | $94.7 | $99.5 | (4.8)% | $180.6 | $185.2 | (2.5)% | ||||||||||||||
| Cybersecurity & Martech | $68.7 | $68.3 | 0.5% | $138.5 | $135.7 | 2.1% | ||||||||||||||
Total revenues (1) | $286.7 | $294.8 | (2.7)% | $554.4 | $567.6 | (2.3)% | ||||||||||||||
| Operating (loss) income | $(44.7) | $13.8 | NM (4) | $(41.8) | $28.2 | NM (4) | ||||||||||||||
| Operating (loss) income margin | (15.6)% | 4.7% | (20.3)% | (7.5)% | 5.0% | (12.5)% | ||||||||||||||
Net (loss) income from continuing operations (2) | $(52.2) | $14.3 | NM (4) | $(52.9) | $24.1 | NM (4) | ||||||||||||||
Net (loss) income per diluted share from continuing operations (2) | $(1.43) | $0.34 | NM (4) | $(1.43) | $0.57 | NM (4) | ||||||||||||||
Adjusted EBITDA (3) | $76.8 | $79.8 | (3.7)% | $140.2 | $151.2 | (7.3)% | ||||||||||||||
Adjusted EBITDA margin (3) | 26.8% | 27.1% | (0.3)% | 25.3% | 26.6% | (1.3)% | ||||||||||||||
Adjusted net income (2)(3) | $37.8 | $38.1 | (0.6)% | $65.4 | $71.1 | (8.0)% | ||||||||||||||
Adjusted diluted EPS (2)(3) | $1.03 | $0.91 | 13.2% | $1.75 | $1.68 | 4.2% | ||||||||||||||
1
Net cash provided by operating activities from continuing and discontinued operations | $89.0 | $57.1 | 55.9% | $118.9 | $77.7 | 53.1% | ||||||||||||||
Free cash flow from continuing and discontinued operations (3) | $54.0 | $26.9 | 100.3% | $50.8 | $21.9 | 131.5% | ||||||||||||||
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 (1.8)% and (0.8)% for the three months ended June 30, 2026 and 2025, respectively, and (6.6)% and 22.3% for the six months ended June 30, 2026 and 2025, respectively. Adjusted effective tax rates were approximately 23.9% and 24.2% for the three months ended June 30, 2026 and 2025, respectively, and 23.9% and 23.9% for the six months ended June 30, 2026 and 2025, respectively. | |||||||
| (3) | 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. | |||||||
| (4) | NM: Not meaningful. | |||||||
EARNINGS CONFERENCE CALL AND AUDIO WEBCAST
Ziff Davis will host a live audio webcast and conference call discussing its second quarter 2026 financial results on Friday, August 7, 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’ 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)
| June 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 1,606,112 | $ | 573,777 | |||||||
Accounts receivable, net of allowances of $6,343 and $8,141, respectively | 418,846 | 623,441 | |||||||||
| Prepaid expenses and other current assets | 59,804 | 81,964 | |||||||||
| Current assets - discontinued operations | — | 91,217 | |||||||||
| Total current assets | 2,084,762 | 1,370,399 | |||||||||
| Long-term investments | 99,936 | 93,228 | |||||||||
Property and equipment, net of accumulated depreciation of $419,396 and $382,187, respectively | 171,481 | 162,130 | |||||||||
| Intangible assets, net | 293,773 | 338,178 | |||||||||
| Goodwill | 1,291,002 | 1,346,964 | |||||||||
| Deferred income taxes | 5,444 | 5,107 | |||||||||
| Other assets | 51,629 | 24,523 | |||||||||
| Noncurrent assets - discontinued operations | — | 322,777 | |||||||||
| TOTAL ASSETS | $ | 3,998,027 | $ | 3,663,306 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Accounts payable and accrued expenses | $ | 489,554 | $ | 696,918 | |||||||
| Income taxes payable, current | 185,637 | 7,345 | |||||||||
| Deferred revenue, current | 126,974 | 129,700 | |||||||||
| Current portion of long-term debt | 148,937 | 148,685 | |||||||||
| Other current liabilities | 12,228 | 16,089 | |||||||||
| Current liabilities - discontinued operations | — | 76,216 | |||||||||
| Total current liabilities | 963,330 | 1,074,953 | |||||||||
| Long-term debt | 718,703 | 717,815 | |||||||||
| Deferred revenue, noncurrent | 5,903 | 6,518 | |||||||||
| Liability for uncertain tax positions | 19,619 | 19,733 | |||||||||
| Deferred income taxes | 20,773 | 41,116 | |||||||||
| Other noncurrent liabilities | 32,241 | 33,055 | |||||||||
| Noncurrent liabilities - discontinued operations | — | 16,541 | |||||||||
| TOTAL LIABILITIES | 1,760,569 | 1,909,731 | |||||||||
| Common stock | 350 | 384 | |||||||||
| Additional paid-in capital | 436,450 | 472,723 | |||||||||
| Retained earnings | 1,867,704 | 1,337,542 | |||||||||
| Accumulated other comprehensive loss | (67,046) | (57,074) | |||||||||
| TOTAL STOCKHOLDERS’ EQUITY | 2,237,458 | 1,753,575 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,998,027 | $ | 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 June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Total revenues | $ | 286,738 | $ | 294,803 | $ | 554,379 | $ | 567,619 | |||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||
| Direct costs | 45,711 | 40,663 | 90,028 | 81,064 | |||||||||||||||||||
| Sales and marketing | 122,172 | 127,044 | 237,405 | 239,455 | |||||||||||||||||||
| Research, development, and engineering | 14,369 | 14,197 | 28,006 | 28,117 | |||||||||||||||||||
| General, administrative, and other related costs | 47,496 | 48,794 | 94,140 | 91,957 | |||||||||||||||||||
| Depreciation and amortization | 46,874 | 50,335 | 91,752 | 98,787 | |||||||||||||||||||
| Goodwill impairment | 54,839 | — | 54,839 | — | |||||||||||||||||||
| Total operating costs and expenses | 331,461 | 281,033 | 596,170 | 539,380 | |||||||||||||||||||
| Operating (loss) income | (44,723) | 13,770 | (41,791) | 28,239 | |||||||||||||||||||
| Interest expense, net | (5,770) | (6,584) | (12,666) | (12,778) | |||||||||||||||||||
| Gain on investments, net | — | 4,340 | — | 4,340 | |||||||||||||||||||
| Other (loss) income, net | (586) | (2,402) | 102 | (3,877) | |||||||||||||||||||
| (Loss) income from continuing operations before income tax expense and income from equity method investment | (51,079) | 9,124 | (54,355) | 15,924 | |||||||||||||||||||
| Income tax (expense) benefit | (941) | 69 | (3,578) | (3,549) | |||||||||||||||||||
| (Loss) income from equity method investment, net of tax | (133) | 5,115 | 5,005 | 11,745 | |||||||||||||||||||
| Net (loss) income from continuing operations | (52,153) | 14,308 | (52,928) | 24,120 | |||||||||||||||||||
| Net income from discontinued operations, net of tax | 676,614 | 12,035 | 699,650 | 26,462 | |||||||||||||||||||
| Net income | $ | 624,461 | $ | 26,343 | $ | 646,722 | $ | 50,582 | |||||||||||||||
| Net (loss) income per common share from continuing operations: | |||||||||||||||||||||||
| Basic | $ | (1.43) | $ | 0.34 | $ | (1.43) | $ | 0.57 | |||||||||||||||
| Diluted | $ | (1.43) | $ | 0.34 | $ | (1.43) | $ | 0.57 | |||||||||||||||
| Net income per common share from discontinued operations: | |||||||||||||||||||||||
| Basic | $ | 18.60 | $ | 0.29 | $ | 18.92 | $ | 0.63 | |||||||||||||||
| Diluted | $ | 18.60 | $ | 0.29 | $ | 18.92 | $ | 0.63 | |||||||||||||||
| Net income per common share: | |||||||||||||||||||||||
| Basic | $ | 17.16 | $ | 0.63 | $ | 17.49 | $ | 1.20 | |||||||||||||||
| Diluted | $ | 17.16 | $ | 0.63 | $ | 17.49 | $ | 1.20 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 36,381,271 | 41,732,800 | 36,985,872 | 42,143,165 | |||||||||||||||||||
| Diluted | 36,381,271 | 41,750,114 | 36,985,872 | 42,257,116 | |||||||||||||||||||
4
ZIFF DAVIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED, IN THOUSANDS)
| Six months ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 646,722 | $ | 50,582 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 96,656 | 113,438 | |||||||||
| Non-cash operating lease costs | 3 | 4,325 | |||||||||
| Share-based compensation | 23,897 | 21,479 | |||||||||
| Provision for credit losses on accounts receivable | 1,994 | 1,012 | |||||||||
| Deferred income taxes, net | (22,542) | (7,320) | |||||||||
| Gain on sale of businesses | (860,597) | — | |||||||||
| Goodwill impairment | 54,839 | — | |||||||||
| Changes in fair value of contingent consideration | 124 | (2,318) | |||||||||
| Income from equity method investments, net of tax | (5,005) | (11,745) | |||||||||
| Gain on investments, net | — | (4,340) | |||||||||
| Other | 3,826 | 1,701 | |||||||||
| Decrease (increase) in: | |||||||||||
| Accounts receivable | 204,820 | 147,417 | |||||||||
| Prepaid expenses and other current assets | (2,972) | (523) | |||||||||
| Other assets | 3,480 | 1,900 | |||||||||
| Increase (decrease) in: | |||||||||||
| Accounts payable and accrued expenses | (230,206) | (209,583) | |||||||||
| Income taxes payable | 204,345 | (21,482) | |||||||||
| Deferred revenue | 7,402 | 464 | |||||||||
| Other current liabilities | (7,870) | (7,320) | |||||||||
| Net cash provided by operating activities | 118,916 | 77,687 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property and equipment | (68,126) | (55,752) | |||||||||
| Acquisitions, net of cash received | (8,030) | (50,345) | |||||||||
| Distribution from equity method investment | — | 9,196 | |||||||||
| Proceeds from sale of equity investments | — | 25,250 | |||||||||
| Proceeds from sale of businesses, net of cash divested | 1,134,081 | — | |||||||||
| Other | (209) | 51 | |||||||||
| Net cash provided by (used in) investing activities | 1,057,716 | (71,600) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Repurchase of common stock | (173,058) | (68,834) | |||||||||
| Issuance of common stock under employee stock purchase plan | 3,477 | 3,751 | |||||||||
| Deferred payments for acquisitions | (1,162) | (213) | |||||||||
| Other | (3,041) | (1,592) | |||||||||
| Net cash used in financing activities | (173,784) | (66,888) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (3,747) | 12,180 | |||||||||
| Net change in cash and cash equivalents | 999,101 | (48,621) | |||||||||
| 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 | 1,606,112 | 457,259 | |||||||||
| Cash and cash equivalents at end of period associated with discontinued operations | — | 18,141 | |||||||||
| Cash and cash equivalents at end of period associated with continuing operations | $ | 1,606,112 | $ | 439,118 | |||||||
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, 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 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 at 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;
•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;
6
•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 a 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 operating activities, which includes both continuing and discontinued operations, less purchases of property and equipment, plus changes in contingent consideration (if any).
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 June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net (loss) income from continuing operations | $ | (52,153) | $ | 14,308 | $ | (52,928) | $ | 24,120 | |||||||||||||||
| Interest expense, net | 5,770 | 6,584 | 12,666 | 12,778 | |||||||||||||||||||
| Gain on investment, net | — | (4,340) | — | (4,340) | |||||||||||||||||||
| Other loss (income), net | 586 | 2,402 | (102) | 3,877 | |||||||||||||||||||
| Income tax (benefit) expense | 941 | (69) | 3,578 | 3,549 | |||||||||||||||||||
| Income (loss) from equity method investment, net of tax | 133 | (5,115) | (5,005) | (11,745) | |||||||||||||||||||
| Depreciation and amortization | 46,874 | 50,334 | 91,752 | 98,787 | |||||||||||||||||||
| Share-based compensation | 11,520 | 10,848 | 20,068 | 19,930 | |||||||||||||||||||
| Transaction, integration, and other charges | 5,092 | 3,980 | 11,724 | 3,339 | |||||||||||||||||||
| Long-lived asset impairments and other charges | 3,242 | 851 | 3,609 | 871 | |||||||||||||||||||
Goodwill impairment | 54,839 | — | 54,839 | — | |||||||||||||||||||
| Adjusted EBITDA | $ | 76,844 | $ | 79,783 | $ | 140,201 | $ | 151,166 | |||||||||||||||
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 June 30, 2026 | |||||||||||||||||||||||||||||||||||
| Technology & Shopping | Gaming & Entertainment | Health & Wellness | Cybersecurity & Martech | Corporate | Total | ||||||||||||||||||||||||||||||
| Revenues | $ | 76,757 | $ | 46,619 | $ | 94,658 | $ | 68,704 | $ | — | $ | 286,738 | |||||||||||||||||||||||
Operating (loss) income | $ | (3,306) | $ | 9,017 | $ | (42,291) | $ | 13,378 | $ | (21,521) | $ | (44,723) | |||||||||||||||||||||||
| Depreciation and amortization | 20,500 | 3,385 | 13,440 | 9,372 | 177 | 46,874 | |||||||||||||||||||||||||||||
| Share-based compensation | 1,681 | 658 | 2,095 | 1,366 | 5,720 | 11,520 | |||||||||||||||||||||||||||||
| Transaction, integration, and other charges | 897 | 177 | 378 | (656) | 4,296 | 5,092 | |||||||||||||||||||||||||||||
| Long-lived asset impairments and other charges | 66 | 1,302 | 1,734 | 140 | — | 3,242 | |||||||||||||||||||||||||||||
Goodwill impairment | — | — | 54,839 | — | — | 54,839 | |||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 19,838 | $ | 14,539 | $ | 30,195 | $ | 23,600 | $ | (11,328) | $ | 76,844 | |||||||||||||||||||||||
| Three months ended June 30, 2025 | |||||||||||||||||||||||||||||||||||
| Technology & Shopping | Gaming & Entertainment | Health & Wellness | Cybersecurity & Martech | Corporate (1) | Total | ||||||||||||||||||||||||||||||
| Revenues | $ | 80,776 | $ | 46,226 | $ | 99,452 | $ | 68,349 | $ | — | $ | 294,803 | |||||||||||||||||||||||
Operating (loss) income | $ | (7,944) | $ | 11,255 | $ | 16,018 | $ | 12,235 | $ | (17,794) | $ | 13,770 | |||||||||||||||||||||||
| Depreciation and amortization | 23,049 | 3,054 | 14,371 | 9,821 | 39 | 50,334 | |||||||||||||||||||||||||||||
| Share-based compensation | 1,437 | 449 | 1,626 | 1,135 | 6,201 | 10,848 | |||||||||||||||||||||||||||||
| Transaction, integration, and other charges | 1,720 | 331 | 771 | 79 | 1,079 | 3,980 | |||||||||||||||||||||||||||||
| Long-lived asset impairments and other charges | 4 | 100 | 653 | 99 | (5) | 851 | |||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 18,266 | $ | 15,189 | $ | 33,439 | $ | 23,369 | $ | (10,480) | $ | 79,783 | |||||||||||||||||||||||
(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 June 30, | |||||||||||||||||||||||
| 2026 | Per diluted share (1) | 2025 | Per diluted share (1) | ||||||||||||||||||||
| Net (loss) income from continuing operations | $ | (52,153) | $ | (1.43) | $ | 14,308 | $ | 0.34 | |||||||||||||||
| Interest, net | 75 | — | 61 | — | |||||||||||||||||||
| Gain on investments, net | — | — | (4,340) | (0.10) | |||||||||||||||||||
| Income from equity method investment, net | 133 | — | (5,115) | (0.13) | |||||||||||||||||||
| Amortization | 19,249 | 0.52 | 22,397 | 0.54 | |||||||||||||||||||
| Share-based compensation | 9,120 | 0.25 | 7,051 | 0.17 | |||||||||||||||||||
| Transaction, integration, and other charges | 4,116 | 0.11 | 3,045 | 0.07 | |||||||||||||||||||
| Long-lived asset impairment and other charges | 2,468 | 0.07 | 676 | 0.02 | |||||||||||||||||||
| Goodwill impairment | 54,839 | 1.49 | — | — | |||||||||||||||||||
| Adjusted net income | $ | 37,847 | $ | 1.03 | $ | 38,083 | $ | 0.91 | |||||||||||||||
| Six months ended June 30, | |||||||||||||||||||||||
| 2026 | Per diluted share (1) | 2025 | Per diluted share (1) | ||||||||||||||||||||
| Net (loss) income from continuing operations | $ | (52,928) | $ | (1.43) | $ | 24,120 | $ | 0.57 | |||||||||||||||
| Interest, net | 170 | — | 122 | — | |||||||||||||||||||
| Gain on investments, net | — | — | (4,340) | (0.10) | |||||||||||||||||||
| Income from equity method investment, net | (5,005) | (0.13) | (11,745) | (0.29) | |||||||||||||||||||
| Amortization | 38,812 | 1.04 | 43,504 | 1.03 | |||||||||||||||||||
| Share-based compensation | 16,710 | 0.45 | 16,277 | 0.39 | |||||||||||||||||||
| Transaction, integration, and other charges | 10,021 | 0.27 | 2,438 | 0.06 | |||||||||||||||||||
| Long-lived asset impairment and other charges | 2,774 | 0.07 | 703 | 0.02 | |||||||||||||||||||
| Goodwill impairment | 54,839 | 1.47 | — | — | |||||||||||||||||||
| Adjusted net income | $ | 65,393 | $ | 1.75 | $ | 71,079 | $ | 1.68 | |||||||||||||||
(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 June 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 | $ | (45,711) | $ | — | $ | — | $ | — | $ | 81 | $ | 122 | $ | — | $ | — | $ | (45,508) | |||||||||||
| Sales and marketing | $ | (122,172) | — | — | — | 1,444 | 771 | — | — | $ | (119,957) | ||||||||||||||||||
| Research, development, and engineering | $ | (14,369) | — | — | — | 980 | 479 | — | — | $ | (12,910) | ||||||||||||||||||
General, administrative, and other related costs | $ | (47,496) | — | — | — | 9,015 | 3,722 | 3,242 | — | $ | (31,517) | ||||||||||||||||||
| Depreciation and amortization | $ | (46,874) | — | — | 25,769 | — | — | — | — | $ | (21,105) | ||||||||||||||||||
| Goodwill impairment | $ | (54,839) | — | — | — | — | — | — | 54,839 | $ | — | ||||||||||||||||||
| Interest expense, net | $ | (5,770) | 100 | — | — | — | — | — | — | $ | (5,670) | ||||||||||||||||||
| Other loss, net | $ | (586) | — | — | — | — | 281 | — | — | $ | (305) | ||||||||||||||||||
Income tax expense (1) | $ | (941) | (25) | — | (6,520) | (2,400) | (1,259) | (774) | — | $ | (11,919) | ||||||||||||||||||
| Income from equity method investment, net of tax | $ | (133) | — | 133 | — | — | — | — | — | $ | — | ||||||||||||||||||
| Total non-GAAP adjustments | $ | 75 | $ | 133 | $ | 19,249 | $ | 9,120 | $ | 4,116 | $ | 2,468 | $ | 54,839 | |||||||||||||||
(1) Adjusted effective tax rate was approximately 23.9% for the three months ended June 30, 2026. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $11,919 and the denominator is $49,766, which equals adjusted net income of $37,847 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 June 30, 2025 | |||||||||||||||||||||||||||||
| GAAP amount | Adjustments | Adjusted non-GAAP amount | |||||||||||||||||||||||||||
| Interest, net | (Gain) loss on investments, net | (Income) loss from equity method investments, net | Amortization | Share-based compensation | Transaction, integration, and other charges | Long-lived asset impairments and other charges | |||||||||||||||||||||||
Direct costs | $ | (40,663) | $ | — | $ | — | $ | — | $ | — | $ | 46 | $ | (3) | $ | — | $ | (40,620) | |||||||||||
| Sales and marketing | $ | (127,044) | — | — | — | — | 1,062 | 1,240 | — | $ | (124,742) | ||||||||||||||||||
| Research, development, and engineering | $ | (14,197) | — | — | — | — | 810 | 288 | — | $ | (13,099) | ||||||||||||||||||
General, administrative, and other related costs | $ | (48,794) | — | — | — | — | 8,930 | 2,455 | 851 | $ | (36,558) | ||||||||||||||||||
| Depreciation and amortization | $ | (50,335) | — | — | — | 29,727 | — | — | — | $ | (20,608) | ||||||||||||||||||
| Interest expense, net | $ | (6,584) | 82 | — | — | — | — | — | — | $ | (6,502) | ||||||||||||||||||
Gain on investments, net | $ | 4,340 | — | (4,340) | — | — | — | — | — | $ | — | ||||||||||||||||||
| Other loss, net | $ | (2,402) | — | — | — | — | — | — | — | $ | (2,402) | ||||||||||||||||||
Income tax expense (1) | $ | 69 | (21) | — | — | (7,330) | (3,797) | (935) | (175) | $ | (12,189) | ||||||||||||||||||
| Income from equity method investment, net of tax | $ | 5,115 | — | — | (5,115) | — | — | — | — | $ | — | ||||||||||||||||||
| Total non-GAAP adjustments | $ | 61 | $ | (4,340) | $ | (5,115) | $ | 22,397 | $ | 7,051 | $ | 3,045 | $ | 676 | |||||||||||||||
(1) Adjusted effective tax rate was approximately 24.2% for the three months ended June 30, 2025. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $12,189 and the denominator is $50,272, which equals adjusted net income of $38,083 plus adjusted income tax expense.
13
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
| Six months ended June 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 | $ | (90,028) | $ | — | $ | — | $ | — | $ | 133 | $ | 212 | $ | — | $ | — | $ | (89,683) | |||||||||||
| Sales and marketing | $ | (237,405) | — | — | — | 2,433 | 2,246 | — | — | $ | (232,726) | ||||||||||||||||||
| Research, development, and engineering | $ | (28,006) | — | — | — | 1,658 | 1,310 | — | — | $ | (25,038) | ||||||||||||||||||
General, administrative, and other related costs | $ | (94,140) | — | — | — | 15,844 | 7,961 | 3,609 | — | $ | (66,726) | ||||||||||||||||||
| Depreciation and amortization | $ | (91,752) | — | — | 49,316 | — | — | — | — | $ | (42,436) | ||||||||||||||||||
Goodwill impairment | $ | (54,839) | — | — | — | — | — | — | 54,839 | $ | — | ||||||||||||||||||
| Interest expense, net | $ | (12,666) | 226 | — | — | — | — | — | — | $ | (12,440) | ||||||||||||||||||
| Other income, net | $ | 102 | — | — | — | — | 515 | — | — | $ | 617 | ||||||||||||||||||
Income tax expense (1) | $ | (3,578) | (56) | — | (10,504) | (3,358) | (2,223) | (835) | — | $ | (20,554) | ||||||||||||||||||
Loss from equity method investment, net | $ | 5,005 | — | (5,005) | — | — | — | — | — | $ | — | ||||||||||||||||||
| Total non-GAAP adjustments | $ | 170 | $ | (5,005) | $ | 38,812 | $ | 16,710 | $ | 10,021 | $ | 2,774 | $ | 54,839 | |||||||||||||||
(1) Adjusted effective tax rate was approximately 23.9% for the six months ended June 30, 2026. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $20,554 and the denominator is $85,947, which equals adjusted net income of $65,393 plus adjusted income tax expense.
14
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
| Six months ended June 30, 2025 | |||||||||||||||||||||||||||||
| GAAP amount | Adjustments | Adjusted non-GAAP amount | |||||||||||||||||||||||||||
| Interest, net | (Gain) loss on investments, net | (Income) loss from equity method investments, net | Amortization | Share-based compensation | Transaction, integration, and other charges | Long-lived asset impairments and other charges | |||||||||||||||||||||||
Direct costs | $ | (81,064) | $ | — | $ | — | $ | — | $ | — | $ | 98 | $ | 57 | $ | — | $ | (80,909) | |||||||||||
| Sales and marketing | $ | (239,455) | — | — | — | — | 1,860 | 2,143 | — | $ | (235,452) | ||||||||||||||||||
| Research, development, and engineering | $ | (28,117) | — | — | — | — | 1,491 | 223 | — | $ | (26,403) | ||||||||||||||||||
General, administrative, and other related costs | $ | (91,957) | — | — | — | — | 16,481 | 915 | 871 | $ | (73,690) | ||||||||||||||||||
| Depreciation and amortization | $ | (98,787) | — | — | — | 57,504 | — | — | — | $ | (41,283) | ||||||||||||||||||
| Interest expense, net | $ | (12,778) | 163 | — | — | — | — | — | — | $ | (12,615) | ||||||||||||||||||
| Gain on investments, net | $ | 4,340 | — | (4,340) | — | — | — | — | — | $ | — | ||||||||||||||||||
| Other loss, net | $ | (3,877) | — | — | — | — | — | — | — | $ | (3,877) | ||||||||||||||||||
Income tax expense (1) | $ | (3,549) | (41) | — | — | (14,000) | (3,653) | (900) | (168) | $ | (22,311) | ||||||||||||||||||
Income from equity method investment, net | $ | 11,745 | — | — | (11,745) | — | — | — | — | $ | — | ||||||||||||||||||
| Total non-GAAP adjustments | $ | 122 | $ | (4,340) | $ | (11,745) | $ | 43,504 | $ | 16,277 | $ | 2,438 | $ | 703 | |||||||||||||||
(1) Adjusted effective tax rate was approximately 23.9% for the six months ended June 30, 2025. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $22,311 and the denominator is $93,390, which equals adjusted net income of $71,079 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 a reconciliation of Net cash provided by operating activities from continuing and discontinued operations to Free cash flow from continuing and discontinued operations:
| 2026 | Q1 | Q2 | Q3 | Q4 | Full Year | ||||||||||||||||||||||||
Net cash provided by operating activities from continuing and discontinued operations | $ | 29,953 | $ | 88,963 | $ | — | $ | — | $ | 118,916 | |||||||||||||||||||
| Less: Purchases of property and equipment | (33,127) | (34,999) | — | — | (68,126) | ||||||||||||||||||||||||
Free cash flow from continuing and discontinued operations | $ | (3,174) | $ | 53,964 | $ | — | $ | — | $ | 50,790 | |||||||||||||||||||
| 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 | |||||||||||||||||||
16
www.ziffdavis.com©2026 Ziff Davis. All rights reserved. SECOND QUARTER 2026 RESULTS August 6, 2026 Exhibit 99.2
2 Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations or beliefs as of August 6, 2026 (“Release Date”) 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 or 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 cybersecurity 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, our most recent Quarterly Report on Form 10-Q, 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 presentation are based on limited information available to the Company as of the Release Date and are subject to change. Although management’s expectations may change after the Release Date, the Company undertakes no obligation to revise or update these statements. All information in this presentation speaks as of the Release Date and any redistribution or rebroadcast of this presentation after that date is not intended and will not be construed as updating or confirming such information. Capitalized terms not otherwise defined in this presentation have the meanings set forth in the Company’s earnings press release issued on the Release Date. Third-Party Information Any third-party trademarks, including names, logos and brands, referenced by the Company in this presentation are property of their respective owners. Any references to third-party trademarks are for identification purposes only and shall be considered nominative fair use under trademark law. Industry, Market and Other Data Certain information that may be contained in this presentation concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity and market size, is based on reports from various sources. Because this information involves a number of assumptions and limitations, you are cautioned not to give undue weight to such information. We have not independently verified market data and industry forecasts provided by any of these or any other third-party sources referred to in this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. These and other factors could cause results to differ materially from those expressed in the estimates made by third parties and by us. Non-GAAP Financial information Included in this presentation are certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP") and are 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. The non-GAAP measures, as defined by Ziff Davis, may not be comparable to similar non-GAAP measures presented by other companies, limiting their usefulness for comparison purposes. The presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that Ziff Davis’ future results or leverage will be unaffected by other unusual or non-recurring items. Please see the "Supplemental Information" to this presentation for details related to how we define these non-GAAP measures and reconciliations thereof to the most directly comparable GAAP measures. We use these non-GAAP financial measures for financial and operational decision making and as a 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. Safe Harbor for Forward-looking Statements
3 Some factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements contained in this presentation include, but are not limited to, our ability and intention to: • Create compelling digital media content facilitating increased traffic and advertising levels and additional advertisers or an increase in advertising spend, and effectively target digital media advertisements to desired audiences; • Manage certain risks inherent to our business, such as costs associated with fraudulent activity, system failure, or security breach; effectively maintaining and managing our billing systems; the time and resources required to manage our legal proceedings; liability for legal and other claims; or adhering to our internal controls and procedures; • Compete with other similar providers with regard to price, service, functionality; • Achieve business and financial objectives in light of burdensome domestic and international laws and regulations, including those related to data privacy, access, security, retention, and sharing; • Successfully adapt to technological changes and diversify services and related revenues at acceptable levels of financial return; • Successfully develop and protect our intellectual property, both domestically and internationally, including our brands, content, copyrights, patents, trademarks, and domain names from infringement by third parties, and avoid infringing upon the proprietary rights of others; • Manage certain risks associated with environmental, social, and governance matters, including related reporting obligations, that could adversely affect our reputation and performance; • Recruit and retain key personnel and maintain the beneficial aspects of our corporate culture globally; • Meet any publicly announced guidance or other expectations about our business and future operating results; and • Respond to other factors set forth in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q, and the other reports we file from time to time with the SEC. Risk Factors • Sustain growth or profitability, particularly in light of an uncertain U.S. or worldwide economy, including the possibility of reduced economic growth, recessions, inflationary conditions, fluctuating interest rates, increased unemployment, supply chain disruptions, and other factors and their related impacts on customer acquisition and retention rates, customer usage levels, and credit and debit card payment declines; • Maintain and increase our customer base and average revenue per customer; • Generate sufficient cash flow to make interest and debt payments, reinvest in our business, and pursue desired activities and business plans while satisfying restrictive covenants relating to debt obligations; • Acquire or divest businesses on acceptable terms, execute on our investment strategies, successfully manage our growth, and integrate and realize anticipated synergies from acquisitions; • Realize the anticipated benefits from the divestiture of our Connectivity business; • Continue to expand our businesses and operations internationally in the wake of numerous risks, including adverse currency fluctuations, difficulty in staffing and managing international operations, higher operating costs as a percentage of revenues, or the implementation of adverse regulations; • Maintain our financial position, operating results and cash flows in the event that we incur new or unanticipated costs or tax liabilities, including those relating to federal and state income tax and indirect taxes, such as sales, value-added, and telecommunication taxes; • Manage certain risks related to the unauthorized use of our content and the infringement of our intellectual property rights by developers and users of generative artificial intelligence ("AI"); • Prevent system failures, security breaches, and other technological issues; • Achieve positive outcomes in our pending and future legal proceedings; • Accurately estimate the assumptions underlying our effective worldwide tax rate; • Maintain favorable relationships with critical third-party vendors that are financially stable;
4 $294.8 $286.7 Q2 2025 Q2 2026 (2.7)% $79.8 $76.8 Q2 2025 Q2 2026 $0.91 $1.03 Q2 2025 Q2 2026 (3.7)% 13.2% Adjusted EBITDA (2) (in millions) Adjusted diluted EPS (2) Revenues (in millions) Q2 2026 Consolidated Financial Snapshot - Continuing Operations (1) 1. 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 earnings presentation. Unless otherwise noted, all amounts, percentages, and any discussion in this earnings presentation reflect the results from continuing operations, except for the Net cash provided by operating activities and Free cash flow, which are presented on a combined continuing and discontinued operations basis. Furthermore, upon the reclassification of Connectivity as discontinued operations, the Company determined that Connectivity was no longer a reportable segment. 2. See "Supplemental Information" for non-GAAP reconciliations.
5 $99 $98 Q2 2025 Q2 2026 Revenue by Type - Continuing Operations (1)(2) $194 $182 Q2 2025 Q2 2026 (6.0)% 1. Throughout this presentation, revenues are net of inter-segment revenues and revenues by revenue source may not foot to total revenues due to rounding. 2. Excludes revenues that are classified as "other". Quarterly Revenues (1) (in millions) Quarterly Revenues (1) (in millions) (0.2)% Advertising and Performance Marketing Subscription and Licensing
6 $78.8 $73.1 $2.6 $3.6 0.1 Q2 2025 Q2 2026 $18.3 $19.8 22.6% 25.8% Q2 2025 Q2 2026 Q2 2026 Technology & Shopping Segment Quarterly Revenues (in millions) Quarterly Adjusted EBITDA & Margin (1) (in millions) (5.0)% 8.6% Other Subscription and Licensing Advertising and Performance Marketing 1. See "Supplemental Information" for non-GAAP reconciliations. $80.8 $76.7($0.6)
7 $15.2 $14.5 32.9% 31.2% Q2 2025 Q2 2026 $32.3 $29.2 $14.0 $16.3 $1.2 Q2 2025 Q2 2026 Q2 2026 Gaming & Entertainment Segment Quarterly Revenues (in millions) Quarterly Adjusted EBITDA & Margin (1) (in millions) 0.9% (4.3)% Other Subscription and Licensing Advertising and Performance Marketing 1. See "Supplemental Information" for non-GAAP reconciliations. $46.2 $46.6
8 $33.4 $30.2 33.6% 31.9% Q2 2025 Q2 2026 $82.5 $79.8 $13.7 $12.8 $3.2 $2.1 Q2 2025 Q2 2026 Q2 2026 Health & Wellness Segment Quarterly Revenues (in millions) Quarterly Adjusted EBITDA & Margin (1) (in millions) (4.8)% (9.7)% Other Subscription and Licensing Advertising and Performance Marketing 1. See "Supplemental Information" for non-GAAP reconciliations. $99.5 $94.7
9 $23.4 $23.6 34.2% 34.4% Q2 2025 Q2 2026 $68.3 $65.7 $3.0 Q2 2025 Q2 2026 Q2 2026 Cybersecurity & Martech Segment Quarterly Revenues (in millions) Quarterly Adjusted EBITDA & Margin (1) (in millions) 0.5% 1.0% Other Subscription and Licensing 1. See "Supplemental Information" for non-GAAP reconciliations. $68.3 $68.7
10 ($ in millions) June 30, 2026 Cash and Cash Equivalents $ 1,606 Long-term Investments 100 Total Cash, Cash Equivalents, and Long-term Investments $ 1,706 4.625% Senior Notes $ 460 1.75% Convertible Notes 149 3.625% Convertible Notes 263 Total Gross Debt (1) $ 872 Multiple of Q2 2026 TTM Adj. EBITDA Gross Debt $ 872 2.4x Net Cash (Cash less Gross Debt) $ 734 2.0x Net Cash & Investments (Cash + Investments less Gross Debt) $ 834 2.3x Ziff Davis Capital Structure 1. Reflects the outstanding principal amount of gross debt.
11 Ending Shares Outstanding (in millions) Ziff Davis Share Count (1) 1. Share count as of August 4, 2026.
SUPPLEMENTAL INFORMATION
13 Non-GAAP Financial Measures The below 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 expense, net; (Gain) loss on debt extinguishment, net; (Gain) loss on sale of businesses; (Gain) loss on investments, net; Provision for credit losses on investments; Other (income) loss, net; Income tax (benefit) expense; (Income) loss from equity method investment, net of tax; Depreciation and amortization; Share-based compensation; Transaction, integration, and other charges; Long-lived asset impairments and other charges; and Goodwill impairment. 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; (Gain) loss on debt extinguishment, net; (Gain) loss on sale of businesses; (Gain) loss on investments, net; Provision for credit losses on investments; (Income) loss from equity method investment, net of tax; Amortization; Share-based compensation; Transaction, integration, and other charges; Long-lived asset impairments and other charges; and Goodwill impairment. Adjusted diluted EPS 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. Free cash flow from continuing and discontinued operations is defined as Net cash provided by operating activities from continuing and discontinued operations, less purchases of property and equipment, plus changes in contingent consideration (if any). 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.
14 Quarterly adjusted results from Continuing Operations Q2 2026 Q1 2026 FY 2025 (1) Q4 2025 (1) Q3 2025 (1) Q2 2025 (1) Q1 2025 (1) $ in 000's, except per share amounts Revenues $ 286,738 $ 267,641 $ 1,220,535 $ 346,385 $ 306,531 $ 294,803 $ 272,816 Adjusted EBITDA $ 76,844 $ 63,357 $ 381,385 $ 132,375 $ 97,845 $ 79,783 $ 71,382 Adjusted net income $ 37,847 $ 27,546 $ 207,858 $ 79,961 $ 56,818 $ 38,083 $ 32,996 Adjusted diluted EPS $ 1.03 $ 0.73 $ 5.06 $ 2.04 $ 1.40 $ 0.91 $ 0.77 1. Adjusted EBITDA, Adjusted net income, and Adjusted diluted EPS include certain allocated overhead expenses previously reported in the Connectivity reportable segment.
15 $ in 000's Ziff Davis Three months ended June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Net (loss) income from continuing operations $ (52,153) $ (775) $ (17,962) $ (15,957) $ 14,308 $ 9,812 Interest expense, net 5,770 6,896 6,764 6,541 6,584 6,194 Loss on sale of businesses — — 57,988 — — — Gain on investment, net — — — (678) (4,340) — Provision for credit losses on investments — — — 17,566 — — Other loss (income), net 586 (688) 717 (4,060) 2,402 1,475 Income tax expense (benefit) 941 2,637 (1,947) 8,037 (69) 3,618 Income (loss) from equity method investment, net of tax 133 (5,138) 19,729 (38) (5,115) (6,630) Depreciation and amortization 46,874 44,878 50,675 50,203 50,334 48,452 Share-based compensation 11,520 8,548 10,272 11,312 10,848 9,082 Transaction, integration, and other charges 5,092 6,632 4,190 6,619 3,980 (641) Long-lived asset impairments and other charges 3,242 367 1,949 721 851 20 Goodwill impairment 54,839 — — 17,579 — — Adjusted EBITDA $ 76,844 $ 63,357 $ 132,375 $ 97,845 $ 79,783 $ 71,382 Non-GAAP reconciliation: Adjusted EBITDA
16 $ in 000's, except per share amounts Ziff Davis Three months ended 2024 June 30, 2026 Per diluted share (1) March 31, 2026 Per diluted share (1) December 31, 2025 Per diluted share (1) September 30, 2025 Per diluted share (1) June 30, 2025 Per diluted share (1) March 31, 2025 Per diluted share (1) Net (loss) income from continuing operations $ (52,153) $ (1.43) $ (775) $ (0.02) $ (17,962) $ (0.46) $ (15,957) $ (0.39) $ 14,308 $ 0.34 $ 9,812 $ 0.23 Interest, net 75 — 95 — 85 — 62 — 61 — 61 — Loss on sale of businesses — — — — 43,491 1.11 — — — — — — Gain on investments, net — — — — — — (678) (0.02) (4,340) (0.10) — — Provision for credit losses on investments — — — — — — 17,566 0.43 — — — — Income from equity method investment, net 133 — (5,138) (0.14) 19,729 0.51 (38) — (5,115) (0.13) (6,630) (0.16) Amortization 19,249 0.52 19,563 0.52 19,900 0.51 23,453 0.58 22,397 0.54 21,107 0.49 Share-based compensation 9,120 0.25 7,590 0.20 8,712 0.22 8,866 0.22 7,051 0.17 9,226 0.22 Transaction, integration, and other charges 4,116 0.11 5,905 0.16 4,402 0.11 5,366 0.13 3,045 0.07 (607) (0.01) Long-lived asset impairment and other charges 2,468 0.07 306 0.01 1,604 0.04 599 0.02 676 0.02 27 — Goodwill impairment 54,839 1.49 — — — — 17,579 0.43 — — — — Adjusted net income $ 37,847 $ 1.03 $ 27,546 $ 0.73 $ 79,961 $ 2.04 $ 56,818 $ 1.40 $ 38,083 $ 0.91 $ 32,996 $ 0.77 Non-GAAP reconciliation: Adjusted Net Income and Adjusted Diluted EPS 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.
17 Q2 2026 Technology & Shopping Gaming & Entertainment Health & Wellness Cybersecurity & Martech Corporate Total $ in 000's Revenues $ 76,757 $ 46,619 $ 94,658 $ 68,704 $ — $ 286,738 Operating (loss) income $ (3,306) $ 9,017 $ (42,291) $ 13,378 $ (21,521) $ (44,723) Depreciation and amortization 20,500 3,385 13,440 9,372 177 46,874 Share-based compensation 1,681 658 2,095 1,366 5,720 11,520 Transaction, integration, and other costs 897 177 378 (656) 4,296 5,092 Long-lived asset impairments and other charges 66 1,302 1,734 140 — 3,242 Goodwill impairment — — 54,839 — — 54,839 Adjusted EBITDA $ 19,838 $ 14,539 $ 30,195 $ 23,600 $ (11,328) $ 76,844 Non-GAAP reconciliation: Adjusted EBITDA by Segment Q2 2025 Technology & Shopping Gaming & Entertainment Health & Wellness Cybersecurity & Martech Corporate (1) Total $ in 000's Revenues $ 80,776 $ 46,226 $ 99,452 $ 68,349 $ — $ 294,803 Operating (loss) income $ (7,944) $ 11,255 $ 16,018 $ 12,235 $ (17,794) $ 13,770 Depreciation and amortization 23,049 3,054 14,371 9,821 39 50,334 Share-based compensation 1,437 449 1,626 1,135 6,201 10,848 Transaction, integration, and other costs 1,720 331 771 79 1,079 3,980 Long-lived asset impairments and other charges 4 100 653 99 (5) 851 Adjusted EBITDA $ 18,266 $ 15,189 $ 33,439 $ 23,369 $ (10,480) $ 79,783 1. Includes certain allocated overhead expenses previously reported in the Connectivity reportable segment.
18 Q2 2026 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 Adjusted non- GAAP amount $ in 000's 122000 Direct costs $(45,711) $– $– $– $81 $122 $– $– $(45,508) Sales and marketing $(122,172) – – – 1,444 771 – – $(119,957) Research, development, and engineering $(14,369) – – – 980 479 – – $(12,910) General, administrative, and other related costs $(47,496) – – – 9,015 3,722 3,242 – $(31,517) Depreciation and amortization $(46,874) – – 25,769 – – – – $(21,105) Goodwill impairment $(54,839) – – – – – – 54,839 $– Interest expense $(5,770) 100 – – – – – – $(5,670) Other loss, net $(586) – – – – 281 – – $(305) Income tax expense (1) $(941) (25) – (6,520) (2,400) (1,259) (774) – $(11,919) Income from equity method investment, net of tax $(133) – 133 – – – – – $– Total non-GAAP adjustments $75 $133 $19,249 $9,120 $4,116 $2,468 $54,839 Q2 2025 GAAP amount Interest, net (Gain) loss on investments , net (Income) loss from equity method investments, net Amortization Share-based compensation Transaction, integration, and other charges Long-lived asset impairments and other charges Adjusted non- GAAP amount $ in 000's Direct costs $(40,663) $– $– $– $– $46 $(3) $– $(40,620) Sales and marketing $(127,044) – – – – 1,062 1,240 – $(124,742) Research, development, and engineering $(14,197) – – – – 810 288 – $(13,099) General, administrative, and other related costs $(48,794) – – – – 8,930 2,455 851 $(36,558) Depreciation and amortization $(50,335) – – – 29,727 – – – $(20,608) Interest expense $(6,584) 82 – – – – – – $(6,502) Gain on investments, net $4,340 – (4,340) – – – – – $– Other loss, net $(2,402) – – – – – – – $(2,402) Income tax expense (2) $69 (21) – – (7,330) (3,797) (935) (175) $(12,189) Income from equity method investment, net of tax $5,115 – – (5,115) – – – – $– Total non-GAAP adjustments $61 $(4,340) $(5,115) $22,397 $7,051 $3,045 $676 1. Adjusted effective tax rate was approximately 23.9% for the three months ended June 30, 2026. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $11,919 and the denominator is $49,766, which equals adjusted net income of $37,847 plus adjusted income tax expense. 2. Adjusted effective tax rate was approximately 24.2% for the three months ended June 30, 2025. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $12,189 and the denominator is $50,272, which equals adjusted net income of $38,083 plus adjusted income tax expense. Q2 2026 and Q2 2025 Reconciliation of GAAP to Non-GAAP Financial Measures
19 $ in 000's Ziff Davis Three months ended June 30, Six months ended June 30, Q2 2026 Q2 2025 Q2 2026 Q2 2025 Net cash provided by operating activities from continuing and discontinued operations $ 88,963 $ 57,074 $ 118,916 $ 77,687 Less: Purchases of property and equipment (34,999) (30,133) (68,126) (55,752) Free cash flow from continuing and discontinued operations $ 53,964 $ 26,941 $ 50,790 $ 21,935 Non-GAAP reconciliation: Free Cash Flow from Continuing and Discontinued Operations
20 2025 2026 Q2 Q2 Technology & Shopping Net advertising and performance marketing revenue retention (1) 95.0% 90.0% Customers (2) 619 626 Quarterly revenue per customer (3) $127,299 $113,267 Gaming & Entertainment Net advertising and performance marketing revenue retention (1) 93.7% 81.6% Customers (2) 431 486 Quarterly revenue per customer (3) $74,830 $60,015 Health & Wellness Net advertising and performance marketing revenue retention (1) 97.4% 99.8% Customers (2) 866 797 Quarterly revenue per customer (3) $94,718 $99,046 Key Operating Metrics by Segment - Advertising and Performance Marketing 1. Net advertising and performance marketing revenue retention equals (i) the trailing twelve months revenues recognized related to prior year customers in the current year period (excluding revenues from acquisitions during the stub period) divided by (ii) the trailing twelve months revenues recognized related to prior year customers in the prior year period (excluding revenues from acquisitions during the stub period). This excludes customers that generated less than $10,000 of revenues in the measurement period. 2. Excludes customers that generated less than $2,500 in the quarter and those of certain newly acquired businesses. 3. Represents total gross quarterly advertising and performance marketing revenues divided by customers as defined in footnote (2).
21 2025 2026 Q2 Q2 Gaming & Entertainment Customers (1)(2) 527,000 526,000 Average quarterly revenue per customer (2)(3) $26.47 $30.94 Health & Wellness Customers (1)(2) 1,892,000 1,618,000 Average quarterly revenue per customer (2)(3) $7.17 $7.92 Cybersecurity & Martech Customers (1)(4) 1,232,000 1,219,000 Average quarterly revenue per customer (3) $55.48 $53.93 Key Operating Metrics by Segment - Subscription and Licensing 1. Represents the quarterly average of the end of month customer counts (rounded). 2. The metric includes the sale of perpetual software licenses, when applicable, revenues for which is recorded at a point in time rather than over time. 3. Represents quarterly gross subscription and licensing revenues divided by customers as defined in footnote (1). 4. Resellers within Cybersecurity & Martech segment are counted as one customer when there is not visibility into the number of underlying customers served by the reseller.