Ziff Davis Extends Sequential Revenue Growth After Connectivity Sale

The Tip Desk · November 6, 2026 · 3 min read

Third-quarter revenue was $289.3 million as adjusted EBITDA reached $82.2 million and the company spent $92.0 million on buybacks.

Ziff Davis (ZD), a vertically focused digital media and internet company, reported third-quarter revenue of $289.3 million, a second consecutive sequential increase after $286.7 million in the second quarter and $267.6 million in the first quarter.

Chief executive Vivek Shah said the company delivered results in line with the expectations it set last quarter, including sequential revenue growth despite a challenging operating environment.

Year over year, revenue fell 5.6% from $306.5 million in the third quarter of 2025. All four continuing-operations segments declined against a year earlier: Technology & Shopping was $82.0 million, Gaming & Entertainment $46.6 million, Health & Wellness $92.5 million, and Cybersecurity & Martech $68.2 million. Health & Wellness, Technology & Shopping and Gaming & Entertainment each remained above first-quarter 2026 levels of $85.9 million, $71.1 million and $40.8 million, respectively; Cybersecurity & Martech was $68.2 million versus $69.8 million in the first quarter.

Adjusted EBITDA was $82.2 million, up from $76.8 million in the second quarter and $63.4 million in the first quarter. Adjusted EBITDA margin was 28.4%. Adjusted net income was $48.3 million, or $1.39 a share, compared with $37.8 million and $1.03 a share in the second quarter.

GAAP results remained loss-making. Operating loss was $(33.6) million, compared with an operating loss of $(44.7) million in the second quarter and operating income of $2.9 million in the first quarter. The third-quarter operating loss included a $29.6 million goodwill impairment, down from $54.8 million in the second quarter, and a $6.4 million long-lived asset impairment that did not occur in the year-ago quarter. Net loss from continuing operations was $(28.7) million, or $(0.85) a share, versus a $(16.0) million loss, or $(0.39) a share, a year earlier.

The company completed the sale of its Connectivity business in the second quarter of 2026. Connectivity results are classified as discontinued operations for all periods presented. Cash and cash equivalents were $1,407.7 million at September 30, 2026, versus $573.8 million at December 31, 2025.

Cash generation reversed in the third quarter. Net cash used in operating activities from continuing and discontinued operations was $(77.1) million, after $89.0 million of operating cash provided in the second quarter. Free cash flow from continuing and discontinued operations was $(100.1) million, after $54.0 million in the second quarter. Transaction-adjusted free cash flow was $(10.0) million.

Ziff Davis deployed about $7.0 million for current and prior-year acquisitions in the quarter and $92.0 million on share repurchases. Through the first three quarters of 2026 it repurchased approximately $265 million of shares, reducing the share count by nearly 14%. Shah said the company will keep pursuing opportunities to unlock additional shareholder value.