Ziff Davis (ZD)
NASDAQCommunication ServicesAdvertising AgenciesSnapshot 2026-09-09
$55.32-0.74%
Close 2026-09-09 · 1-day change
NASDAQCommunication ServicesAdvertising AgenciesSnapshot 2026-09-09
Broken: Primary pillar broken — EPS near $6.96 in FY25: EPS $2.56 vs $6.96 target.
Ziff Davis is completing the divestiture of its Connectivity business, unlocking shareholder value. The company targets operational efficiency improvements, supporting stable revenue near $1.47 billion in 2025. EPS guidance is reaffirmed near $6.96 per share for 2025. The valuation is cheap with a PE of 9.4 versus peers at 18.3.
Revenue declined 1.9% year-over-year in Q1 2026 with an EPS miss and guidance cut. Connectivity divestiture progress is mixed at 44%. Operational challenges persist with mixed management status. Analysts expect about 10% revenue decline next year.
The market prices in about 10% revenue decline and a 34% discount to our fair value near $81. Our fair value is well above the Street median near $60. The market reflects elevated risk and mixed operational outlook.
Breaks if: Divestiture progress stalls or reverses
Complete the divestiture of the Connectivity business to unlock shareholder value.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment is positioned as a turnaround play, with a focus on improving cash flow and operational efficiency. The current thesis state is watchful, given recent earnings misses and elevated risk factors.
The market currently prices ZD as cheap compared to its peers, reflecting a low expectations gap. However, the valuation is justified by the company's fragile execution quality and the overall sector backdrop.
Management is on track to enhance cash flow from operations, as evidenced by significant improvements in net cash and free cash flow. However, operational efficiency remains a mixed bag, with recent declines in operating income and adjusted EBITDA.
The long-term thesis hinges on the performance of sector bellwethers like OMC, TTD, and MGNI. If these companies continue to perform well, it could positively impact ZD. Conversely, any negative guidance from these peers could lead to further challenges for ZD.
The most important moves since the prior daily snapshot.
Our read on the company is unchanged since the prior snapshot.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: EPS falls below $6.64 in FY25
Breaks if: Operational efficiency deteriorates
Maintain cost discipline and operational efficiency to manage expenses and improve profitability.
Stated as a priority in 3 of last 3 quarters. Operating income declined from $86.0 million in 2025-Q4 to an operating loss of $(44.7) million in 2026-Q2, partly due to goodwill impairment. Adjusted EBITDA also decreased from $163.2 million to $76.8 million. Management continues to emphasize operational efficiency but financial results show mixed progress.
“Operating loss of $(44.7) million includes $54.8 million goodwill impairment; Adjusted EBITDA decreased 3.7% to $76.8 million.”
“Operating income decreased 79.7% to $2.9 million; Adjusted EBITDA decreased 11.2% to $63.4 million.”
“Income from operations increased 9.6% to $86.0 million; Adjusted EBITDA decreased 5.0% to $163.2 million.”
Breaks if: Revenue falls below $1.44B in FY25
Over the next 1 to 3 years, ZD's performance will depend on both management execution and external sector dynamics. Not investment advice.