Ziff Davis Q4 Operating Income Rises 9.6% Despite Net Loss, Full-Year Revenue Up 3.5%
Ziff Davis’ fourth-quarter revenue dipped 1.5% to $406.7 million while operating income rose 9.6% to $86.0 million, though net income plunged to $0.4 million on a $58 million business sale loss. Full-year revenues climbed 3.5% to $1.45 billion, free cash flow reached $287.9 million, and $173.8 million was returned through share buybacks.
1. Fourth Quarter 2025 Results
Ziff Davis reported Q4 revenue of $406.7 million, a 1.5% decline year-over-year, and operating income rose 9.6% to $86.0 million. Net income fell to $0.4 million, reflecting a pre-tax $58.0 million loss on the sale of a business and a $19.7 million equity investment loss, while adjusted EBITDA reached $163.2 million and free cash flow grew 20.4% to $157.8 million.
2. Full-Year 2025 Results
For the full year, revenues increased 3.5% to $1.45 billion and income from operations jumped 61.1% to $183.1 million, aided by lower goodwill impairment. Net income was $47.4 million, adjusted EBITDA edged up 0.3% to $495.1 million, and adjusted diluted EPS rose to $6.63, with free cash flow of $287.9 million.
3. Segment Trends
Technology & Shopping revenue fell 18.0% to $108.9 million, while Gaming & Entertainment grew 1.5% to $51.7 million. Health & Wellness climbed 8.6% to $114.9 million and Connectivity advanced 11.2% to $60.3 million, offsetting a 2.7% rise to $70.9 million in Cybersecurity & Martech.
4. Capital Deployment
Ziff Davis generated nearly $290 million in free cash flow for 2025, deploying $173.8 million to share repurchases and $68.7 million on acquisitions. Management emphasized buybacks to enhance intrinsic value and reinvestment in high-growth segments.