Start here if you're new
what it is
Ziff Davis owns digital brands and subscription businesses that make money from ads, leads, and software-style recurring revenue.
how it gets paid
Last year Ziff Davis made $1.5B in revenue. technology & shopping was the main engine at $0.42B, or 28% of sales.
why it's growing
Revenue grew 3.5% last year. Health & wellness, technology & shopping, and connectivity, all posted revenue gains versus the prior year from 7% to 12%.
what just happened
Revenue hit $1.0B and EPS reached $1.13, both far ahead of the prior year.
At a glance
B+ balance sheet — decent shape, but not bulletproof
55/100 earnings predictability — expect surprises
13.8x trailing p/e — the market's not buying it — or you found a deal
6.0% return on capital — nothing to write home about
xvary composite: 63/100 — average
What they do
Ziff Davis owns digital brands and subscription businesses that make money from ads, leads, and software-style recurring revenue.
You probably know the brands before you know the company. CNET, PCMag, and a stack of niche sites pull in users with intent, then Ziff Davis sells ads, leads, and subscriptions against that traffic. That shows up in a 21.0% operating margin (operating margin → profit after running the business → so what: these websites and services still throw off real cash).
How they make money
$1.5B
annual revenue · their business grew +3.5% last year
technology & shopping
$0.42B
+9.0%
health & wellness
$0.27B
+12.0%
connectivity
$0.33B
+7.0%
cybersecurity & martech
$0.30B
+3.5%
gaming & entertainment
$0.18B
+3.5%
The products that matter
cloud infrastructure and services
Cloud Services
65% of company revenue
This is the center of gravity. When one segment drives 65% of a $1.5B business and enters strategic review, you stop watching only operations. You start watching optionality, buyer interest, and whether management can make the story cleaner.
the core debate
media, shopping, and internet brands
Portfolio Brands
35% of company revenue
The rest of the company still matters because it makes up 35% of revenue. The problem is disclosure depth. This page does not break those pieces out further, which tells you how much the cloud segment dominates the current investment case.
the other 35%
Key numbers
7.5x
forward p/e
Forward P/E → price compared with next year's expected earnings → so what: you are paying $7.50 for each $1 of expected profit, versus 13.8x on trailing earnings.
$866M
long-term debt
Debt → money the company owes → so what: leverage is real for a roughly $2 billion company, especially with return on capital at just 6.0%.
21.0%
operating margin
Operating margin → profit after everyday costs → so what: the core business is still profitable even while earnings have looked messy.
$60
18-month target
The published 18-month target is $60 versus a $37.25 stock, which is a simple contrast between what the business is earning now and what better execution could be worth.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- long-term debt $866M (37% of capital)
- net profit margin 8.3% — keeps 8 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ZD 3 years ago → it's now worth $4,380.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $1.0B and EPS reached $1.13, both far ahead of the prior year.
Revenue jumped 187% vs. prior year (confirm comparable quarter labels). EPS moved up sharply versus a much smaller prior-year quarter — headline vs. prior year % is dominated by the denominator; use the filing for the clean read. The most recent full-year EPS also improved from $1.42 in 2024 to $2.70 in 2025.
$1.0B
revenue
$1.13
eps
21.0%
gross margin
the number that mattered
The key number was the 128.57% earnings surprise, because a stock trading at 7.5x forward earnings needs proof that estimates were too low.
-
ziff davis is undergoing a strategic review.in wall street jargon, this means the corporation’s management will listen to offers from bidders that may be interested in purchasing certain of its assets, or perhaps, entire operations. leadership does not necessarily have to sell, but it is essentially letting prospective buyers kick the tires. typically, firms that hire advisors, such as ziff davis has, are looking to jettison slow growing parts of their business to invest more in sectors that have better long-term prospects. the advertising sector has not been doing well of late, but there are specific digital segments that offer some attraction.
-
indeed, ziff davis has some good websites (cnet and pc mag) and services, but its earnings performance during the previous four-year stretch had been subpar, and the price of the company’s stock has been in a steady decline.
-
ziff davis probably had a decent year in 2025.through the first three quarters, the company saw solid top-line growth in several of its main business lines.
-
health & wellness, technology & shopping, and connectivity, all posted revenue gains versus the prior year from 7% to 12%.
-
for the full year, we think ziff davis’ share earnings can make a partial recovery to $2.70.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
This is not a page where you hide behind generic execution risk. The main issue is specific: the strategic review around the cloud business that drives 65% of revenue, layered on top of a latest quarter with a -1.0% net margin.
med
strategic review disappointment
Once a review starts, the market begins pricing in cleaner structure, a transaction, or a more obvious path to value. If management reviews options and delivers no clear move, that optimism can vanish faster than it arrived.
Because 65% of revenue sits in the segment under review, disappointment here would hit the core of the thesis, not the edges.
med
revenue concentration
Cloud services accounts for 65% of total revenue. Concentration helps when the segment is working. It becomes a problem quickly when performance softens or strategic uncertainty drags on.
One segment wobbling can affect roughly two-thirds of a $1.5B company. That is concentration with consequences.
med
thin margins with real debt
The latest quarter posted a -1.0% net margin, while long-term debt sits at $866M, or 37% of capital. That is manageable when profitability is steady. It gets less comfortable when results stay uneven.
You do not need a crisis to feel this. Another weak quarter would be enough to keep the valuation discount in place.
med
institutional conviction is missing
Institutions have been net sellers for two straight quarters. That does not prove the thesis is broken, but it does mean the biggest pools of capital are not rushing to bless the cheap-stock narrative yet.
If the review drags and selling continues, valuation alone may not be enough to support the shares.
between 65% revenue concentration in cloud, a latest quarter with a -1.0% net margin, and $866M of long-term debt, mistakes here do not stay contained.
source: institutional data · regulatory filings · risk analysis
Pay attention to
event
strategic review outcome
This is the obvious one because it should be. When the segment driving 65% of revenue is under review, every update matters more than a normal quarterly headline.
metric
quarterly margin recovery
After a -1.0% net margin quarter, you want to see the business return to positive profitability. Cheap stocks stay cheap when margins don't heal.
risk
cloud concentration
Track whether cloud stays the stabilizer or becomes the source of volatility. With 65% of revenue tied to one segment, drift matters fast.
trend
institutional flow
Institutions have been net sellers for two straight quarters. If that flips after review news, pay attention. If it doesn't, that's a message too.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak: they think the setup can improve if the story gets cleaner.
risk profile
average
stability score 3 — this sits in the middle of the pack. not a bunker stock, not a disaster candidate.
chart momentum
average
technical score 3 — the chart is not doing you any favors yet, but it is not waving a red flag either.
earnings predictability
55 / 100
earnings are less dependable here than in a clean subscription software model. translation: expect noise.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 132 buyers vs. 154 sellers in 3q2025. total institutional holdings: 44.9M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$31
$89
$37
current price
$60
target midpoint · +61% from current · 3-5yr high: $95 (+155% · 27% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive