Ziff Davis (NASDAQ:ZD) reported modest full-year growth for 2025 but ended the year with pressure in its Tech and Shopping segment, where the company said declining web search referrals weighed on affiliate commerce revenue. Executives also highlighted continued strong free cash flow generation and an expanded share repurchase authorization, while noting that the company is deferring formal 2026 guidance amid an ongoing strategic review.
2025 results: revenue up 3.5% as cash generation remained strong
Chief Executive Officer Vivek Shah said Ziff Davis grew revenue 3.5% in 2025 and increased adjusted EBITDA slightly, generating “almost $290 million” of free cash flow. Chief Financial Officer Bret Richter reported fiscal 2025 revenue of $1.451 billion and adjusted EBITDA of $495.1 million, for an adjusted EBITDA margin of 34.1%.
Q4: Tech and Shopping weakness offset by growth in other segments
For the fourth quarter, revenue declined 1.5% year over year to $406.7 million, and adjusted EBITDA fell 5% to $163.2 million, producing an adjusted EBITDA margin of 40.1%. Adjusted diluted EPS for Q4 was $2.56, which management said reflected the impact of the company’s share repurchases.
Shah said Q4 results were driven by an 18% decline in the Tech and Shopping segment, while the company’s four other segments grew more than 6% collectively. Management attributed the Tech and Shopping decline largely to reduced web search traffic, which “had a meaningful impact” on affiliate commerce.
On the call, Shah provided additional detail on the affiliate commerce pressure, saying Ziff Davis generated roughly $90 million in affiliate commerce commissions related to organic traffic in 2025, down about $25 million year over year, with about half of that decline occurring in the fourth quarter.
Business highlights across segments
Executives pointed to positive operating momentum outside Tech and Shopping:
- Gaming and Entertainment: Q4 revenue grew 1.5%. Shah said the Humble Bundle storefront delivered its best revenue quarter in five years and noted the platform’s 15-year anniversary and more than $275 million raised for charity to date. He added that IGN’s social engagement grew, including Facebook views up 22% to 300 million and X views up 19% to 45 million, while IGN Store sales tripled. Shah said direct-to-consumer revenue from Humble Bundle and the store totaled almost $90 million in 2025.
- Health and Wellness: Shah said the segment posted record revenue and adjusted EBITDA in 2025 and grew Q4 revenue 8.6% year over year. He cited increased advertising spend from core pharma clients, including new GLP-1 campaigns, and subscription growth at the Lose It! app. Shah also said the company’s AI-powered “Halo” data activation tool has become standard in pharma RFPs, positioning it as a privacy-safe way to inform campaign design and improve performance.
- Connectivity: Shah said the segment had a record Q4, with revenue up 11%, driven by growth at Speedtest, Downdetector, and RootMetrics, as well as gains at Ekahau. He highlighted the rollout of Speedtest Pulse, a handheld diagnostic device for field technicians, and Speedtest Certified, a network verification program for venues. Management said both products are expected to contribute to meaningful growth in 2026.
- Cybersecurity and MarTech: Q4 revenue grew 2.7%, driven primarily by cybersecurity, including consumer VPN and cloud backup. Shah cited product enhancements at IPVanish and the launch of VIPRE Integrated Email Security, which he said uses an AI engine to detect threats such as email compromise. In MarTech, he emphasized a focus on first-party data and customer acquisition efficiency through the company’s email and SMS capabilities and Semcasting.
Portfolio actions, strategic review, and AI licensing stance
Richter said the company sold its game publishing business in Q4, which had contributed negative net revenue of $2.5 million in the quarter. He said the transaction generated book and cash tax savings tied to the loss on sale, and Ziff Davis retained rights to certain future payments linked to asset performance under new management, which were not valued at closing and would be recognized as investment gains if received. Management emphasized that the exit does not affect the Humble Bundle storefront.
Shah reiterated that Ziff Davis has engaged outside advisors to assess “potential transactions” that could unlock shareholder value, and said the evaluation remains ongoing. Because of this process, the company is deferring formal guidance.
On AI-related content licensing, Shah said Ziff Davis is in active discussions with “key players,” but is taking a “deliberate, principled” approach while the market defines compensation frameworks. He said the company believes both model training and retrieval-augmented generation (RAG) require licensing, and it will not enter into RAG-focused agreements that compromise its rights to fair compensation for training uses. Shah added that he expects greater clarity after the resolution of the company’s ongoing litigation, which he said should help unlock licensing opportunities.
Capital allocation: buybacks, acquisitions, and balance sheet
Management emphasized shareholder returns and balance sheet capacity. Shah said Ziff Davis deployed $174 million—about 60% of free cash flow—toward share repurchases during 2025. Richter said the company repurchased 1.75 million shares for $60.6 million in Q4 and about 4.8 million shares for nearly $174 million for the year, reducing shares outstanding by more than 10% during 2025. Since January 1, 2026, Ziff Davis repurchased an additional roughly 740,000 shares.
Richter also said the board increased the repurchase authorization by 10 million shares, bringing the total available to 10.7 million shares through February 2036, while noting that the strategic review could create periods when repurchases are not possible.
At year-end 2025, Richter said the company had $607 million in cash and cash equivalents and $93 million in long-term investments. Gross leverage was 1.8x trailing 12-month adjusted EBITDA, and net leverage was 0.5x (or 0.3x including financial investments). He added that Ziff Davis completed seven acquisitions in 2025, investing $68.7 million net of cash received, and expects to remain an active, disciplined acquirer in 2026.
Looking to early 2026, Richter said the company expects Q1 consolidated revenue to be flat or slightly negative year over year as Tech and Shopping affiliate headwinds offset growth elsewhere. He said Q1 adjusted EBITDA margins are typically seasonally lower and are expected to be about three points lower year over year, driven by Tech and Shopping revenue pressure, a lower-margin revenue mix in Health & Wellness, and continued investment in Connectivity, while Q1 adjusted diluted EPS should benefit from a lower share count due to buybacks.
About Ziff Davis (NASDAQ:ZD)
Ziff Davis, Inc is a digital media and internet company that operates a diverse portfolio of online brands, subscription-based services and performance marketing platforms. The company specializes in technology publishing and digital marketing solutions, offering content, reviews and insights tailored to consumer and enterprise audiences. Ziff Davis’s flagship media properties include PCMag, which provides expert reviews and comparisons of consumer electronics and software, as well as IGN, a leading destination for gaming news, reviews and entertainment coverage.
Founded in 1927 by William B.
