Ziff Davis 2025 Q2 Earnings Strong Revenue Growth but Earnings Decline

Generated by AI AgentAinvest Earnings Report Digest
Friday, Aug 8, 2025 5:05 am ET1min read
Aime RobotAime Summary

- Ziff Davis reported Q2 2025 revenue of $352.21M, up 9.8% YoY, but EPS and net income declined.

- Management reaffirmed 2025 guidance, with CEO Vivek Shah highlighting strong growth in Connectivity and Health & Wellness segments.

- Shares rose 14.21% post-earnings, though a 30-day buy-and-hold strategy underperformed with -45.65% returns.

Ziff Davis reported its Q2 2025 earnings on August 7, 2025, delivering robust revenue growth that exceeded expectations. However, the company saw a decline in earnings per share and net income. Management reaffirmed its 2025 guidance, indicating continued confidence in the business outlook.

Revenue

Ziff Davis delivered a 9.8% year-over-year increase in total revenue, reaching $352.21 million in Q2 2025, compared to $320.80 million in the prior-year period. The company’s diverse business segments contributed to this growth, with Technology & Shopping generating $80.78 million, Gaming & Entertainment contributing $46.23 million, and Health & Wellness posting a strong showing at $99.45 million. Connectivity and Cybersecurity & Martech added $57.41 million and $68.35 million, respectively. Corporate revenue remained at $0.

Earnings/Net Income

Despite the strong top-line performance, Ziff Davis’s earnings per share and net income declined year over year. The company reported an EPS of $0.63, down 22.2% from $0.81 in Q2 2024. Net income also fell to $26.34 million, a 28.6% drop from $36.91 million in the same period last year, highlighting a mixed earnings performance.

Price Action

The stock price of saw notable upward movement in the wake of the earnings report. Over the latest trading day, shares rose 14.21%, and the stock surged 21.11% during the most recent full trading week. Month-to-date gains stood at 13.70%, indicating positive investor sentiment despite the earnings decline.

Post-Earnings Price Action Review

A strategy of buying ZD shares following a revenue beat and holding for 30 days underperformed significantly. The approach returned -45.65%, far below the benchmark return of 86.19%. The strategy showed a maximum drawdown of 0.00%, indicating no losses during the backtest period, but it also failed to capture gains. This led to a negative compound annual growth rate of -11.57% and a Sharpe ratio of -0.34, underscoring poor risk-adjusted returns.

CEO Commentary

CEO Vivek Shah expressed optimism about the quarter’s results, noting that performance exceeded expectations. He highlighted the strongest revenue growth since 2021 and emphasized the strategic value of new segment reporting. Breakthrough results in the Connectivity and Health & Wellness segments were especially notable, reinforcing the company’s long-term growth potential.

Guidance

Ziff Davis reaffirmed its 2025 guidance, with revenue projected in the range of $1,442 million to $1,502 million. Adjusted EBITDA is expected to fall between $505 million and $542 million, while adjusted diluted EPS is forecasted between $6.64 and $7.28. The company also expects an adjusted effective tax rate between 23.25% and 25.25%.

Additional News

On August 7, 2025, Ziff Davis released Q2 2025 slides showing an acceleration in revenue growth. The slides were made available to enable further insights for investors and analysts. Enable JavaScript and cookies to continue exploring the full details on the company’s investor relations page.

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