Financial Data and Key Metrics Changes - Q3 2025 revenues were $363.7 million, reflecting growth of nearly 3% compared to $353.6 million in the prior year period [16] - Adjusted EBITDA for Q3 2025 was $124.1 million, a slight decline of less than 1% from $124.7 million in the prior year [17] - Adjusted diluted EPS increased by more than 7% to $1.76 from $1.64 in Q3 2024, aided by share buybacks [17][25] Business Line Data and Key Metrics Changes - Tech and shopping revenue dropped 2% in Q3, with adjusted EBITDA down 12%, primarily due to the wind down of game publishing activities [8][20] - Health and wellness segment saw a 13% year-over-year revenue growth and 18% adjusted EBITDA growth, marking high watermarks for the division [10] - Cybersecurity and martech revenue grew 2% in Q3, driven by strong performance in consumer VPN and cloud backup [12] Market Data and Key Metrics Changes - Year-to-date revenues in gaming and entertainment were up approximately 2%, with Q3 being Humble Bundle's best quarter of the year [9] - Connectivity division delivered 2% year-over-year revenue growth, with year-to-date revenues up 7% [11] - Advertising and performance marketing grew 5.9% year-over-year, while subscription and licensing revenues grew by 2% [18] Company Strategy and Development Direction - The company is evaluating potential opportunities to unlock shareholder value, engaging outside advisors for this purpose [5][6] - The focus remains on maximizing value for shareholders while continuing to operate the current profitable business structure [6] - The company is committed to a disciplined acquisition program and has closed seven acquisitions in the first nine months of 2025 [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the disconnect between the current market value and intrinsic value of the company is at its widest [31] - The company anticipates fiscal year 2025 total revenues and adjusted diluted EPS to be within the lower half of its guidance range [24] - Management expressed optimism about the performance of various segments despite broader industry headwinds [56] Other Important Information - The company has significant cash reserves of $503.4 million and long-term investments of $119.6 million, with a gross leverage of 1.7 times trailing 12 months adjusted EBITDA [22] - Free cash flow for Q3 2025 was $108.2 million, 35% higher than the prior year period [25] Q&A Session Summary Question: Insights on valuation disconnect - Management acknowledged the valuation disconnect and noted that the recent segment-level reporting has attracted interest from strategic and private equity investors [30][32] Question: Strategic review and potential divestitures - Management stated that no specific properties are off-limits and that they are open to exploring opportunities for select units [38][39] Question: Impact of AI reviews on traffic - Management indicated that the company is well-positioned against fluctuations in search traffic, with only 17.5% of total revenue being web traffic dependent [40] Question: M&A opportunities and market dynamics - Management expressed interest in acquiring smaller dislocated properties and emphasized the balance between share buybacks and acquisitions [65] Question: Future growth and business model considerations - Management confirmed a preference for acquiring leadership brands and emphasized the importance of cash-on-cash returns in their investment strategy [81][82]

Financial Data and Key Metrics Changes - In Q3 2025, revenues increased to $363.7 million, up nearly 3% from $353.6 million in the prior year [16] - Adjusted EBITDA for Q3 2025 was $124.1 million, a slight decline of less than 1% from $124.7 million year-over-year [17] - Adjusted diluted EPS rose by more than 7% to $1.76 from $1.64 in Q3 2024, aided by share buybacks that reduced the weighted average diluted shares by 7.5% [17][25] Business Line Data and Key Metrics Changes - Tech and shopping revenue fell by 2% in Q3, with adjusted EBITDA down 12%, primarily due to the wind down of game publishing activities [8][19] - Health and wellness segment saw a 13% year-over-year revenue growth and 18% adjusted EBITDA growth, marking high watermarks for the division [10] - Cybersecurity and martech revenue grew by 2% in Q3, driven by strong performance in consumer VPN and cloud backup [12] Market Data and Key Metrics Changes - The connectivity division achieved 2% year-over-year revenue growth, with year-to-date revenues up 7% [11] - Gaming and entertainment revenues were approximately 4% lower year-over-year, but adjusted EBITDA grew nearly 3% [9] - Advertising and performance marketing revenues grew by 5.9% year-over-year, while subscription and licensing revenues increased by 2% [18] Company Strategy and Development Direction - The company is evaluating potential opportunities to unlock shareholder value, having engaged outside advisors for this purpose [4][5] - There is a focus on maximizing value for shareholders while maintaining a profitable and growing business structure [5][26] - The company is committed to a disciplined acquisition strategy, having closed seven acquisitions in the first nine months of 2025 [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the disconnect between the current market value and intrinsic value of the company is at its widest [29] - The company anticipates fiscal year 2025 total revenues and adjusted diluted EPS to be within the lower half of its guidance range [24] - Management expressed optimism about the performance of various segments despite broader industry headwinds [39] Other Important Information - The company has significant cash reserves of $503.4 million and long-term investments of $119.6 million, with a gross leverage of 1.7 times trailing 12 months adjusted EBITDA [22] - Free cash flow for Q3 2025 was $108.2 million, representing a 35% increase year-over-year [25] - The company plans to continue its stock repurchase program, having repurchased 3 million shares year-to-date [23] Q&A Session Summary Question: Insights on valuation disconnect - Management acknowledged the valuation disconnect and noted that the recent segment-level disclosures have attracted interest from strategic and private equity investors [28][29] Question: Strategic review and potential divestitures - Management stated that no specific properties are off-limits for divestiture, but exploring opportunities for select units is likely to be more value-accretive [31] Question: Impact of AI on traffic and revenue - Management indicated that the company is well-positioned against fluctuations in search traffic, with only 35% of total revenue dependent on web traffic [32] Question: Future M&A opportunities - Management expressed optimism about acquiring smaller properties that may not have weathered recent market changes as well as continuing to buy back shares [44][45] Question: Philosophical shift in acquisitions - Management clarified that the focus remains on cash-on-cash returns and that there is no change in the overall approach to acquisitions [51]

Financial Performance - Q3 2025 revenues increased to $363.7 million, a 2.9% increase compared to $353.6 million in Q3 2024[18] - Adjusted EBITDA decreased slightly by 0.5%, from $124.7 million in Q3 2024 to $124.1 million in Q3 2025[15] - Adjusted diluted EPS increased by 7.3%, from $1.64 in Q3 2024 to $1.76 in Q3 2025[20] Revenue Breakdown - Advertising and Performance Marketing revenue increased by 5.9%, from $194 million in Q3 2024 to $205 million in Q3 2025[23] - Subscription and Licensing revenue increased by 2.0%, from $147 million in Q3 2024 to $150 million in Q3 2025[25] Segment Performance - Technology & Shopping segment revenue decreased by 2.2%, from $87.1 million in Q3 2024 to $85.2 million in Q3 2025[29] - Gaming & Entertainment segment revenue decreased by 4.3%, from $49.7 million in Q3 2024 to $47.6 million in Q3 2025[34] - Health & Wellness segment revenue increased by 12.7%, from $90.8 million in Q3 2024 to $102.3 million in Q3 2025[40] - Connectivity segment revenue increased by 2.2%, from $56.0 million in Q3 2024 to $57.2 million in Q3 2025[46] - Cybersecurity & Martech segment revenue increased by 2.0%, from $70.0 million in Q3 2024 to $71.4 million in Q3 2025[52] Financial Guidance - The company reaffirms its full-year 2025 revenue guidance of $1.442 billion to $1.502 billion, representing a midpoint year-over-year increase of 5.0%[63] - The company reaffirms its full-year 2025 Adjusted EBITDA guidance of $505 million to $542 million, representing a midpoint year-over-year increase of 6.0%[63] - The company reaffirms its full-year 2025 Adjusted diluted EPS guidance of $6.64 to $7.28, representing a midpoint year-over-year increase of 5.1%[63]

Core Insights - Ziff Davis reported quarterly earnings of $1.76 per share, matching the Zacks Consensus Estimate and showing an increase from $1.64 per share a year ago [1] - The company posted revenues of $363.71 million for the quarter ended September 2025, which was 1.58% below the Zacks Consensus Estimate, but an increase from $353.58 million year-over-year [2] - Ziff Davis shares have declined approximately 38.6% year-to-date, contrasting with a 15.6% gain in the S&P 500 [3] Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [1] - Ziff Davis has exceeded consensus revenue estimates twice in the last four quarters [2] Future Outlook - The company's earnings outlook will be crucial for stock performance, with current consensus EPS estimates at $2.75 for the upcoming quarter and $6.88 for the current fiscal year [7] - The Zacks Rank for Ziff Davis is currently 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Ziff Davis belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - Ziff Davis reported Q3 CY2025 revenue of $363.7 million, which was a 2.9% year-on-year increase but fell short of analyst expectations of $365.7 million [1][7] - The company's full-year revenue guidance is set at $1.47 billion at the midpoint, aligning closely with analyst estimates [1][7] - Non-GAAP profit per share was $1.76, which is 1.4% below the consensus estimate of $1.78 [1][7] Company Overview - Ziff Davis, originally founded in 1927 as a technology publisher, now operates a portfolio of digital media brands and subscription services across various sectors including technology, shopping, gaming, healthcare, and cybersecurity [4] Revenue Growth - The company achieved $1.46 billion in revenue over the past 12 months, indicating a struggle to increase demand as this figure is close to its revenue five years ago [5][6] - Ziff Davis's annualized revenue growth of 3.1% over the last two years is above its five-year trend, although the recent results were disappointing [8] Financial Performance - Adjusted EBITDA for Q3 was $124.1 million, missing analyst estimates of $131.2 million, with a margin of 34.1% [7] - Operating margin improved to 7.8%, up from -8.3% in the same quarter last year, while free cash flow margin increased to 29.7% from 22.7% [7] - Market capitalization stands at $1.37 billion [7]

Financial Performance - Q3 2025 revenues increased by 2.9% to $363.7 million compared to $353.6 million in Q3 2024[6] - Income from operations rose 197.0% to $28.4 million, significantly improving from a loss of $(29.3) million in Q3 2024[6] - Net loss decreased to $(3.6) million from $(48.6) million in Q3 2024, marking a 92.6% improvement[6] - Adjusted EBITDA for Q3 2025 was $124.1 million, slightly down by 0.5% from $124.7 million in Q3 2024[6] - Adjusted net income for the quarter was $71.5 million, a decrease of 0.8% compared to $72.1 million in Q3 2024[6] - Free cash flow increased by 35.0% to $108.2 million from $80.1 million in Q3 2024[6] - Total revenues for the three months ended September 30, 2025, were $363.711 million, an increase from $353.580 million in the same period of 2024, representing a growth of 3.2%[18] - Net income for the nine months ended September 30, 2025, was $46.984 million, compared to a net loss of $1.040 million in the same period of 2024[20] Cost Management - Operating costs and expenses for the three months ended September 30, 2025, totaled $335.283 million, a decrease from $382.884 million in the same period of 2024, reflecting a reduction of 12.4%[18] - The company incurred a goodwill impairment of $17.579 million for the three months ended September 30, 2025, compared to $85.273 million in the same period of 2024[18] - Share-based compensation for the three months ended September 30, 2025, amounted to $12,197 thousand, compared to $10,161 thousand in the same period of 2024[31] - Sales and marketing expenses decreased to $(133,762) from $(127,418) year-over-year, indicating a focus on cost management[39][42] - Research, development, and engineering costs were reduced to $(14,077) from $(15,255), reflecting efficiency improvements[39][42] - General, administrative, and other related costs decreased to $(38,733) from $(52,417), showcasing effective expense control measures[39][42] - Depreciation and amortization expenses were reported at $(26,124), down from $(51,351) in the prior year, indicating a reduction in asset-related costs[39][42] Guidance and Projections - The company reaffirmed its 2025 revenue guidance range of $1,442 million to $1,502 million[8] - Adjusted EBITDA guidance for 2025 is set between $505 million and $542 million[8] - Adjusted diluted EPS is projected to be between $6.64 and $7.28 for 2025[8] Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2025, were $215.986 million, slightly down from $232.082 million in the same period of 2024[20] - Total cash and cash equivalents at the end of the period were $503.368 million, down from $386.122 million at the end of September 2024[20] - The company spent $85.888 million on property and equipment purchases in the nine months ended September 30, 2025, compared to $79.476 million in the same period of 2024[20] - Free cash flow for the year-to-date 2025 was $130,098, with net cash provided by operating activities totaling $215,986[50] Adjustments and Non-GAAP Measures - The adjusted effective tax rate is calculated based on the GAAP effective tax rate with adjustments for non-GAAP adjustments to net income[29] - For the three months ended September 30, 2025, the adjusted net income was $71,470, with an adjusted effective tax rate of approximately 25.2%[39] - Total non-GAAP adjustments for the quarter amounted to $24,015, indicating significant adjustments made to reconcile GAAP to non-GAAP financial measures[39][42] - For the nine months ended September 30, 2025, the adjusted net income was $172,042, with an adjusted effective tax rate of approximately 24.6%[44] - The total non-GAAP adjustments for the same period amounted to $69,066 in share-based compensation and $27,292 in transaction and integration charges[44] Investment and Credit Management - The company reported a provision for credit losses on investments of $17.566 million for the nine months ended September 30, 2025, compared to no provision in the same period of 2024[20] - The company reported a provision for credit losses on investments of $(17,566), reflecting a cautious approach to credit risk management[39][42]

Core Insights - Ziff Davis reported its fifth consecutive quarter of revenue growth, with Q3 2025 revenues increasing by 2.9% to $363.7 million compared to $353.6 million in Q3 2024 [3][7] - The company is exploring value-creating opportunities, including potential sales of entire divisions, while continuing its share repurchase program [2][3] Financial Performance - Income from operations rose significantly by 197.0% to $28.4 million in Q3 2025, compared to a loss of $(29.3) million in Q3 2024 [7] - Net loss decreased to $(3.6) million in Q3 2025 from $(48.6) million in Q3 2024, with net loss per diluted share improving to $(0.09) from $(1.11) [7] - Adjusted EBITDA for Q3 2025 was $124.1 million, slightly down from $124.7 million in Q3 2024 [7] - Free cash flow increased to $108.2 million in Q3 2025 from $80.1 million in Q3 2024 [7] Shareholder Value Initiatives - Ziff Davis engaged outside advisors to evaluate potential sales of certain business divisions, indicating a strategic focus on maximizing shareholder value [2][3] - The company deployed approximately $44.4 million for share repurchases in Q3 2025 [7]

Core Insights - RetailMeNot has launched its annual National Cash Back Day, running from November 6-8, offering the highest cash back rates in its history, allowing consumers to earn more rewards than ever before [1][3] Cash Back Offers - Shoppers can earn up to 30% cash back, with an additional 5% at select top brands when using the RetailMeNot app or browser extension [2][4] - Participating retailers include major brands such as LEGO, Expedia, Gap, Walmart, Ulta, Lowe's, Amazon, UGG, Adidas, Macy's, Best Buy, CVS, and Chewy [2][4] Consumer Engagement - National Cash Back Day has become a tradition for savvy shoppers, with RetailMeNot emphasizing the importance of smart spending and maximizing savings [3][7] - Consumers can stack cash back offers with early Black Friday sales to enhance their savings [3][4] Historical Performance - RetailMeNot has paid out nearly $100 million in total cash back to its members to date, highlighting the effectiveness of its cash back program [4][7] Participation Process - To participate, shoppers need to log in or create an account at RetailMeNot, activate an offer, and shop on the retailer's site as usual, with cash back rewards credited within 45 days [6][7]

Core Insights - Mashable has released its inaugural list of 101 creators who have significantly influenced the internet in 2025, showcasing a diverse range of individuals who have captivated audiences and shaped online culture [1][2][3] Group 1: Creator Categories - The selected creators fall into various categories, including Content Creators, Digital Entrepreneurs, Rising Stars, Social Good Innovators, Community Builders, Cultural Curators, Entertainers, Gamers, Good Connections, and Techfluencers [5][6] - Each category highlights creators who have made notable impacts in areas such as audience growth, brand-building, social initiatives, and cultural representation [6] Group 2: Notable Figures - The list features well-known figures like MrBeast and iShowSpeed, alongside newer creators like Jools Lebron and Vanillamace, reflecting a mix of established and emerging voices [4] - Digital leaders from platforms like BlueSky and Canva, including CEOs Jay Graber and Melanie Perkins, are also recognized for their contributions to the digital landscape [4] Group 3: Impact and Influence - The selection criteria included factors such as growth in impact and influence, product or platform adoption, cultural impact, and innovation within digital spaces [6] - The honorees are acknowledged for their ability to entertain, educate, and inspire, while also cultivating engaged online communities [2][4]

Company Overview - Ziff Davis, Inc. is a New York-based digital media conglomerate operating across five verticals: Technology & Shopping, Gaming & Entertainment, Health & Wellness, Connectivity, and Cybersecurity & Martech [2] - The company generated $1.4 billion in revenue in 2024, with $494 million in Adjusted EBITDAS (35% margin) and $346 million in Adjusted EBITA (25% margin) [2] - Ziff Davis has a market capitalization of $1.31 billion and net debt of $267 million [2] Business Strategy - Under CEO Vivek Shah, Ziff Davis has pursued an acquisitive strategy, completing over 90 acquisitions in 30 years, focusing on high-ROIC, niche digital assets that generate recurring revenues [3] - Approximately 40% of total revenue comes from advertising and subscription/licensing [3] - The company emphasizes disciplined capital allocation, reinvesting free cash flow into acquisitions, opportunistic share repurchases, and maintaining low leverage [3] Financial Performance - Ziff Davis trades at compelling multiples: 2.8x Adjusted EBITDAS, 3.9x Adjusted EBITA, and 5x Adjusted EPS, reflecting a significant discount to intrinsic value [3] - The management's track record of consistent returns on invested capital and aggressive share repurchases suggests the market is undervaluing the business [4] - Organic growth has shown improvement over recent years, and insider buying signals confidence in the company's future [4] Investment Thesis - The investment case for Ziff Davis is supported by strong free cash flow generation, competent management, and potential for value recognition through operational performance or eventual M&A [4] - The stock price has appreciated approximately 10.44% since previous coverage, reinforcing the thesis of undervaluation and high-margin stability [5] - The focus on segment-level performance, ROIC, and long-term acquisitive strategy is central to the company's value proposition [5]