Press Release: Zeta Global Reports 20th Consecutive "Beat and Raise" Quarter, Achieves the Rule of 64 and Generates Positive GAAP Net Income in 2Q'26

Dow Jones
Aug 05
   --  Delivered revenue of $443 million for the second quarter, an increase 
      of 44% Y/Y, exceeding midpoint of guidance by $23 million, or 5%. 
   --  Grew Super-Scaled Customer count to 197, an increase of 17% Y/Y and 
      Super-Scaled customer ARPU grew to $1.8 million, up 17% Y/Y, both ahead 
      of 2028 model. 
   --  Achieved positive GAAP net income of $8 million, and GAAP earnings per 
      share of $0.03. Generated $92 million of adjusted EBITDA and expanded 
      adjusted EBITDA margin by 170 bps Y/Y to 20.7%, reflecting the rule of 64 
      and the rule of 49 excluding M&A. 
   --  Generated net cash provided by operating activities of $69 million, an 
      increase of 65% Y/Y, and Free Cash Flow of $58 million, an increase of 
      73% Y/Y. 
   --  Increasing full year 2026 revenue guidance by $33 million to $1,818 
      million at the midpoint, up from prior guidance of $1,785 million 
      reflecting Y/Y growth of 39%. 
   --  Introducing an initial framework to measure adoption and monetization 
      of Zeta's AI. 
NEW YORK--(BUSINESS WIRE)--August 04, 2026-- 

Zeta Global (NYSE: ZETA), the intelligent AI infrastructure company, today announced financial results for the second quarter ended June 30, 2026.

"Accelerating revenue growth to 44% and achieving the rule of 64 in the second quarter reflects the growing demand for Zeta's intelligent AI infrastructure platform," said David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta. "Our proprietary Data Cloud and Athena intelligence layer position us at the center of enterprise decision-making. With new momentum from our collaborations with OpenAI, Snowflake, and Palantir, we have reached an inflection point for Zeta, bringing together capabilities and investments we have been building for years. We are still in the early stages of what the Zeta platform can do for enterprises."

"Our results this quarter reflect the broad-based strength and consistent execution across the business, driven by AI adoption and usage across the platform," said Chris Greiner, Zeta's CFO. "Our first-half performance and pipeline visibility gives us the confidence to significantly increase the midpoint of our revenue, adjusted EBITDA, free cash flow and GAAP EPS expectations."

Increasing 2026 Guidance*

Third Quarter 2026

   --  Increasing revenue guidance to a range of $469 million to $472 million, 
      up $10 million at the midpoint from the prior guidance of $461 million. 
      The revised guidance represents a year-over-year growth rate of 39% to 
      40%, and 23% to 24% when excluding M&A and political candidate revenue. 
 
   --  Increasing adjusted EBITDA guidance to a range of $115.0 million to 
      $116.0 million, up $2.7 million at the midpoint from the prior guidance 
      of $112.8 million. The revised guidance represents a year-over-year 
      growth rate of 47% to 49% and an adjusted EBITDA margin of 24.4% to 
      24.7%. 

Full Year 2026

   --  Increasing revenue guidance to a range of $1,811 million to $1,824 
      million, up $33 million at the midpoint from the prior guidance of $1,785 
      million. The revised guidance represents a year-over-year growth rate of 
      39% to 40%, and 24% to 25% when excluding M&A and political candidate 
      revenue. 
   --  Increasing adjusted EBITDA guidance to a range of $404.1 million to 
      $406.3 million, up $7.9 million at the midpoint from the prior guidance 
      of $397.3 million. The revised guidance represents a year-over-year 
      growth rate of 45% to 46% and an adjusted EBITDA margin of 22.1% to 
      22.4%. 
   --  Increasing free cash flow guidance to a range of $254.8 million to 
      $255.8 million, up $20.3 million at the midpoint from the prior guidance 
      of $235.0 million. The revised guidance represents a year-over-year 
      growth rate of 55% and a free cash flow margin of 14.0% to 14.1%. 
   --  Increasing full year 2026 GAAP EPS guidance to a range of $0.09 to 
      $0.11, up $0.07 or greater than 300% at the midpoint from prior guidance 
      of $0.02 to $0.04. 

* This press release does not include a reconciliation of forward-looking adjusted EBITDA, adjusted EBITDA margin, free cash flow, and free cash flow margin to forward-looking GAAP net income / (loss), net income / (loss) margin, net cash provided by operating activities, or net cash provided by operating activities margin, respectively, because the Company is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to the Company's results.

Zeta Live

Zeta will hold its sixth annual conference, Zeta Live 2026, on Thursday, October 8, in New York City at David Geffen Hall, Lincoln Center. This year's program will examine how the most advanced organizations are building AI-powered marketing and dynamic Business Intelligence systems that know customers with greater precision, grow with measurable impact, and prove marketing's contribution to revenue with certainty. For more information or to request an invitation, visit here.

Investor Conference Call and Webcast

Zeta will host a conference call today, Tuesday, August 4, 2026, at 4:30 p.m. Eastern Time to discuss financial results for the second quarter of 2026. A supplemental earnings presentation and a live webcast of the conference call can be accessed from the Company's investor relations website where they will remain available for one year.

About Zeta

Zeta Global (NYSE: ZETA) is the intelligent AI infrastructure company helping enterprises transform proprietary data into enterprise intelligence. The Zeta Data Cloud and Athena by Zeta$(TM)$ connect proprietary enterprise knowledge with advanced AI to enable better decisions, more effective customer engagement, and stronger business outcomes. With one of the industry's largest proprietary data assets, Zeta helps organizations accelerate AI transformation and build durable competitive advantage. Founded in 2007 by David A. Steinberg and John Sculley, Zeta is headquartered in New York City with offices worldwide. Learn more at www.zetaglobal.com.

Forward-Looking Statements

This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release or during the earnings call that are not statements of historical fact, including statements about our third quarter 2026 guidance, full year 2026 guidance, the Zeta 2028 targets, the expected benefits, adoption, and impact of Athena, expectations regarding the contribution of Marigold's Enterprise Business, the expected benefits of and contributions from our partnerships and other strategic relationships, anticipated market share growth, the impacts of our prior investments on accelerating the timing of the marketing cloud replacement cycle, our products capabilities to provide strong investment returns to our customers, our strong competitive position, expansion of existing customers, the capabilities of AI and Zeta's platform, the predictability and profitability of our growth, and the growth and expansion of AI and the Zeta Marketing Platform, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning our anticipated future financial performance, our market opportunities and our expectations regarding our business plan and strategies. These statements often include words such as "anticipate," "expect," "suggests, " "plan," "believe," "intend," "estimates," "targets," "projects," "should," "could," "would," "may," "will," "forecast," "outlook," "guidance" and other similar expressions. We base these forward-looking statements on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at such time. Although we believe that these forward-looking statements are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our business, results of operations and financial condition and could cause actual results to differ materially from those expressed in the forward-looking statements. These statements are not guarantees of future performance or results.

The forward-looking statements are subject to and involve risks, uncertainties and assumptions, and you should not place undue reliance on these forward-looking statements. Factors that may materially affect such forward-looking statements include, but are not limited to: global supply chain disruptions; macroeconomic and industry trends and adverse developments in the debt, consumer credit and financial services markets and other macroeconomic factors beyond Zeta's control; increases in our borrowing costs as a result of changes in interest rates and other factors; the impact of inflation, tariffs and changes in global trade policies on us and on our customers; potential fluctuations in our operating results, which could make our future operating results difficult to predict; underlying circumstances, including cash flows, cash position, financial performance, market conditions and potential acquisitions; prevailing stock prices, general economic and market conditions; the impact of future pandemics, epidemics and other health crises on the global economy, our customers, employees and

business; domestic and international political and geopolitical conditions or uncertainty, including political or civil unrest or changes in trade policy; our ability to innovate and make the right investment decisions in our product offerings and platform; the impact of new generative AI capabilities and the proliferation of AI on our business; our ability to attract and retain customers, including our super-scaled customers; our ability to manage our growth effectively; our ability to identify and integrate acquisitions or strategic investments; our ability to collect and use data online; the standards that private entities and inbox service providers adopt in the future to regulate the use and delivery of email may interfere with the effectiveness of our platform and our ability to conduct business; a significant inadvertent disclosure or breach of confidential and/or personal information we process, or a security breach of our or our customers', suppliers' or other partners' computer systems; and any disruption to our third-party data centers, systems and technologies. These cautionary statements should not be construed by you to be exhaustive and the forward-looking statements are made only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

The third quarter and full year 2026 guidance provided herein and the Zeta 2028 targets are based on Zeta's current estimates and assumptions and are not a guarantee of future performance. The guidance and the Zeta 2028 targets provided are subject to significant risks and uncertainties, including the risk factors discussed in the Company's reports on file with the Securities and Exchange Commission ("SEC"), that could cause actual results to differ materially. There can be no assurance that the Company will achieve the results expressed by this guidance or the targets.

Availability of Information on Zeta's Website and Social Media Profiles

Investors and others should note that Zeta routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Zeta investor relations website at https://investors.zetaglobal.com ("Investors Website"). We also intend to use the social media profiles listed below as a means of disclosing information about us to our customers, investors and the public. While not all of the information that the Company posts to the Investors Website or to social media profiles is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Zeta to review the information that it shares on the Investors Website and to regularly follow our social media profile links located at the bottom of the page on www.zetaglobal.com. Users may automatically receive email alerts and other information about Zeta when enrolling an email address by visiting "Investor Email Alerts" in the "Resources" section of the Investors Website.

Social Media Profiles:

www.x.com/zetaglobal

www.facebook.com/zetaglobal/

www.linkedin.com/company/zetaglobal

www.instagram.com/zetaglobal/

www.youtube.com/@zetaglobal

The Following Definitions Apply to the Terms Used Throughout this Release, the Supplemental Earnings Presentation and Investor Conference Call

   --  Direct Platform and Integrated Platform: When the Company generates 
      revenues entirely through the Company platform, the Company considers it 
      direct platform revenue. When the Company generates revenue by leveraging 
      its platform's integration with third parties, it is considered 
      integrated platform revenue. 
 
   --  Cost of revenues (excluding depreciation and amortization): Cost of 
      revenues excludes depreciation and amortization and consists primarily of 
      media and marketing costs and certain employee-related costs. Media and 
      marketing costs consist primarily of fees paid to third-party publishers, 
      media owners or managers, and strategic partners that are directly 
      related to revenue-generating events. We pay these third-party publishers, 
      media owners or managers and strategic partners on revenue-share, a 
      cost-per-lead, cost-per-click, or cost-per-thousand-impressions basis. 
      Expenses related to "internet traffic" associated with the viewing of 
      available impressions or queries per second and costs of providing 
      support to our customers are also included in the cost of revenues 
      (excluding depreciation and amortization). Employee-related costs 
      included in cost of revenues (excluding depreciation and amortization) 
      include salaries, bonuses, commissions, stock-based compensation and 
      employee benefit costs primarily related to individuals directly 
      associated with providing services to our customers. Our cost of revenues 
      (excluding depreciation and amortization) is dependent on the revenue mix 
      and therefore can slightly increase or decrease in the future as a 
      percentage of revenue over the long term. 
 
   --  Super-Scaled Customers: We define super-scaled customers as customers 
      from which we generated at least $1,000,000 in revenue on a trailing 
      twelve-month basis. We calculate the number of super-scaled customers at 
      the end of each quarter and on an annual basis as the number of customers 
      billed during each applicable period. We believe the super-scaled 
      customers measure is both an important contributor to our revenue growth 
      and an indicator to investors of our measurable success. 
 
   --  Super-Scaled Customer ARPU: We calculate the super-scaled customer ARPU 
      as revenue for the corresponding period divided by the number of 
      super-scaled customers at the end of that period. We believe that 
      super-scaled customer ARPU is useful for investors because it is an 
      indicator of our ability to increase revenue and scale our business. 
 
   --  Zeta 2028: Zeta 2028 is the Company's next medium-term plan with 
      targets for business, product, and industry leadership. 
 
   --  Rule of 49: We define the Rule of 49 as the combination of revenue 
      growth percentage plus adjusted EBITDA margin percentage adding up to 49 
      or more. 
 
   --  Rule of 64: We define the Rule of 64 as the combination of revenue 
      growth percentage plus adjusted EBITDA margin percentage adding up to 64 
      or more. 

Non-GAAP Measures

In order to assist readers of our consolidated financial statements in understanding the core operating results that our management uses to evaluate the business and for financial planning purposes, we describe our non-GAAP measures below. We believe these non-GAAP measures are useful to investors in evaluating our performance by providing an additional tool for investors to use in comparing our financial performance over multiple periods.

   --  Adjusted EBITDA is a non-GAAP financial measure defined as net income / 
      (loss) adjusted for interest expenses, net, depreciation and amortization, 
      stock-based compensation, income tax (benefit) / provision, 
      acquisition-related expenses, restructuring expenses, change in fair 
      value of warrants and derivative liabilities, certain dispute settlement 
      expenses, gain on extinguishment of debt, certain non-recurring capital 
      raise related (including initial public offering ("IPO")) expenses, 
      including the payroll taxes related to vesting of restricted stock and 
      restricted stock units upon the completion of the IPO, and other (income) 
      / expenses. Acquisition-related expenses and restructuring expenses 
      primarily consist of professional services fees, severance and other 
      employee-related costs, which may vary from period to period depending on 
      the timing of our acquisitions and restructuring activities and may 
      distort the comparability of the results of operations. Change in fair 
      value of warrants and derivative liabilities is a non-cash expense 
      related to periodically recording "mark-to-market" changes in the 
      valuation of derivatives and warrants. Other (income) / expenses consists 
      of non-cash expenses such as changes in fair value of acquisition-related 
      liabilities, gains and losses on extinguishment of acquisition-related 
      liabilities, gains and losses on sales of assets and foreign exchange 
      gains and losses. In particular, we believe that the exclusion of 
      stock-based compensation, certain dispute settlement expenses and 
      non-recurring capital raise related (including IPO) expenses that are not 
      related to our core operations provides measures for period-to-period 
      comparisons of our business and provides additional insight into our core 
      controllable costs. We exclude these charges because these expenses are 
      not reflective of ongoing business and operating results. 
 
   --  Adjusted EBITDA margin is a non-GAAP financial measure defined as 
      adjusted EBITDA divided by the total revenues for the same period. 
 
   --  Free cash flow is a non-GAAP financial measure defined as cash from 
      operating activities, less capital expenditures and website and software 
      development costs, adjusted for the effect of exchange rates on cash and 
      cash equivalents. 
 
   --  Free cash flow margin is a non-GAAP financial measure defined as free 
      cash flow divided by revenue for the same period. 

Adjusted EBITDA, adjusted EBITDA margin, free cash flow, and free cash flow margin provide us with useful measures for period-to-period comparisons of our business as well as comparison to our peers. We believe that these non-GAAP financial measures are useful to investors in analyzing our financial and operational performance. Nevertheless, our use of adjusted EBITDA, adjusted EBITDA margin, free cash flow, and free cash flow margin has limitations as an analytical tool, and you should not consider these measures in isolation or as a substitute for analysis of our financial results as reported under GAAP. Other companies may calculate similarly-titled non-GAAP financial measures differently than us, thereby limiting the usefulness of these non-GAAP financial measures as a comparative tool. Because of these and other limitations, you should consider our non-GAAP measures only as supplemental to other GAAP-based financial performance measures, including revenues and net income / (loss).

We calculate forward-looking adjusted EBITDA, adjusted EBITDA margin, free cash flow, and free cash flow margin based on internal forecasts that omit certain amounts that would be included in forward-looking GAAP net income / (loss). We do not attempt to provide a reconciliation of forward-looking adjusted EBITDA, adjusted EBITDA margin, free cash flow, and free cash flow margin guidance and targets to forward-looking GAAP net income / (loss), GAAP net income / (loss) margin GAAP cash flows from operating activities, or GAAP cash flows from operating activities margin, respectively, because forecasting the timing or amount of items that have not yet occurred and are out of our control is inherently uncertain and unavailable without unreasonable efforts. Further, we believe that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.

 
                       Zeta Global Holdings Corp. 
            Condensed Unaudited Consolidated Balance Sheets 
                             (In thousands) 
 
                                                 As of 
                                  ------------------------------------ 
                                   June 30, 2026    December 31, 2025 
                                  ---------------  ------------------- 
Assets 
Current assets: 
   Cash and cash equivalents      $       309,952  $           319,764 
   Accounts receivable                    327,132              322,391 
   Prepaid expenses                        28,450               28,970 
   Other current assets                    12,197               14,658 
                                      -----------      --------------- 
Total current assets              $       677,731  $           685,783 
                                      -----------      --------------- 
Non-current assets: 
   Property and equipment, net    $        18,495  $            15,393 
   Website and software 
    development costs, net                 34,629               31,520 
   Right-to-use assets - 
    operating leases, net                  21,508               19,101 
   Intangible assets, net                 185,350              217,943 
   Goodwill                               524,708              527,886 
   Deferred tax assets, net                 1,131                1,211 
   Other non-current assets                 4,292                4,687 
                                      -----------      --------------- 
Total non-current assets          $       790,113  $           817,741 
                                      -----------      --------------- 
Total assets                      $     1,467,844  $         1,503,524 
                                      ===========      =============== 
Liabilities and Stockholders' 
Equity 
Current liabilities: 
   Accounts payable               $        32,353  $            40,136 
   Accrued expenses                       165,243              179,087 
   Acquisition-related 
    liabilities                            24,792              149,036 
   Deferred revenue                        33,859               35,398 
   Other current liabilities               28,326               25,824 
                                      -----------      --------------- 
Total current liabilities         $       284,573  $           429,481 
                                      -----------      --------------- 
Non-current liabilities: 
   Long-term borrowings           $       197,481  $           197,083 
   Acquisition-related 
    liabilities                            26,113               39,447 
   Deferred tax liabilities, net           17,134               17,268 
   Other non-current liabilities           16,046               15,656 
                                      -----------      --------------- 
Total non-current liabilities     $       256,774  $           269,454 
                                      -----------      --------------- 
Total liabilities                 $       541,347  $           698,935 
                                      -----------      --------------- 
Stockholders' equity: 
   Class A Common Stock           $           227  $               221 
   Class B Common Stock                        24                   24 
   Additional paid-in capital           1,997,492            1,863,695 
   Accumulated deficit                (1,064,891)          (1,059,817) 
   Accumulated other 
    comprehensive (loss) / gain           (6,355)                  466 
                                      -----------      --------------- 
Total stockholders' equity        $       926,497  $           804,589 
                                      -----------      --------------- 
Total liabilities and 
 stockholders' equity             $     1,467,844  $         1,503,524 
                                      ===========      =============== 
 
 
 
     Condensed Unaudited Consolidated Statements of Operations and 
              Comprehensive Income / (Loss) (In thousands) 
 
                              Three months ended    Six months ended 
                                   June 30,             June 30, 
                              -------------------  ------------------- 
                                2026      2025       2026      2025 
                              --------  ---------  --------  --------- 
Revenues                      $442,766  $ 308,442  $839,070  $ 572,861 
Operating expenses: 
   Cost of revenues 
    (excluding depreciation 
    and amortization)          180,997    116,988   343,443    220,476 
   General and 
    administrative expenses     75,915     62,172   149,312    116,209 
   Selling and marketing 
    expenses                   104,037     86,392   206,440    161,761 
   Research and development 
    expenses                    42,235     30,592    87,185     57,391 
   Depreciation and 
    amortization                22,658     17,403    46,187     35,090 
   Acquisition-related 
   expenses                         --         --     1,666         -- 
   Restructuring expenses           --         --     6,752      3,152 
                               -------   --------   -------   -------- 
Total operating expenses      $425,842  $ 313,547  $840,985  $ 594,079 
Income / (loss) from 
 operations                     16,924    (5,105)   (1,915)   (21,218) 
   Interest expenses, net          898        166     1,659        497 
   Other expenses, net           8,226      6,351     4,450      9,863 
                               -------   --------   -------   -------- 
Total other expenses          $  9,124  $   6,517  $  6,109  $  10,360 
Income / (loss) before 
 income taxes                    7,800   (11,622)   (8,024)   (31,578) 
Income tax (benefit) / 
 provision                       (373)      1,192   (2,950)      2,836 
                               -------   --------   -------   -------- 
Net income / (loss)           $  8,173  $(12,814)  $(5,074)  $(34,414) 
                               =======   ========   =======   ======== 
 
 
The Company recorded stock-based compensation under respective 
lines of the above condensed unaudited consolidated statements 
of operations and comprehensive income / (loss): 
 
                             Three months    Six months ended 
                            ended June 30,       June 30, 
                           ----------------  ----------------- 
                            2026     2025      2026     2025 
                           -------  -------  --------  ------- 
Cost of revenues 
 (excluding depreciation 
 and amortization)         $   160  $   302  $    430  $   563 
General and 
 administrative expenses    16,138   14,896    30,916   30,315 
Selling and marketing 
 expenses                   23,418   22,460    48,574   42,005 
Research and development 
 expenses                   12,399    8,813    25,227   15,575 
                            ------   ------   -------   ------ 
Total                      $52,115  $46,471  $105,147  $88,458 
                            ======   ======   =======   ====== 
 
 
 
      Condensed Unaudited Consolidated Statements of Cash Flows 
                            (In thousands) 
 
                                         Six months ended June 30, 
                                       ----------------------------- 
                                            2026            2025 
                                       ---------------  ------------ 
Cash flows from operating 
activities: 
Net loss                               $       (5,074)  $   (34,414) 
Adjustments to reconcile net loss to 
net cash provided by operating 
activities: 
   Depreciation and amortization                46,187        35,090 
   Stock-based compensation                    105,147        88,458 
   Deferred income taxes                         (536)         (345) 
   Change in fair value of 
    acquisition-related liabilities              2,759         9,165 
   Others, net                                 (1,003)         2,761 
Changes in operating assets and 
liabilities (net of acquisitions): 
   Accounts receivable                         (5,307)      (19,067) 
   Prepaid expenses                               (45)         1,938 
   Other current assets                          2,441         (723) 
   Other non-current assets                        256           156 
   Deferred revenue                            (1,301)       (6,543) 
   Accounts payable                            (8,550)         2,703 
   Accrued expenses and other current 
    liabilities                               (11,488)       (3,515) 
   Other non-current liabilities                   248         1,184 
   Payment of acquisition-related 
   liabilities                                 (4,820)            -- 
                                           -----------   ----------- 
Net cash provided by operating 
 activities                            $       118,914  $     76,848 
                                           -----------   ----------- 
Cash flows from investing 
activities: 
Capital expenditures                           (7,833)       (5,085) 
Website and software development 
 costs                                        (12,272)       (9,953) 
Acquisitions and other investments, 
 net of cash acquired                         (50,811)       (1,202) 
                                           -----------   ----------- 
Net cash used for investing 
 activities                            $      (70,916)  $   (16,240) 
                                           -----------   ----------- 
Cash flows from financing 
activities: 
Cash paid for acquisition-related 
 liabilities                                   (8,382)       (6,333) 
Proceeds from credit facilities, net 
 of issuance cost                               10,000         6,250 
Issuance under employee stock 
 purchase plan                                   2,456         1,904 
Exercise of options                              2,908           964 
Repurchase of shares                          (55,629)      (57,931) 
Repayments against the credit 
 facilities                                   (10,000)       (6,250) 
                                           -----------   ----------- 
Net cash used for financing 
 activities                            $      (58,647)  $   (61,396) 
                                           -----------   ----------- 
Effect of exchange rate changes on 
 cash and cash equivalents                         837          (55) 
                                           -----------   ----------- 
Net decrease in cash and cash 
 equivalents                           $       (9,812)  $      (843) 
                                           -----------   ----------- 
Cash and cash equivalents, beginning 
 of period                                     319,764       366,157 
                                           -----------   ----------- 
Cash and cash equivalents, end of 
 period                                $       309,952  $    365,314 
                                           ===========   =========== 
 
 
 
       Reconciliation of GAAP to Non-GAAP Financial Measures 
                           (In thousands) 
 
The following table reconciles adjusted EBITDA and adjusted EBITDA 
margin to net income / (loss) and net income / (loss) margin, 
respectively, the most directly comparable financial measure 
calculated and presented in accordance with GAAP. 
 
                          Three months ended   Six months ended 
                               June 30,            June 30, 
                          ------------------  ------------------- 
                           2026      2025       2026      2025 
                          -------  ---------  --------  --------- 
Net income / (loss)       $ 8,173  $(12,814)  $(5,074)  $(34,414) 
Net income / (loss) 
 margin                      1.8%     (4.2)%    (0.6)%     (6.0)% 
Add back: 
   Depreciation and 
    amortization           22,658     17,403    46,187     35,090 
   Acquisition-related 
   expenses                    --         --     1,666         -- 
   Restructuring 
    expenses                   --         --     6,752      3,152 
   Stock-based 
    compensation           52,115     46,471   105,147     88,458 
   Other expenses, net      8,226      6,351     4,450      9,863 
   Interest expenses, 
    net                       898        166     1,659        497 
   Income tax (benefit) 
    / provision             (373)      1,192   (2,950)      2,836 
                           ------   --------   -------   -------- 
Adjusted EBITDA           $91,697  $  58,769  $157,837  $ 105,482 
                           ======   ========   =======   ======== 
Adjusted EBITDA margin      20.7%      19.1%     18.8%      18.4% 
 
 
The following table reconciles net cash provided by operating 
activities in the condensed unaudited consolidated statements of 
cash flows to free cash flow: 
 
                Three months ended June   Six months ended June 
                          30,                      30, 
                ------------------------  ---------------------- 
                   2026         2025          2026        2025 
                -----------  -----------  ------------  -------- 
Net cash 
 provided by 
 operating 
 activities     $    69,180  $    42,049  $    118,914  $ 76,848 
Capital 
 expenditures       (4,821)      (2,349)       (7,833)   (5,085) 
Website and 
 software 
 development 
 costs              (6,730)      (5,798)      (12,272)   (9,953) 
Effect of 
 exchange rate 
 changes on 
 cash and cash 
 equivalents            335        (344)           837      (55) 
                    -------      -------      --------   ------- 
Free cash flow  $    57,964  $    33,558  $     99,646  $ 61,755 
                    =======      =======      ========   ======= 
Free cash flow 
 margin               13.1%        10.9%         11.9%     10.8% 
 
 
The following table reconciles revenues in Consolidated Statements of 
Operations to revenues excluding LiveIntent, Marigold's Enterprise 
Business and political candidate revenues (in millions): 
 
                                 Three months ended 
               ------------------------------------------------------- 
                 September 
                   2025       December 2025   March 2026    June 2026 
               -------------  -------------  ------------  ----------- 
Revenues       $         337  $         395  $        396  $       443 
LiveIntent 
 revenue              (20.6)         (22.5)            --           -- 
Marigold's 
 Enterprise 
 Business 
 revenue                  --         (18.6)        (55.6)       (48.1) 
Political 
candidate 
revenue                  NM*            NM*           NM*          NM* 
               -------------  -------------  ------------  ----------- 
Revenues 
 excluding 
 LiveIntent, 
 Marigold's 
 Enterprise 
 Business & 
 political 
 candidate     $         317  $         354  $        341  $       395 
                   =========      =========      ========      ======= 
 
*NM: Not 
 Material 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260804939577/en/

 
    CONTACT:    Investor Relations 

Trey Campbell

ir@zetaglobal.com

Press

Candace Dean

press@zetaglobal.com

 
 

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