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SEC filingZeta Global's Q2 2025 revenue grew 35.4% YoY to $308M, driven by scaled customer expansion and ARPU growth, with Adjusted EBITDA margin expanding to 19.1%.
In Q2 2025, Zeta Global delivered robust revenue growth of 35.4% YoY to $308.4M, driven by both new customer additions and expansion within the existing base. New customers contributed $52.4M, including $20.1M from the LiveIntent acquisition, while existing customers added $28.2M. Cost of revenues (excluding D&A) grew at a slower pace of 28.4% to $117.0M, resulting in a gross margin expansion to approximately 62.1% from 60.0% a year ago (computed as revenue minus cost of revenues). Operating loss narrowed significantly from $26.6M to $5.1M, reflecting operating leverage, while net loss improved to $12.8M from $28.1M. Adjusted EBITDA increased 52.5% to $58.8M, with margin expanding 220 bps to 19.1%. Non-cash stock-based compensation remained high at $46.5M.
Zeta operates as a single reportable segment, with no further breakdown. The key growth drivers were scaled customers (21% increase to 567) and super-scaled customers (168, up from 144). Scaled customer ARPU increased 11% to $532K, and super-scaled ARPU rose 19% to $1.6M, indicating deepening platform usage. Revenue mix shifted toward direct platform revenue (74% of total in H1 2025 vs 67% in H1 2024), reflecting higher value from proprietary data and AI capabilities. Operating expenses grew but at a slower rate than revenue, with selling and marketing expenses up 14.3% (vs 35.4% revenue growth), signaling improved sales efficiency.
Management did not provide specific numerical forward guidance in this MD&A. However, the narrative highlights expectations for continued investment in sales and marketing, R&D, and general and administrative functions, which will increase in absolute dollars but decrease as a percentage of revenue over the long term. The company noted no material impact from tariffs or trade policies to date but acknowledged ongoing macroeconomic uncertainty. The recent integration of LiveIntent's identity graph is expected to strengthen data assets and enable authenticated marketing. With strong cash flow from operations ($76.8M in H1 2025) and $365.3M in cash, the company appears well-positioned to fund growth initiatives, including product development and potential M&A, while also executing on its $100M share repurchase program.
As of June 30, 2025, Zeta Global holds $365.3 million in cash and cash equivalents. Total debt is $196.7 million, consisting of a $192.5 million term loan and $7.5 million drawn on the revolving facility (net of $3.3 million in unamortized deferred financing costs). The company has $342.5 million undrawn on its $550 million senior secured credit facility. Shareholders' equity stands at $673.3 million, down slightly from $676.8 million at year-end 2024 due to net losses and share repurchases.
Purchase commitments under non-cancelable vendor agreements total $77.2 million, with $27.1 million due in the remainder of 2025, $39.9 million in 2026, and $10.2 million in 2027. Additionally, remaining performance obligations (RPO) are $135.7 million ($67.0 million within 12 months and $68.7 million thereafter). Operating lease commitments are $13.4 million undiscounted ($12.0 million discounted).
Share Repurchases: During the six months ended June 30, 2025, the company repurchased 4.29 million shares of Class A common stock for $57.1 million. As of June 30, $26.9 million remained under the 2024 repurchase program. On July 23, 2025, a new $200 million share repurchase program was authorized through December 31, 2027. Dividends: None declared. Debt: The company borrowed and repaid $6.25 million during the period, resulting in no net change. Capex (including website/software development) totaled $15.0 million for the six months.
Zeta Global operates as a single reporting segment. Revenue disaggregation by geography: U.S. revenue was $553.2 million (96.6%) and international $19.7 million (3.4%) for the six months ended June 30, 2025. Revenue by platform: Direct platform revenue was 74%, integrated platform revenue 26% for the same period. Long-lived assets outside the U.S. totaled $6.2 million vs. $14.7 million in the U.S.
Zeta Global's operating cash flow (CFO) of $76.8M exceeded net loss of $(34.4M) due to large non-cash charges: $88.5M stock-based compensation, $35.1M depreciation/amortization, and $9.2M change in acquisition liabilities. Working capital consumed $23.9M, led by accounts receivable growth ($19.1M) and deferred revenue decline ($6.5M), offset by modest payables increase. Capex intensity (capex/CFO) was 19.6%, moderate relative to prior year's 37.3%. Despite CFO strength, aggressive share repurchases of $57.9M—funded largely by debt proceeds and cash reserves—outpaced CFO, raising leverage concerns. Investing outflows included $1.2M for acquisitions. Financing also saw $6.3M in acquisition-related payments and net credit facility repayments. The net cash decrease of $0.8M was marginal, with end cash of $365.3M. Overall, cash generation improved, but heavy stock-based compensation and working capital swings warrant monitoring.