ZD · Ziff Davis, Inc.

Ziff Davis reported preliminary Q1 2026 results from continuing operations showing revenues of $267.6 million, a 1.9% decline from $272.8 million in Q1 2025, primarily driven by a 12.9% drop in Technology & Shopping to $71.1 million, partially offset by growth in Gaming & Entertainment (7.2% to $40.8 million), Cybersecurity & Martech (3.6% to $69.8 million), and flat Health & Wellness (0.2% to $85.9 million). Operating income fell sharply to $2.9 million from $14.5 million, yielding a 1.1% margin versus 5.3% prior year, reflecting higher operating costs. Adjusted EBITDA declined 11.2% to $63.4 million with margin compression to 23.7% from 26.2%. GAAP net loss from continuing operations was $(0.8) million or $(0.02) per share, versus $9.8 million profit last year, impacted by GAAP effective tax rate of (80.5)% versus 53.2%. Non-GAAP Adjusted diluted EPS was $0.73, down 5.2% from $0.77. CEO Vivek Shah highlighted focus on shareholder value through Connectivity divestiture and other transactions, noting strength in many businesses amid headwinds. The Company entered a definitive agreement to sell its Connectivity business, now discontinued operations with Q1 net income of $23.0 million, and will operate it normally until closing. Cash from operations rose 45.3% to $30.0 million on combined basis, with $51.6 million in share repurchases. Balance sheet shows $520 million cash equivalents and $872 million gross debt. No fiscal 2026 guidance due to ongoing strategic review with advisors. Earnings call set for May 8, 2026.