Ziff Davis Inc. reported fourth‑quarter 2025 revenue of $406.7 million, a 1.5% decline from the $412.8 million earned in the same period a year earlier. Adjusted earnings per share were $2.56, falling short of the consensus estimate of $2.70‑$2.79 and marking a miss of roughly $0.14‑$0.23 per share. The miss reflects a combination of lower revenue in the company’s core Tech & Shopping segment and a one‑time loss on the sale of a business, which totaled $58.0 million in pre‑tax terms.
The Tech & Shopping segment posted an 18% revenue decline, driven by lower web‑search traffic that reduced affiliate‑commerce revenue. In contrast, the Health & Wellness and Connectivity segments grew 8.6% and 11% respectively, partially offsetting the decline in the core segment. The company’s adjusted EBITDA fell 5.0% to $163.2 million, a decline largely attributable to the $17.6 million goodwill impairment recorded in 2025 and the revenue shortfall in Tech & Shopping.
Despite the earnings miss, Ziff Davis generated $157.8 million in free cash flow for the quarter, up 20.4% from $131.1 million a year earlier, and $287.9 million for the full year, a modest 1.5% increase. The company completed $174 million in share repurchases during 2025, underscoring its commitment to returning value to shareholders. CEO Vivek Shah said, "modest growth, with revenue up 3.5% and nearly $290 million in free cash flow generated," and added, "We deployed $174 million in share repurchases during the year with the conviction that our share price does not adequately reflect the intrinsic value of our businesses."
Management indicated that it is deferring 2026 guidance as it completes a strategic review of its portfolio. CFO Bret Richter noted, "Fourth quarter 2025 revenue was $406.7 million as compared with revenue of $412.8 million for the prior year period, a decline of 1.5%," and explained that the exit from Game Publishing reduced Tech & Shopping segment revenues by $2.5 million in the fourth quarter and by $4.9 million in the full year. The company’s strategic review aims to evaluate potential divestitures and realign its business mix.
Investors reacted negatively to the earnings miss and the deferral of guidance, citing concerns over the continued weakness in the Tech & Shopping segment and the impact of the goodwill impairment on profitability. The market’s reaction underscores the importance of the company’s upcoming strategic decisions and the need for clearer guidance on future performance.
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