Zeta Global Holdings Corp. reported fourth‑quarter 2025 results that surpassed expectations, with revenue reaching $394.64 million—up 25.4% year‑over‑year—and earnings per share of $0.28, beating the consensus estimate of $0.23 by $0.05. The company’s revenue beat the $380.45 million consensus by $14.19 million, marking the 18th consecutive quarter in which Zeta has both beat and raised its guidance.
The earnings beat was driven by robust demand for the company’s AI‑native platform and its direct‑platform mix. Revenue in Q4 2025 rose from $337 million in Q3 2025 and from $314.67 million in Q4 2024, underscoring a sustained acceleration in the core business. Management attributed the margin expansion to a higher mix of high‑margin AI contracts and disciplined cost control, even as the cost of revenue increased due to growth in social and connected‑TV spend.
Adjusted EBITDA margin for the year was 21.5%, up from 21.4% in the prior year, and the quarter’s margin of 24.1% reflected the company’s ability to capture pricing power in its flagship Athena platform. The margin lift was offset by a modest rise in cost of revenue, but overall profitability improved as the company leveraged scale and operational efficiencies.
Zeta raised its fiscal‑2026 revenue guidance to $1.749 billion–$1.762 billion, above the $1.717 billion consensus estimate, and maintained an adjusted EBITDA margin outlook of 23% for 2026. CFO Chris Greiner said, “Our increased 2026 guidance reflects the momentum we are seeing in the business, and we see 2026 as another year in which total revenue growth can eclipse 30% while simultaneously turning GAAP Net Income positive.” The guidance signals strong confidence in continued demand for AI‑driven marketing solutions.
The market reacted positively, with shares rising 1.7% to 2.7% in after‑hours trading. The lift was driven by the company’s 18th consecutive beat‑and‑raise streak, the raised FY2026 guidance, and the emphasis on AI as a growth engine. CEO David A. Steinberg noted, “We delivered our 18th consecutive beat‑and‑raise quarter.” He added, “AI is the new UI, and Athena proves it.” Steinberg also said, “We continue to be substantially more profitable than anybody else in the media space.”
Headwinds remain, including a conservative view on Political Candidate revenue and the integration of Marigold’s enterprise software business, which may temporarily pressure margins. Tailwinds include the continued adoption of Athena, the strategic benefits of the Marigold acquisition, and the broader market shift toward AI‑native marketing platforms. Together, these factors suggest that Zeta is well positioned to sustain its growth trajectory while navigating short‑term integration challenges.
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