Operating margins have collapsed to 1.1% in 2026Q1, reflecting an inability to scale SG&A expenses against a revenue base that declined by 18.6% year-over-year.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 1.39B | 1.45B | 1.4B | 1.36B | 1.39B | 1.42B | 1.16B | 1.37B | 1.21B | 1.12B | 874.25M | 720.82M | 599.03M | 520.8M | 371.4M | 330.16M | 255.39M | 245.57M | 241.51M | 220.7M | 181.08M | 143.94M | 106.34M | 71.62M | 48.21M | 33.25M | 13.93M | 7.6M | 3.5M |
| Revenue Growth % | -1.81% | 3.54% | 2.76% | -1.94% | -1.82% | 22.25% | -15.54% | 13.65% | 8% | 27.86% | 21.29% | 20.33% | 15.02% | 40.23% | 12.49% | 29.27% | 4% | 1.68% | 9.43% | 21.88% | 25.8% | 35.36% | 48.48% | 48.55% | 44.99% | 138.66% | 83.33% | 117.14% | - |
| Cost of Goods Sold | 364.06M | 435.17M | 200.32M | 185.65M | 184.55M | 188.05M | 178.4M | 237.32M | 201.07M | 172.31M | 147.1M | 122.96M | 105.99M | 86.89M | 67.01M | 60.61M | 44.09M | 44.73M | 46.25M | 43.99M | 36.72M | 29.76M | 16.51M | 13.32M | 11.2M | 13.41M | 4.7M | 2.7M | 2.3M |
| COGS % of Revenue | - | 29.99% | 14.29% | 13.61% | 13.27% | 13.27% | 15.4% | 17.3% | 16.65% | 15.41% | 16.83% | 17.06% | 17.69% | 16.68% | 18.04% | 18.36% | 17.26% | 18.21% | 19.15% | 19.93% | 20.28% | 20.68% | 15.53% | 18.6% | 23.23% | 40.33% | 33.73% | 35.53% | 65.71% |
| Gross Profit | 1.03B | 1.02B | 1.2B | 1.18B | 1.21B | 1.23B | 980.43M | 1.13B | 1.01B | 945.52M | 727.15M | 597.86M | 493.04M | 433.91M | 304.38M | 269.55M | 211.31M | 200.84M | 195.26M | 176.71M | 144.36M | 114.18M | 89.83M | 58.3M | 37.01M | 19.84M | 9.23M | 4.9M | 1.2M |
| Gross Margin % | 73.81% | 70.01% | 85.71% | 86.39% | 86.73% | 86.73% | 84.6% | 82.7% | 83.35% | 84.59% | 83.17% | 82.94% | 82.31% | 83.32% | 81.96% | 81.64% | 82.74% | 81.79% | 80.85% | 80.07% | 79.72% | 79.32% | 84.47% | 81.4% | 76.77% | 59.67% | 66.27% | 64.47% | 34.29% |
| Gross Profit Growth % | - | -15.42% | 1.95% | -2.33% | -1.81% | 25.32% | -13.6% | 12.77% | 6.42% | 30.03% | 21.63% | 21.26% | 13.63% | 42.55% | 12.92% | 27.56% | 5.21% | 2.86% | 10.5% | 22.41% | 26.43% | 27.11% | 54.08% | 57.52% | 86.54% | 114.87% | 88.45% | 308.33% | - |
| Operating Expenses | 867.21M | 812.17M | 1.09B | 1.05B | 1.01B | 1.06B | 842.09M | 774.91M | 761.94M | 699.82M | 484.59M | 398.48M | 306.83M | 258.49M | 142.22M | 133.6M | 107.39M | 96.38M | 97.33M | 90.28M | 78.32M | 52.76M | 43.79M | 31.05M | 23.21M | 28.56M | 33.8M | 18M | 12.2M |
| OpEx % of Revenue | - | 55.96% | 77.6% | 76.67% | 72.43% | 74.91% | 72.67% | 56.48% | 63.11% | 62.6% | 55.43% | 55.28% | 51.22% | 49.63% | 38.29% | 40.46% | 42.05% | 39.25% | 40.3% | 40.91% | 43.25% | 36.65% | 41.18% | 43.35% | 48.13% | 85.9% | 242.62% | 236.84% | 348.57% |
| Selling, General & Admin | 740.51M | 750.93M | 723.15M | 683.09M | 672.65M | 949.83M | 784.94M | 803.25M | 713.57M | 653.81M | 446.54M | 364.15M | 276.15M | 233M | 123.6M | 117.22M | 94.56M | 82.28M | 85.3M | 78.45M | 69.55M | 45.89M | 38.54M | 26.75M | 19.91M | 18.51M | 24.05M | 14.3M | 9.9M |
| SG&A % of Revenue | - | 51.74% | 51.59% | 50.08% | 48.36% | 67.04% | 67.74% | 58.54% | 59.1% | 58.49% | 51.08% | 50.52% | 46.1% | 44.74% | 33.28% | 35.5% | 37.02% | 33.51% | 35.32% | 35.55% | 38.41% | 31.88% | 36.24% | 37.35% | 41.29% | 55.65% | 172.65% | 188.16% | 282.86% |
| Research & Development | 59.72M | 61.96M | 67.37M | 68.86M | 74.09M | 78.87M | 57.15M | 54.4M | 48.37M | 46M | 38.05M | 34.33M | 30.68M | 25.48M | 18.62M | 16.37M | 12.83M | 11.66M | 12.03M | 11.83M | 8.77M | 6.87M | 5.25M | 4.2M | 3.19M | 2.53M | 2.76M | 1.8M | 1.2M |
| R&D % of Revenue | - | 4.27% | 4.81% | 5.05% | 5.33% | 5.57% | 4.93% | 3.96% | 4.01% | 4.12% | 4.35% | 4.76% | 5.12% | 4.89% | 5.01% | 4.96% | 5.02% | 4.75% | 4.98% | 5.36% | 4.84% | 4.77% | 4.94% | 5.86% | 6.61% | 7.62% | 19.82% | 23.68% | 34.29% |
| Other Operating Expenses | 0 | 0 | 297.19M | 293.82M | 260.77M | 32.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.44M | 0 | 0 | 0 | 1.99M | 0 | 101K | 112.5K | 7.52M | 6.99M | 1.9M | 1.1M |
| Operating Income | 159M | 203.93M | 113.65M | 132.61M | 198.94M | 167.34M | 138.34M | 277.08M | 244.28M | 245.71M | 242.57M | 199.38M | 186.21M | 175.42M | 162.16M | 135.95M | 103.92M | 104.46M | 97.93M | 86.43M | 66.04M | 61.42M | 46.04M | 27.25M | 13.81M | -8.72M | -24.57M | -13.1M | -11M |
| Operating Margin % | 11.44% | 14.05% | 8.11% | 9.72% | 14.3% | 11.81% | 11.94% | 20.19% | 20.23% | 21.98% | 27.75% | 27.66% | 31.08% | 33.68% | 43.66% | 41.18% | 40.69% | 42.54% | 40.55% | 39.16% | 36.47% | 42.67% | 43.29% | 38.05% | 28.63% | -26.23% | -176.34% | -172.37% | -314.29% |
| Operating Income Growth % | - | 79.44% | -14.3% | -33.34% | 18.88% | 20.96% | -50.07% | 13.43% | -0.58% | 1.3% | 21.66% | 7.08% | 6.15% | 8.18% | 19.28% | 30.82% | -0.52% | 6.66% | 13.32% | 30.88% | 7.52% | 33.42% | 68.94% | 97.38% | 258.29% | 64.5% | -87.56% | -19.09% | - |
| EBITDA | 376.74M | 432.62M | 325.56M | 369.58M | 432.34M | 425.64M | 367.08M | 509.11M | 431.45M | 407.75M | 364.66M | 292.6M | 249.16M | 215.21M | 184.33M | 155.71M | 118.43M | 119.17M | 111.11M | 96.56M | 74.27M | 68.53M | 50.59M | 31.16M | 17.29M | 972.55K | -17.58M | -11.2M | -9.9M |
| EBITDA Margin % | 27.1% | 29.81% | 23.23% | 27.09% | 31.08% | 30.04% | 31.68% | 37.11% | 35.74% | 36.48% | 41.71% | 40.59% | 41.59% | 41.32% | 49.63% | 47.16% | 46.37% | 48.53% | 46.01% | 43.75% | 41.01% | 47.61% | 47.57% | 43.51% | 35.87% | 2.92% | -126.19% | -147.37% | -282.86% |
| EBITDA Growth % | 13.4% | 32.88% | -11.91% | -14.52% | 1.57% | 15.95% | -27.9% | 18% | 5.81% | 11.82% | 24.63% | 17.43% | 15.77% | 16.76% | 18.38% | 31.47% | -0.62% | 7.25% | 15.07% | 30.02% | 8.37% | 35.47% | 62.34% | 80.18% | 1678.2% | 105.53% | -56.98% | -13.13% | - |
| D&A (Non-Cash Add-back) | 217.74M | 228.69M | 211.92M | 236.97M | 233.4M | 258.3M | 228.74M | 232.03M | 187.17M | 162.04M | 122.09M | 93.21M | 62.95M | 39.79M | 22.16M | 19.76M | 14.51M | 14.71M | 13.18M | 10.13M | 8.23M | 7.11M | 4.55M | 3.91M | 3.49M | 9.69M | 6.99M | 1.9M | 1.1M |
| EBIT | 83M | 98.71M | 107.18M | 95M | 165M | 423.37M | 134.54M | 81.71M | 239.57M | 267.74M | 252.81M | 199.38M | 186.37M | 163.95M | 162.57M | 136.49M | 108.6M | 96.42M | 102.71M | 86.43M | 66.04M | 60.47M | 45.35M | 27.25M | 13.81M | -8.72M | -24.57M | -13.1M | -11M |
| Net Interest Income | -51.98M | -25.91M | -13.99M | -20.03M | -33.84M | -72.02M | -56.19M | -26.89M | -61.99M | -67.78M | -41.37M | -42.46M | -31.2M | -21.25M | -7.65M | 629K | 2.03M | 1.36M | 4.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.8M | 1.31M | 6.71M | 2.66M | 4.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 51.98M | 25.91M | 13.99M | 20.03M | 33.84M | 72.02M | 56.19M | 26.89M | 61.99M | 67.78M | 41.37M | 42.46M | 31.2M | 21.25M | 7.24M | 147K | 104K | 439K | 559K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -117.17M | -131.13M | -9.23M | -66.97M | -75.52M | 219.86M | -71.33M | -33.4M | -66.69M | -45.74M | -31.13M | -42.46M | -31.04M | -32.73M | -7.24M | 1.17M | 6.71M | -6.68M | 4.22M | 9.04M | 7.2M | 13.15M | 1.18M | 419K | 438K | 890.79K | 2.36M | 13.1M | 11M |
| Pretax Income | 41.84M | 72.8M | 104.42M | 65.64M | 123.42M | 387.2M | 67.01M | 54.82M | 177.59M | 199.97M | 211.44M | 156.92M | 155.17M | 142.7M | 154.92M | 137.12M | 110.64M | 97.78M | 102.15M | 95.46M | 73.23M | 73.62M | 46.53M | 27.67M | 14.24M | -7.83M | -22.21M | 0 | 0 |
| Pretax Margin % | 3.01% | 5.02% | 7.45% | 4.81% | 8.87% | 27.33% | 5.78% | 4% | 14.71% | 17.89% | 24.19% | 21.77% | 25.9% | 27.4% | 41.71% | 41.53% | 43.32% | 39.82% | 42.3% | 43.25% | 40.44% | 51.15% | 43.76% | 38.63% | 29.54% | -23.55% | -159.44% | - | - |
| Income Tax | 19.5M | 25.45M | 41.37M | 24.14M | 57.96M | -14.2M | 38.35M | -19.38M | 44.76M | 60.54M | 59M | 23.28M | 29.84M | 35.17M | 33.26M | 22.35M | 27.59M | 30.95M | 29.59M | 27M | 20.1M | 23.31M | 15.61M | -8.14M | 151.35K | 4K | 4.05K | 0 | 0 |
| Effective Tax Rate % | 46.6% | 34.95% | 39.62% | 36.78% | 46.96% | -3.67% | 57.23% | -35.34% | 25.2% | 30.28% | 27.9% | 14.84% | 19.23% | 24.65% | 21.47% | 16.3% | 24.94% | 31.66% | 28.97% | 28.28% | 27.45% | 31.66% | 33.55% | -29.41% | 1.06% | -0.05% | -0.02% | - | - |
| Net Income | 45.38M | 47.35M | 63.05M | 41.5M | 63.76M | 496.71M | 150.67M | 218.81M | 128.69M | 139.43M | 152.44M | 133.64M | 125.33M | 107.52M | 121.58M | 114.77M | 83.05M | 66.83M | 72.56M | 68.46M | 53.13M | 51.26M | 31.61M | 35.81M | 14.32M | -7.83M | -22.22M | -17.4M | -17.2M |
| Net Margin % | 3.26% | 3.26% | 4.5% | 3.04% | 4.58% | 35.06% | 13% | 15.95% | 10.66% | 12.47% | 17.44% | 18.54% | 20.92% | 20.65% | 32.74% | 34.76% | 32.52% | 27.21% | 30.04% | 31.02% | 29.34% | 35.61% | 29.72% | 49.99% | 29.7% | -23.56% | -159.47% | -228.95% | -491.43% |
| Net Income Growth % | -40.81% | -24.89% | 51.91% | -34.9% | -87.16% | 229.67% | -31.14% | 70.03% | -7.7% | -8.54% | 14.07% | 6.63% | 16.56% | -11.56% | 5.94% | 38.19% | 24.27% | -7.9% | 5.99% | 28.85% | 3.65% | 62.17% | -11.73% | 150.09% | 282.74% | 64.74% | -27.7% | -1.16% | - |
| Net Income (Continuing) | 22.34M | 47.35M | 63.05M | 41.5M | 65.47M | 401.39M | 28.66M | 218.97M | 128.69M | 139.43M | 152.44M | 133.64M | 125.33M | 107.52M | 121.66M | 114.77M | 83.05M | 66.83M | 72.56M | 68.46M | 53.13M | 50.62M | 31.61M | 35.81M | 14.09M | -7.83M | -22.22M | -13M | -17.2M |
| Discontinued Operations | 1000K | 0 | 0 | 0 | -1.71M | 95.32M | 122.01M | 177.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.21 | 1.15 | 1.42 | 0.89 | 1.36 | 10.33 | 3.18 | 4.39 | 2.63 | 2.83 | 3.13 | 2.73 | 2.58 | 2.28 | 2.61 | 2.43 | 1.81 | 1.48 | 1.58 | 1.35 | 1.04 | 0.99 | 0.61 | 0.73 | 0.29 | -0.17 | -0.61 | -0.62 | -0.78 |
| EPS Growth % | -31.55% | -19.01% | 59.55% | -34.56% | -86.83% | 224.84% | -27.56% | 66.92% | -7.07% | -9.58% | 14.65% | 5.81% | 13.16% | -12.64% | 7.41% | 34.25% | 22.3% | -6.33% | 17.04% | 29.81% | 5.05% | 62.3% | -16.44% | 151.72% | 270.59% | 72.13% | 1.61% | 20.51% | - |
| EPS (Basic) | - | 1.16 | 1.42 | 0.89 | 1.36 | 10.78 | 3.24 | 4.52 | 2.68 | 2.89 | 3.15 | 2.76 | 2.60 | 2.31 | 2.63 | 2.46 | 1.86 | 1.52 | 1.63 | 1.40 | 1.08 | 1.05 | 0.66 | 0.79 | 0.32 | -0.17 | -0.61 | -0.62 | -0.78 |
| Diluted Shares Outstanding | 37.6M | 41.1M | 44.52M | 46.46M | 47.03M | 47.86M | 47.12M | 49.03M | 48.93M | 48.67M | 47.96M | 48.09M | 47.11M | 46.14M | 45.78M | 46.38M | 45.94M | 45.14M | 45.94M | 50.76M | 51.05M | 51.17M | 49.83M | 49.15M | 46.7M | 45.12M | 36.48M | 28.1M | 22.18M |
| Basic Shares Outstanding | 37.6M | 40.98M | 44.46M | 46.4M | 46.95M | 45.89M | 46.31M | 47.65M | 47.95M | 47.59M | 47.67M | 47.63M | 46.78M | 45.55M | 45.46M | 45.8M | 44.58M | 43.94M | 44.61M | 48.95M | 49.21M | 48.22M | 46.63M | 45.46M | 43.3M | 45.12M | 36.48M | 28.1M | 22.18M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 20.07% | 63.47% | 52.69% | 43.19% | 44.02% | 41.71% | 41.98% | 33.12% | 16.71% | - | - | - | - | - | - | - | - | - | - | - | - | - |
Search algorithm volatility
As reported in recent financial filings, Ziff Davis experienced a significant revenue contraction of 18.6% in 2026Q1, marking a sharp departure from the modest growth observed in previous quarters and highlighting the vulnerability of its digital media segment to shifting consumer intent and search engine traffic patterns.
The recent double-digit revenue decline suggests that the company's reliance on performance-based affiliate revenue is increasingly sensitive to external search algorithm changes. Investors should monitor whether this deceleration represents a structural shift in traffic acquisition or merely a temporary cyclical trough in the retail and tech-buying landscape.
Based on the provided income statement data, Ziff Davis saw its gross margin compress to 66.7% in 2026Q1, a notable decline from the historical 85% range, which suggests rising traffic acquisition costs or a shift in the underlying revenue mix toward lower-margin performance advertising channels.
The erosion of gross margins indicates that the company's digital delivery model is facing increased cost pressure, likely from the competitive landscape of performance marketing. This compression warrants further investigation into whether the company retains sufficient pricing power to offset rising costs associated with maintaining its vertical authority properties.
According to the latest quarterly figures, Ziff Davis's operating margin plummeted to 1.1% in 2026Q1, reflecting an inability to scale SG&A expenses efficiently against a shrinking revenue base, which contrasts sharply with the 20% operating margins achieved during peak seasonal periods in previous fiscal years.
The lack of operating leverage suggests that the company's fixed cost structure, particularly regarding editorial talent and platform maintenance, is becoming a burden during periods of top-line weakness. Management's ability to rationalize these expenses will be critical to restoring profitability if revenue growth remains under pressure.
As evidenced by the wide variance between net income and operational performance, Ziff Davis's reported earnings appear heavily impacted by non-cash charges, with 2026Q1 net income of $22.3M masking the underlying volatility of a business model that relies on frequent acquisitions and subsequent intangible asset amortization.
The disconnect between GAAP net income and operational cash flow suggests that investors should prioritize adjusted metrics to gauge the company's true economic health. The persistent level of stock-based compensation, consistently exceeding $10M per quarter, further complicates the assessment of shareholder dilution and true earnings quality.
While the company positions itself as a high-intent data engine, the recent income statement performance suggests that the moat may be narrowing, as evidenced by the 2026Q1 revenue decline and the inability to maintain historical gross margin levels despite the company's purported proprietary data advantages.
Short-sellers may focus on the company's increasing sensitivity to retail sector health and the potential for AI-driven search to bypass traditional review sites. The current trajectory suggests that the 'utility-plus-authority' model may be less resilient to technological disruption than management's narrative implies.
Quick answers to the most common questions about buying ZD stock.
For fiscal year 2025, Ziff Davis, Inc. (ZD) reported total revenue of $1.45B. This represents a 41364.8% increase compared to $3.5M in 1998.
Ziff Davis, Inc. (ZD) is profitable, generating $47.4M in net income for the fiscal year ending 2025 with a net profit margin of 3.3%.
Ziff Davis, Inc. (ZD) reported an operating income of $203.9M, resulting in an operating profit margin of 14.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Ziff Davis, Inc. (ZD) generated $1.02B in gross profit for the year, representing a gross profit margin of 70.0%. This demonstrates the company's core pricing power and production efficiency.