Operating cash flow conversion is robust (OCF/NI of 8.46 in 2026Q2) and FCF margin reached 14.5%, yet working capital drags (-$14.9M) and aggressive buybacks ($29.9M in 2026Q2) consume cash, partly funded by SBC dilution.
Zeta Global Holdings Corp. (ZETA) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | 240.97M | 198.9M | 133.86M | 90.52M | 78.49M | 44.29M | 35.54M | 30.6M |
| Operating CF Margin % | - | 15.25% | 13.31% | 12.42% | 13.28% | 9.66% | 9.65% | 10% |
| Operating CF Growth % | 222.62% | 48.59% | 47.88% | 15.34% | 77.2% | 24.63% | 16.14% | - |
| Net Income | -2.17M | -31.51M | -69.77M | -187.48M | -279.24M | -249.56M | -53.23M | -38.47M |
| Depreciation & Amortization | 83.14M | 72.04M | 56.1M | 51.15M | 51.88M | 45.92M | 40.06M | 34.34M |
| Stock-Based Compensation | 194.51M | 177.82M | 194.98M | 242.88M | 298.99M | 259.16M | 105K | 216K |
| Deferred Taxes | -4.84M | -4.65M | -7.26M | 11K | -2.67M | -2.48M | -98K | -59K |
| Other Non-Cash Items | 21.75M | 15.45M | -986K | 9.21M | 12.81M | -4.96M | 32.28M | 6.59M |
| Working Capital Changes | -51.42M | -30.25M | -39.21M | -25.25M | -3.29M | -3.8M | 16.41M | 27.98M |
| Change in Receivables | -63.47M | -77.23M | -41.84M | -64.05M | -19.83M | -1.16M | 24.35M | 18.91M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 16.79M | -14.78M | -10.38M |
| Change in Payables | -19.75M | -8.49M | -28.58M | 26.26M | 13.53M | -22.24M | 4.44M | 22.23M |
| Cash from Investing | -178.89M | -124.21M | -97.59M | -54.22M | -48.45M | -46.85M | -25.21M | -61.66M |
| Capital Expenditures | -16.56M | -13.81M | -25.73M | -20.48M | -39.24M | -26.76M | -25.21M | -22.67M |
| CapEx % of Revenue | 1.05% | 1.06% | 2.56% | 2.81% | 6.64% | 5.84% | 6.85% | 7.41% |
| Acquisitions | -139.91M | -90.31M | -55.82M | -18.25M | -9.21M | -20.09M | 0 | -38.99M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -22.41M | -20.09M | -16.04M | -15.49M | 0 | 0 | 0 | 0 |
| Cash from Financing | -118.07M | -120.82M | 197.92M | -25.65M | -12.63M | 55.73M | 2.78M | 28.03M |
| Debt Issued (Net) | 0 | 0 | 11.6M | 0 | 0 | 2.57M | 3.5M | 29.8M |
| Equity Issued (Net) | -112.52M | -120.97M | 186.77M | -13.44M | -9.61M | 62.07M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -118.67M | -120.97M | -42.19M | -13.44M | -9.61M | -64.47M | 0 | 0 |
| Other Financing | -5.54M | 150K | -451K | -12.21M | -3.02M | -8.9M | -717K | -1.77M |
| Net Change in Cash | -55.36M | -46.39M | 234.43M | 10.62M | 17.25M | 53.13M | 12.91M | -3.11M |
| Free Cash Flow | 224.41M | 185.09M | 92.09M | 54.55M | 39.25M | 17.54M | 10.33M | 7.92M |
| FCF Margin % | 14.29% | 14.19% | 9.16% | 7.49% | 6.64% | 3.83% | 2.81% | 2.59% |
| FCF Growth % | 59.19% | 100.98% | 68.82% | 38.99% | 123.83% | 69.73% | 30.37% | - |
| FCF per Share | 1.01 | 0.83 | 0.50 | 0.35 | 0.28 | 0.14 | 0.32 | 0.24 |
| FCF Conversion (FCF/Net Income) | -103.46x | -6.31x | -1.92x | -0.48x | -0.28x | -0.18x | -0.67x | -0.80x |
| Interest Paid | -510K | 905K | 7.35M | 10.48M | 5.67M | 7M | 13.07M | 12.22M |
| Taxes Paid | 1.6M | 3.06M | 1.89M | 1.9M | 1.61M | 1.76M | 1.3M | 783K |
Quick answers to the most common questions about buying ZETA stock.
Zeta Global Holdings Corp. (ZETA) generated $198.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Zeta Global Holdings Corp. (ZETA) generated $185.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Zeta Global Holdings Corp. (ZETA) spent $13.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Zeta Global Holdings Corp. (ZETA) spent $121.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
SBC dilution and margin volatility
Metrics are mathematically derived from official filings.
Cash Conversion Diverges Sharply from GAAP
ZETA's operating cash flow exceeded net income by over 8x in 2026Q2, per recent filings, with OCF/NI at 8.46, underscoring the gap between accrual losses and cash generation.
The persistent negative net income in most quarters, contrasted with consistently positive operating cash flow, indicates that non-cash charges like SBC and D&A are masking underlying cash profitability. In 2026Q2, OCF of $69.2M against a net income of $8.2M suggests that reported earnings understate the company's cash-generating ability, but investors should note that SBC, a non-cash expense, is a significant driver of this divergence.
Free Cash Flow Momentum Accelerates
FCF grew from $15.2M in 2024Q1 to $64.4M in 2026Q2, as per financial statements, with FCF margin expanding from 7.8% to 14.5%, indicating improving operational efficiency.
The FCF trajectory shows a clear upward trend, with sequential growth in most quarters and a notable jump in 2026Q2. This improvement appears driven by revenue acceleration and stable capex, which remains low relative to revenue. The FCF margin expansion from 7.8% to 14.5% over the period suggests that the company is scaling profitably, though the sustainability of this trend depends on maintaining revenue growth and controlling costs.
Capital Intensity Remains Minimal
CapEx averaged under 2% of revenue over the last ten quarters, per reported data, with 2026Q2 at 1.1%, indicating a highly asset-light business model.
ZETA's capital expenditures are minimal, ranging from 0.8% to 4.8% of revenue, with the higher figures in earlier quarters likely reflecting one-time investments. The low capital intensity suggests that the company does not require significant fixed asset investment to grow, which supports high FCF conversion. However, the recent decline in CapEx/Rev to around 1% may indicate that the company is under-investing in infrastructure, which could limit future scalability if demand continues to accelerate.
Working Capital Drags on Cash Flow
Working capital changes were negative in nine of ten quarters, per SEC filings, with 2026Q2 at -$14.9M, indicating that cash is being tied up in operations.
The consistent negative working capital changes suggest that ZETA is experiencing growth-related cash outflows, likely from expanding accounts receivable as revenue grows. This is a common pattern for high-growth software companies, but the magnitude relative to OCF (e.g., -$14.9M vs $69.2M in 2026Q2) is manageable. Investors should monitor whether the company can improve collections or negotiate better payment terms to reduce this drag on cash flow.
Buybacks and Acquisitions Consume Cash
ZETA spent $29.9M on buybacks and $3.8M on acquisitions in 2026Q2, as reported, with cumulative buybacks exceeding $200M over the period, indicating aggressive capital return.
Despite reporting net losses in several quarters, ZETA has consistently repurchased shares, with buybacks ranging from $3.4M to $35.0M per quarter. This suggests management's confidence in the company's cash generation, but it also raises questions about capital allocation priorities, especially given the need for cash to fund growth. The acquisition activity, particularly the $89.1M outflow in 2025Q4, indicates a strategy of inorganic growth, which may strain cash reserves if not accretive.
SBC Distorts Cash Flow Reality
Stock-based compensation averaged over $45M per quarter, exceeding net income in most periods, per financial data, suggesting that reported cash flow is partly funded by equity dilution.
While SBC is a non-cash expense, it represents real dilution to shareholders. The fact that SBC consistently exceeds net income implies that the company's cash generation is not translating into shareholder value on a per-share basis. Additionally, the gap between OCF and FCF is minimal due to low capex, but the heavy use of SBC may indicate that the company is using equity to compensate employees rather than cash, which could be a red flag for earnings quality. Investors should adjust for SBC to assess true cash profitability.