Free cash flow margins remain volatile, ranging from 7.8% to 15.6%, while quarterly stock-based compensation often exceeds $40 million, obscuring the true cash generation profile.
| Cash from Operations | 213.84M | 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 % | 193.26% | 48.59% | 47.88% | 15.34% | 77.2% | 24.63% | 16.14% | - |
| Net Income | -23.16M | -31.51M | -69.77M | -187.48M | -279.24M | -249.56M | -53.23M | -38.47M |
| Depreciation & Amortization | 77.88M | 72.04M | 56.1M | 51.15M | 51.88M | 45.92M | 40.06M | 34.34M |
| Stock-Based Compensation | 188.87M | 177.82M | 194.98M | 242.88M | 298.99M | 259.16M | 105K | 216K |
| Deferred Taxes | -4.29M | -4.65M | -7.26M | 11K | -2.67M | -2.48M | -98K | -59K |
| Other Non-Cash Items | 20.09M | 15.45M | -986K | 9.21M | 12.81M | -4.96M | 32.28M | 6.59M |
| Working Capital Changes | -45.56M | -30.25M | -39.21M | -25.25M | -3.29M | -3.8M | 16.41M | 27.98M |
| Change in Receivables | -87.9M | -77.23M | -41.84M | 0 | -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 | -5.55M | -8.49M | -28.58M | 26.26M | 13.53M | -22.24M | 4.44M | 22.23M |
| Cash from Investing | -172.35M | -124.21M | -97.59M | -54.22M | -48.45M | -46.85M | -25.21M | -61.66M |
| Capital Expenditures | -14.09M | -13.81M | -25.73M | -20.48M | -39.24M | -26.76M | -25.21M | -22.67M |
| CapEx % of Revenue | 0.98% | 1.06% | 2.56% | 2.81% | 6.64% | 5.84% | 6.85% | 7.41% |
| Acquisitions | -136.78M | -90.31M | -55.82M | -18.25M | -9.21M | -20.09M | 0 | -38.99M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -21.48M | -20.09M | -16.04M | -15.49M | 0 | 0 | 0 | 0 |
| Cash from Financing | -117.06M | -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) | -91.56M | -120.97M | 186.77M | -13.44M | -9.61M | 62.07M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -120.81M | -120.97M | -42.19M | -13.44M | -9.61M | -64.47M | 0 | 0 |
| Other Financing | -25.5M | 150K | -451K | -12.21M | -3.02M | -8.9M | -717K | -1.77M |
| Net Change in Cash | -75.62M | -46.39M | 234.43M | 10.62M | 17.25M | 53.13M | 12.91M | -3.11M |
| Free Cash Flow | 199.75M | 185.09M | 92.09M | 54.55M | 39.25M | 17.54M | 10.33M | 7.92M |
| FCF Margin % | 13.9% | 14.19% | 9.16% | 7.49% | 6.64% | 3.83% | 2.81% | 2.59% |
| FCF Growth % | 65% | 100.98% | 68.82% | 38.99% | 123.83% | 69.73% | 30.37% | - |
| FCF per Share | - | 0.83 | 0.50 | 0.35 | 0.28 | 0.14 | 0.32 | 0.24 |
| FCF Conversion (FCF/Net Income) | -8.63x | -6.31x | -1.92x | -0.48x | -0.28x | -0.18x | -0.67x | -0.80x |
| Interest Paid | -35K | 0 | 7.35M | 10.48M | 5.67M | 7M | 13.07M | 12.22M |
| Taxes Paid | 1.08M | 0 | 1.89M | 1.9M | 1.61M | 1.76M | 1.3M | 783K |
High stock-based compensation dilution
According to recent financial statements, Zeta Global consistently reports negative net income while generating positive operating cash flow, with the OCF/NI ratio frequently reaching extreme negative values such as -3.75 in 2026Q1, highlighting a significant disconnect between accounting profitability and actual cash generation.
The persistent gap between net income and operating cash flow suggests that non-cash charges, particularly stock-based compensation, are heavily inflating the company's cash flow profile. Investors should interpret this divergence as a signal that the company's reported cash flow is not yet supported by GAAP-compliant earnings, potentially overstating the underlying economic health of the business.
As reported in quarterly filings, Zeta's free cash flow margins have fluctuated between 7.8% and 15.6% over the last ten quarters, indicating that while the company is capable of generating positive FCF, the trajectory remains sensitive to the timing of operational expenses and capital requirements.
The variability in FCF margins suggests that the company's cash generation is not yet stabilized, likely due to the hybrid nature of its revenue model and ongoing reinvestment needs. Analysts should monitor whether these margins can sustain a consistent upward trend as the company scales, or if they will remain tethered to the volatility of its usage-based revenue streams.
Based on the provided data, Zeta's capital expenditure as a percentage of revenue has trended downward from 4.8% in 2024Q1 to 0.8% in 2026Q1, suggesting a potential shift toward greater capital efficiency as the platform matures and infrastructure investments become less frequent.
The reduction in capital intensity may indicate that the company has completed the most intensive phase of its platform build-out, allowing for better cash flow conversion. However, investors should investigate whether this lower capex level is sufficient to maintain the competitive edge of the Identity Graph, or if it risks under-investing in the technological infrastructure required for future growth.
Analysis of recent SEC filings reveals that stock-based compensation remains a dominant feature of the cash flow statement, with quarterly figures often exceeding $40 million, which effectively masks the true cash cost of talent acquisition and retention required to maintain the company's current growth trajectory.
The reliance on SBC as a primary adjustment in the cash flow statement warrants caution, as it suggests that the company's cash flow strength is partially an artifact of accounting treatment rather than pure operational efficiency. This practice may obscure the true economic cost of operations and warrants further investigation into the long-term impact of dilution on shareholder value.
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.