Revenue growth accelerated to 43.5% YoY in 2026Q2, yet gross margin volatility (59.1% vs. 72.7% in 2025Q4) and SBC exceeding net income ($52.1M vs. $8.2M) cloud earnings quality.
Zeta Global Holdings Corp. (ZETA) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 1.57B | 1.3B | 1.01B | 728.72M | 590.96M | 458.34M | 368.12M | 306.05M |
| Revenue Growth % | 35.91% | 29.72% | 38.02% | 23.31% | 28.94% | 24.51% | 20.28% | - |
| Cost of Goods Sold | 607.8M | 513.59M | 455.65M | 325.63M | 267.34M | 220.64M | 188.94M | 144.72M |
| COGS % of Revenue | - | 39.37% | 45.3% | 44.69% | 45.24% | 48.14% | 51.33% | 47.29% |
| Gross Profit | 963.08M | 791.08M | 550.1M | 403.09M | 323.62M | 237.7M | 179.18M | 161.33M |
| Gross Margin % | 61.31% | 60.63% | 54.7% | 55.31% | 54.76% | 51.86% | 48.67% | 52.71% |
| Gross Profit Growth % | - | 43.81% | 36.47% | 24.56% | 36.15% | 32.66% | 11.07% | - |
| Operating Expenses | 933.13M | 785.71M | 609.79M | 567.73M | 582.31M | 483.42M | 179.76M | 171.55M |
| OpEx % of Revenue | - | 60.22% | 60.63% | 77.91% | 98.54% | 105.47% | 48.83% | 56.05% |
| Selling, General & Admin | 650.85M | 573.06M | 519.11M | 493.86M | 512.85M | 418.95M | 147.99M | 142.86M |
| SG&A % of Revenue | - | 43.92% | 51.61% | 67.77% | 86.78% | 91.41% | 40.2% | 46.68% |
| Research & Development | 146.97M | 117.17M | 90.68M | 73.87M | 69.45M | 64.47M | 31.77M | 28.68M |
| R&D % of Revenue | - | 8.98% | 9.02% | 10.14% | 11.75% | 14.07% | 8.63% | 9.37% |
| Other Operating Expenses | 3M | 95.47M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 29.94M | 5.37M | -59.69M | -164.64M | -258.69M | -245.73M | -583K | -10.22M |
| Operating Margin % | 1.91% | 0.41% | -5.93% | -22.59% | -43.77% | -53.61% | -0.16% | -3.34% |
| Operating Income Growth % | - | 109% | 63.75% | 36.36% | -5.28% | -42048.71% | 94.3% | - |
| EBITDA | 113.08M | 77.41M | -3.59M | -113.49M | -206.81M | -199.81M | 39.48M | 24.12M |
| EBITDA Margin % | 7.2% | 5.93% | -0.36% | -15.57% | -35% | -43.59% | 10.72% | 7.88% |
| EBITDA Growth % | 129.87% | 2258.7% | 96.84% | 45.13% | -3.51% | -606.08% | 63.7% | - |
| D&A (Non-Cash Add-back) | 83.14M | 72.04M | 56.1M | 51.15M | 51.88M | 45.92M | 40.06M | 34.34M |
| EBIT | -7.82M | -32.72M | -67.8M | -175.5M | -273.43M | -243.13M | -36.05M | -21.96M |
| Net Interest Income | -1.53M | -371K | -7.15M | -10.94M | -7.3M | -7.03M | -16.26M | -15.49M |
| Interest Income | 180K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.71M | 371K | 7.15M | 10.94M | 7.3M | 7.03M | 16.26M | 15.49M |
| Other Income/Expense | -39.47M | -38.46M | -15.26M | -21.81M | -22.04M | -4.43M | -51.72M | -27.23M |
| Pretax Income | -9.53M | -33.09M | -74.95M | -186.44M | -280.73M | -250.16M | -52.31M | -37.46M |
| Pretax Margin % | -0.61% | -2.54% | -7.45% | -25.59% | -47.5% | -54.58% | -14.21% | -12.24% |
| Income Tax | -7.36M | -1.58M | -5.18M | 1.04M | -1.49M | -598K | 919K | 1.01M |
| Effective Tax Rate % | 77.25% | 4.77% | 6.91% | -0.56% | 0.53% | 0.24% | -1.76% | -2.69% |
| Net Income | -2.17M | -31.51M | -69.77M | -187.48M | -279.24M | -249.56M | -53.23M | -38.47M |
| Net Margin % | -0.14% | -2.42% | -6.94% | -25.73% | -47.25% | -54.45% | -14.46% | -12.57% |
| Net Income Growth % | 94.07% | 54.84% | 62.79% | 32.86% | -11.89% | -368.88% | -38.37% | - |
| Net Income (Continuing) | -2.17M | -31.51M | -69.77M | -187.48M | -279.24M | -249.56M | -53.23M | -38.47M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.01 | -0.14 | -0.38 | -1.20 | -2.01 | -1.95 | -1.63 | -1.18 |
| EPS Growth % | 95.26% | 63.16% | 68.33% | 40.3% | -3.08% | -19.63% | -38.14% | - |
| EPS (Basic) | - | -0.14 | -0.38 | -1.20 | -2.01 | -1.96 | -1.64 | -1.18 |
| Diluted Shares Outstanding | 222.44M | 222.44M | 185.98M | 156.7M | 138.99M | 127.94M | 32.57M | 32.61M |
| Basic Shares Outstanding | 222.44M | 222.44M | 185.98M | 156.7M | 138.99M | 127.6M | 32.54M | 32.61M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ZETA stock.
For fiscal year 2025, Zeta Global Holdings Corp. (ZETA) reported total revenue of $1.30B. This represents a 326.3% increase compared to $306.1M in 2019.
Zeta Global Holdings Corp. (ZETA) reported a net loss of $31.5M for the fiscal year ending 2025.
Zeta Global Holdings Corp. (ZETA) reported an operating income of $5.4M, resulting in an operating profit margin of 0.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Zeta Global Holdings Corp. (ZETA) generated $791.1M in gross profit for the year, representing a gross profit margin of 60.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
SBC dilution and margin volatility
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates Sharply
ZETA's revenue growth accelerated to 43.5% year-over-year in 2026Q2, up from 25.4% in 2025Q4, according to the latest quarterly report, signaling sustained demand for its marketing platform.
The sequential acceleration from 25.4% to 43.5% over two quarters suggests that the company is gaining market share or benefiting from increased customer adoption. The growth appears organic, as no major acquisitions are disclosed in the data. However, investors should monitor whether this pace is sustainable given the competitive landscape.
Gross Margin Volatility Raises Questions
Gross margin swung from 72.7% in 2025Q4 to 53.1% in 2026Q1, then recovered to 59.1% in 2026Q2, as per financial statements, indicating significant variability in cost of goods sold.
The wide fluctuation in gross margin—nearly 20 percentage points—suggests that COGS is not purely variable but may include one-time items or changes in revenue mix. The 2025Q4 spike to 72.7% could be due to favorable contract terms or lower third-party costs, while the subsequent decline may reflect increased data or infrastructure expenses. This volatility complicates margin forecasting and warrants deeper investigation into the drivers.
Operating Leverage Emerges but Remains Inconsistent
Operating income swung from a -$35.9M loss in 2024Q1 to a $16.9M profit in 2026Q2, as reported, but the path has been uneven, with losses in several quarters despite revenue growth.
While revenue has grown steadily, operating income has not scaled linearly, indicating that operating leverage is not yet reliable. SG&A expenses have grown from $120.2M in 2024Q1 to $180.0M in 2026Q2, a 50% increase, outpacing revenue growth in some periods. This suggests that the company is still investing heavily in sales and marketing, which may be necessary for growth but pressures near-term profitability.
SBC Overhang Distorts Reported Earnings
Stock-based compensation averaged over $45M per quarter, exceeding net income in most periods, as per SEC filings, implying that reported profits are heavily reliant on non-cash charges.
In 2026Q2, SBC of $52.1M was more than six times net income of $8.2M, indicating that GAAP earnings significantly understate cash generation. The consistent high SBC suggests that dilution is a major factor for shareholders, and adjusted metrics may present a more favorable picture. Investors should focus on cash flow and share count trends to assess true value creation.
SG&A Dominates Cost Structure
SG&A expenses reached $180.0M in 2026Q2, representing 40.6% of revenue, as per the income statement, highlighting the company's heavy investment in sales and marketing.
SG&A is the largest cost component, exceeding R&D and COGS in absolute terms. The ratio of SG&A to revenue has remained elevated, around 40-50%, indicating that the company is spending aggressively to acquire customers. While this is common for high-growth software firms, the lack of operating leverage suggests that these expenses are not yet yielding proportional profit growth.
2025Q4 Marks a Turning Point
In 2025Q4, gross margin jumped to 72.7% and operating income turned positive at $8.2M, as reported, breaking a streak of losses and signaling a potential inflection in profitability.
The 2025Q4 quarter stands out as a pivotal period where gross margin reached its highest level in the data set, and operating income turned positive after several quarters of losses. This could be due to a favorable revenue mix, cost controls, or one-time benefits. The subsequent quarters show that profitability is not yet stable, but the trend suggests that the company may be approaching a sustainable profit model.
Margin Sustainability and Dilution Risks
Despite revenue growth, ZETA's operating margin has been negative in five of the last ten quarters, and SBC consistently exceeds net income, as per financial data, raising concerns about earnings quality.
Short-sellers might argue that the company's growth is not translating into bottom-line profitability, and that the reliance on SBC masks true economic losses. The volatile gross margins and high SG&A spending suggest that the business model may not have the pricing power or cost discipline of peers like The Trade Desk, which boasts a 78.6% gross margin and 20.3% operating margin. If growth decelerates, the lack of operating leverage could lead to widening losses.