{"success":true,"data":{"pressRelease":{"id":"108520","rtpr_id":"nBw3B5CCBa","ticker":"ZETA","exchange":"NYSE","all_tickers":["ZETA"],"title":"Zeta Global Reports 20th Consecutive “Beat and Raise” Quarter, Achieves the Rule of 64 and Generates Positive GAAP Net Income in 2Q’26","author":"Business Wire","published_at":"2026-08-04T20:05:00.481Z","article_body":"Zeta Global Reports 20(th) Consecutive “Beat and Raise” Quarter, Achieves\nthe Rule of 64 and Generates Positive GAAP Net Income in 2Q’26\n\n\n * Delivered revenue of $443 million for the second quarter, an increase of 44%\nY/Y, exceeding midpoint of guidance by $23 million, or 5%.\n\n\n * Grew Super-Scaled Customer count to 197, an increase of 17% Y/Y and\nSuper-Scaled customer ARPU grew to $1.8 million, up 17% Y/Y, both ahead of\n2028 model.\n\n\n * Achieved positive GAAP net income of $8 million, and GAAP earnings per share\nof $0.03. Generated $92 million of adjusted EBITDA and expanded adjusted\nEBITDA margin by 170 bps Y/Y to 20.7%, reflecting the rule of 64 and the rule\nof 49 excluding M&A.\n\n\n * Generated net cash provided by operating activities of $69 million, an\nincrease of 65% Y/Y, and Free Cash Flow of $58 million, an increase of 73%\nY/Y.\n\n\n * Increasing full year 2026 revenue guidance by $33 million to $1,818 million at\nthe midpoint, up from prior guidance of $1,785 million reflecting Y/Y growth\nof 39%.\n\n\n * Introducing an initial framework to measure adoption and monetization of\nZeta's AI.\n\nZeta Global (NYSE: ZETA), the intelligent AI infrastructure company, today\nannounced financial results for the second quarter ended June 30, 2026.\n\n“Accelerating revenue growth to 44% and achieving the rule of 64 in the\nsecond quarter reflects the growing demand for Zeta’s intelligent AI\ninfrastructure platform,” said David A. Steinberg, Co-Founder, Chairman, and\nCEO of Zeta. “Our proprietary Data Cloud and Athena intelligence layer\nposition us at the center of enterprise decision-making. With new momentum\nfrom our collaborations with OpenAI, Snowflake, and Palantir, we have reached\nan inflection point for Zeta, bringing together capabilities and investments\nwe have been building for years. We are still in the early stages of what the\nZeta platform can do for enterprises.”\n\n“Our results this quarter reflect the broad-based strength and consistent\nexecution across the business, driven by AI adoption and usage across the\nplatform,” said Chris Greiner, Zeta’s CFO. “Our first-half performance\nand pipeline visibility gives us the confidence to significantly increase the\nmidpoint of our revenue, adjusted EBITDA, free cash flow and GAAP EPS\nexpectations.”\n\nIncreasing 2026 Guidance*\n\nThird Quarter 2026\n\n\n * Increasing revenue guidance to a range of $469 million to $472 million, up $10\nmillion at the midpoint from the prior guidance of $461 million. The revised\nguidance represents a year-over-year growth rate of 39% to 40%, and 23% to 24%\nwhen excluding M&A and political candidate revenue.\n\n\n * Increasing adjusted EBITDA guidance to a range of $115.0 million to $116.0\nmillion, up $2.7 million at the midpoint from the prior guidance of $112.8\nmillion. The revised guidance represents a year-over-year growth rate of 47%\nto 49% and an adjusted EBITDA margin of 24.4% to 24.7%.\n\nFull Year 2026\n\n\n * Increasing revenue guidance to a range of $1,811 million to $1,824 million, up\n$33 million at the midpoint from the prior guidance of $1,785 million. The\nrevised guidance represents a year-over-year growth rate of 39% to 40%, and\n24% to 25% when excluding M&A and political candidate revenue.\n\n\n * Increasing adjusted EBITDA guidance to a range of $404.1 million to $406.3\nmillion, up $7.9 million at the midpoint from the prior guidance of $397.3\nmillion. The revised guidance represents a year-over-year growth rate of 45%\nto 46% and an adjusted EBITDA margin of 22.1% to 22.4%.\n\n\n * Increasing free cash flow guidance to a range of $254.8 million to $255.8\nmillion, up $20.3 million at the midpoint from the prior guidance of $235.0\nmillion. The revised guidance represents a year-over-year growth rate of 55%\nand a free cash flow margin of 14.0% to 14.1%.\n\n\n * Increasing full year 2026 GAAP EPS guidance to a range of $0.09 to $0.11, up\n$0.07 or greater than 300% at the midpoint from prior guidance of $0.02 to\n$0.04.\n\n* This press release does not include a reconciliation of forward-looking\nadjusted EBITDA, adjusted EBITDA margin, free cash flow, and free cash flow\nmargin to forward-looking GAAP net income / (loss), net income / (loss)\nmargin, net cash provided by operating activities, or net cash provided by\noperating activities margin, respectively, because the Company is unable,\nwithout making unreasonable efforts, to provide a meaningful or reasonably\naccurate calculation or estimation of certain reconciling items which could be\nsignificant to the Company’s results.\n\nZeta Live\n\nZeta will hold its sixth annual conference, Zeta Live 2026, on Thursday,\nOctober 8, in New York City at David Geffen Hall, Lincoln Center. This\nyear’s program will examine how the most advanced organizations are building\nAI-powered marketing and dynamic Business Intelligence systems that know\ncustomers with greater precision, grow with measurable impact, and prove\nmarketing’s contribution to revenue with certainty. For more information or\nto request an invitation, visit here\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.zetaliveconference.com%2F%3Futm_source%3Dbusinesswire%26utm_medium%3Dpressrelease%26utm_campaign%3Dzetalive-na-0526-ent&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=here&index=1&md5=6413062a5bcf389df7fe31098e2e094e)\n.\n\nInvestor Conference Call and Webcast\n\nZeta will host a conference call today, Tuesday, August 4, 2026, at 4:30 p.m.\nEastern Time to discuss financial results for the second quarter of 2026. A\nsupplemental earnings presentation and a live webcast of the conference call\ncan be accessed from the Company’s investor relations website\n(https://investors.zetaglobal.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.zetaglobal.com%2F&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=https%3A%2F%2Finvestors.zetaglobal.com%2F&index=2&md5=863779d8bdd0da11529880452bbd16ff)\n) where they will remain available for one year.\n\nAbout Zeta\n\nZeta Global\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.zetaglobal.com%2F&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=Zeta+Global&index=3&md5=b060f7525357e021b1a33b51c79618eb)\n(NYSE: ZETA) is the intelligent AI infrastructure company helping enterprises\ntransform proprietary data into enterprise intelligence. The Zeta Data Cloud\nand Athena by Zeta™ connect proprietary enterprise knowledge with advanced\nAI to enable better decisions, more effective customer engagement, and\nstronger business outcomes. With one of the industry's largest proprietary\ndata assets, Zeta helps organizations accelerate AI transformation and build\ndurable competitive advantage. Founded in 2007 by David A. Steinberg and John\nSculley, Zeta is headquartered in New York City with offices worldwide. Learn\nmore at www.zetaglobal.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.zetaglobal.com&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=www.zetaglobal.com&index=4&md5=938fa431e7a65188af13c96d08ecf767)\n.\n\nForward-Looking Statements\n\nThis press release, together with other statements and information publicly\ndisseminated by the Company, contains certain forward-looking statements\nwithin the meaning of Section 27A of the Securities Act of 1933, as amended,\nand Section 21E of the Securities Exchange Act of 1934, as amended. The\nCompany intends such forward-looking statements to be covered by the safe\nharbor provisions for forward-looking statements contained in the Private\nSecurities Litigation Reform Act of 1995 and includes this statement for\npurposes of complying with these safe harbor provisions. Any statements made\nin this press release or during the earnings call that are not statements of\nhistorical fact, including statements about our third quarter 2026 guidance,\nfull year 2026 guidance, the Zeta 2028 targets, the expected benefits,\nadoption, and impact of Athena, expectations regarding the contribution of\nMarigold’s Enterprise Business, the expected benefits of and contributions\nfrom our partnerships and other strategic relationships, anticipated market\nshare growth, the impacts of our prior investments on accelerating the timing\nof the marketing cloud replacement cycle, our products capabilities to provide\nstrong investment returns to our customers, our strong competitive position,\nexpansion of existing customers, the capabilities of AI and Zeta’s platform,\nthe predictability and profitability of our growth, and the growth and\nexpansion of AI and the Zeta Marketing Platform, are forward-looking\nstatements and should be evaluated as such. Forward-looking statements include\ninformation concerning our anticipated future financial performance, our\nmarket opportunities and our expectations regarding our business plan and\nstrategies. These statements often include words such as “anticipate,”\n“expect,” “suggests,” “plan,” “believe,” “intend,”\n“estimates,” “targets,” “projects,” “should,” “could,”\n“would,” “may,” “will,” “forecast,” “outlook,”\n“guidance” and other similar expressions. We base these forward-looking\nstatements on our current expectations, plans and assumptions that we have\nmade in light of our experience in the industry, as well as our perceptions of\nhistorical trends, current conditions, expected future developments and other\nfactors we believe are appropriate under the circumstances at such time.\nAlthough we believe that these forward-looking statements are based on\nreasonable assumptions at the time they are made, you should be aware that\nmany factors could affect our business, results of operations and financial\ncondition and could cause actual results to differ materially from those\nexpressed in the forward-looking statements. These statements are not\nguarantees of future performance or results.\n\nThe forward-looking statements are subject to and involve risks, uncertainties\nand assumptions, and you should not place undue reliance on these\nforward-looking statements. Factors that may materially affect such\nforward-looking statements include, but are not limited to: global supply\nchain disruptions; macroeconomic and industry trends and adverse developments\nin the debt, consumer credit and financial services markets and other\nmacroeconomic factors beyond Zeta’s control; increases in our borrowing\ncosts as a result of changes in interest rates and other factors; the impact\nof inflation, tariffs and changes in global trade policies on us and on our\ncustomers; potential fluctuations in our operating results, which could make\nour future operating results difficult to predict; underlying circumstances,\nincluding cash flows, cash position, financial performance, market conditions\nand potential acquisitions; prevailing stock prices, general economic and\nmarket conditions; the impact of future pandemics, epidemics and other health\ncrises on the global economy, our customers, employees and business; domestic\nand international political and geopolitical conditions or uncertainty,\nincluding political or civil unrest or changes in trade policy; our ability to\ninnovate and make the right investment decisions in our product offerings and\nplatform; the impact of new generative AI capabilities and the proliferation\nof AI on our business; our ability to attract and retain customers, including\nour super-scaled customers; our ability to manage our growth effectively; our\nability to identify and integrate acquisitions or strategic investments; our\nability to collect and use data online; the standards that private entities\nand inbox service providers adopt in the future to regulate the use and\ndelivery of email may interfere with the effectiveness of our platform and our\nability to conduct business; a significant inadvertent disclosure or breach of\nconfidential and/or personal information we process, or a security breach of\nour or our customers’, suppliers’ or other partners’ computer systems;\nand any disruption to our third-party data centers, systems and technologies.\nThese cautionary statements should not be construed by you to be exhaustive\nand the forward-looking statements are made only as of the date of this press\nrelease. We undertake no obligation to update or revise any forward-looking\nstatements, whether as a result of new information, future events or\notherwise, except as required by applicable law. If we update one or more\nforward-looking statements, no inference should be drawn that we will make\nadditional updates with respect to those or other forward-looking statements.\n\nThe third quarter and full year 2026 guidance provided herein and the Zeta\n2028 targets are based on Zeta’s current estimates and assumptions and are\nnot a guarantee of future performance. The guidance and the Zeta 2028 targets\nprovided are subject to significant risks and uncertainties, including the\nrisk factors discussed in the Company's reports on file with the Securities\nand Exchange Commission (“SEC”), that could cause actual results to differ\nmaterially. There can be no assurance that the Company will achieve the\nresults expressed by this guidance or the targets.\n\nAvailability of Information on Zeta’s Website and Social Media Profiles\n\nInvestors and others should note that Zeta routinely announces material\ninformation to investors and the marketplace using SEC filings, press\nreleases, public conference calls, webcasts and the Zeta investor relations\nwebsite at https://investors.zetaglobal.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.zetaglobal.com&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=https%3A%2F%2Finvestors.zetaglobal.com&index=5&md5=afbcf22b46fd4d1076bfb57295955290)\n(“Investors Website”). We also intend to use the social media profiles\nlisted below as a means of disclosing information about us to our customers,\ninvestors and the public. While not all of the information that the Company\nposts to the Investors Website or to social media profiles is of a material\nnature, some information could be deemed to be material. Accordingly, the\nCompany encourages investors, the media, and others interested in Zeta to\nreview the information that it shares on the Investors Website and to\nregularly follow our social media profile links located at the bottom of the\npage on www.zetaglobal.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.zetaglobal.com&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=www.zetaglobal.com&index=6&md5=ce1926d8e55521e3f6d73bc933204e30)\n. Users may automatically receive email alerts and other information about\nZeta when enrolling an email address by visiting \"Investor Email Alerts\" in\nthe \"Resources\" section of the Investors Website.\n\nSocial Media Profiles:\n\nwww.x.com/zetaglobal \n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.x.com%2Fzetaglobal&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=www.x.com%2Fzetaglobal&index=7&md5=5a96aa0851ee6a32e1f3035e81cc0143)\n\nwww.facebook.com/zetaglobal/ \n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.facebook.com%2Fzetaglobal%2F&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=www.facebook.com%2Fzetaglobal%2F&index=8&md5=680aee4d4f33e828154abcae5ac95fc7)\n\nwww.linkedin.com/company/zetaglobal \n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fzetaglobal&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=www.linkedin.com%2Fcompany%2Fzetaglobal&index=9&md5=0240e3812c0bed93b29c096950b4b749)\n\nwww.instagram.com/zetaglobal/ \n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.instagram.com%2Fzetaglobal%2F&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=www.instagram.com%2Fzetaglobal%2F&index=10&md5=eaa6c7569df152fdef230f21a9329a8e)\n\nwww.youtube.com/@zetaglobal\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.youtube.com%2F%40zetaglobal&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=www.youtube.com%2F%40zetaglobal&index=11&md5=31a0bd7ab287222e9ae9fb4383f7c7e2)\n\nThe Following Definitions Apply to the Terms Used Throughout this Release, the\nSupplemental Earnings Presentation and Investor Conference Call\n\n\n * Direct Platform and Integrated Platform: When the Company generates revenues\nentirely through the Company platform, the Company considers it direct\nplatform revenue. When the Company generates revenue by leveraging its\nplatform’s integration with third parties, it is considered integrated\nplatform revenue.\n\n * Cost of revenues (excluding depreciation and amortization): Cost of revenues\nexcludes depreciation and amortization and consists primarily of media and\nmarketing costs and certain employee-related costs. Media and marketing costs\nconsist primarily of fees paid to third-party publishers, media owners or\nmanagers, and strategic partners that are directly related to\nrevenue-generating events. We pay these third-party publishers, media owners\nor managers and strategic partners on revenue-share, a cost-per-lead,\ncost-per-click, or cost-per-thousand-impressions basis. Expenses related to\n“internet traffic” associated with the viewing of available impressions or\nqueries per second and costs of providing support to our customers are also\nincluded in the cost of revenues (excluding depreciation and amortization).\nEmployee-related costs included in cost of revenues (excluding depreciation\nand amortization) include salaries, bonuses, commissions, stock-based\ncompensation and employee benefit costs primarily related to individuals\ndirectly associated with providing services to our customers. Our cost of\nrevenues (excluding depreciation and amortization) is dependent on the revenue\nmix and therefore can slightly increase or decrease in the future as a\npercentage of revenue over the long term.\n\n * Super-Scaled Customers: We define super-scaled customers as customers from\nwhich we generated at least $1,000,000 in revenue on a trailing twelve-month\nbasis. We calculate the number of super-scaled customers at the end of each\nquarter and on an annual basis as the number of customers billed during each\napplicable period. We believe the super-scaled customers measure is both an\nimportant contributor to our revenue growth and an indicator to investors of\nour measurable success.\n\n * Super-Scaled Customer ARPU: We calculate the super-scaled customer ARPU as\nrevenue for the corresponding period divided by the number of super-scaled\ncustomers at the end of that period. We believe that super-scaled customer\nARPU is useful for investors because it is an indicator of our ability to\nincrease revenue and scale our business.\n\n * Zeta 2028: Zeta 2028 is the Company’s next medium-term plan with targets for\nbusiness, product, and industry leadership.\n\n * Rule of 49: We define the Rule of 49 as the combination of revenue growth\npercentage plus adjusted EBITDA margin percentage adding up to 49 or more.\n\n * Rule of 64: We define the Rule of 64 as the combination of revenue growth\npercentage plus adjusted EBITDA margin percentage adding up to 64 or more.\n\nNon-GAAP Measures\n\nIn order to assist readers of our consolidated financial statements in\nunderstanding the core operating results that our management uses to evaluate\nthe business and for financial planning purposes, we describe our non-GAAP\nmeasures below. We believe these non-GAAP measures are useful to investors in\nevaluating our performance by providing an additional tool for investors to\nuse in comparing our financial performance over multiple periods.\n\n\n * Adjusted EBITDA is a non-GAAP financial measure defined as net income / (loss)\nadjusted for interest expenses, net, depreciation and amortization,\nstock-based compensation, income tax (benefit) / provision,\nacquisition-related expenses, restructuring expenses, change in fair value of\nwarrants and derivative liabilities, certain dispute settlement expenses, gain\non extinguishment of debt, certain non-recurring capital raise related\n(including initial public offering (“IPO”)) expenses, including the\npayroll taxes related to vesting of restricted stock and restricted stock\nunits upon the completion of the IPO, and other (income) / expenses.\nAcquisition-related expenses and restructuring expenses primarily consist of\nprofessional services fees, severance and other employee-related costs, which\nmay vary from period to period depending on the timing of our acquisitions and\nrestructuring activities and may distort the comparability of the results of\noperations. Change in fair value of warrants and derivative liabilities is a\nnon-cash expense related to periodically recording “mark-to-market”\nchanges in the valuation of derivatives and warrants. Other (income) /\nexpenses consists of non-cash expenses such as changes in fair value of\nacquisition-related liabilities, gains and losses on extinguishment of\nacquisition-related liabilities, gains and losses on sales of assets and\nforeign exchange gains and losses. In particular, we believe that the\nexclusion of stock-based compensation, certain dispute settlement expenses and\nnon-recurring capital raise related (including IPO) expenses that are not\nrelated to our core operations provides measures for period-to-period\ncomparisons of our business and provides additional insight into our core\ncontrollable costs. We exclude these charges because these expenses are not\nreflective of ongoing business and operating results.\n\n * Adjusted EBITDA margin is a non-GAAP financial measure defined as adjusted\nEBITDA divided by the total revenues for the same period.\n\n * Free cash flow is a non-GAAP financial measure defined as cash from operating\nactivities, less capital expenditures and website and software development\ncosts, adjusted for the effect of exchange rates on cash and cash equivalents.\n\n * Free cash flow margin is a non-GAAP financial measure defined as free cash\nflow divided by revenue for the same period.\n\nAdjusted EBITDA, adjusted EBITDA margin, free cash flow, and free cash flow\nmargin provide us with useful measures for period-to-period comparisons of our\nbusiness as well as comparison to our peers. We believe that these non-GAAP\nfinancial measures are useful to investors in analyzing our financial and\noperational performance. Nevertheless, our use of adjusted EBITDA, adjusted\nEBITDA margin, free cash flow, and free cash flow margin has limitations as an\nanalytical tool, and you should not consider these measures in isolation or as\na substitute for analysis of our financial results as reported under GAAP.\nOther companies may calculate similarly-titled non-GAAP financial measures\ndifferently than us, thereby limiting the usefulness of these non-GAAP\nfinancial measures as a comparative tool. Because of these and other\nlimitations, you should consider our non-GAAP measures only as supplemental to\nother GAAP-based financial performance measures, including revenues and net\nincome / (loss).\n\nWe calculate forward-looking adjusted EBITDA, adjusted EBITDA margin, free\ncash flow, and free cash flow margin based on internal forecasts that omit\ncertain amounts that would be included in forward-looking GAAP net income /\n(loss). We do not attempt to provide a reconciliation of forward-looking\nadjusted EBITDA, adjusted EBITDA margin, free cash flow, and free cash flow\nmargin guidance and targets to forward-looking GAAP net income / (loss), GAAP\nnet income / (loss) margin GAAP cash flows from operating activities, or GAAP\ncash flows from operating activities margin, respectively, because forecasting\nthe timing or amount of items that have not yet occurred and are out of our\ncontrol is inherently uncertain and unavailable without unreasonable efforts.\nFurther, we believe that such reconciliations would imply a degree of\nprecision and certainty that could be confusing to investors. Such items could\nhave a substantial impact on GAAP measures of financial performance.\n Zeta Global Holdings Corp. \n \n \n \nCondensed Unaudited Consolidated Balance Sheets \n \n \n \n(In thousands) \n   \n     As of   \n     June 30, 2026     December 31, 2025   \n Assets             \n Current assets:             \n Cash and cash equivalents   $ 309,952     $ 319,764   \n Accounts receivable     327,132       322,391   \n Prepaid expenses     28,450       28,970   \n Other current assets     12,197       14,658   \n Total current assets   $ 677,731     $ 685,783   \n Non-current assets:             \n Property and equipment, net   $ 18,495     $ 15,393   \n Website and software development costs, net     34,629       31,520   \n Right-to-use assets - operating leases, net     21,508       19,101   \n Intangible assets, net     185,350       217,943   \n Goodwill     524,708       527,886   \n Deferred tax assets, net     1,131       1,211   \n Other non-current assets     4,292       4,687   \n Total non-current assets   $ 790,113     $ 817,741   \n Total assets   $ 1,467,844     $ 1,503,524   \n Liabilities and Stockholders’ Equity             \n Current liabilities:             \n Accounts payable   $ 32,353     $ 40,136   \n Accrued expenses     165,243       179,087   \n Acquisition-related liabilities     24,792       149,036   \n Deferred revenue     33,859       35,398   \n Other current liabilities     28,326       25,824   \n Total current liabilities   $ 284,573     $ 429,481   \n Non-current liabilities:             \n Long-term borrowings   $ 197,481     $ 197,083   \n Acquisition-related liabilities     26,113       39,447   \n Deferred tax liabilities, net     17,134       17,268   \n Other non-current liabilities     16,046       15,656   \n Total non-current liabilities   $ 256,774     $ 269,454   \n Total liabilities   $ 541,347     $ 698,935   \n Stockholders’ equity:             \n Class A Common Stock   $ 227     $ 221   \n Class B Common Stock     24       24   \n Additional paid-in capital     1,997,492       1,863,695   \n Accumulated deficit     (1,064,891)       (1,059,817)   \n Accumulated other comprehensive (loss) / gain     (6,355)       466   \n Total stockholders’ equity   $ 926,497     $ 804,589   \n Total liabilities and stockholders’ equity $ 1,467,844 $ 1,503,524 \n   \n\n Condensed Unaudited Consolidated Statements of Operations and Comprehensive \n Income / (Loss) \n \n \n \n(In thousands) \n   \n   Three months ended June 30, Six months ended June 30, \n   2026 2025 2026 2025 \n Revenues $ 442,766 $ 308,442 $ 839,070 $ 572,861 \n Operating expenses:         \n Cost of revenues (excluding depreciation and amortization)   180,997   116,988   343,443   220,476 \n General and administrative expenses   75,915   62,172   149,312   116,209 \n Selling and marketing expenses   104,037   86,392   206,440   161,761 \n Research and development expenses   42,235   30,592   87,185   57,391 \n Depreciation and amortization   22,658   17,403   46,187   35,090 \n Acquisition-related expenses   —   —   1,666   — \n Restructuring expenses   —   —   6,752   3,152 \n Total operating expenses $ 425,842 $ 313,547 $ 840,985 $ 594,079 \n Income / (loss) from operations   16,924   (5,105)   (1,915)   (21,218) \n Interest expenses, net   898   166   1,659   497 \n Other expenses, net   8,226   6,351   4,450   9,863 \n Total other expenses $ 9,124 $ 6,517 $ 6,109 $ 10,360 \n Income / (loss) before income taxes   7,800   (11,622)   (8,024)   (31,578) \n Income tax (benefit) / provision   (373)   1,192   (2,950)   2,836 \n Net income / (loss) $ 8,173 $ (12,814) $ (5,074) $ (34,414) \n\n The Company recorded stock-based compensation under respective lines of the \n above condensed unaudited consolidated statements of operations and \n comprehensive income / (loss): \n   \n     Three months ended June 30,     Six months ended June 30,   \n     2026   2025     2026   2025   \n Cost of revenues (excluding depreciation and amortization)   $ 160   $ 302     $ 430   $ 563   \n General and administrative expenses     16,138     14,896       30,916     30,315   \n Selling and marketing expenses     23,418     22,460       48,574     42,005   \n Research and development expenses     12,399     8,813       25,227     15,575   \n Total   $ 52,115   $ 46,471     $ 105,147   $ 88,458   \n   \n\n Condensed Unaudited Consolidated Statements of Cash Flows \n \n \n \n(In thousands) \n   \n     Six months ended June 30,   \n     2026     2025   \n Cash flows from operating activities:             \n Net loss   $ (5,074)     $ (34,414)   \n Adjustments to reconcile net loss to net cash provided by operating             \n activities: \n Depreciation and amortization     46,187       35,090   \n Stock-based compensation     105,147       88,458   \n Deferred income taxes     (536)       (345)   \n Change in fair value of acquisition-related liabilities     2,759       9,165   \n Others, net     (1,003)       2,761   \n Changes in operating assets and liabilities (net of acquisitions):             \n Accounts receivable     (5,307)       (19,067)   \n Prepaid expenses     (45)       1,938   \n Other current assets     2,441       (723)   \n Other non-current assets     256       156   \n Deferred revenue     (1,301)       (6,543)   \n Accounts payable     (8,550)       2,703   \n Accrued expenses and other current liabilities     (11,488)       (3,515)   \n Other non-current liabilities     248       1,184   \n Payment of acquisition-related liabilities     (4,820)       —   \n Net cash provided by operating activities   $ 118,914     $ 76,848   \n Cash flows from investing activities:             \n Capital expenditures     (7,833)       (5,085)   \n Website and software development costs     (12,272)       (9,953)   \n Acquisitions and other investments, net of cash acquired     (50,811)       (1,202)   \n Net cash used for investing activities   $ (70,916)     $ (16,240)   \n Cash flows from financing activities:             \n Cash paid for acquisition-related liabilities     (8,382)       (6,333)   \n Proceeds from credit facilities, net of issuance cost     10,000       6,250   \n Issuance under employee stock purchase plan     2,456       1,904   \n Exercise of options     2,908       964   \n Repurchase of shares     (55,629)       (57,931)   \n Repayments against the credit facilities     (10,000)       (6,250)   \n Net cash used for financing activities   $ (58,647)     $ (61,396)   \n Effect of exchange rate changes on cash and cash equivalents     837       (55)   \n Net decrease in cash and cash equivalents   $ (9,812)     $ (843)   \n Cash and cash equivalents, beginning of period     319,764       366,157   \n Cash and cash equivalents, end of period   $ 309,952     $ 365,314   \n   \n\n Reconciliation of GAAP to Non-GAAP Financial Measures \n \n \n \n(In thousands) \n   \n The following table reconciles adjusted EBITDA and adjusted EBITDA margin to \n net income / (loss) and net income / (loss) margin, respectively, the most \n directly comparable financial measure calculated and presented in accordance \n with GAAP. \n   \n     Three months ended June 30,     Six months ended June 30,   \n     2026   2025     2026   2025   \n Net income / (loss)   $ 8,173   $ (12,814)     $ (5,074)   $ (34,414)   \n Net income / (loss) margin     1.8%     (4.2)%       (0.6)%     (6.0)%   \n Add back:                     \n Depreciation and amortization     22,658     17,403       46,187     35,090   \n Acquisition-related expenses     —     —       1,666     —   \n Restructuring expenses     —     —       6,752     3,152   \n Stock-based compensation     52,115     46,471       105,147     88,458   \n Other expenses, net     8,226     6,351       4,450     9,863   \n Interest expenses, net     898     166       1,659     497   \n Income tax (benefit) / provision     (373)     1,192       (2,950)     2,836   \n Adjusted EBITDA   $ 91,697   $ 58,769     $ 157,837   $ 105,482   \n Adjusted EBITDA margin     20.7%     19.1%       18.8%     18.4%   \n\n The following table reconciles net cash provided by operating activities in \n the condensed unaudited consolidated statements of cash flows to free cash \n flow: \n   \n     Three months ended June 30,     Six months ended June 30,   \n     2026   2025     2026   2025   \n Net cash provided by operating activities   $ 69,180   $ 42,049     $ 118,914   $ 76,848   \n Capital expenditures     (4,821)     (2,349)       (7,833)     (5,085)   \n Website and software development costs     (6,730)     (5,798)       (12,272)     (9,953)   \n Effect of exchange rate changes on cash and cash equivalents 335   (344)   837   (55) \n Free cash flow   $ 57,964   $ 33,558     $ 99,646   $ 61,755   \n Free cash flow margin     13.1%     10.9%       11.9%     10.8% \n\n The following table reconciles revenues in Consolidated Statements of \n Operations to revenues excluding LiveIntent, Marigold’s Enterprise Business \n and political candidate revenues (in millions): \n   \n     Three months ended \n     September 2025   December 2025   March 2026   June 2026 \n Revenues   $ 337   $ 395   $ 396   $ 443 \n LiveIntent revenue     (20.6)     (22.5)     —     — \n Marigold’s Enterprise Business revenue     —     (18.6)     (55.6)     (48.1) \n Political candidate revenue   NM*   NM*   NM*   NM* \n Revenues excluding LiveIntent, Marigold’s Enterprise Business &   $ 317   $ 354   $ 341   $ 395 \n political candidate \n   \n *NM: Not Material \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260804939577/en/\n(https://www.businesswire.com/news/home/20260804939577/en/)\n\nInvestor Relations\n\nTrey Campbell\n\nir@zetaglobal.com (mailto:ir@zetaglobal.com)\n\nPress\n\nCandace Dean\n\npress@zetaglobal.com (mailto:press@zetaglobal.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw3B5CCBa","title":"Zeta Global Reports 20th Consecutive “Beat and Raise” Quarter, Achieves the Rule of 64 and Generates Positive GAAP Net Income in 2Q’26","author":"Business Wire","ticker":"ZETA","created":"2026-08-04T20:05:00.481Z","tickers":["ZETA"],"exchange":"NYSE","article_body":"Zeta Global Reports 20(th) Consecutive “Beat and Raise” Quarter, Achieves\nthe Rule of 64 and Generates Positive GAAP Net Income in 2Q’26\n\n\n * Delivered revenue of $443 million for the second quarter, an increase of 44%\nY/Y, exceeding midpoint of guidance by $23 million, or 5%.\n\n\n * Grew Super-Scaled Customer count to 197, an increase of 17% Y/Y and\nSuper-Scaled customer ARPU grew to $1.8 million, up 17% Y/Y, both ahead of\n2028 model.\n\n\n * Achieved positive GAAP net income of $8 million, and GAAP earnings per share\nof $0.03. Generated $92 million of adjusted EBITDA and expanded adjusted\nEBITDA margin by 170 bps Y/Y to 20.7%, reflecting the rule of 64 and the rule\nof 49 excluding M&A.\n\n\n * Generated net cash provided by operating activities of $69 million, an\nincrease of 65% Y/Y, and Free Cash Flow of $58 million, an increase of 73%\nY/Y.\n\n\n * Increasing full year 2026 revenue guidance by $33 million to $1,818 million at\nthe midpoint, up from prior guidance of $1,785 million reflecting Y/Y growth\nof 39%.\n\n\n * Introducing an initial framework to measure adoption and monetization of\nZeta's AI.\n\nZeta Global (NYSE: ZETA), the intelligent AI infrastructure company, today\nannounced financial results for the second quarter ended June 30, 2026.\n\n“Accelerating revenue growth to 44% and achieving the rule of 64 in the\nsecond quarter reflects the growing demand for Zeta’s intelligent AI\ninfrastructure platform,” said David A. Steinberg, Co-Founder, Chairman, and\nCEO of Zeta. “Our proprietary Data Cloud and Athena intelligence layer\nposition us at the center of enterprise decision-making. With new momentum\nfrom our collaborations with OpenAI, Snowflake, and Palantir, we have reached\nan inflection point for Zeta, bringing together capabilities and investments\nwe have been building for years. We are still in the early stages of what the\nZeta platform can do for enterprises.”\n\n“Our results this quarter reflect the broad-based strength and consistent\nexecution across the business, driven by AI adoption and usage across the\nplatform,” said Chris Greiner, Zeta’s CFO. “Our first-half performance\nand pipeline visibility gives us the confidence to significantly increase the\nmidpoint of our revenue, adjusted EBITDA, free cash flow and GAAP EPS\nexpectations.”\n\nIncreasing 2026 Guidance*\n\nThird Quarter 2026\n\n\n * Increasing revenue guidance to a range of $469 million to $472 million, up $10\nmillion at the midpoint from the prior guidance of $461 million. The revised\nguidance represents a year-over-year growth rate of 39% to 40%, and 23% to 24%\nwhen excluding M&A and political candidate revenue.\n\n\n * Increasing adjusted EBITDA guidance to a range of $115.0 million to $116.0\nmillion, up $2.7 million at the midpoint from the prior guidance of $112.8\nmillion. The revised guidance represents a year-over-year growth rate of 47%\nto 49% and an adjusted EBITDA margin of 24.4% to 24.7%.\n\nFull Year 2026\n\n\n * Increasing revenue guidance to a range of $1,811 million to $1,824 million, up\n$33 million at the midpoint from the prior guidance of $1,785 million. The\nrevised guidance represents a year-over-year growth rate of 39% to 40%, and\n24% to 25% when excluding M&A and political candidate revenue.\n\n\n * Increasing adjusted EBITDA guidance to a range of $404.1 million to $406.3\nmillion, up $7.9 million at the midpoint from the prior guidance of $397.3\nmillion. The revised guidance represents a year-over-year growth rate of 45%\nto 46% and an adjusted EBITDA margin of 22.1% to 22.4%.\n\n\n * Increasing free cash flow guidance to a range of $254.8 million to $255.8\nmillion, up $20.3 million at the midpoint from the prior guidance of $235.0\nmillion. The revised guidance represents a year-over-year growth rate of 55%\nand a free cash flow margin of 14.0% to 14.1%.\n\n\n * Increasing full year 2026 GAAP EPS guidance to a range of $0.09 to $0.11, up\n$0.07 or greater than 300% at the midpoint from prior guidance of $0.02 to\n$0.04.\n\n* This press release does not include a reconciliation of forward-looking\nadjusted EBITDA, adjusted EBITDA margin, free cash flow, and free cash flow\nmargin to forward-looking GAAP net income / (loss), net income / (loss)\nmargin, net cash provided by operating activities, or net cash provided by\noperating activities margin, respectively, because the Company is unable,\nwithout making unreasonable efforts, to provide a meaningful or reasonably\naccurate calculation or estimation of certain reconciling items which could be\nsignificant to the Company’s results.\n\nZeta Live\n\nZeta will hold its sixth annual conference, Zeta Live 2026, on Thursday,\nOctober 8, in New York City at David Geffen Hall, Lincoln Center. This\nyear’s program will examine how the most advanced organizations are building\nAI-powered marketing and dynamic Business Intelligence systems that know\ncustomers with greater precision, grow with measurable impact, and prove\nmarketing’s contribution to revenue with certainty. For more information or\nto request an invitation, visit here\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.zetaliveconference.com%2F%3Futm_source%3Dbusinesswire%26utm_medium%3Dpressrelease%26utm_campaign%3Dzetalive-na-0526-ent&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=here&index=1&md5=6413062a5bcf389df7fe31098e2e094e)\n.\n\nInvestor Conference Call and Webcast\n\nZeta will host a conference call today, Tuesday, August 4, 2026, at 4:30 p.m.\nEastern Time to discuss financial results for the second quarter of 2026. A\nsupplemental earnings presentation and a live webcast of the conference call\ncan be accessed from the Company’s investor relations website\n(https://investors.zetaglobal.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.zetaglobal.com%2F&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=https%3A%2F%2Finvestors.zetaglobal.com%2F&index=2&md5=863779d8bdd0da11529880452bbd16ff)\n) where they will remain available for one year.\n\nAbout Zeta\n\nZeta Global\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.zetaglobal.com%2F&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=Zeta+Global&index=3&md5=b060f7525357e021b1a33b51c79618eb)\n(NYSE: ZETA) is the intelligent AI infrastructure company helping enterprises\ntransform proprietary data into enterprise intelligence. The Zeta Data Cloud\nand Athena by Zeta™ connect proprietary enterprise knowledge with advanced\nAI to enable better decisions, more effective customer engagement, and\nstronger business outcomes. With one of the industry's largest proprietary\ndata assets, Zeta helps organizations accelerate AI transformation and build\ndurable competitive advantage. Founded in 2007 by David A. Steinberg and John\nSculley, Zeta is headquartered in New York City with offices worldwide. Learn\nmore at www.zetaglobal.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.zetaglobal.com&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=www.zetaglobal.com&index=4&md5=938fa431e7a65188af13c96d08ecf767)\n.\n\nForward-Looking Statements\n\nThis press release, together with other statements and information publicly\ndisseminated by the Company, contains certain forward-looking statements\nwithin the meaning of Section 27A of the Securities Act of 1933, as amended,\nand Section 21E of the Securities Exchange Act of 1934, as amended. The\nCompany intends such forward-looking statements to be covered by the safe\nharbor provisions for forward-looking statements contained in the Private\nSecurities Litigation Reform Act of 1995 and includes this statement for\npurposes of complying with these safe harbor provisions. Any statements made\nin this press release or during the earnings call that are not statements of\nhistorical fact, including statements about our third quarter 2026 guidance,\nfull year 2026 guidance, the Zeta 2028 targets, the expected benefits,\nadoption, and impact of Athena, expectations regarding the contribution of\nMarigold’s Enterprise Business, the expected benefits of and contributions\nfrom our partnerships and other strategic relationships, anticipated market\nshare growth, the impacts of our prior investments on accelerating the timing\nof the marketing cloud replacement cycle, our products capabilities to provide\nstrong investment returns to our customers, our strong competitive position,\nexpansion of existing customers, the capabilities of AI and Zeta’s platform,\nthe predictability and profitability of our growth, and the growth and\nexpansion of AI and the Zeta Marketing Platform, are forward-looking\nstatements and should be evaluated as such. Forward-looking statements include\ninformation concerning our anticipated future financial performance, our\nmarket opportunities and our expectations regarding our business plan and\nstrategies. These statements often include words such as “anticipate,”\n“expect,” “suggests,” “plan,” “believe,” “intend,”\n“estimates,” “targets,” “projects,” “should,” “could,”\n“would,” “may,” “will,” “forecast,” “outlook,”\n“guidance” and other similar expressions. We base these forward-looking\nstatements on our current expectations, plans and assumptions that we have\nmade in light of our experience in the industry, as well as our perceptions of\nhistorical trends, current conditions, expected future developments and other\nfactors we believe are appropriate under the circumstances at such time.\nAlthough we believe that these forward-looking statements are based on\nreasonable assumptions at the time they are made, you should be aware that\nmany factors could affect our business, results of operations and financial\ncondition and could cause actual results to differ materially from those\nexpressed in the forward-looking statements. These statements are not\nguarantees of future performance or results.\n\nThe forward-looking statements are subject to and involve risks, uncertainties\nand assumptions, and you should not place undue reliance on these\nforward-looking statements. Factors that may materially affect such\nforward-looking statements include, but are not limited to: global supply\nchain disruptions; macroeconomic and industry trends and adverse developments\nin the debt, consumer credit and financial services markets and other\nmacroeconomic factors beyond Zeta’s control; increases in our borrowing\ncosts as a result of changes in interest rates and other factors; the impact\nof inflation, tariffs and changes in global trade policies on us and on our\ncustomers; potential fluctuations in our operating results, which could make\nour future operating results difficult to predict; underlying circumstances,\nincluding cash flows, cash position, financial performance, market conditions\nand potential acquisitions; prevailing stock prices, general economic and\nmarket conditions; the impact of future pandemics, epidemics and other health\ncrises on the global economy, our customers, employees and business; domestic\nand international political and geopolitical conditions or uncertainty,\nincluding political or civil unrest or changes in trade policy; our ability to\ninnovate and make the right investment decisions in our product offerings and\nplatform; the impact of new generative AI capabilities and the proliferation\nof AI on our business; our ability to attract and retain customers, including\nour super-scaled customers; our ability to manage our growth effectively; our\nability to identify and integrate acquisitions or strategic investments; our\nability to collect and use data online; the standards that private entities\nand inbox service providers adopt in the future to regulate the use and\ndelivery of email may interfere with the effectiveness of our platform and our\nability to conduct business; a significant inadvertent disclosure or breach of\nconfidential and/or personal information we process, or a security breach of\nour or our customers’, suppliers’ or other partners’ computer systems;\nand any disruption to our third-party data centers, systems and technologies.\nThese cautionary statements should not be construed by you to be exhaustive\nand the forward-looking statements are made only as of the date of this press\nrelease. We undertake no obligation to update or revise any forward-looking\nstatements, whether as a result of new information, future events or\notherwise, except as required by applicable law. If we update one or more\nforward-looking statements, no inference should be drawn that we will make\nadditional updates with respect to those or other forward-looking statements.\n\nThe third quarter and full year 2026 guidance provided herein and the Zeta\n2028 targets are based on Zeta’s current estimates and assumptions and are\nnot a guarantee of future performance. The guidance and the Zeta 2028 targets\nprovided are subject to significant risks and uncertainties, including the\nrisk factors discussed in the Company's reports on file with the Securities\nand Exchange Commission (“SEC”), that could cause actual results to differ\nmaterially. There can be no assurance that the Company will achieve the\nresults expressed by this guidance or the targets.\n\nAvailability of Information on Zeta’s Website and Social Media Profiles\n\nInvestors and others should note that Zeta routinely announces material\ninformation to investors and the marketplace using SEC filings, press\nreleases, public conference calls, webcasts and the Zeta investor relations\nwebsite at https://investors.zetaglobal.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.zetaglobal.com&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=https%3A%2F%2Finvestors.zetaglobal.com&index=5&md5=afbcf22b46fd4d1076bfb57295955290)\n(“Investors Website”). We also intend to use the social media profiles\nlisted below as a means of disclosing information about us to our customers,\ninvestors and the public. While not all of the information that the Company\nposts to the Investors Website or to social media profiles is of a material\nnature, some information could be deemed to be material. Accordingly, the\nCompany encourages investors, the media, and others interested in Zeta to\nreview the information that it shares on the Investors Website and to\nregularly follow our social media profile links located at the bottom of the\npage on www.zetaglobal.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.zetaglobal.com&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=www.zetaglobal.com&index=6&md5=ce1926d8e55521e3f6d73bc933204e30)\n. Users may automatically receive email alerts and other information about\nZeta when enrolling an email address by visiting \"Investor Email Alerts\" in\nthe \"Resources\" section of the Investors Website.\n\nSocial Media Profiles:\n\nwww.x.com/zetaglobal \n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.x.com%2Fzetaglobal&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=www.x.com%2Fzetaglobal&index=7&md5=5a96aa0851ee6a32e1f3035e81cc0143)\n\nwww.facebook.com/zetaglobal/ \n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.facebook.com%2Fzetaglobal%2F&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=www.facebook.com%2Fzetaglobal%2F&index=8&md5=680aee4d4f33e828154abcae5ac95fc7)\n\nwww.linkedin.com/company/zetaglobal \n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fzetaglobal&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=www.linkedin.com%2Fcompany%2Fzetaglobal&index=9&md5=0240e3812c0bed93b29c096950b4b749)\n\nwww.instagram.com/zetaglobal/ \n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.instagram.com%2Fzetaglobal%2F&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=www.instagram.com%2Fzetaglobal%2F&index=10&md5=eaa6c7569df152fdef230f21a9329a8e)\n\nwww.youtube.com/@zetaglobal\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.youtube.com%2F%40zetaglobal&esheet=54583265&newsitemid=20260804939577&lan=en-US&anchor=www.youtube.com%2F%40zetaglobal&index=11&md5=31a0bd7ab287222e9ae9fb4383f7c7e2)\n\nThe Following Definitions Apply to the Terms Used Throughout this Release, the\nSupplemental Earnings Presentation and Investor Conference Call\n\n\n * Direct Platform and Integrated Platform: When the Company generates revenues\nentirely through the Company platform, the Company considers it direct\nplatform revenue. When the Company generates revenue by leveraging its\nplatform’s integration with third parties, it is considered integrated\nplatform revenue.\n\n * Cost of revenues (excluding depreciation and amortization): Cost of revenues\nexcludes depreciation and amortization and consists primarily of media and\nmarketing costs and certain employee-related costs. Media and marketing costs\nconsist primarily of fees paid to third-party publishers, media owners or\nmanagers, and strategic partners that are directly related to\nrevenue-generating events. We pay these third-party publishers, media owners\nor managers and strategic partners on revenue-share, a cost-per-lead,\ncost-per-click, or cost-per-thousand-impressions basis. Expenses related to\n“internet traffic” associated with the viewing of available impressions or\nqueries per second and costs of providing support to our customers are also\nincluded in the cost of revenues (excluding depreciation and amortization).\nEmployee-related costs included in cost of revenues (excluding depreciation\nand amortization) include salaries, bonuses, commissions, stock-based\ncompensation and employee benefit costs primarily related to individuals\ndirectly associated with providing services to our customers. Our cost of\nrevenues (excluding depreciation and amortization) is dependent on the revenue\nmix and therefore can slightly increase or decrease in the future as a\npercentage of revenue over the long term.\n\n * Super-Scaled Customers: We define super-scaled customers as customers from\nwhich we generated at least $1,000,000 in revenue on a trailing twelve-month\nbasis. We calculate the number of super-scaled customers at the end of each\nquarter and on an annual basis as the number of customers billed during each\napplicable period. We believe the super-scaled customers measure is both an\nimportant contributor to our revenue growth and an indicator to investors of\nour measurable success.\n\n * Super-Scaled Customer ARPU: We calculate the super-scaled customer ARPU as\nrevenue for the corresponding period divided by the number of super-scaled\ncustomers at the end of that period. We believe that super-scaled customer\nARPU is useful for investors because it is an indicator of our ability to\nincrease revenue and scale our business.\n\n * Zeta 2028: Zeta 2028 is the Company’s next medium-term plan with targets for\nbusiness, product, and industry leadership.\n\n * Rule of 49: We define the Rule of 49 as the combination of revenue growth\npercentage plus adjusted EBITDA margin percentage adding up to 49 or more.\n\n * Rule of 64: We define the Rule of 64 as the combination of revenue growth\npercentage plus adjusted EBITDA margin percentage adding up to 64 or more.\n\nNon-GAAP Measures\n\nIn order to assist readers of our consolidated financial statements in\nunderstanding the core operating results that our management uses to evaluate\nthe business and for financial planning purposes, we describe our non-GAAP\nmeasures below. We believe these non-GAAP measures are useful to investors in\nevaluating our performance by providing an additional tool for investors to\nuse in comparing our financial performance over multiple periods.\n\n\n * Adjusted EBITDA is a non-GAAP financial measure defined as net income / (loss)\nadjusted for interest expenses, net, depreciation and amortization,\nstock-based compensation, income tax (benefit) / provision,\nacquisition-related expenses, restructuring expenses, change in fair value of\nwarrants and derivative liabilities, certain dispute settlement expenses, gain\non extinguishment of debt, certain non-recurring capital raise related\n(including initial public offering (“IPO”)) expenses, including the\npayroll taxes related to vesting of restricted stock and restricted stock\nunits upon the completion of the IPO, and other (income) / expenses.\nAcquisition-related expenses and restructuring expenses primarily consist of\nprofessional services fees, severance and other employee-related costs, which\nmay vary from period to period depending on the timing of our acquisitions and\nrestructuring activities and may distort the comparability of the results of\noperations. Change in fair value of warrants and derivative liabilities is a\nnon-cash expense related to periodically recording “mark-to-market”\nchanges in the valuation of derivatives and warrants. Other (income) /\nexpenses consists of non-cash expenses such as changes in fair value of\nacquisition-related liabilities, gains and losses on extinguishment of\nacquisition-related liabilities, gains and losses on sales of assets and\nforeign exchange gains and losses. In particular, we believe that the\nexclusion of stock-based compensation, certain dispute settlement expenses and\nnon-recurring capital raise related (including IPO) expenses that are not\nrelated to our core operations provides measures for period-to-period\ncomparisons of our business and provides additional insight into our core\ncontrollable costs. We exclude these charges because these expenses are not\nreflective of ongoing business and operating results.\n\n * Adjusted EBITDA margin is a non-GAAP financial measure defined as adjusted\nEBITDA divided by the total revenues for the same period.\n\n * Free cash flow is a non-GAAP financial measure defined as cash from operating\nactivities, less capital expenditures and website and software development\ncosts, adjusted for the effect of exchange rates on cash and cash equivalents.\n\n * Free cash flow margin is a non-GAAP financial measure defined as free cash\nflow divided by revenue for the same period.\n\nAdjusted EBITDA, adjusted EBITDA margin, free cash flow, and free cash flow\nmargin provide us with useful measures for period-to-period comparisons of our\nbusiness as well as comparison to our peers. We believe that these non-GAAP\nfinancial measures are useful to investors in analyzing our financial and\noperational performance. Nevertheless, our use of adjusted EBITDA, adjusted\nEBITDA margin, free cash flow, and free cash flow margin has limitations as an\nanalytical tool, and you should not consider these measures in isolation or as\na substitute for analysis of our financial results as reported under GAAP.\nOther companies may calculate similarly-titled non-GAAP financial measures\ndifferently than us, thereby limiting the usefulness of these non-GAAP\nfinancial measures as a comparative tool. Because of these and other\nlimitations, you should consider our non-GAAP measures only as supplemental to\nother GAAP-based financial performance measures, including revenues and net\nincome / (loss).\n\nWe calculate forward-looking adjusted EBITDA, adjusted EBITDA margin, free\ncash flow, and free cash flow margin based on internal forecasts that omit\ncertain amounts that would be included in forward-looking GAAP net income /\n(loss). We do not attempt to provide a reconciliation of forward-looking\nadjusted EBITDA, adjusted EBITDA margin, free cash flow, and free cash flow\nmargin guidance and targets to forward-looking GAAP net income / (loss), GAAP\nnet income / (loss) margin GAAP cash flows from operating activities, or GAAP\ncash flows from operating activities margin, respectively, because forecasting\nthe timing or amount of items that have not yet occurred and are out of our\ncontrol is inherently uncertain and unavailable without unreasonable efforts.\nFurther, we believe that such reconciliations would imply a degree of\nprecision and certainty that could be confusing to investors. Such items could\nhave a substantial impact on GAAP measures of financial performance.\n Zeta Global Holdings Corp. \n \n \n \nCondensed Unaudited Consolidated Balance Sheets \n \n \n \n(In thousands) \n   \n     As of   \n     June 30, 2026     December 31, 2025   \n Assets             \n Current assets:             \n Cash and cash equivalents   $ 309,952     $ 319,764   \n Accounts receivable     327,132       322,391   \n Prepaid expenses     28,450       28,970   \n Other current assets     12,197       14,658   \n Total current assets   $ 677,731     $ 685,783   \n Non-current assets:             \n Property and equipment, net   $ 18,495     $ 15,393   \n Website and software development costs, net     34,629       31,520   \n Right-to-use assets - operating leases, net     21,508       19,101   \n Intangible assets, net     185,350       217,943   \n Goodwill     524,708       527,886   \n Deferred tax assets, net     1,131       1,211   \n Other non-current assets     4,292       4,687   \n Total non-current assets   $ 790,113     $ 817,741   \n Total assets   $ 1,467,844     $ 1,503,524   \n Liabilities and Stockholders’ Equity             \n Current liabilities:             \n Accounts payable   $ 32,353     $ 40,136   \n Accrued expenses     165,243       179,087   \n Acquisition-related liabilities     24,792       149,036   \n Deferred revenue     33,859       35,398   \n Other current liabilities     28,326       25,824   \n Total current liabilities   $ 284,573     $ 429,481   \n Non-current liabilities:             \n Long-term borrowings   $ 197,481     $ 197,083   \n Acquisition-related liabilities     26,113       39,447   \n Deferred tax liabilities, net     17,134       17,268   \n Other non-current liabilities     16,046       15,656   \n Total non-current liabilities   $ 256,774     $ 269,454   \n Total liabilities   $ 541,347     $ 698,935   \n Stockholders’ equity:             \n Class A Common Stock   $ 227     $ 221   \n Class B Common Stock     24       24   \n Additional paid-in capital     1,997,492       1,863,695   \n Accumulated deficit     (1,064,891)       (1,059,817)   \n Accumulated other comprehensive (loss) / gain     (6,355)       466   \n Total stockholders’ equity   $ 926,497     $ 804,589   \n Total liabilities and stockholders’ equity $ 1,467,844 $ 1,503,524 \n   \n\n Condensed Unaudited Consolidated Statements of Operations and Comprehensive \n Income / (Loss) \n \n \n \n(In thousands) \n   \n   Three months ended June 30, Six months ended June 30, \n   2026 2025 2026 2025 \n Revenues $ 442,766 $ 308,442 $ 839,070 $ 572,861 \n Operating expenses:         \n Cost of revenues (excluding depreciation and amortization)   180,997   116,988   343,443   220,476 \n General and administrative expenses   75,915   62,172   149,312   116,209 \n Selling and marketing expenses   104,037   86,392   206,440   161,761 \n Research and development expenses   42,235   30,592   87,185   57,391 \n Depreciation and amortization   22,658   17,403   46,187   35,090 \n Acquisition-related expenses   —   —   1,666   — \n Restructuring expenses   —   —   6,752   3,152 \n Total operating expenses $ 425,842 $ 313,547 $ 840,985 $ 594,079 \n Income / (loss) from operations   16,924   (5,105)   (1,915)   (21,218) \n Interest expenses, net   898   166   1,659   497 \n Other expenses, net   8,226   6,351   4,450   9,863 \n Total other expenses $ 9,124 $ 6,517 $ 6,109 $ 10,360 \n Income / (loss) before income taxes   7,800   (11,622)   (8,024)   (31,578) \n Income tax (benefit) / provision   (373)   1,192   (2,950)   2,836 \n Net income / (loss) $ 8,173 $ (12,814) $ (5,074) $ (34,414) \n\n The Company recorded stock-based compensation under respective lines of the \n above condensed unaudited consolidated statements of operations and \n comprehensive income / (loss): \n   \n     Three months ended June 30,     Six months ended June 30,   \n     2026   2025     2026   2025   \n Cost of revenues (excluding depreciation and amortization)   $ 160   $ 302     $ 430   $ 563   \n General and administrative expenses     16,138     14,896       30,916     30,315   \n Selling and marketing expenses     23,418     22,460       48,574     42,005   \n Research and development expenses     12,399     8,813       25,227     15,575   \n Total   $ 52,115   $ 46,471     $ 105,147   $ 88,458   \n   \n\n Condensed Unaudited Consolidated Statements of Cash Flows \n \n \n \n(In thousands) \n   \n     Six months ended June 30,   \n     2026     2025   \n Cash flows from operating activities:             \n Net loss   $ (5,074)     $ (34,414)   \n Adjustments to reconcile net loss to net cash provided by operating             \n activities: \n Depreciation and amortization     46,187       35,090   \n Stock-based compensation     105,147       88,458   \n Deferred income taxes     (536)       (345)   \n Change in fair value of acquisition-related liabilities     2,759       9,165   \n Others, net     (1,003)       2,761   \n Changes in operating assets and liabilities (net of acquisitions):             \n Accounts receivable     (5,307)       (19,067)   \n Prepaid expenses     (45)       1,938   \n Other current assets     2,441       (723)   \n Other non-current assets     256       156   \n Deferred revenue     (1,301)       (6,543)   \n Accounts payable     (8,550)       2,703   \n Accrued expenses and other current liabilities     (11,488)       (3,515)   \n Other non-current liabilities     248       1,184   \n Payment of acquisition-related liabilities     (4,820)       —   \n Net cash provided by operating activities   $ 118,914     $ 76,848   \n Cash flows from investing activities:             \n Capital expenditures     (7,833)       (5,085)   \n Website and software development costs     (12,272)       (9,953)   \n Acquisitions and other investments, net of cash acquired     (50,811)       (1,202)   \n Net cash used for investing activities   $ (70,916)     $ (16,240)   \n Cash flows from financing activities:             \n Cash paid for acquisition-related liabilities     (8,382)       (6,333)   \n Proceeds from credit facilities, net of issuance cost     10,000       6,250   \n Issuance under employee stock purchase plan     2,456       1,904   \n Exercise of options     2,908       964   \n Repurchase of shares     (55,629)       (57,931)   \n Repayments against the credit facilities     (10,000)       (6,250)   \n Net cash used for financing activities   $ (58,647)     $ (61,396)   \n Effect of exchange rate changes on cash and cash equivalents     837       (55)   \n Net decrease in cash and cash equivalents   $ (9,812)     $ (843)   \n Cash and cash equivalents, beginning of period     319,764       366,157   \n Cash and cash equivalents, end of period   $ 309,952     $ 365,314   \n   \n\n Reconciliation of GAAP to Non-GAAP Financial Measures \n \n \n \n(In thousands) \n   \n The following table reconciles adjusted EBITDA and adjusted EBITDA margin to \n net income / (loss) and net income / (loss) margin, respectively, the most \n directly comparable financial measure calculated and presented in accordance \n with GAAP. \n   \n     Three months ended June 30,     Six months ended June 30,   \n     2026   2025     2026   2025   \n Net income / (loss)   $ 8,173   $ (12,814)     $ (5,074)   $ (34,414)   \n Net income / (loss) margin     1.8%     (4.2)%       (0.6)%     (6.0)%   \n Add back:                     \n Depreciation and amortization     22,658     17,403       46,187     35,090   \n Acquisition-related expenses     —     —       1,666     —   \n Restructuring expenses     —     —       6,752     3,152   \n Stock-based compensation     52,115     46,471       105,147     88,458   \n Other expenses, net     8,226     6,351       4,450     9,863   \n Interest expenses, net     898     166       1,659     497   \n Income tax (benefit) / provision     (373)     1,192       (2,950)     2,836   \n Adjusted EBITDA   $ 91,697   $ 58,769     $ 157,837   $ 105,482   \n Adjusted EBITDA margin     20.7%     19.1%       18.8%     18.4%   \n\n The following table reconciles net cash provided by operating activities in \n the condensed unaudited consolidated statements of cash flows to free cash \n flow: \n   \n     Three months ended June 30,     Six months ended June 30,   \n     2026   2025     2026   2025   \n Net cash provided by operating activities   $ 69,180   $ 42,049     $ 118,914   $ 76,848   \n Capital expenditures     (4,821)     (2,349)       (7,833)     (5,085)   \n Website and software development costs     (6,730)     (5,798)       (12,272)     (9,953)   \n Effect of exchange rate changes on cash and cash equivalents 335   (344)   837   (55) \n Free cash flow   $ 57,964   $ 33,558     $ 99,646   $ 61,755   \n Free cash flow margin     13.1%     10.9%       11.9%     10.8% \n\n The following table reconciles revenues in Consolidated Statements of \n Operations to revenues excluding LiveIntent, Marigold’s Enterprise Business \n and political candidate revenues (in millions): \n   \n     Three months ended \n     September 2025   December 2025   March 2026   June 2026 \n Revenues   $ 337   $ 395   $ 396   $ 443 \n LiveIntent revenue     (20.6)     (22.5)     —     — \n Marigold’s Enterprise Business revenue     —     (18.6)     (55.6)     (48.1) \n Political candidate revenue   NM*   NM*   NM*   NM* \n Revenues excluding LiveIntent, Marigold’s Enterprise Business &   $ 317   $ 354   $ 341   $ 395 \n political candidate \n   \n *NM: Not Material \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260804939577/en/\n(https://www.businesswire.com/news/home/20260804939577/en/)\n\nInvestor Relations\n\nTrey Campbell\n\nir@zetaglobal.com (mailto:ir@zetaglobal.com)\n\nPress\n\nCandace Dean\n\npress@zetaglobal.com (mailto:press@zetaglobal.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-08-04T20:05:00.994562442Z","server_sent_at_ms":1785873900994},"received_at":"2026-08-04T20:05:01.097Z","source_url":"https://www.businesswire.com/news/home/20260804939577/en/"},"analysis":{"id":"97526","press_release_id":"108520","analysis_json":{"industry":{"label":"Software","sector":"Information Technology"},"redFlags":[],"eventType":"earnings","narrative":"Zeta Global reported Q2 2026 revenue of $443 million, up 44% year-over-year and exceeding the midpoint of prior guidance by 5%.\n\nThe company achieved positive GAAP net income of $8 million, or $0.03 per share, and generated $58 million in free cash flow.\n\nManagement raised full-year 2026 revenue guidance to a range of $1.811 billion to $1.824 billion and significantly increased GAAP EPS guidance to a range of $0.09 to $0.11.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"20th consecutive beat-and-raise quarter driven by AI infrastructure demand and positive 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