Abstract

Ziff Davis, Inc will release its quarterly results on February 23, 2026 Post Market; this preview consolidates last quarter’s performance, current-quarter forecasts, and recent institutional commentary to frame expectations and stock drivers.

Market Forecast

Consensus indicators from the company’s guidance framework and compiled estimates point to current-quarter revenue of $416.37 million, a forecast year-over-year change of -1.91%, EBIT of $141.95 million with a year-over-year change of -2.07%, and EPS of $2.71 with a year-over-year change of 2.80%. The setup implies modest margin stability, with gross profit margin likely to remain high alongside an improved adjusted EPS cadence despite softer top line dynamics. Main business momentum is centered on Health & Wellness, Technology & Shopping, and Cybersecurity & Martech, where the outlook favors steady demand for subscription and performance-based marketing products. The most promising segment appears to be Health & Wellness, supported by last quarter revenue of $102.31 million and a diversified customer base; its forward view hinges on sustained consumer engagement and scalable digital subscription economics.

Last Quarter Review

In the most recent quarter, Ziff Davis, Inc reported revenue of $363.71 million, a gross profit margin of 85.39%, GAAP net profit attributable to the parent company of -$3.60 million, a net profit margin of -0.99%, and adjusted EPS of $1.76, with a year-over-year change of 7.32%. A notable highlight was disciplined operating execution, with EBIT of $86.58 million, despite revenue landing slightly below estimates, reflecting effective cost management and stable gross margin leverage. Main business highlights include Health & Wellness revenue of $102.31 million, Technology & Shopping revenue of $85.19 million, Cybersecurity & Martech revenue of $71.46 million, Wireless Connectivity revenue of $57.18 million, and Games & Entertainment revenue of $47.58 million, supporting a balanced multi-vertical portfolio.

Current Quarter Outlook

Main Business: Digital Media and Subscription-Led Verticals

The company’s core mix spans Health & Wellness, Technology & Shopping, and Cybersecurity & Martech, which together shape the largest revenue base and operating leverage. The near-term thesis relies on maintaining high gross margins through content efficiency, high-intent audience traffic, and subscription bundling, which support monetization even when advertising markets are uneven. With a forecast revenue decline of 1.91%, the emphasis shifts to margin resilience and EPS protection, suggesting controlled acquisition costs and a sustained shift toward recurring revenue. Watch for performance marketing demand and SEO traffic quality as key inputs to lead flow and conversion; modest compression in macro ad budgets could be offset by subscriber retention initiatives.

Most Promising Business: Health & Wellness

Health & Wellness posted $102.31 million last quarter and exhibits favorable economics tied to evergreen consumer interest, sticky subscription products, and cross-sell potential across content and tools. The growth case this quarter leans on targeted content refreshes, improved funnel optimization, and seasonal consumer activity that typically benefits engagement metrics. Even if broader ad spending shows caution, the segment’s mix of direct-to-consumer subscription revenue and performance partnerships can sustain revenue density. Signals to track include conversion rates, churn moderation, and cohort monetization; stability here should provide an incremental buffer to consolidated EPS performance.

Key Stock Price Drivers This Quarter

Three variables are likely to dominate investor reaction: top line trajectory versus the -1.91% revenue forecast, the durability of the high-80s gross margin profile, and EPS progression against the $2.71 estimate. A modest EBIT decline of 2.07% is embedded in expectations; any variance will likely tie to the operating expense envelope and traffic monetization. If Health & Wellness and Technology & Shopping sustain lead quality without elevated acquisition costs, EPS could outpace revenue trends, supporting a constructive post-earnings response. Conversely, any unexpected softness in Cybersecurity & Martech or higher traffic acquisition costs would pressure operating leverage and challenge consensus assumptions.

Analyst Opinions

Across recent institutional commentary, the prevailing tilt is cautiously positive, with more constructive than negative views emphasizing margin resilience and EPS stability despite a softer revenue backdrop. Analysts highlight that last quarter’s high gross margin of 85.39% and adjusted EPS growth of 7.32% year-over-year provide a base for delivering on the $2.71 EPS estimate, even as EBIT is projected to decline by 2.07% year-over-year. Well-followed research desks point to the diversified vertical mix and recurring subscription exposure as supportive for earnings quality, and they note that Health & Wellness is positioned to underpin consolidated results with efficient monetization. The constructive camp anticipates that operational discipline can offset modest macro ad softness, and that near-term catalysts include sustained subscriber retention and stable conversion rates in performance marketing channels. Should the company align with or modestly exceed EPS expectations while holding gross margins near last quarter’s level, they expect sentiment to improve, reinforcing the cautiously positive stance.