Shares of Zeta Global Holdings Corp. (ZETA) surged 8.26% in pre-market trading on Wednesday, following the company's release of impressive third-quarter 2025 financial results and increased guidance for the full year 2025 and 2026.
The AI Marketing Cloud company reported Q3 revenue of $337.0 million, representing a 26% year-over-year increase and exceeding the midpoint of guidance by $9.0 million. Excluding revenue from political candidates and LiveIntent, revenue growth was even stronger at 28% year-over-year. Zeta also demonstrated robust profitability, with free cash flow of $47.0 million, up 83% year-over-year, achieving a record 14% margin.
Investors were particularly encouraged by Zeta's raised guidance for Q4 and full-year 2025, as well as its initial outlook for 2026. The company increased its full-year 2025 revenue guidance to a range of $1,273 million to $1,276 million, up $11 million at the midpoint from prior guidance. For 2026, Zeta projects revenue of $1,540 million, representing a year-over-year increase of 21%. The company's ability to maintain strong growth while improving profitability metrics appears to be driving investor enthusiasm and the subsequent stock price surge in pre-market trading.