Ziff Davis Narrows Q3 Loss, Swings to YTD Profit on Lower Impairments

TL;DR

**ZD is showing signs of a comeback, with reduced losses and a YTD profit, but watch those investment credit losses.**

AI Summary

Ziff Davis, Inc. reported a net loss of $3.598 million for the three months ended September 30, 2025, a significant improvement from the net loss of $48.577 million in the same period of 2024. For the nine months ended September 30, 2025, the company achieved a net income of $46.984 million, reversing a net loss of $1.040 million in the prior year period. Total revenues increased to $363.711 million for the three months ended September 30, 2025, up from $353.580 million in 2024, and rose to $1,044.556 million for the nine-month period, compared to $988.865 million in 2024. Operating costs and expenses decreased to $335.283 million for the quarter, largely due to a reduction in goodwill impairment from $85.273 million in Q3 2024 to $17.579 million in Q3 2025. The company also saw a substantial provision for credit losses on investments of $17.566 million in the current quarter, which was not present in the prior year. Share repurchases continued, with $113.221 million spent in the nine months ended September 30, 2025, reducing outstanding shares to 39,993,208 as of November 4, 2025.

Why It Matters

Ziff Davis's improved financial performance, particularly the swing to year-to-date net income and reduced quarterly loss, signals a potential turnaround for investors. The significant reduction in goodwill impairment charges suggests better asset valuation and operational stability, which could boost investor confidence. For employees and customers, sustained profitability could lead to continued investment in the company's diverse digital media and internet brands, fostering growth and innovation. In a competitive digital media landscape, Ziff Davis's ability to increase revenues while managing costs, especially reducing impairment, positions it more strongly against rivals in technology, shopping, gaming, and health sectors.

Risk Assessment

Risk Level: medium — The company reported a significant provision for credit losses on investments of $17.566 million for the three and nine months ended September 30, 2025, which was zero in the prior year. This indicates potential issues with the recoverability of certain investments. Additionally, while goodwill impairment decreased, it still amounted to $17.579 million, suggesting ongoing challenges in some business segments.

Analyst Insight

Investors should monitor Ziff Davis's future filings closely for trends in investment credit losses and any further goodwill impairments. While the reduction in net loss and swing to YTD profit is positive, the new credit loss provision warrants caution and a deeper dive into the company's investment portfolio health.

Financial Highlights

debt To Equity

0.93

revenue

$363,711,000

operating Margin

7.8%

total Assets

$3,476,934,000

total Debt

$865,937,000

net Income

-$3,598,000

eps

-$0.09

gross Margin

85.5%

cash Position

$503,368,000

revenue Growth

+2.9%

Revenue Breakdown

Key Numbers

• $363.711M — Total Revenues (Q3 2025) (Increased from $353.580M in Q3 2024, showing revenue growth.)
• $1.044B — Total Revenues (YTD 2025) (Increased from $988.865M in YTD 2024, indicating strong year-over-year revenue growth.)
• $(3.598)M — Net Loss (Q3 2025) (Significantly improved from $(48.577)M in Q3 2024, narrowing quarterly losses.)
• $46.984M — Net Income (YTD 2025) (Swung from a net loss of $(1.040)M in YTD 2024, marking a return to profitability.)
• $17.579M — Goodwill Impairment (Q3 2025) (Substantially lower than $85.273M in Q3 2024, reducing operating costs.)
• $17.566M — Provision for Credit Losses on Investments (YTD 2025) (A new significant expense, indicating potential risk in investment portfolio.)
• $113.221M — Common Stock Repurchases (YTD 2025) (Continued capital return to shareholders, reducing outstanding shares.)
• 39,993,208 — Shares Outstanding (Sept 30, 2025) (Reduced from 42,848,339 shares at December 31, 2024, due to repurchases.)

Key Players & Entities

• ZIFF DAVIS, INC. (company) — Registrant
• SEC (regulator) — Securities and Exchange Commission
• FASB (regulator) — Financial Accounting Standards Board
• $3.598 million (dollar_amount) — Net loss for three months ended September 30, 2025
• $48.577 million (dollar_amount) — Net loss for three months ended September 30, 2024
• $46.984 million (dollar_amount) — Net income for nine months ended September 30, 2025
• $17.566 million (dollar_amount) — Provision for credit losses on investments for nine months ended September 30, 2025
• $17.579 million (dollar_amount) — Goodwill impairment for nine months ended September 30, 2025
• $113.221 million (dollar_amount) — Repurchase of common stock for nine months ended September 30, 2025

FAQ

Risk Factors

• Provision for Credit Losses [medium — financial]: The company recorded a significant $17.566 million provision for credit losses on investments in the nine months ended September 30, 2025. This new expense indicates potential risks within the company's investment portfolio and could impact future profitability if losses materialize.
• Goodwill Impairment Reduction [medium — operational]: Goodwill impairment decreased substantially from $85.273 million in Q3 2024 to $17.579 million in Q3 2025. While this reduction improved current period results, it highlights past overvaluation of acquisitions and the ongoing risk of future impairments if acquired businesses underperform.
• Intense Competition [high — market]: Ziff Davis operates in highly competitive digital media and e-commerce markets. Intense competition can pressure pricing, increase marketing costs, and limit market share growth, impacting revenue and profitability.
• Dependence on Advertising and Affiliate Revenue [high — operational]: A significant portion of Ziff Davis's revenue is derived from advertising and affiliate marketing. Changes in advertiser spending, algorithm changes by search engines, or shifts in consumer behavior can materially impact revenue streams.
• Data Privacy Regulations [medium — regulatory]: Increasingly stringent data privacy regulations (e.g., GDPR, CCPA) can impact Ziff Davis's ability to collect and utilize user data for targeted advertising and personalization, potentially affecting revenue and requiring significant compliance investments.

Industry Context

Ziff Davis operates within the highly competitive digital media and e-commerce sectors. The industry is characterized by rapid technological advancements, evolving consumer preferences, and a strong reliance on digital advertising and affiliate marketing models. Key trends include the increasing importance of SEO, content monetization strategies, and the growing impact of data privacy regulations on advertising practices.

Regulatory Implications

The company faces regulatory scrutiny related to data privacy and consumer protection laws, such as GDPR and CCPA. Compliance with these regulations requires ongoing investment and can impact advertising and data monetization strategies. Additionally, accounting standards for revenue recognition and asset impairment are subject to regulatory oversight.

What Investors Should Do

1. Monitor the impact of the new provision for credit losses on investments, as this represents a new risk factor impacting profitability.
2. Analyze the sustainability of the improved net income trend, considering the reduction in goodwill impairment and the ongoing revenue growth.
3. Evaluate the effectiveness of the share repurchase program in enhancing shareholder value, given the significant capital deployed.
4. Assess the company's ability to navigate competitive pressures and adapt to evolving digital advertising and data privacy landscapes.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported a net loss of $3.598 million on revenues of $363.711 million, showing significant improvement from Q3 2024.
• 2025-09-30: End of Nine Months 2025 — Achieved net income of $46.984 million on revenues of $1.044 billion, a strong turnaround from a net loss in the prior year period.
• 2025-11-04: Share Repurchase Update — Outstanding shares reduced to 39,993,208 as of this date due to ongoing share repurchase program, indicating capital return to shareholders.

Glossary

Goodwill impairment

An accounting charge taken when the value of goodwill (an intangible asset representing the excess of the purchase price of an acquired company over the fair value of its identifiable net assets) is deemed to have decreased. (A significant reduction in goodwill impairment ($85.273M in Q3 2024 vs $17.579M in Q3 2025) substantially improved the company's net loss for the quarter.)

Provision for credit losses on investments

An expense set aside to cover potential losses from investments that may not be fully recovered. (This is a new, significant expense ($17.566M in YTD 2025) not present in the prior year, indicating potential risks in the company's investment portfolio.)

Deferred revenue

Revenue that has been received by the company but not yet earned, typically because the goods or services have not yet been delivered or performed. (Deferred revenue is recognized as current or noncurrent liability on the balance sheet, impacting working capital and future revenue recognition.)

Accumulated other comprehensive loss

A component of equity that includes unrealized gains and losses on certain investments, foreign currency translation adjustments, and pension plan adjustments that have not yet been realized in net income. (The company has an accumulated other comprehensive loss of $58.774 million as of September 30, 2025, which reduces total stockholders' equity.)

Year-Over-Year Comparison

Compared to the prior year, Ziff Davis has demonstrated significant financial improvement. Total revenues for the nine months ended September 30, 2025, increased by 5.6% to $1.044 billion. Most notably, the company swung from a net loss of $1.040 million in the same period of 2024 to a net income of $46.984 million in 2025. This turnaround was significantly aided by a substantial reduction in goodwill impairment charges, although a new provision for credit losses on investments has emerged as a notable expense.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value ZD The Nasdaq Stock Market LL

Filing Documents

• zd-20250930.htm (10-Q) — 1957KB
• zd20250930ex-311.htm (EX-31.1) — 10KB
• zd20250930ex-312.htm (EX-31.2) — 10KB
• zd20250930ex-321.htm (EX-32.1) — 5KB
• zd20250930ex-322.htm (EX-32.2) — 5KB
• zd-20250930_g1.jpg (GRAPHIC) — 67KB
• 0001084048-25-000066.txt ( ) — 10824KB
• zd-20250930.xsd (EX-101.SCH) — 54KB
• zd-20250930_cal.xml (EX-101.CAL) — 85KB
• zd-20250930_def.xml (EX-101.DEF) — 377KB
• zd-20250930_lab.xml (EX-101.LAB) — 754KB
• zd-20250930_pre.xml (EX-101.PRE) — 573KB
• zd-20250930_htm.xml (XML) — 1955KB

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets (Unaudited) 3 Condensed Consolidated Statements of Operations (Unaudited) 4 Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) 5 Condensed Consolidated Statements of Cash Flows (Unaudited) 6 Condensed Consolidated Statements of Stockholders' Equity (Unaudited) 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 39 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 56 Item 4.

Controls and Procedures

Controls and Procedures 57 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 58 Item 1A.

Risk Factors

Risk Factors 58 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 59 Item 3. Defaults Upon Senior Securities 59 Item 4. Mine Safety Disclosures 59 Item 5. Other Information 59 Item 6 . Exhibits 60

Signatures

Signatures 61 -2-

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements ZIFF DAVIS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands except share and per share data) September 30, 2025 December 31, 2024 ASSETS Cash and cash equivalents $ 503,368 $ 505,880 Accounts receivable, net of allowances of $ 8,430 and $ 8,148 , respectively 473,159 660,223 Prepaid expenses and other current assets 148,022 105,966 Total current assets 1,124,549 1,272,069 Long-term investments 119,557 158,187 Property and equipment, net of accumulated depreciation of $ 443,246 and $ 361,710 , respectively 207,854 197,216 Intangible assets, net 375,321 425,749 Goodwill 1,606,184 1,580,258 Deferred income taxes 7,515 7,487 Other assets 35,954 63,368 TOTAL ASSETS $ 3,476,934 $ 3,704,334 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $ 472,066 $ 670,769 Income taxes payable, current 5,508 19,715 Deferred revenue, current 203,141 199,664 Other current liabilities 17,291 9,499 Total current liabilities 698,006 899,647 Long-term debt 865,937 864,282 Deferred revenue, noncurrent 5,622 5,504 Liability for uncertain tax positions 24,163 30,296 Deferred income taxes 45,398 46,018 Other noncurrent liabilities 38,899 47,705 TOTAL LIABILITIES 1,678,025 1,893,452 Commitments and contingencies (Note 8 ) Preferred stock, $ 0.01 par value. Authorized 1,000,000 and none issued — — Preferred stock - Series A, $ 0.01 par value. Authorized 6,000 ; total issued and outstanding zero — — Preferred stock - Series B, $ 0.01 par value. Authorized 20,000 ; total issued and outstanding zero — — Common stock, $ 0.01 par value. Authorized 95,000,000 ; total issued and outstanding 39,993,208 and 42,848,339 shares at September 30, 2025 and December 31, 2024, respectively 400 428 Additional paid-in capital 482,667 491,891 Retained earnings 1,374,616 1,401,034 Accumulated other comprehensive loss ( 58,774 ) ( 82,471 ) TOTAL STOCKHOLDERS' EQUITY 1,798,909 1,8

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