Zeta Global — Q3 2026 Earnings Summary

Financial Performance:

• Reported third-quarter revenue of $493 million, a 46% year-over-year increase; growth was 30% year-over-year excluding Marigold and political candidate revenue, accelerating from 28% in the prior quarter.
• Revenue exceeded the midpoint of guidance by $22 million (5%).
• Achieved positive GAAP net income of $38 million and diluted GAAP EPS of $0.14 for the quarter; achieved positive GAAP net income on a year-to-date basis and over the last twelve months.
• Reported non-GAAP net income of $103 million and non-GAAP EPS of $0.38 for the quarter.
• Generated adjusted EBITDA of $121 million, expanding the adjusted EBITDA margin by 140 basis points year-over-year to 24.6%.
• Achieved the "Rule of 71" (revenue growth percentage plus adjusted EBITDA margin percentage totaling 71 or more).
• Generated net cash provided by operating activities of $91 million, a 58% year-over-year increase.
• Generated free cash flow of $82 million, a 73% year-over-year increase.
• Super-Scaled Customer count grew to 212 (18% year-over-year), with Super-Scaled Customer ARPU reaching $2.0 million (22% year-over-year).

Guidance and Future Outlook:

• Increased full-year 2026 revenue guidance to a midpoint of $1,855 million (range $1,853 million to $1,857 million), representing 42% year-over-year growth (27% excluding M&A and political candidate revenue).
• Increased full-year 2026 GAAP EPS guidance to a midpoint of $0.23 (range $0.22 to $0.24), up over 600% from the initial guidance of $0.03; this excludes a potential one-time, non-cash tax benefit.
• Increased full-year 2026 adjusted EBITDA guidance to a range of $414.1 million to $415.2 million, representing 49% year-over-year growth and a margin of 22.3% to 22.4%.
• Increased full-year 2026 free cash flow guidance to a range of $270.6 million to $271.6 million, representing 64% to 65% year-over-year growth and a margin of 14.6% to 14.7%.
• Increased fourth quarter 2026 revenue guidance to a range of $521 million to $525 million, representing 32% to 33% year-over-year growth (22% to 24% excluding M&A and political candidate revenue).
• Increased fourth quarter 2026 adjusted EBITDA guidance to a range of $135.2 million to $136.3 million, representing 42% to 43% year-over-year growth and a margin of 25.7% to 26.2%.

Business Segments and Product Lines:

• Revenue growth is driven by increased adoption and usage of Athena.
• The company is extending proprietary data and native AI into a broader enterprise intelligence opportunity through AthenaOS and an expanding partnership ecosystem.
• Super-Scaled Customer metrics (count and ARPU) are accelerating versus the prior quarter and are ahead of the 2028 model targets.

Market and Competitive Landscape:

• Zeta Global positions itself as an intelligent AI infrastructure company helping enterprises transform proprietary data into enterprise intelligence.
• The company leverages one of the industry's largest proprietary data assets to build durable competitive advantage.
• Management anticipates the marketing cloud replacement cycle is accelerating due to prior investments.

Risks and Challenges:

• Forward-looking statements are subject to risks including global supply chain disruptions, macroeconomic trends, and adverse developments in debt and consumer credit markets.
• Risks include potential fluctuations in operating results during presidential and midterm election years, long sales cycles, and the impact of inflation, tariffs, and trade policies.
• Regulatory risks involve evolving data protection, privacy, and security laws, including regulations applicable to agentic AI systems and AI-generated content.
• Operational risks include the potential for security breaches, fraud, malware intrusion, and disruption to third-party data centers or AI models.
• Risks also include the impact of new generative AI capabilities, the ability to attract and retain super-scaled customers, and the integration of acquisitions.

Management Commentary and Tone:

• CEO David A. Steinberg stated that delivering 46% revenue growth and achieving the Rule of 71 demonstrate the strength and demand for Zeta's intelligent AI infrastructure.
• CFO Chris Greiner noted that growth is translating into greater profitability and cash generation, with adjusted EBITDA and free cash flow growing faster than revenue and record GAAP EPS.
• Management expressed confidence in the strong pipeline and performance, citing the ability to fund the next chapter with free cash flow.

Other Key Points:

• Zeta Global reported its 21st consecutive "Beat and Raise" quarter.
• The company achieved positive GAAP net income on a year-to-date basis and over the last twelve months.
• The press release includes a reconciliation of GAAP to non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow, and Non-GAAP Net Income.
• The company is unable to provide a meaningful reconciliation of forward-looking adjusted EBITDA, margins, and free cash flow to forward-looking GAAP net income without unreasonable efforts.
• The guidance excludes the potential impact of a one-time, non-cash tax benefit from the release of a portion of the valuation allowance.
• The company referenced expected benefits from recent acquisitions of Senso Agentic Inc. and Social Audience B.V., and the contribution of Marigold's Enterprise Business.