Ziff Davis — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues decreased 5.6% year-over-year to $289.3 million in Q3 2026, compared to $306.5 million in Q3 2025.
• Operating loss widened to $(33.6) million in Q3 2026 from operating income of $11.4 million in Q3 2025.
• Net loss from continuing operations increased to $(28.7) million in Q3 2026, compared to $(16.0) million in Q3 2025.
• Net loss per diluted share from continuing operations was $(0.85) in Q3 2026, compared to $(0.39) in Q3 2025.
• Adjusted EBITDA decreased 16.0% to $82.2 million in Q3 2026, compared to $97.8 million in Q3 2025.
• Adjusted net income decreased 15.0% to $48.3 million in Q3 2026, compared to $56.8 million in Q3 2025.
• Adjusted diluted EPS decreased 0.7% to $1.39 in Q3 2026, compared to $1.40 in Q3 2025.
• Net cash used in operating activities from continuing and discontinued operations was $(77.1) million in Q3 2026, compared to $138.3 million provided in Q3 2025.
• Free cash flow from continuing and discontinued operations was $(100.1) million in Q3 2026, compared to $108.2 million in Q3 2025.
• Transaction adjusted free cash flow from continuing and discontinued operations was $(10.0) million in Q3 2026, compared to $108.2 million in Q3 2025.
• Goodwill impairment of $29.6 million was recognized in Q3 2026, compared to $17.6 million in Q3 2025.
• Long-lived assets impairment of $6.4 million was recognized in Q3 2026, with no comparable charge in Q3 2025.
• Cash and cash equivalents at September 30, 2026, were $1,407.7 million, compared to $573.8 million at December 31, 2025.
• Total debt (current and long-term) was $868.2 million at September 30, 2026, compared to $866.5 million at December 31, 2025.
• Deferred revenue (current and noncurrent) totaled $127.7 million at September 30, 2026, compared to $136.2 million at December 31, 2025.

Business Segments and Product Lines:

• Technology & Shopping revenue decreased 3.8% to $82.0 million in Q3 2026, compared to $85.2 million in Q3 2025.
• Gaming & Entertainment revenue decreased 2.1% to $46.6 million in Q3 2026, compared to $47.6 million in Q3 2025.
• Health & Wellness revenue decreased 9.5% to $92.5 million in Q3 2026, compared to $102.3 million in Q3 2025.
• Cybersecurity & Martech revenue decreased 4.6% to $68.2 million in Q3 2026, compared to $71.4 million in Q3 2025.
• The Connectivity business was sold in Q2 2026 and is classified as discontinued operations; it is no longer a reportable segment.

Other Key Points:

• The Company repurchased approximately $265 million of shares during the first three quarters of 2026, reducing the share count by nearly 14%.
• $92.0 million was deployed for share repurchases specifically in Q3 2026.
• Approximately $7.0 million was deployed for current and prior year acquisitions during Q3 2026.
• The sale of the Connectivity business resulted in a gain on sale of businesses of $860.6 million for the nine months ended September 30, 2026.
• Proceeds from the sale of the Connectivity business, net of cash divested, were $1,134.1 million for the nine months ended September 30, 2026.
• Cash taxes related to the sale of the Connectivity business totaled $55.0 million for the nine months ended September 30, 2026.
• Cash paid for transaction costs related to the sale of the Connectivity business totaled $44.3 million for the nine months ended September 30, 2026.