Ziff Davis | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 267.64 M

Revenue: As of FY2026 Q1, the actual value is USD 267.64 M, beating the estimate of USD 264.31 M.EPS: As of FY2026 Q1, the actual value is USD -0.02.EBIT: As of FY2026 Q1, the actual value is USD 9.828 M.RevenueTotal revenues for the first quarter of 2026 decreased to $267.6 million, representing a 1.9% decline from $272.8 million in Q1 2025 .Segment RevenueTechnology & Shopping revenue was $71.1 million in Q1 2026, a 12.9% decrease from $81.7 million in Q1 2025 .Gaming & Entertainment revenue increased by 7.2% to $40.8 million in Q1 2026 from $38.0 million in Q1 2025 .Health & Wellness revenue slightly increased by 0.2% to $85.9 million in Q1 2026 from $85.8 million in Q1 2025 .Cybersecurity & Martech revenue grew by 3.6% to $69.8 million in Q1 2026 from $67.3 million in Q1 2025 .Revenue by Type (Continuing Operations)Advertising and Performance Marketing revenue was $164 million in Q1 2026, a -5.1% decrease from $173 million in Q1 2025 .Subscription and Licensing revenue was $98 million in Q1 2026, a 1.9% increase from $96 million in Q1 2025 .Operational MetricsOperating income decreased by 79.7% to $2.9 million in Q1 2026, compared to $14.5 million in Q1 2025 . The operating income margin was 1.1% in Q1 2026, down from 5.3% in Q1 2025 . Net loss from continuing operations was - $0.775 million in Q1 2026, compared to a net income of $9.812 million in Q1 2025, representing a 107.9% decrease . Adjusted EBITDA decreased by 11.2% to $63.4 million in Q1 2026 from $71.4 million in Q1 2025 . The Adjusted EBITDA margin was 23.7% in Q1 2026, a 2.5% decrease from 26.2% in Q1 2025 . Adjusted net income decreased by 16.5% to $27.5 million in Q1 2026 from $33.0 million in Q1 2025 . Adjusted diluted EPS decreased by -5.2% to $0.73 in Q1 2026 from $0.77 in Q1 2025 .Operating Costs and ExpensesTotal operating costs and expenses increased to $264.709 million in Q1 2026 from $258.347 million in Q1 2025 . Direct costs were $44.317 million in Q1 2026, compared to $40.401 million in Q1 2025 . Sales and marketing expenses were $115.233 million in Q1 2026, up from $112.411 million in Q1 2025 . Research, development, and engineering costs were $13.637 million in Q1 2026, a slight decrease from $13.920 million in Q1 2025 . General, administrative, and other related costs increased to $46.644 million in Q1 2026 from $43.163 million in Q1 2025 . Depreciation and amortization was $44.878 million in Q1 2026, down from $48.452 million in Q1 2025 .Segment Performance (Continuing Operations)Technology & Shopping SegmentQuarterly Adjusted EBITDA: $17.0 million in Q1 2026, down from $21.0 million in Q1 2025, with an Adjusted EBITDA Margin of 23.8% in Q1 2026 compared to 25.7% in Q1 2025 .Operating (loss) income: - $6.458 million in Q1 2026, compared to - $3.963 million in Q1 2025 .Gaming & Entertainment SegmentQuarterly Adjusted EBITDA: $12.7 million in Q1 2026, up from $12.1 million in Q1 2025, with an Adjusted EBITDA Margin of 31.1% in Q1 2026 compared to 31.9% in Q1 2025 .Operating income: $7.884 million in Q1 2026, compared to $8.774 million in Q1 2025 .Health & Wellness SegmentQuarterly Adjusted EBITDA: $24.5 million in Q1 2026, down from $29.4 million in Q1 2025, with an Adjusted EBITDA Margin of 28.5% in Q1 2026 compared to 34.2% in Q1 2025 .Operating income: $8.624 million in Q1 2026, compared to $16.962 million in Q1 2025 .Cybersecurity & Martech SegmentQuarterly Adjusted EBITDA: $21.8 million in Q1 2026, down from $22.2 million in Q1 2025, with an Adjusted EBITDA Margin of 31.3% in Q1 2026 compared to 32.9% in Q1 2025 .Operating income: $13.697 million in Q1 2026, compared to $11.323 million in Q1 2025 .Cash FlowNet cash provided by operating activities from continuing and discontinued operations increased by 45.3% to $30.0 million in Q1 2026, from $20.6 million in Q1 2025 . Free cash flow from continuing and discontinued operations increased by 36.6% to - $3.2 million in Q1 2026, compared to - $5.0 million in Q1 2025 . Net cash provided by operating activities was $29.953 million in Q1 2026, up from $20.613 million in Q1 2025 . Free cash flow was - $3.174 million in Q1 2026, an improvement from - $5.006 million in Q1 2025 .Balance Sheet Highlights (in thousands)As of March 31, 2026, cash and cash equivalents were $519,718, down from $573,777 at December 31, 2025 . Total current assets increased to $1,435,498 from $1,370,399 . Total assets decreased to $3,394,285 from $3,663,306 . Total current liabilities decreased to $863,716 from $1,074,953 . Total liabilities decreased to $1,672,777 from $1,909,731 . Total stockholders’ equity decreased to $1,721,508 from $1,753,575 .Ziff Davis Capital Structure (Continuing Operations)As of March 31, 2026, cash and cash equivalents were $520 million, long-term investments were $100 million, and total cash, cash equivalents, and long-term investments amounted to $620 million . Total gross debt was $872 million, with gross debt less cash and cash equivalents at $352 million, and gross debt less cash, cash equivalents, and long-term investments at $252 million .Unique MetricsZiff Davis, Inc. deployed approximately $51.6 million related to share repurchases in Q1 2026 . The company entered into a definitive agreement to sell its Connectivity business, with results classified as discontinued operations for all presented periods, except for the Statements of Cash Flows and Free cash flow, which are presented on a combined basis . The company is also exploring additional value-creating transactions .Key Operating Metrics by Segment - Advertising and Performance MarketingTechnology & ShoppingNet advertising and performance marketing revenue retention: 90.0% in Q1 2026, unchanged from Q1 2025 .Customers: 586 in Q1 2026, up from 573 in Q1 2025 .Quarterly revenue per customer: $116,661 in Q1 2026, down from $138,701 in Q1 2025 .Gaming & EntertainmentNet advertising and performance marketing revenue retention: 89.0% in Q1 2026, down from 92.2% in Q1 2025 .Customers: 402 in Q1 2026, up from 311 in Q1 2025 .Quarterly revenue per customer: $63,820 in Q1 2026, down from $78,362 in Q1 2025 .Health & WellnessNet advertising and performance marketing revenue retention: 102.6% in Q1 2026, up from 94.9% in Q1 2025 .Customers: 730 in Q1 2026, up from 703 in Q1 2025 .Quarterly revenue per customer: $94,567 in Q1 2026, down slightly from $94,652 in Q1 2025 .Key Operating Metrics by Segment - Subscription and LicensingGaming & EntertainmentCustomers: 499,000 in Q1 2026, down from 531,000 in Q1 2025 .Average quarterly revenue per customer: $30.29 in Q1 2026, up from $25.68 in Q1 2025 .Health & WellnessCustomers: 1,762,000 in Q1 2026, down from 1,820,000 in Q1 2025 .Average quarterly revenue per customer: $7.49 in Q1 2026, up from $7.20 in Q1 2025 .Cybersecurity & MartechCustomers: 1,230,000 in Q1 2026, down from 1,250,000 in Q1 2025 .Average quarterly revenue per customer: $54.51 in Q1 2026, up from $53.85 in Q1 2025 .Outlook / GuidanceZiff Davis, Inc. is deferring its fiscal 2026 guidance due to the ongoing process of evaluating value-creating opportunities, including the sale of its Connectivity business . The provided reference material does not contain explicit forward-looking statements or specific guidance on future financial performance or operational targets .