Company Overview Ziff Davis, Inc. is a digital media and internet services company focused on technology, gaming and subscription advertising/products, with historically high gross margins and strong cash-generation metrics but notable recent volatility in revenue and per‑share earnings. Profitability and Cash Characteristics The company’s profitability and cash characteristics remain a strength:
Ziff Davis, Inc. is a digital media and internet services company focused on technology, gaming and subscription advertising/products, with historically high gross margins and strong cash-generation metrics but notable recent volatility in revenue and per‑share earnings.
The company’s profitability and cash characteristics remain a strength: gross margin sits near 50.2% (2025-03-31) while reported net profit margin was 15.3% (2024-12-31), reflecting persistent pricing and margin structure (see Profit Margin Trends)). Operating cash flow in the dataset is $480.1M (TTM) and the firm reports a free cash flow margin of roughly 26.0% (0.2602), supporting consistent cash generation and a cash conversion ratio well above 1 (3.1863) as summarized in Earnings Quality Analysis and Strategic Capital Allocation). Leverage is low by reported measures (debt-to-equity ~0.0167 and net‑debt indicator ~0.00), indicating a conservative balance sheet on the provided metrics.
At the same time, revenue and per‑share performance have weakened and been volatile: recent quarterly revenue trended down from $82.9M (2024-03-31) to $73.4M (2025-03-31) and to $66.6M (2026-03-31), and trailing twelve‑month net income declined to $47.4M (most recent TTM) as shown in Revenue & Net Income). Diluted EPS is volatile and below prior peaks, most recently $1.06 (2025-12) with one‑year EPS growth of −24.9% (period ended 2025-12-31); revenue per share experienced a large earlier step down (−72.2% in period ended 2022-12-31) and currently sits near $9.05 (see EPS Diluted & Revenue per Share and Revenue & EPS Growth). Return on equity has compressed to low single digits, most recently 2.7% (2025-12-31) as noted in Return on Equity (ROE).
Key fundamentals to monitor going forward include trendline revenue and quarterly Rev/Share and Net Income (see Revenue & Net Income) and EPS Diluted & Revenue per Share), operating cash flow and free cash flow margin and how they compare to net income (see Earnings Quality Analysis) and Strategic Capital Allocation), gross and operating margin trajectory (Profit Margin Trends), changes in ROE (Return on Equity (ROE)) and shifts in valuation multiples such as the trailing P/E (33.0x) in Price-to-Earnings (PE) Ratio Trend.
The foundation of business quality and long-term value creation
ZIFF DAVIS, INC.'s revenue in the most recent comparable quarters shows a downward trajectory: revenue fell from $82.9M (2024-03-31) to $73.4M (2025-03-31) and to $66.6M in the quarter ending 2026-03-31. The historical series includes much larger reporting-period values in prior years (for example $800.2M at 2020-12-31 and $574.3M at 2021-12-31 and $396.5M at 2023-09-30), indicating pronounced variability and a series of earlier high-reporting periods relative to the recent quarterly levels.
Net income has been positive in the recent year-end/period reports but exhibited quarter-to-quarter volatility in 2023. Reported net income was $63.4M at 2023-12-31 and $52.4M at 2024-12-31, with a most-recent reported net income of $47.4M at 2025-12-31. Quarterly results in 2023 included losses of $7.6M (2023-03-31) and $31.0M (2023-09-30) alongside positive quarters such as $16.7M (2023-06-30) and $10.6M (2024-03-31). The most recent reported revenue was $66.6M (period ending 2026-03-31) and the most recent reported net income was $47.4M (period ending 2025-12-31).
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Period Information
Report Type: Annual (10-K)
Period: Apr 2024 to Mar 2025
Analyzing long-term margin stability and competitive positioning
ZIFF DAVIS, INC.'s gross margin was consistently high through the 2010s (generally in the low‑80s to high‑80s percent range) but shows a clear inflection around 2021–2022, dropping to roughly the low‑50s and remaining near that level in the most recent quarters. The latest quarterly movement is a modest decline from 51.4% at 2024-12-31 to 50.2% at 2025-03-31, indicating the company is operating with materially lower gross margins than in the prior decade.
Operating margins likewise compressed from the elevated levels seen in earlier years (examples include double‑digit and very high mid‑double-digit readings in the 2010s) to much lower recent outcomes: operating margin fell to 2.1% at 2024-12-31 before rising to 12.1% at 2025-03-31. Net profit margin in recent available data has been in the mid‑teens (16.2% at 2022-12-31, 15.3% at 2024-12-31). The most recent Gross Margin was 50.2% (), Operating Margin was 12.1% (), and Net Profit Margin was 15.3% ().
Understanding Profit Margins
Between Apr 2024 and Mar 2025, Ziff Davis Inc converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
ZIFF DAVIS, INC.'s trailing twelve-month net income shows a clear decline from the multi-hundred-million-dollar troughs seen in 2019–2021 to much lower levels in 2022–2025, with quarter-to-quarter variability. Net income peaked at $228.6M (2021-03-31 TTM) and fell to $63.8M by 2022-12-31, then oscillated—$72.8M (2023-06-30 TTM), $23.7M (2023-09-30 TTM), $41.5M (2023-12-31 TTM), $59.8M (2024-03-31 TTM) and $63.0M (2024-12-31 TTM)—before declining to $47.4M in the most recent 2025-12-31 TTM observation.
Operating cash flow (TTM) in the dataset is reported only through 2020, when it was $480.1M at 2020-12-31—substantially higher than net income at that same date ($150.7M). Because no operating cash flow TTM values are present after 2020 in this series, the data do not show whether operating cash flow tracked net income during the 2022–2025 period. The most recent Net Income (TTM) was $47.4M. The most recent Operating Cash Flow (TTM) in the dataset was $480.1M.
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
ZIFF DAVIS, INC.'s return on equity has moved from historically high, double-digit levels toward low single digits in recent years. Over the last few reported periods, ROE was 3.5% at 2024-12-31, 3.1% at 2024-03-31, and declined to 2.7% at 2025-12-31, indicating a recent downtrend and that management is currently generating modest returns on shareholder equity.
Historically, the company recorded substantially higher ROE—multiple readings above 15% and peaks in 2010–2012 (above 20% and in the mid-20s)—and a notable 17.9% in 2021—before falling sharply to roughly 3–3.5% from 2022 onward. The most recent ROE (period ending 2025-12-31) was 2.7%.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
ZIFF DAVIS, INC.’s cash flow allocation shows persistent investing and financing outflows across the reported TTM series, with investing cash flow swinging from very large outflows in 2019–2020 toward smaller negative amounts in later years. The largest investing outflow in the dataset occurred in 2020 (‑$586.2M), followed by a general moderation and variability through 2021–2025 (notably ‑$220.8M in 2022, ‑$127.4M in 2023, a deeper outflow of ‑$297.5M in 2024, and a reduced outflow of ‑$145.8M in 2025). Financing cash flow also remained negative throughout, with a material increase in outflow in 2024 (‑$321.0M) that partially reversed in 2025 (‑$170.3M); earlier financing outflows were smaller in magnitude (e.g., ‑$114.8M in 2023, ‑$140.8M in 2022, ‑$113.1M in 2021). The only operating cash flow entries in the provided dataset are from 2019 and 2020, rising from $412.5M (2019) to $480.1M (2020).
The most recent trailing-twelve-month values available in this dataset are:
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
ZIFF DAVIS, INC.'s trailing P/E has risen from low-to-mid teens in the 2010s into much higher levels in recent years, with single-digit to low-double-digit readings around 2010–2012 (8.0x–13.5x) and a mid-teens to mid-20s band through 2014–2020 (16.6x–25.1x). Beginning in 2022, the ratio moved markedly higher, reaching 55.4x at year-end 2022 and then spiking in 2023.
The most pronounced inflection occurred between mid-2023 and late‑2023: P/E jumped from 42.8x on 2023-06-30 to a peak of 118.7x on 2023-09-30, then declined to 72.2x by 2023-12-31 and continued falling through 2024 and 2025 to 46.5x (2024-03-31), 38.4x (2024-12-31) and most recently 33.0x (2025-12-31). The most recent Price-to-Earnings (P/E) ratio was 33.0x.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.