Zeta Global (NYSE:ZETA) Issues Earnings Results

Zeta Global (NYSE:ZETA) released its quarterly earnings results on Tuesday. The company reported $0.03 EPS for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.17), FiscalAI reports. Zeta Global had a positive return on equity of 2.91% and a negative net margin of 1.62%.The business had revenue of $442.77 million for the quarter, compared to analyst estimates of $420.61 million. During the same period in the prior year, the business earned ($0.10) EPS. The company’s revenue for the quarter was up 43.6% compared to the same quarter last year.

Here are the key takeaways from Zeta Global’s conference call:

• Record growth and raised guidance: Q2 revenue rose 44% year over year to $443 million, while adjusted EBITDA increased 56% to $92 million. Management raised 2026 revenue guidance by $33 million to $1.818 billion and free cash flow guidance by $20 million to $255 million.
• AI adoption is driving expansion: More than 40% of super-scaled customers were monthly Athena users within 130 days of launch, and comprehensive AI adopters are generating higher revenue growth and net revenue retention than customers earlier in adoption.
• Customer and sales momentum remained strong: Super-scaled customers grew 17% to 197, pipeline increased more than 60% year over year, and cross-sell and upsell wins rose 43%. Partnerships with OpenAI, Palantir, and Snowflake are generating additional enterprise opportunities that are largely not included in current guidance.
• Profitability and cash generation improved: Adjusted EBITDA margin expanded 170 basis points to 20.7%, free cash flow increased 73% to $58 million, and Zeta reported positive GAAP net income of $8.2 million versus a loss last year. The company also repurchased $29.9 million of stock during the quarter.
• Expansion beyond marketing is still developing: Zeta Business Intelligence is being used for real-time business decision-making across areas such as sports, retail, and energy drinks, but new enterprise sales cycles may be longer than existing-customer expansions as the company reaches CIOs and CTOs.

Zeta Global Stock Up 8.3%

ZETA stock opened at $26.28 on Wednesday. Zeta Global has a fifty-two week low of $14.36 and a fifty-two week high of $26.32. The company has a quick ratio of 2.07, a current ratio of 2.07 and a debt-to-equity ratio of 0.22. The stock has a market cap of $6.55 billion, a PE ratio of -238.91, a price-to-earnings-growth ratio of 3.34 and a beta of 1.39. The firm’s 50-day simple moving average is $21.01 and its 200 day simple moving average is $18.75.

Analyst Ratings Changes

Several analysts recently weighed in on the company. Needham & Company LLC raised their price objective on Zeta Global from $25.00 to $30.00 and gave the company a “buy” rating in a research note on Wednesday. Weiss Ratings restated a “sell (d-)” rating on shares of Zeta Global in a research note on Friday, July 17th. Bank of America increased their target price on shares of Zeta Global from $24.00 to $28.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. B. Riley Financial reaffirmed a “buy” rating on shares of Zeta Global in a research note on Friday, May 1st. Finally, Royal Bank Of Canada increased their target price on Zeta Global from $27.00 to $29.00 and gave the stock an “outperform” rating in a research report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $29.17.

Insider Buying and Selling at Zeta Global

In other news, Director Jeanine Silberblatt sold 7,500 shares of Zeta Global stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $19.89, for a total value of $149,175.00. Following the transaction, the director owned 50,350 shares of the company’s stock, valued at $1,001,461.50. The trade was a 12.96% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. 10.74% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Zeta Global

A number of large investors have recently made changes to their positions in ZETA. Disciplined Growth Investors Inc. MN acquired a new stake in Zeta Global during the third quarter valued at $121,502,000. Barrow Hanley Mewhinney & Strauss LLC boosted its holdings in Zeta Global by 294.4% during the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 2,046,279 shares of the company’s stock valued at $41,642,000 after purchasing an additional 1,527,482 shares in the last quarter. Summit Partners Public Asset Management LLC bought a new position in shares of Zeta Global during the third quarter valued at $15,539,000. Lazard Asset Management LLC lifted its holdings in Zeta Global by 180.9% during the 4th quarter. Lazard Asset Management LLC now owns 1,179,572 shares of the company’s stock valued at $24,004,000 after purchasing an additional 759,572 shares during the last quarter. Finally, Zurich Insurance Group Ltd FI bought a new stake in Zeta Global during the third quarter worth about $12,542,000. Institutional investors and hedge funds own 87.75% of the company’s stock.

Trending Headlines about Zeta Global

Here are the key news stories impacting Zeta Global this week:

• Positive Sentiment: Strong revenue growth and raised outlook: Zeta reported second-quarter revenue of $442.8 million, up 43.6% year over year and above the $420.6 million analyst consensus. Management guided third-quarter revenue to $469 million-$472 million, ahead of the $460.8 million consensus, and projected approximately $1.818 billion in 2026 revenue while raising its GAAP EPS outlook to $0.10. Zeta projects 2026 revenue and raises GAAP EPS guidance
• Positive Sentiment: AI and Palantir partnership support the growth narrative: Zeta and Palantir Technologies are launching an AI-driven marketing platform. Reports indicate the partnership is already contributing to customer adoption and supports expectations for broader platform expansion, including Zeta’s Athena AI capabilities. Zeta Global and Palantir launch AI-driven marketing platform
• Positive Sentiment: Analyst becomes more bullish: Needham raised its Zeta price target from $25 to $30 and maintained a Buy rating, citing the company’s growth and improving profitability outlook. Needham raises Zeta price target
• Neutral Sentiment: Positive operating milestones: Zeta said it delivered its 20th consecutive “beat and raise” quarter, achieved the Rule of 64, and generated positive GAAP net income in the second quarter. Zeta reports second-quarter results
• Negative Sentiment: Earnings miss and profit-taking: Reported EPS was below expectations—approximately $0.18 on an adjusted basis, or $0.03 under another reported measure, versus the $0.20 consensus. Investors subsequently booked profits, causing the stock to retreat from its weekly high near $24.45 toward $23 despite the revenue beat. Zeta stock retreats after earnings

Zeta Global Company Profile

Zeta Global, founded in 2007 and headquartered in New York City, is a leading data-driven marketing technology company. The firm’s mission centers on helping brands acquire, grow and retain customers through a unified customer lifecycle management platform. Over the years, Zeta Global has built a reputation for leveraging big data and predictive analytics to power digital marketing programs across multiple channels.

At the core of Zeta’s offering is the Zeta Marketing Platform, which combines identity resolution, audience insights and real-time engagement capabilities.