Zeta Global Holdings Corp. 10-Q Summary
Business Context and Reporting Period
This summary covers the Quarterly Report on Form 10-Q for Zeta Global Holdings Corp. (ZETA) for the period ended June 30, 2026. Zeta is a marketing technology company providing an AI-powered omnichannel data-driven cloud platform for enterprise customer acquisition and retention. The company operates as a single reportable segment.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 |
|---|---|---|
| Revenue | $442.8 million | $839.1 million |
| Net Income / (Loss) | $8.2 million | $(5.1) million |
| Operating Income / (Loss) | $16.9 million | $(1.9) million |
| Adjusted EBITDA | $91.7 million | $157.8 million |
| Adjusted EBITDA Margin | 20.7% | 18.8% |
| Cash and Cash Equivalents | $310.0 million (as of June 30, 2026) | |
| Long-Term Borrowings | $197.5 million (net of deferred costs) | |
| Net Cash Provided by Operating Activities | $118.9 million (Six Months) |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 43.5% year-over-year (YoY) for the quarter and 46.5% YoY for the six-month period. Growth was driven by $75.9 million in new customer revenue and $58.4 million from existing customers for the quarter. The acquisition of Marigold's Enterprise Business contributed $48.1 million in revenue for the quarter.
- Profitability: The company reported a net income of $8.2 million for the quarter, compared to a net loss of $12.8 million in the same period in 2025. Operating income turned positive at $16.9 million, reversing a $5.1 million operating loss in the prior year quarter.
- Expense Increases: Cost of revenues increased 54.7% YoY (quarter), primarily due to incremental media costs. Operating expenses rose across all categories, with R&D up 38.1% and Selling & Marketing up 20.4% YoY, reflecting continued investment in technology and sales.
- Customer Metrics: Super-scaled customers increased 17% to 197. Average Revenue Per User (ARPU) for super-scaled customers rose 17% to $1.8 million.
Guidance, Outlook, and Risks
- Outlook: Management expects general and administrative, selling and marketing, and R&D expenses to increase in absolute dollars in future periods due to continued investment. The company believes existing cash and operating cash flow will meet working capital requirements for at least the next 12 months.
- Subsequent Event: On July 24, 2026, the company refinanced its credit facility, entering a new $1.0 billion senior secured credit facility (consisting of a $250 million term loan and $750 million revolving facility).
- Risks: Key risks include dependence on super-scaled customers, long sales cycles, intense competition, regulatory scrutiny on data privacy and AI, and potential impacts from macroeconomic conditions and tariffs.
- Legal Proceedings: A securities litigation case previously filed against the company had its motion to dismiss denied on July 8, 2026, and will proceed to discovery. The company believes the claims are without merit.
Investor Verification Checklist
- Verify the sustainability of revenue growth from new customers versus existing customers.
- Monitor the integration progress and financial contribution of the Marigold's Enterprise Business acquisition.
- Review the impact of the new $1.0 billion credit facility on future leverage ratios and interest expenses.
- Assess the trajectory of stock-based compensation, which totaled $105.1 million for the six months ended June 30, 2026.
- Track the status of the securities litigation proceeding to discovery.