Ziff Davis Inc. Common Stock (ZD)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent profits and sell below intrinsic value. Ziff Davis is a collection of digital media and internet brands—PCMag, CNET, Mashable, RetailMeNot—that should generate cash, but the reported record is uneven. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $286.7 million and net income was $624.5 million, with diluted EPS of $17.16. That profit is larger than revenue, so it likely reflects non-operating items rather than sustainable operating earnings; I would not annualize it. The prior quarter, fiscal Q1 2026 ended 2026-03-31, had $267.6 million of revenue, $22.3 million of net income, and $0.59 diluted EPS. Fiscal Q3 2025 ended 2025-09-30 showed a $3.6 million net loss on $363.7 million of revenue. For FY2025, revenue was $1.5 billion and net income $47.4 million, or $1.15 per diluted share. Revenue growth is -2.74%, so the top line is shrinking. The balance sheet has debt-to-equity of 0.40 and an Altman Z-Score of 1.75, which is not comfortable. Still, trailing free cash flow is $316.7 million, a 16.0% FCF yield on the $2.0 billion market cap, and FairStock computes EV/EBITDA of 5.86, P/B of 0.90, ROE of -1.46%, ROCE of 3.09%, and a Piotroski F-Score of 7/9. At the 2026-10-13 close of $57.88, the market prices it as a Lynch asset play: 0.90 times book. The brands have some recognition, but digital advertising is competitive and switching costs are low. This is a statistically cheap asset with real cash flow, but not a high-quality compounder; I need evidence that revenue stabilizes and GAAP profits become dependable.

In plain English: Ziff Davis runs digital media and internet brands such as PCMag, CNET, Mashable, and RetailMeNot. The business produces a lot of cash, but revenue has been slipping and reported profits are uneven, including a recent quarter with a huge one-time-looking gain. At the recent price, the stock looks inexpensive compared with its accounting value and cash flow, but the weak profit record makes that cheapness uncertain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer