Summary
Zeta Global reported second quarter fiscal 2025 revenue of $308.4 million, up 35.4% from the prior-year quarter. For the six months ended June 30, 2025, revenue was $572.9 million, up 35.5%. The company improved its operating loss to $5.1 million, up 80.8% from the prior-year quarter. Net loss improved to $12.8 million, up 54.3%. Diluted loss per share improved to $0.06, up 62.5%. Operating margin improved by 10.0 percentage points to negative 1.7%. Management said demand for its AI-powered marketing platform drove the top line.
Operating cash flow was $42.0 million in the quarter, up 35.2% year over year. For the six months, operating cash flow was $76.8 million, up 37.8%. Free cash flow, a non-GAAP measure, was $34 million, up 69% year over year. Capital expenditures were $2.3 million in the quarter, down 65.2%. The company generated adjusted EBITDA of $58.8 million, up from $38.5 million a year earlier, with an adjusted EBITDA margin of 19.1% versus 16.9%. Deferred revenue, current portion, was $3.86 million, up 4.7%.
Operational metrics were strong. Scaled customers increased 21% to 567 as of June 30, 2025, compared with 468 a year earlier. Super-scaled customers rose to 168 from 144. Scaled customer ARPU increased 11% to $532 thousand for the three months ended June 30, 2025, compared with $479 thousand a year earlier. Super-scaled ARPU increased 19% to $1.6 million across 168 customers, compared with $1.3 million across 144. Direct platform revenue represented 74% of revenues for the six months ended June 30, 2025, up from 67% a year earlier. Revenue growth came from new customers, including contributions from the LiveIntent acquisition, and from existing customers.
Guidance moved higher. For the third quarter of 2025, revenue guidance is $327 million to $329 million, up $5 million at the midpoint from prior guidance of $323 million, representing 22% to 23% year-over-year growth. Adjusted EBITDA guidance is $70.3 million to $71.0 million, up $1 million at the midpoint, with 31% to 32% growth and a 21.4% to 21.7% margin. For full year 2025, revenue guidance is $1,258 million to $1,268 million, up $21 million at the midpoint from prior guidance of $1,242 million, representing 25% to 26% growth. Full year adjusted EBITDA guidance is $263.6 million to $265.6 million, up $6 million at the midpoint, with 37% to 38% growth and a 20.8% to 21.1% margin. Full year free cash flow guidance is $140.0 million to $144.0 million, up $10.5 million at the midpoint, with 52% to 56% growth and an 11.0% to 11.4% margin. Equity stock-based compensation is expected to be $190 million.
On capital allocation, Zeta's board authorized a new $200.0 million stock repurchase and withholding program on July 23, 2025, running through December 31, 2027. The program supplements an existing authorization. As of July 25, 2025, $85 million of the $100 million 2024 authorization had been used, leaving $15 million available before its expiration on December 31, 2026. The company ended the quarter with zero net dilution versus the first quarter.
Risks include macroeconomic uncertainty, potential inflation, tariffs and changes in global trade policies. The company said tariffs have had no material impact on its costs or operations so far, but uncertainty may increase costs and hurt customers. Other risks include reliance on third-party data centers, data privacy and security breaches, the ability to integrate acquisitions, and the need to manage growth. It also cited the need to attract and retain scaled and super-scaled customers and the pace of digital transformation. Zeta also maintains a full valuation allowance against its U.S. deferred tax assets, which limits tax benefits on U.S. operating losses. The company remains in compliance with financial covenants under its senior secured credit facility.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $308.4M | $264.4M | +16.6% | $227.8M | +35.4% |
| Gross profit | $191.5M | $160.9M | +19.0% | $136.8M | +40.0% |
| Gross margin | 62.1% | 60.9% | +1.2 pp | 60.0% | +2.0 pp |
| Research & development | $30.6M | $26.8M | +14.2% | $23.6M | +29.6% |
| Sales & marketing | $86.4M | $75.4M | +14.6% | $75.6M | +14.3% |
| General & administrative | $62.2M | $54.0M | +15.1% | $51.2M | +21.5% |
| Operating income (loss) | -$5.1M | -$16.1M | +68.3% | -$26.6M | +80.8% |
| Operating margin | -1.7% | -6.1% | +4.4 pp | -11.7% | +10.0 pp |
| Net income (loss) | -$12.8M | -$21.6M | +40.7% | -$28.1M | +54.3% |
| Net margin | -4.2% | -8.2% | +4.0 pp | -12.3% | +8.2 pp |
| Diluted EPS | -$0.06 | -$0.10 | +$0.04 | -$0.16 | +$0.10 |
| Customers | 168 | 159 | +5.7% | 144 | +16.7% |
Risks
Zeta conducts significant technology and product development work in India and other non-U.S. locations, where it faces intense competition for engineering and management resources and resulting wage inflation. Difficulty hiring or retaining these resources could increase expenses and diminish the expected cost savings from those operations.
The filing expands payment-related risks, noting customers have slowed payments, entered bankruptcy, and caused losses, and that some agency contracts contain sequential liability. If customers dispute or fail to pay, Zeta could incur bad debt write-offs that exceed reserves and still owe for purchased marketing inventory.
MD&A states that evolving tariffs and changes in global trade policies continue to cause overall economic uncertainty and may increase costs and adversely impact operations, though to date they have had no material impact on costs or operations. Slower economic growth or recession could also hurt Zeta and its customers.
The risk factor states that if the Rupee strengthens against the U.S. Dollar, including from ongoing changes in global trade policies and macroeconomic conditions, Zeta's costs would increase and the increase could be material. This could erode the cost savings from its India operations.
Enforcement of intellectual property rights and confidentiality protections in India may not be as effective as in the U.S., and policing unauthorized use of proprietary technology is difficult and expensive. Litigation could require significant management effort and cash expenditures, with unpredictable outcomes.
MD&A attributes $20.1 million of Q2 2025 revenue to the LiveIntent acquisition and reports that other expenses increased by $7.9 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, driven by a larger fair value change of acquisition-related liabilities. Integration and remeasurement of these liabilities could add volatility to results.
SaaS KPIs
All quarters →Adjusted EBITDA
Adjusted EBITDA margin
Free Cash Flow
Scaled Customer ARPU
Scaled Customers
Super-Scaled Customers
Super-Scaled Customer ARPU
Summary, forecast, risks and KPIs are extracted from Zeta Global Holdings Corp.'s SEC filings for Q2 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.