Summary
Zeta Global ended fiscal 2025 with a stronger top line. Fourth quarter revenue was $394.6 million, up 25.4% from the prior-year quarter. Full-year revenue reached $1.30 billion, up 29.7%. The reported growth includes political candidate revenue, LiveIntent, and Marigold's Enterprise Business. On a basis that excludes those items, fourth quarter growth was 28%, according to the earnings release. Political and advocacy customers represented 1% of 2025 revenue, down from 8% in 2024, so the underlying marketing business carried more of the growth. The Marigold Enterprise Business acquisition closed on November 24, 2025, and it added to both revenue and acquisition-related costs.
Profitability improved on a GAAP basis at the operating line. Fourth quarter operating income was $17.8 million, up 157.7% from the prior-year quarter, and operating margin was 4.5%, up 2.3 percentage points. For the full year, operating income was $5.4 million, a swing to a profit, with operating margin of 0.4%, up 7.2 percentage points. The bottom line was mixed. Fourth quarter net income was $6.5 million, down 57.1% from the prior-year quarter. Full-year net loss was $31.5 million, a 54.8% narrowing from the prior year. Full-year diluted loss per share was $0.14, a 63.2% narrowing. The gap between operating income and net income reflects other expenses, including fair value changes on acquisition-related liabilities. On a non-GAAP basis, fourth quarter adjusted EBITDA was $95.1 million with a 24.1% margin, and full-year adjusted EBITDA was $278.7 million with a 21.4% margin.
Cash generation remained a highlight. Fourth quarter operating cash flow was $64.1 million, up 46.8% from the prior-year quarter. Full-year operating cash flow was $198.9 million, up 48.6%. Capital expenditures were $3.3 million in the fourth quarter, down 60.6%, and $13.8 million for the full year, down 46.3%. Deferred revenue was $35.4 million, up 242.1% from the prior-year quarter. The press release reported full-year free cash flow of $165 million, up 78%, with a 13% margin. Operating cash flow and free cash flow are separate measures; the first is a GAAP line, and the second is a non-GAAP measure after capital expenditures and website and software development costs.
Customer metrics point to expansion at the high end. Super-scaled customers totaled 184, up by 36 customers, or 24%, year over year. Scaled customers totaled 602, up 14% from 527. Annual net revenue retention was 128.0%, compared with 113.6% in the prior year. Scaled customer ARPU was $2.1 million, up 13%, and super-scaled customer ARPU was $6.2 million, up 8%. Channels per super-scaled customer increased to 3.3 from 3.0. Super-scaled customers represented 87% of total revenue in 2025, against 84% in 2024. The MD&A says the revenue increase came from both new and existing customers, and management pointed to the hunter/farmer sales model and cross-selling as drivers. The company also plans to report only super-scaled customer metrics in future quarterly reports, since those customers represent a substantial majority of revenue.
Guidance points to another year of rapid growth. For the first quarter of 2026, Zeta guided revenue to $369 million to $371 million, representing 39% to 40% growth, or 22% to 23% excluding political candidate and Marigold's Enterprise Business revenue. First quarter adjusted EBITDA guidance is $61.2 million to $61.8 million, with a 16.5% to 16.8% margin. For full-year 2026, revenue guidance is $1,749 million to $1,762 million, or 34% to 35% growth, and 20% to 21% excluding those same items. Full-year adjusted EBITDA guidance is $389.9 million to $392.1 million, a 22.1% to 22.4% margin. Free cash flow guidance for full-year 2026 is $230.7 million to $231.7 million, a 40% to 41% increase, with a 13.1% to 13.3% margin. The company also said it expects positive GAAP net income for full-year 2026. Its Zeta 2028 medium-term plan raises the revenue target to reflect the completion of Marigold's Enterprise Business acquisition, and it lifts the adjusted EBITDA and free cash flow expectations as well.
Risks remain familiar. The MD&A cites macroeconomic uncertainty, inflation, tariffs, and the potential for slower economic growth or recession. Marketing spend is seasonal, with the fourth quarter typically stronger and the first quarter weaker. Political and advocacy revenue is cyclical, so comparisons will move with election cycles. Zeta also faces competition from point solutions and in-house builds, execution risk from acquisitions such as Marigold's Enterprise Business, and risks tied to data privacy, security breaches, and third-party data centers. The company maintains a full valuation allowance against U.S. net deferred tax assets, though it sees a reasonable possibility that some of that allowance could be released within the next 12 months.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $394.6M | $337.2M | +17.0% | $314.7M | +25.4% |
| Gross profit | $234.8M | $203.9M | +15.1% | $188.7M | +24.4% |
| Gross margin | 59.5% | 60.5% | -1.0 pp | 60.0% | -0.5 pp |
| Research & development | $30.0M | $29.8M | +0.5% | $24.3M | +23.5% |
| Sales & marketing | $93.0M | $85.3M | +9.0% | $82.9M | +12.1% |
| General & administrative | $60.4M | $56.4M | +7.1% | $54.1M | +11.6% |
| Operating income (loss) | $17.8M | $8.8M | +103.8% | $6.9M | +157.7% |
| Operating margin | 4.5% | 2.6% | +1.9 pp | 2.2% | +2.3 pp |
| Net income (loss) | $6.5M | -$3.6M | +279.9% | $15.2M | -57.1% |
| Net margin | 1.7% | -1.1% | +2.7 pp | 4.8% | -3.2 pp |
| Diluted EPS | $0.03 | -$0.02 | +$0.05 | $0.08 | -$0.05 |
Risks
In 2025, Zeta's top ten customers accounted for more than one-third of total revenue, and one customer accounted for more than 10% of total revenue. The filing notes that a holding company of multiple marketing agencies could exert control and terminate relationships, causing a disproportionate loss of revenue.
The marketing technology industry is intensely competitive with rapid evolution and consolidation, and Zeta must continuously innovate its AI-powered platform to avoid obsolescence. Competitive point solutions and in-house builds could pressure pricing and reduce market share.
Zeta closed the acquisition of Marigold's Enterprise Business on November 24, 2025, and acquisition-related expenses increased 146.5% year over year to $20.3 million for the year ended December 31, 2025. Integration may divert management attention, fail to realize expected financial results, or dilute stockholders.
Zeta's platform depends on collecting and using online consumer data, and it faces evolving restrictions from browser and mobile OS changes, opt-out mechanisms such as Global Privacy Control and California's Delete Act, and global privacy laws such as GDPR, EU AI Act, DSA, NIS 2, and DORA. Compliance failures could limit data access, increase costs, or subject Zeta to fines.
A November 2024 short seller report led to a decrease in Zeta's Class A Common Stock price and numerous lawsuits, which Zeta is defending. Additional short seller efforts or litigation could harm brand, reputation, and financial condition.
Zeta often has long sales cycles between initial contact and customer agreement, making it difficult to project when or if revenue will be generated from those customers. The filing says Zeta may spend substantial time and resources on proposals that do not ultimately result in revenue.
MD&A says tariffs and changes in global trade policies have not materially impacted costs to date but continue to cause economic uncertainty and may increase costs and adversely affect Zeta and its customers. Inflation and slower economic growth could reduce marketing spend.
Zeta's revenue is impacted by political cycles and generally higher marketing activity in fourth quarters and election years, making period comparisons difficult. Political and advocacy customers represented 1.0% of revenue for 2025 and 8.0% for 2024, which affects year-over-year comparability.
Zeta's Senior Secured Credit Facility includes restrictive covenants, including minimum quarterly financial maintenance covenants, and limits on debt, liens, investments, dividends, and share repurchases. A future default could accelerate all outstanding indebtedness and raise going concern risk.
Zeta depends on CEO David Steinberg and other key personnel, has no key person insurance for senior management, and faces intense competition for engineering and sales talent in New York, the San Francisco Bay Area, the EU, and India. Loss of key employees could disrupt platform development and customer relationships.
SaaS KPIs
All quarters →Adjusted EBITDA
Adjusted EBITDA margin
Free Cash Flow
Scaled Customers
Super-Scaled Customers
Free Cash Flow margin
Summary, forecast, risks and KPIs are extracted from Zeta Global Holdings Corp.'s SEC filings for Q4 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.