Zeta Global Holdings Corp. (ZETA) Earnings & Analysis

Latest quarter

Zeta reported Q2 FY2026 revenue of $442.8 million, above the consensus of $420.2 million. Adjusted EPS was $0.21, compared with the consensus estimate of $0.20.

Revenue rose 43.5% from $308.4 million a year earlier. The filing attributed the increase to revenue from both new and existing customers, including a contribution from the acquisition of Marigold’s Enterprise Business. Zeta said its super-scaled customer count reached 197, reflecting higher platform usage and new additions.

Gross margin declined to 59.1% from 62.1%; the filing said higher media costs were the principal driver of increased cost of revenue. Operating margin rose to 3.82% from −1.66%, while diluted EPS moved to $0.03 from −$0.06. Free cash flow increased to $57.6 million from $33.9 million. On the call, CFO Chris Greiner said Zeta repurchased $29.9 million of shares during the quarter.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO David Steinberg said Zeta is seeking to extend its platform beyond marketing into business intelligence, helping customers use data to make decisions and act in real time. He said Athena lets customers interact with the platform through natural language, while Zeta’s own models make decisions using its data cloud.

CFO Chris Greiner said the customers that comprehensively adopted Zeta’s AI tools accounted for roughly 70.0% of revenue. He also said customers using multiple use cases and channels increased year over year. Greiner attributed growth in the super-scaled customer base partly to demand for Athena and said the sales pipeline at the end of Q2 was up year over year, with pipeline creation per seller also increasing.

Asked about business intelligence demand, Steinberg said customers had been paying Zeta to develop use cases before its announcement. He said customers wanted help with decisions such as contract negotiations and retail partnerships rather than static reports. Steinberg also said existing customers could adopt the offering faster than new customers, whose sales process could take longer.

On partnerships, Steinberg said Zeta’s data cloud had been integrated with Palantir’s Foundry and that the partnership had produced customer deals. He said OpenAI powers Athena’s voice and that Zeta was serving ads on OpenAI’s advertising platform. Greiner said the outlook included agreements already signed rather than prospective deals still in the pipeline.

Asked about margins, Greiner said the second-half performance would depend largely on revenue mix. He attributed the quarter’s channel mix to agency sales and expansions, with newer agency clients often starting in social. Greiner also said efficiencies across operating expenses and capital spending contributed to earnings and free cash flow. Zeta closed a $1.0 billion credit facility that he said would support acquisitions, repurchases and investment.

Guidance

Zeta raised its Q3 FY2026 revenue guidance to $469.0 million–$472.0 million and adjusted EBITDA guidance to $115.0 million–$116.0 million. Greiner said the company also raised its full-year revenue outlook.

For FY2026, Zeta increased its adjusted EBITDA guidance to $404.1 million–$406.3 million, free cash flow guidance to $254.8 million–$255.8 million and GAAP EPS guidance to $0.09–$0.11. Greiner said the EPS outlook excludes a potential one-time tax benefit from releasing a valuation allowance.