Did Zeta Global beat earnings in Q4 2025?

Yes, Zeta beat Q4 2025 guidance by $14M on revenue ($395M vs $381M expected) and delivered Non-GAAP EPS of $0.28, up 40% YoY. This marked their 18th consecutive beat-and-raise quarter.

What is Zeta's 2026 guidance?

Zeta raised FY26 revenue guidance to $1.75-1.76B (+35% YoY), Adj. EBITDA to $390-392M (+40% YoY), and is guiding to positive GAAP Net Income for the first time.

How did Zeta stock react to earnings?

Zeta shares surged 13% to $16.98 on the earnings beat, raised guidance, and path to GAAP profitability, though still trading below its 52-week high of $24.90.

Zeta Global Holdings (ZETA)·Q4 2025 Earnings Summary

Zeta Global Delivers 18th Consecutive Beat & Raise, Stock Surges 13%

February 24, 2026 · by Fintool AI Agent

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Zeta Global (NYSE: ZETA) reported its 18th consecutive beat-and-raise quarter, delivering Q4 2025 revenue of $395M that topped guidance by $14M (+3.7%). The AI marketing cloud company raised full-year 2026 guidance across all metrics and announced it expects to achieve GAAP profitability in FY26—a significant milestone for the growth stock. Shares jumped 13% to $16.98 on the results.

Did Zeta Beat Earnings?

Yes—decisively. Zeta beat on revenue, profitability, and cash flow while extending its remarkable streak.

Metric	Q4 2025	vs. Guidance	Y/Y Growth
Revenue	$395M	+$14M (+3.7%)	+25%
Adj. EBITDA	$95M	Beat	+35%
Adj. EBITDA Margin	24.1%	+174 bps Y/Y	—
Non-GAAP EPS	$0.28	Beat	+40%
GAAP Net Income	$6.5M	Positive	vs. loss
Free Cash Flow	$56M	14.2% margin	+76%

Full Year 2025 Highlights:

Revenue: $1.305B (+30% Y/Y)
Adj. EBITDA: $279M (+44% Y/Y), 21.4% margin (+217 bps)
FCF: $165M (+78% Y/Y), 59% conversion, 13% margin

CEO David Steinberg attributed the results to "the compounding power of our system: proprietary data that improves with every customer interaction, intelligence that sharpens with every decision, and now Athena by Zeta—an interface that lowers the barriers to enterprise-wide adoption."

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What Did Management Guide?

FY26 guidance raised across the board, with a major milestone: GAAP profitability.

Metric	Prior Guidance (Nov '25)	Updated Guidance (Feb '26)	Change
FY26 Revenue	$1,730M	$1,749-1,762M	+$25M
FY26 Adj. EBITDA	$385M	$390-392M	+$6M
FY26 FCF	$224M	$231M	+$7M
FY26 GAAP Net Income	Not guided	Positive	New milestone

Q1 2026 Guidance:

Revenue: $369-371M (+39-40% Y/Y)
Adj. EBITDA: $61.2-61.8M (+31-32% Y/Y), 16.6% margin

Zeta 2028 Targets Raised:

Zeta updated its medium-term targets to reflect the Marigold Enterprise Business acquisition:

Target	Previous	Updated	Implied CAGR ('24-'28)
Revenue	$2.1B	$2.3B	23%
Adj. EBITDA	$525M	$573M	31%
FCF	$340M	$371M	42%

CFO Chris Greiner noted: "We see 2026 as another year in which total revenue growth can eclipse 30% while simultaneously turning GAAP Net Income positive, a significant milestone for the company."

What Changed From Last Quarter?

Customer Metrics Accelerating

KPI	Q4 2025	Q3 2025	Y/Y Change
Super-Scaled Customers (≥$1M)	184	180	+24% Y/Y (+36 net adds)
Scaled Customers (≥$100K)	602	572	+14% Y/Y
Scaled ARPU	$625K	$579K	+8% Y/Y
Super-Scaled ARPU	$1.8M	$1.6M	+6% Y/Y
Avg. Channels (≥$1M customers)	3.3	3.2	Multi-channel expansion

Key Observations:

~90% of FY25 revenue came from customers with Zeta for >1 year
Customers >5 years generate $3.9M ARPU vs. $0.7M for <1 year cohort
Super-scaled customers approaching ~90% of total revenue

Vertical Diversification

9 of Zeta's top 10 verticals grew >20% Y/Y in FY25. Top 5 fastest growing:

Travel & Hospitality
Advertising & Marketing
Automotive
Consumer & Retail
Telecom

Zeta now serves 51% of the Fortune 100, including:

12 of 15 largest Consumer & Retail companies
4 of 4 largest Telecommunications companies
10 of 13 largest Technology & Media companies

How Did the Stock React?

Zeta surged 13% to $16.98 on earnings day, though shares remain well below the 52-week high of $24.90.

Metric	Value
Earnings Day Close	$16.98 (+13.0%)
Market Cap	$4.2B
52-Week High	$24.90
52-Week Low	$10.69
% Off 52-Week High	-32%

The strong reaction reflects:

18th consecutive beat-and-raise quarter (unprecedented consistency)
Path to GAAP profitability in FY26
Raised 2028 targets
Accelerating customer additions (+24% super-scaled growth)

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Key Financial Trends (8 Quarters)

Metric	Q1'24	Q2'24	Q3'24	Q4'24	Q1'25	Q2'25	Q3'25	Q4'25
Revenue ($M)	$195	$228	$268	$315	$264	$308	$337	$395
Gross Margin %	60.6%	60.0%	60.6%	60.0%	60.9%	62.1%	60.5%	59.5%
Cash from Ops ($M)	$25	$31	$34	$44	$35	$42	$58	$64

16 consecutive quarters of >20% revenue growth.

Adj. EBITDA Margin Progression:

FY22: 15.6% → FY23: 17.8% → FY24: 19.2% → FY25: 21.4%
20 consecutive quarters of expanding Adj. EBITDA margins Y/Y

Capital Allocation & Balance Sheet

Metric	Dec 31, 2025	Dec 31, 2024
Cash & Equivalents	$320M	$366M
Total Debt	$197M	$196M
Net Debt	($123M)	($170M)
Share Repurchases (FY25)	$121M	$42M

Zeta repurchased $121M of stock in FY25 while maintaining a net cash position. The company has demonstrated disciplined capital allocation between organic investment, M&A (LiveIntent, Marigold Enterprise Business), and buybacks.

What's Driving Growth?

The "One Zeta" Platform Flywheel

Zeta's thesis centers on converging identity data, AI intelligence, and omnichannel activation into a single platform:

Proprietary Data Asset - 245M US individuals permissioned for online tracking, 110M for email
AI Intelligence - Athena by Zeta interface lowering barriers to enterprise adoption
Omnichannel Convergence - Customers using 3+ channels generate ~17x more revenue than single-channel

Recognition

Zeta was named the Leader in Forrester Wave for Email Marketing Service Providers (3Q 2024), scoring highest possible rating in 13 of 22 categories.

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Risks and Concerns

Marigold Integration - Recently acquired Enterprise Business adds ~$190M revenue but execution risk remains
Political Revenue Volatility - Political candidate revenue was $44M in FY24 but "not material" in FY25
Stock-Based Compensation - $178M in FY25 (14% of revenue), though declining from $195M in FY24
Customer Concentration Risk - Top customers represent meaningful revenue (though diversifying)
Macro Sensitivity - Marketing spend correlates with economic cycles

Forward Catalysts

Q1 2026 Results (May 2026): First quarter reflecting full Marigold contribution
GAAP Profitability - Expected in FY26, would be first profitable year
Zeta 2028 Progress - Tracking toward $2.3B revenue, $573M EBITDA targets
AI Product Expansion - Athena platform adoption curve
Direct Mix Expansion - Currently 74%, target 70-75% range

Bottom Line

Zeta delivered another flawless quarter—its 18th consecutive beat-and-raise—while raising guidance and announcing a path to GAAP profitability. The customer metrics tell the story: super-scaled customers up 24%, 9 of 10 verticals growing >20%, and ARPU expanding as customers adopt more channels. With FY26 guidance calling for 35% revenue growth and GAAP profitability, Zeta continues to prove it can deliver "durable, predictable, and profitable growth at scale."

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