Zeta Global Holdings Corp. (ZETA)

Price$31.35Cached quoteAs of 2026-09-07 15:36 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong growth is offset by demanding cash-flow expectations.

At the observed market value of roughly $7.7 billion, Zeta trades near 4.2 times the midpoint of 2026 revenue guidance and about 30 times guided free cash flow, meaning cash left after operating and investing in the business. Those are not bargain multiples, but guidance supports 24%-25% growth excluding acquisitions and political candidate revenue, plus a 14% cash margin. The price therefore assumes high-teens-to-20%+ core growth continues for several years; that looks plausible, but leaves limited room for disappointment.

Big pictureGrowth is exceptional, but acquisitions and election-linked revenue make headline gains look stronger than the core business.

Revenue rose from $368 million in 2020 to $1.30 billion in 2025, then reached $443 million in second-quarter 2026, up 44% year over year. But $48 million of that quarter came from Marigold; excluding that acquisition, revenue was about $395 million, still roughly 28% higher than a year earlier. Management now guides 39%-40% reported growth for 2026 but 24%-25% excluding acquisitions and political candidate revenue. Election-linked spending can be uneven, so the lower figure is the better measure of durable demand.

Business strengthCash generation and liquidity are improving, while heavy stock pay still weakens per-share economics.

Second-quarter operating cash flow rose to $69 million from $42 million, and operating profit turned positive. June cash was $310 million versus $197 million of debt; in July, Zeta replaced its prior facility with a $1 billion package, including a $750 million undrawn revolver. The catch is dilution. First-half stock compensation was $105 million, slightly above company-defined free cash flow of about $100 million. Zeta repurchased 3.2 million shares for $56 million, but issued about 4.6 million shares for acquisition payments, so buybacks have not fully offset new shares.

What could change the storySustained organic growth and lower dilution could create upside; slowing growth or legal setbacks would hurt.

Upside strengthens if growth excluding acquisitions and political revenue stays above 20%, the free-cash-flow margin holds near 14%, and stock compensation falls materially below its current roughly 12.5% of first-half revenue. The Palantir partnership could help by putting Zeta’s data and Athena tools inside larger enterprise workflows. The bear case is the reverse: core growth sliding toward the mid-teens while dilution stays high would make a roughly 30-times cash multiple hard to defend. The securities case also matters because its allegations concern how Zeta describes and sources consumer data.

AI: News

Second-quarter beat and raiseSecond-quarter results beat expectations, raised the annual outlook, and showed that cash generation is scaling quickly.

On August 4, Zeta reported $443 million of quarterly revenue, up 44%, $8 million of net income, and $58 million of company-defined free cash flow, up 73%. It raised 2026 revenue guidance to about $1.82 billion and free-cash-flow guidance to about $255 million. Shares closed roughly 12% higher the next session. The earnings release is the clearest explanation for that move, although market-wide trading can also contribute; the business effect is higher expected growth, cash generation, and near-term profitability.

Palantir partnershipThe Palantir partnership strengthened Zeta’s artificial-intelligence story and opened a path to larger enterprise customers.

On June 23, Zeta and Palantir announced that Zeta’s Data Cloud would be rebuilt on Palantir Foundry, with Athena connecting customer intelligence to broader enterprise data and workflows. Palantir also said it would support Zeta’s go-to-market efforts with eligible enterprise customers. Reports showed Zeta shares up roughly 5%-10% in early trading around the announcement. The value case is cross-selling and deeper integration; the risk is that partnership interest does not translate into enough recurring revenue to justify the higher valuation.

Securities case proceedsA court kept a securities case alive, preserving uncertainty around claims tied to Zeta’s core data asset.

On July 8, a federal judge denied Zeta and several executives’ motion to dismiss a securities class action, allowing discovery to proceed. The claims concern allegedly misleading descriptions of whether consumer data was properly opted in, which touches the credibility and regulatory usability of a core company asset. Zeta says the claims lack merit and reported that it cannot yet estimate a possible loss. I did not find a reliable isolated stock-price reaction, so the event is included for its fundamental risk rather than assumed price causation.

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Revenue

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2020

2021

2022

2023

2024

2025

Net income

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2025

Free cash flow

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Total cash / debt

CashTotal debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$1.30B	$1.01B	$728.7M	$591.0M	$458.3M	$368.1M	$306.1M
Gross profit	$791.1M	$606.2M	$454.2M	$375.5M	$283.6M	$219.2M	$195.7M
Gross margin	60.63%	60.27%	62.33%	63.54%	61.88%	59.56%	63.93%
Research & development	$117.2M	$90.7M	$73.9M	$69.5M	$64.5M	$31.8M	$28.7M
Operating expenses	$1.30B	$1.07B	$896.4M	$850.0M	$706.7M	$376.2M	$323.6M
Operating income	$5.4M	−$67.9M	−$167.7M	−$259.0M	−$248.4M	−$8.1M	−$17.5M
Operating margin	0.41%	−6.75%	−23.01%	−43.83%	−54.20%	−2.19%	−5.73%
EBITDA	$77.4M	−$11.8M	−$116.5M	−$207.2M	−$202.5M	$32.0M	$16.8M
EBITDA margin	5.93%	−1.17%	−15.99%	−35.05%	−44.18%	8.69%	5.49%
Net income	−$31.5M	−$69.8M	−$187.5M	−$279.2M	−$249.6M	−$53.2M	−$38.5M
Net profit margin	−2.42%	−6.94%	−25.73%	−47.25%	−54.45%	−14.46%	−12.57%
Basic EPSper basic share	-$0.14	-$0.38	-$1.20	-$2.01	-$2.95	-$2.23	-$1.77
Diluted EPSper diluted share	-$0.14	-$0.38	-$1.20	-$2.01	-$2.95	-$2.23	-$1.77

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Owners

Reported shareholders

Ownership data is not available for this listing yet.

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys7$3.20M disclosed value

Sells (SEC code S)2$400.4K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 12, 2026Form 4	Silberblatt JeanineDirector	SellClass A Common Stock	7.5K	$19.89	$149.2K	50.4K
Dec 12, 2025Form 4	Silberblatt JeanineDirector	SellClass A Common Stock	13.0K	$19.34	$251.2K	57.9K
Nov 18, 2024Form 4	NIEHAUS ROBERT HDirector	BuyCommon stock	30.0K	$18.62	$558.6K	308.6K
Nov 18, 2024Form 4	Elzie JeneDirector	BuyClass A Common Stock	1.3K	$19.73	$24.9K	64.8K
Nov 18, 2024Form 4	LANDMAN WILLIAMDirector	BuyClass A Common Stock	8.0K	$18.55	$148.6K	256.9K