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    ZETA
    Earnings call· Dec 2025(Q4 FY25)

    Zeta Global Holdings Q4 FY25 earnings call ZETA

    Feb 24, 2026 Source

    Executive summary

    Zeta Q4 FY25 — 18th Consecutive Beat & Raise Driven by AI Leadership and One Zeta Strategy

    Zeta delivered another strong quarter, extending its beat-and-raise streak, fueled by its AI-driven platform and successful One Zeta strategy. The company is seeing significant customer expansion and record net revenue retention, with its Athena AI agent on track for general availability. Management raised its 2026 revenue and profit guidance, signaling continued confidence in its market share gains and operating leverage.

    Highlights

    5

    • 18th consecutive beat and raise quarter, with Q4 revenue of $395 million, up 28% YoY ex-acquisition and political candidate.

    • Adjusted EBITDA grew 35% YoY to $95.1 million, expanding margins by over 200 bps for the full year.

    • Net revenue retention hit a record high of 120% in 2025, up from 114% in 2024, indicating strong customer expansion.

    • Super-scaled customer count (>$1M annual spend) grew 24% YoY to 184, now representing nearly 90% of total revenue.

    • Full-year 2025 free cash flow reached $165 million, up 78% YoY, with a margin of 12.6%.

    Concerns

    2

    • GAAP cost of revenue increased 50 basis points YoY to 40.4% in Q4, driven by strong growth in social and connected TV channels.

    • Working capital headwind of roughly 9 points in Q4 due to longer agency payment cycles.

    Guidance & targets

    17
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $1.755 billion
    high materiality
    High
    Full-year 2026 Revenue Growth (ex-Marigold and political candidate)
    21% year-over-year
    high materiality
    High
    Q1 2026 Revenue
    $370 million
    high materiality
    High
    Q1 2026 Revenue Growth (ex-political candidate and Marigold)
    22% growth
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $391 million
    high materiality
    High
    Full-year 2026 Adjusted EBITDA Margin
    22.3%
    high materiality
    High
    Q1 2026 Adjusted EBITDA
    $61.5 million
    medium materiality
    High
    Full-year 2026 Free Cash Flow
    $231 million
    high materiality
    High
    Full-year 2026 Free Cash Flow Conversion
    59% of adjusted EBITDA
    medium materiality
    High
    Full-year 2026 GAAP Net Income
    positive
    high materiality
    High
    Political Candidate Revenue Assumption
    $15 million
    medium materiality
    High
    Marigold Revenue Contribution
    at least $190 million
    medium materiality
    High
    Athena-driven Revenue
    minimal contribution
    low materiality
    High
    Net Dilution Target
    3% to 4%
    medium materiality
    High
    2028 Revenue Target
    $2.3 billion
    high materiality
    High
    2028 Adjusted EBITDA Target
    $573 million
    high materiality
    High
    2028 Free Cash Flow Target
    $371 million
    high materiality
    High

    Segment performance

    6
    SegmentRevenueYoYQoQMargin
    Travel and Hospitality
    Fastest-growing vertical in 2025.
    		—105%——
    Advertising and Marketing
    Fast-growing vertical in 2025.
    		—70%——
    Automotive
    Fast-growing vertical in 2025.
    		—60%——
    Consumer Retail
    Fast-growing vertical in 2025.
    		—46%——
    Health Care
    Area of new investment, showing strong momentum in 2025.
    		—over 20%——
    Top 10 Verticals
    9 out of top 10 verticals grew over 20% year-to-year in 2025, a first for the company as a public entity.
    		—over 20%——

    Operational metrics

    49
    Revenue
    $395 millionup 28% year-over-year ex acquisition and political candidate
    Q4 FY25
    Revenue
    $1.305 billionup 30% year-over-year
    FY25

    Exceeded midpoint of initial 2025 guidance by $65 million or 5%.

    Revenue Growth (ex-LiveIntent, Marigold, political)
    27%
    FY25
    Revenue Growth (ex-LiveIntent, Marigold, political)
    28.2%up from 28.0% in Q3
    Q4 FY25
    Revenue Growth (ex-LiveIntent, Marigold, political)
    28.0%up from 27.4% in Q2
    Q3 FY25
    Revenue Growth (ex-LiveIntent, Marigold, political)
    27.4%up from 25.9% in Q1
    Q2 FY25
    Revenue Growth (ex-LiveIntent, Marigold, political)
    25.9%
    Q1 FY25
    Adjusted EBITDA
    $95.1 millionup 35% year-over-year
    Q4 FY25

    Margin of 24.1%, 174 basis points higher year-over-year.

    Adjusted EBITDA
    $279 millionup 44% year-over-year
    FY25

    Representing a margin of 21.4%.

    Adjusted EBITDA Margin Expansion
    over 200 basis points
    FY25

    20th straight quarter of expanding adjusted EBITDA margins year-over-year.

    GAAP Net Income
    $6.5 millionimprovement from a net loss of $3.6 million last quarter
    Q4 FY25

    First positive GAAP net income in Q4.

    Net cash provided by operating activities
    $64.1 millionup 47% year-over-year
    Q4 FY25
    Net cash provided by operating activities
    $199 million
    FY25
    Free Cash Flow Conversion
    59%significant improvement from 45% in Q4 2024
    Q4 FY25
    Net Revenue Retention
    120%up from 114% in 2024
    2025

    Record high.

    Net Revenue Retention (prior range)
    110% to 115%
    prior

    Previously happy with this range.

    RFP Volume Growth
    more than doubledyear-over-year
    Q4 FY25

    To a new record.

    Scaled Customer Count
    602up 14% year-over-year
    Q4 FY25

    Addition of 30 customers sequentially.

    Super-Scaled Customer Count
    184up 24% year-over-year
    Q4 FY25

    Well above target of 4% to 8%.

    Scaled Customer Quarterly ARPU
    $625,000increased 8% year-over-year
    Q4 FY25

    Up over 15% when normalizing for political candidate revenue in the year ago period.

    Super-Scaled Customer Quarterly ARPU
    $1.8 millionup 5% year-over-year
    Q4 FY25

    Up mid-teens when normalizing for political candidate revenue last year. Both growth rates are in line with ARPU target of 12% to 16%.

    Customers spending at least $1 million annually (as % of total revenue)
    approaching 90%up from approximately 70% in 2020
    2025
    Total Revenue Growth from $1M+ Customer Cohort
    more than 90%
    2020-2025
    Customer ARPU (First Year)
    $709,000
    2025

    Customers on the platform in their first year.

    Customer ARPU (Years 1-3)
    $1.1 million
    2025

    Customers on the platform in years 1 to 3.

    Customer ARPU (Years 3-5)
    $2.1 million
    2025

    Customers on the platform in years 3 through 5.

    Customer ARPU (5+ Years)
    $3.9 millionup 39% year-to-year
    2025

    Customers on the platform 5 or more years, earliest adopters of ZMP.

    Direct Revenue Mix
    74%in line with the year-ago quarter
    Q4 FY25

    In line with target of 70% to 75%.

    GAAP Cost of Revenue
    40.4%50-basis point increase year-over-year and 100 basis points sequentially
    Q4 FY25

    Driven by strong sequential and year-over-year growth in social and connected TV.

    Net Dilution
    4.3%
    FY25

    Ended at the low end of guidance range.

    Net Dilution (excluding Marigold)
    2.2%
    FY25
    Stock-Based Compensation to Revenue Ratio
    14%improved from 19% in 2024
    2025
    Share Repurchase Amount
    $35 million
    Q4 FY25
    Share Repurchase Amount
    $120 million
    FY25
    Share Repurchase Amount
    $25 million
    YTD 2026
    Remaining Share Repurchase Authorization
    $139 million
    as of mid-Feb 2026
    Political Candidate Revenue
    $15 million
    2020
    Political Candidate Revenue
    $7.5 million
    2022
    Political Candidate Revenue
    $40 million
    2024
    Return on Ad Spend
    600%
    current

    Contributing to wallet share gains.

    Return on Ad Spend Example
    500%
    current

    Example of desired return on marketing spend.

    Return on Ad Spend Example
    700%
    current

    Example of desired return on marketing spend.

    Return on Ad Spend Example
    1,000%
    current

    Example of desired return on marketing spend.

    Brands within Holdcos Growth
    80%year-over-year
    last year

    Growth within the agency ecosystem.

    RFP Win Rate
    greater than 50%
    current

    Win rate for engagements and RFPs invited to participate in.

    Marketing Ecosystem Average Growth Rate
    about 10%
    last year

    Zeta grew 30% in the same period, taking market share.

    Customer Pilot Program Range
    $50,000 to $150,000
    current

    Allows customers to start small with pilots and proof of concepts.

    $100,000 Customer Cohort (2020 equivalent)
    today's $1 million-plus customer is 2020's $100,000 customer
    2020

    Illustrates the evolution of customer spend thresholds.

    $1M+ Customer Cohort (as % of total revenue)
    approximately 70%
    2020

    Industry KPIs

    6
    MetricValueDetails
    Revenue growth$1.305 billionUSD
    Customer account count602customers
    Large deal new logo metrics51customers
    Multi product platform attachup over 80%%
    Operating FCF margin rule of 4021.4%%
    Net revenue net dollar retention120%%

    Orderbook & backlog

    2
    Zeta Live Pipeline$130 millionQ4 FY25

    200 distinct opportunities tied to Zeta Live event.

    Zeta Live Business Closed$39 millionYTD 2026

    Business directly attributable to the Zeta Live event, closed year-to-date.

    Product announcements

    1
    ProductTypeDetails
    Athenalaunch

    Deals & partnerships

    2
    MarigoldAcquisition of Marigold to expand data, use cases, and value for customers, particularly in loyalty products.

    Integration is progressing well. Actively engaging with Marigold's enterprise clients through a One Zeta lens to identify cross-sell opportunities. Seeing strong interest from Zeta customers in adopting Marigold's loyalty product.

    OpenAIStrategic partnership to make OpenAI's technology foundational to Athena.

    Management views large language models as foundational technologies. Zeta is also exploring other components of their business to help OpenAI, while OpenAI helps Zeta.

    Risks & headwinds

    1
    Working Capital HeadwindQ4 FY25

    roughly 9 points

    Mitigation: Not explicitly stated, but implies management is aware and managing through it.

    What to watch in Q1 FY26

    5

    Athena General Availability

    end of the first quarter
    Currenton track for general availability
    Targetgenerally available

    Why it matters

    Athena is expected to drive deeper platform adoption, greater utilization, and higher ROI, amplifying the One Zeta strategy and potentially contributing to incremental consumption revenue upside.

    We are very encouraged by this early customer feedback and remain on track to make Athena generally available by the end of the first quarter.

    Q&A highlights

    6

    Inquired about the number of Athena agents, their primary functions, monetization structure, and if Athena has influenced deals closed year-to-date.

    David Steinberg explained that Insights and Adviser are the first two agents, driving significant customer benefit. Athena will be a single agent with evolving feature sets, not multiple agents. Early users report game-changing workflow and higher ROI. While not yet monetized, Athena has influenced deals, contributing to the $39 million closed from Zeta Live.

    “The beauty of Athena is the ability to fly the entire 747 just by narrating and speaking to Athena who can automatically do it.”

    asked by Terrell Tillman · answered by David Steinberg

    2 min read6 chapters

    Detailed Narrative

    01

    AI-Driven Growth and Athena Launch

    Zeta's consistent performance is attributed to its long-term AI investments, which began 8 years ago and are now yielding significant results. The company's new super intelligent agent, Athena, introduced at Zeta Live and CES, is on track for general availability by the end of Q1. Early users report substantial time savings in marketing workflows and significantly improved return on investment, enhancing the Zeta Marketing Platform's capabilities.

    02

    OpenAI Partnership and SuperGraph Advantage

    Zeta announced a strategic partnership with OpenAI, making its technology foundational to Athena. Management views large language models as essential infrastructure, similar to cloud services, with true differentiation stemming from proprietary data, tools, and workflows built on top. Zeta's SuperGraph, a deterministic identity and relationship graph covering over 245 million U.S. adults and 535 million globally with more than 1 trillion signals, provides a critical and widening data moat.

    03

    One Zeta Strategy and Customer Expansion

    The 'One Zeta' strategy has matured into a repeatable sales model, evidenced by an 80% year-over-year increase in scaled customers utilizing more than one use case in Q4. The company has expanded its reach within the Fortune 100 (now 51 customers) and Fortune 500 (over 120 customers), tapping into a collective marketing spend exceeding $100 billion. Athena is expected to further streamline platform adoption and multi-use case expansion.

    04

    Marigold Acquisition Integration

    The integration of the Marigold acquisition is progressing smoothly, with expectations for it to be accretive to free cash flow and adjusted EBITDA within the first year. Zeta is actively cross-selling to Marigold's enterprise clients, identifying opportunities to expand value and use cases. Concurrently, existing Zeta customers are showing strong interest in adopting Marigold's loyalty product, indicating successful synergy.

    05

    Evolution of Customer KPIs

    Zeta is shifting its quarterly KPI reporting focus exclusively to super-scaled customers (those spending over $1 million annually) and their ARPU, starting in 2026. This cohort now accounts for nearly 90% of total revenue and over 90% of total revenue growth, reflecting the effectiveness of Zeta's land, expand, and extend sales motion and the increasing prominence of larger client relationships.

    06

    Capital Allocation and Share Repurchases

    The company remains committed to returning capital to shareholders, having repurchased $35 million in shares in Q4 and $120 million for the full year 2025. An additional $25 million was spent on buybacks in early 2026, with $139 million remaining on the authorization. Management views share buybacks as the most effective use of capital at current valuation levels and plans to continue being an active buyer.

    AI-generated summary of the company’s earnings call. Not investment advice.