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On March 3, 2026 Ziff Davis announced a definitive agreement to sell its Connectivity division, including Ookla and related network intelligence assets, to Accenture for $1.2 billion in cash. On March 20, 2026 the company underwent removal from the NASDAQ Internet Index during the index reconstitution cycle. Analysts issued fresh coverage and price-target updates across late February–early April 2026, producing a mix of hold and lowered-target commentary.
Technical Analysis
ADX reads 37.27, indicating a strong directional market move that carries near-term momentum into price action; this strength supports continuation rather than trendless trading and aligns with recent upside. DI+ at 32.19 trends upward while DI- at 12.83 trends downward, a bullish directional-indicator configuration that favors further price appreciation versus reversal.
MACD stands at 1.95 with the signal line at 1.81 and the MACD trend increasing; the MACD rising above its signal line constitutes a bullish momentum confirmation and supports short-term continuation of the current advance.
MRO registers 32.33 with a peak-and-reversal signal; the positive MRO value indicates price currently sits above the modeled target and therefore carries potential for corrective pressure. That peak-and-reversal morphology raises the probability of a pullback from recent highs even while momentum indicators remain constructive.
RSI at 60.58 and rising places momentum in bullish territory without immediate overbought extremity, supporting further upside but leaving room for a normal consolidation. Price trades above the 12- and 26-day EMAs and above the 20-, 50- and 200-day averages (price close $47.24 vs. 20-day $44.87, 50-day $39.10, 200-day $36.24), which biases the near-term price structure toward continuation of the rally. Ichimoku components (Tenkan 44.84, Kijun 44.09) sit below price, providing additional dynamic support. Bollinger band placement (upper ~ $47.04–$49.20) shows price near the upper band, consistent with strong recent buying and the MRO warning of possible mean reversion.
Volume near-term sits around the 10- and 200-day averages, confirming participation during the move; short-term volatility metrics (42-day volatility 8%) exceed the 52-week realized volatility (4%), indicating a higher trading range that swing traders should expect. Overall, technicals favor continued upside with a non-trivial chance of a corrective pullback given the MRO peak-and-reversal.
Fundamental Analysis
Total revenue reached $406,712,000 on the period ending 2025-12-31, with revenue growth listed at 11.82% but year-over-year revenue down 29.44%; that combination signals recent sequential expansion alongside a weaker yearly comparison. Net income ($370,000) and reported EPS actual $2.56 underperformed the EPS estimate of $2.70, producing an EPS surprise of -5.19%. Forward EPS sits at $1.81 and forward P/E at 18.47x while trailing P/E equals 13.54x.
Operating performance shows operating margin at 21.16% and EBIT margin at 6.55%; EBIT margin improved quarter-over-quarter by 52.42% but fell year-over-year by 66.58%. Compare EBIT margin to the industry peer mean of 34.07% and the industry peer median of 34.63%—Ziff Davis’s EBIT margin sits below the industry peer mean and median but improves sequentially, indicating margin recovery rather than parity.
Cash generation remains a core strength: free cash flow reached $157,772,000 with a free cash flow yield of 11.86% and operating cash flow of $191,082,000; cash and short-term investments total $607,011,000. Cash conversion cycle at -128.69 days reflects strong working-capital efficiency versus a peer mean near break-even, while cash conversion ratio stands at 1.3766, underscoring cash conversion outperformance.
Leverage metrics show total debt $866,500,000 and net debt $259,489,000; debt-to-EBITDA measures 10.24x while interest-coverage equals 3.94x. The Connectivity division divestiture for $1.2 billion (reported March 3, 2026) will materially affect asset composition and likely change reported leverage and discontinued-operations presentation in upcoming filings; the transaction appears large relative to current enterprise value and supports balance-sheet optionality. WMDST values the stock as under-valued given the company’s free-cash yield, large cash balance, and the pro-forma impact of the announced divestiture.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-23 |
| NEXT REPORT DATE: | 2026-05-25 |
| CASH FLOW | Begin Period Cash Flow | $ 503.4 M |
| Operating Cash Flow | $ 191.1 M | |
| Capital Expenditures | $ -33.31 M | |
| Change In Working Capital | $ 35.4 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 103.6 M | |
| End Period Cash Flow | $ 607.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 406.7 M | |
| Forward Revenue | $ 19.0 B | |
| COSTS | ||
| Cost Of Revenue | $ 57.3 M | |
| Depreciation | $ 57.9 M | |
| Depreciation and Amortization | $ 57.9 M | |
| Research and Development | $ 14.2 M | |
| Total Operating Expenses | $ 320.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 349.4 M | |
| EBITDA | $ 84.6 M | |
| EBIT | $ 26.7 M | |
| Operating Income | $ 86.0 M | |
| Interest Income | — | |
| Interest Expense | $ 6.8 M | |
| Net Interest Income | $ -6.76 M | |
| Income Before Tax | $ 19.9 M | |
| Tax Provision | $ -204.00 K | |
| Tax Rate | 21.0 % | |
| Net Income | $ 370.0 K | |
| Net Income From Continuing Operations | $ 370.0 K | |
| EARNINGS | ||
| EPS Estimate | $ 2.70 | |
| EPS Actual | $ 2.56 | |
| EPS Difference | $ -0.14 | |
| EPS Surprise | -5.185 % | |
| Forward EPS | $ 1.81 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.7 B | |
| Intangible Assets | $ 2.0 B | |
| Net Tangible Assets | $ -198.17 M | |
| Total Current Assets | $ 1.4 B | |
| Cash and Short-Term Investments | $ 607.0 M | |
| Cash | $ 607.0 M | |
| Net Receivables | $ 667.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 29.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 151.3 M | |
| Short-Term Debt | $ 148.7 M | |
| Total Current Liabilities | $ 1.1 B | |
| Net Debt | $ 259.5 M | |
| Total Debt | $ 866.5 M | |
| Total Liabilities | $ 1.9 B | |
| EQUITY | ||
| Total Equity | $ 1.8 B | |
| Retained Earnings | $ 1.3 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 45.69 | |
| Shares Outstanding | 38.377 M | |
| Revenue Per-Share | $ 10.60 | |
| VALUATION | Market Capitalization | $ 1.3 B |
| Enterprise Value | $ 1.6 B | |
| Enterprise Multiple | 18.797 | |
| Enterprise Multiple QoQ | -23.985 % | |
| Enterprise Multiple YoY | 0.184 % | |
| Enterprise Multiple IPRWA | high: 172.49 median: 80.873 mean: 77.184 ZD: 18.797 low: -131.235 |
|
| EV/R | 3.909 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.089 | |
| Asset To Liability | 1.918 | |
| Debt To Capital | 0.331 | |
| Debt To Assets | 0.237 | |
| Debt To Assets QoQ | -5.027 % | |
| Debt To Assets YoY | 1.376 % | |
| Debt To Assets IPRWA | high: 0.935 ZD: 0.237 mean: 0.13 median: 0.1 low: 0.001 |
|
| Debt To Equity | 0.494 | |
| Debt To Equity QoQ | 2.651 % | |
| Debt To Equity YoY | 3.533 % | |
| Debt To Equity IPRWA | high: 2.068 ZD: 0.494 mean: 0.203 median: 0.143 low: -0.935 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.759 | |
| Price To Book QoQ | -5.314 % | |
| Price To Book YoY | -39.89 % | |
| Price To Book IPRWA | high: 12.969 median: 9.015 mean: 8.411 ZD: 0.759 low: -3.34 |
|
| Price To Earnings (P/E) | 13.543 | |
| Price To Earnings QoQ | -33.87 % | |
| Price To Earnings YoY | -34.502 % | |
| Price To Earnings IPRWA | high: 160.153 mean: 99.889 median: 59.058 ZD: 13.543 low: -47.921 |
|
| PE/G Ratio | 0.298 | |
| Price To Sales (P/S) | 3.271 | |
| Price To Sales QoQ | -17.458 % | |
| Price To Sales YoY | -40.917 % | |
| Price To Sales IPRWA | high: 32.957 median: 32.888 mean: 30.707 ZD: 3.271 low: 0.189 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 18.47 | |
| Forward PE/G | 0.406 | |
| Forward P/S | 0.067 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 5.959 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.114 | |
| Asset Turnover Ratio QoQ | 9.57 % | |
| Asset Turnover Ratio YoY | -1.708 % | |
| Asset Turnover Ratio IPRWA | high: 0.615 median: 0.201 mean: 0.192 ZD: 0.114 low: 0.002 |
|
| Receivables Turnover | 0.713 | |
| Receivables Turnover Ratio QoQ | -2.317 % | |
| Receivables Turnover Ratio YoY | -2.309 % | |
| Receivables Turnover Ratio IPRWA | high: 6.923 mean: 2.165 median: 1.897 ZD: 0.713 low: 0.163 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 127.927 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -128.694 | |
| Cash Conversion Cycle Days QoQ | -10.26 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 97.243 mean: -0.683 median: -2.112 ZD: -128.694 low: -294.971 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.377 | |
| CapEx To Revenue | -0.082 | |
| CapEx To Depreciation | -0.575 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.5 B | |
| Net Invested Capital | $ 2.6 B | |
| Invested Capital | $ 2.6 B | |
| Net Tangible Assets | $ -198.17 M | |
| Net Working Capital | $ 295.4 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.565 | |
| Current Ratio | 1.275 | |
| Current Ratio QoQ | -20.87 % | |
| Current Ratio YoY | -9.838 % | |
| Current Ratio IPRWA | high: 6.298 mean: 2.082 median: 2.005 ZD: 1.275 low: 0.114 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 10.244 | |
| Cost Of Debt | 0.617 % | |
| Interest Coverage Ratio | 3.943 | |
| Interest Coverage Ratio QoQ | 63.793 % | |
| Interest Coverage Ratio YoY | -68.873 % | |
| Interest Coverage Ratio IPRWA | high: 238.758 median: 132.265 mean: 111.24 ZD: 3.943 low: -107.388 |
|
| Operating Cash Flow Ratio | -0.123 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 256.622 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.36 % | |
| Revenue Growth | 11.823 % | |
| Revenue Growth QoQ | 262.002 % | |
| Revenue Growth YoY | -29.436 % | |
| Revenue Growth IPRWA | high: 44.631 % mean: 11.842 % ZD: 11.823 % median: 11.22 % low: -27.55 % |
|
| Earnings Growth | 45.455 % | |
| Earnings Growth QoQ | 8.394 % | |
| Earnings Growth YoY | -20.695 % | |
| Earnings Growth IPRWA | high: 300.0 % ZD: 45.455 % mean: 2.146 % median: -8.333 % low: -143.243 % |
|
| MARGINS | ||
| Gross Margin | 85.92 % | |
| Gross Margin QoQ | 0.625 % | |
| Gross Margin YoY | -2.93 % | |
| Gross Margin IPRWA | high: 100.0 % ZD: 85.92 % mean: 62.847 % median: 59.793 % low: 5.477 % |
|
| EBIT Margin | 6.554 % | |
| EBIT Margin QoQ | 52.419 % | |
| EBIT Margin YoY | -66.58 % | |
| EBIT Margin IPRWA | high: 107.803 % median: 34.627 % mean: 34.074 % ZD: 6.554 % low: -89.445 % |
|
| Return On Sales (ROS) | 21.156 % | |
| Return On Sales QoQ | 170.537 % | |
| Return On Sales YoY | 7.878 % | |
| Return On Sales IPRWA | high: 41.315 % median: 31.568 % mean: 31.202 % ZD: 21.156 % low: -77.331 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 157.8 M | |
| Free Cash Flow Yield | 11.858 % | |
| Free Cash Flow Yield QoQ | 58.043 % | |
| Free Cash Flow Yield YoY | 106.802 % | |
| Free Cash Flow Yield IPRWA | high: 19.19 % ZD: 11.858 % median: 0.656 % mean: 0.573 % low: -24.396 % |
|
| Free Cash Growth | 45.865 % | |
| Free Cash Growth QoQ | -84.787 % | |
| Free Cash Growth YoY | -27.889 % | |
| Free Cash Growth IPRWA | high: 452.0 % ZD: 45.865 % mean: 7.646 % median: 0.368 % low: -588.0 % |
|
| Free Cash To Net Income | 426.411 | |
| Cash Flow Margin | -32.489 % | |
| Cash Flow To Earnings | -357.127 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.01 % | |
| Return On Assets QoQ | -109.709 % | |
| Return On Assets YoY | -99.444 % | |
| Return On Assets IPRWA | high: 13.424 % median: 6.089 % mean: 5.796 % ZD: 0.01 % low: -28.996 % |
|
| Return On Capital Employed (ROCE) | 1.03 % | |
| Return On Equity (ROE) | 0.0 | |
| Return On Equity QoQ | -110.5 % | |
| Return On Equity YoY | -99.407 % | |
| Return On Equity IPRWA | high: 0.431 median: 0.083 mean: 0.082 ZD: 0.0 low: -0.443 |
|
| DuPont ROE | 0.021 % | |
| Return On Invested Capital (ROIC) | 0.804 % | |
| Return On Invested Capital QoQ | 73.276 % | |
| Return On Invested Capital YoY | -95.646 % | |
| Return On Invested Capital IPRWA | high: 12.209 % median: 7.518 % mean: 7.094 % ZD: 0.804 % low: -22.288 % |
|