Ziff Davis Reports Q3 2026 Revenue Decline Amid Search Traffic Headwinds
Ziff Davis (ZD) reported third-quarter 2026 financial results characterized by declining top and bottom-line metrics. Total revenue fell 5.6% year-over-year to $289.3 million, while Adjusted EBITDA dropped 16% to $82.2 million. The company faced significant challenges from shifts in search engine behavior, noting a 37% decline in organic Google referrals this quarter and a total two-year drop exceeding 50% due to the rise of Large Language Models (LLMs). To offset these headwinds, management is aggressively pursuing operational efficiencies through AI integration and headcount reductions. The company has also focused heavily on capital allocation, repurchasing 1.7 million shares for $92 million during the quarter. Despite current revenue declines across most segments, Ziff Davis issued Q4 guidance projecting sequential double-digit revenue growth and an expansion of Adjusted EBITDA margins into the low to mid-thirties percent range.
Tickers: $ZD
Topics: AI impact on search traffic EBITDA decrease Revenue decline Segment performance Share repurchases