Zeta Raises 2026 Revenue Outlook by $37 Million After 46% Third-Quarter Growth
Key Facts
Zeta Global raised its 2026 revenue outlook to a range of $1,853–$1,857 million, an increase of $37 million at the midpoint from its previous guidance of $1,818 million, according to a company statement issued on November 9. The new outlook implies annual growth of 42%, or 27% excluding acquisitions and political-candidate revenue. The guidance increase followed the company’s report of quarterly revenue above the midpoint of its previous range. The company also raised its estimates for free cash flow and GAAP earnings per share. The update puts third-quarter performance and fourth-quarter expectations on the basis of the new annual guidance.
Third-quarter revenue was $493 million, up 46% year over year, or 30% excluding Marigold and political-candidate revenue, according to the company statement. Revenue exceeded the midpoint of the previous guidance range by $22 million, or 5%. It also topped analysts’ estimate of $470.86 million, according to Investing.com. Zeta reported GAAP net income of $38 million and diluted earnings per share of $0.14. Adjusted EBITDA was $121 million, with a margin of 24.6%, up 140 basis points year over year.
The chief financial officer said accelerating revenue was driven by increased customer adoption and use of Athena, adding that adjusted EBITDA and free cash flow grew faster than revenue. The number of high-spending customers rose to 212, up 18% year over year. Average revenue per customer in this group was $2.0 million, an increase of 22%. These metrics provide detail on the expansion of the customer base and revenue generated by the highest-spending group. Management attributed revenue growth to increased platform adoption and use.
The company raised its 2026 adjusted EBITDA outlook to $414.1–$415.2 million, an increase of $9.4 million at the midpoint from its previous guidance of $405.2 million. This implies expected annual growth of 49%, with a margin of 22.3% to 22.4%. Zeta also raised its free cash flow estimate to a range of $270.6–$271.6 million, an increase of $15.8 million at the midpoint from the previous estimate of $255.3 million. The company expects annual free cash flow growth of 64% to 65%. In the third quarter, net cash from operating activities was $91 million, up 58%, and free cash flow was $82 million, up 73% year over year.
Zeta set its 2026 GAAP earnings-per-share guidance at $0.22–$0.24, an increase of $0.13 at the midpoint from the previous range of $0.09–$0.11. The company said the guidance does not include a potential one-time, noncash tax benefit. The reported figures reflect the company’s already having recorded diluted earnings per share of $0.14 in the third quarter. Combining the earnings guidance with cash flow expectations updates several annual financial metrics, alongside the higher revenue and adjusted EBITDA outlooks. The guidance ranges remain the company’s estimates for the remainder of the year.
For the fourth quarter, the company forecast revenue of $521 million to $525 million, an increase of $15 million at the midpoint from its previous guidance of $508 million. The new range implies annual growth of 32% to 33%. Zeta had said it would hold a call to discuss its third-quarter results on November 9, 2026, at 4:30 p.m. Eastern Time, with a supplemental presentation and webcast available through its investor relations website. The stock closed the November 9 session at $32.42, up 4.48%, before falling after hours to $31.34, down 3.33% from the close. The fourth-quarter outlook provides the next quarterly milestone for tracking the annual guidance.