Zeta Global Delivers 17th Consecutive 'Beat and Raise' Quarter as Guidance Moves Higher for 2025 and 2026

Durable Growth Momentum Propels Record Results

Zeta Global (NYSE:ZETA) continues to carve out a leadership position in the AI marketing space, announcing its 17th straight 'beat and raise' quarter with third quarter revenue climbing to $337.2 million, a 26% increase year over year. Even after adjusting for political and LiveIntent revenue, growth accelerated to 28% — a clear sign that demand for Zeta’s marketing platform remains robust.

Strong execution drove notable improvements in profitability and cash generation. Operating cash flow surged 68% to $58 million, and free cash flow leapt 83% to $47.1 million — all while achieving a record free cash flow margin of 14%. The company met the "Rule of 40" for the first time, combining growth and margin into an elite benchmark few software peers achieve.

Guidance Raised Again as Zeta Eyes Sixth Year of 20%+ Growth

The momentum isn’t just a quarterly blip — Zeta raised its full-year 2025 revenue outlook to $1.273–$1.276 billion, a $11 million bump from its prior midpoint, now reflecting 27% year-over-year growth. Adjusted EBITDA guidance jumps to $273.2–$274.1 million (42% growth), while free cash flow expectations move higher to $156.9–$157.9 million (70–71% growth), underscoring increasing operational leverage.

Looking further ahead, Zeta introduced its first guidance for 2026: revenue is projected to hit $1.54 billion (21% growth), adjusted EBITDA to reach $354 million (23% margin), and free cash flow to surge 33% to $209 million. The focus on margin expansion continues, with free cash flow margin anticipated to grow to 14%.

Operational Highlights Show Underlying Business Strength

The customer base is deepening, with the super-scaled customer count — those generating at least $1 million in trailing-twelve-month revenue — reaching 180 (up 25% year over year). This points to a successful land-and-expand strategy within large enterprises and rising platform stickiness.

Management credits their competitive edge in artificial intelligence and data. The new "Athena by Zeta" AI agent, fresh product momentum, and a growing ecosystem appear to be helping sustain Zeta’s advantage. As CFO Chris Greiner emphasized, the results "underscore the durability, predictability, and profitability of our growth" while the updated outlook "reflects the confidence and momentum we have in the business."

Capital Allocation: Buyback Program Expanded

In addition to growth, Zeta continues to prioritize shareholder returns, with a new $200 million stock repurchase program in place through 2027. As of September 30, $199 million remained available for repurchases, supplementing last year’s completed authorization. This gives management flexibility to return capital to shareholders or reduce dilution as the company scales further.

Financial Position Remains Healthy

At quarter-end, Zeta reported $385 million in cash and equivalents, with strong working capital and total stockholders’ equity of $689 million. Debt levels were essentially flat quarter over quarter, providing financial flexibility for both growth investments and buybacks.

What’s Next: Conference Call and Ongoing Monitoring

Zeta will discuss results in detail on its Q3 conference call at 4:30 p.m. Eastern Time today. Investors may want to watch for additional commentary on product launches, customer trends, and potential integration of the pending Marigold acquisition. With guidance now reset higher and execution running at a high level, Zeta’s ability to balance fast growth and margin expansion stands out.

Key Takeaway: Sustained Growth with Expanding Profitability

With another quarter of accelerated top- and bottom-line progress and upward guidance revisions, Zeta is showing a playbook of scalable, AI-driven marketing and disciplined capital allocation. The coming quarters will test whether the company can extend this momentum, but the latest report provides investors with reasons to watch closely as the martech landscape evolves.

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