Zeta Global Holdings Corp (NYSE:ZETA) delivered its 20th consecutive beat-and-raise quarter late Tuesday, driven by rapid customer expansion and surging AI adoption across its platform.
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Q2 Financial Performance Beats Consensus
Total revenue reached $443 million, a 44% increase year-over-year, beating analyst consensus expectations of $420.613 million. The intelligent AI infrastructure provider achieved positive net income of $8 million, generating 3 cents in earnings per share compared to breakeven earnings estimated.
Adjusted EBITDA surged to $92 million, expanding margins to 20.7% and achieving the “Rule of 64.” Key operational drivers included a 17% growth in Super-Scaled Customers to 197, alongside a 17% increase in Super-Scaled ARPU to $1.8 million. Net cash from operating activities rose 65% year-over-year to $69 million, while free cash flow jumped 73% to $58 million.
Upgraded Guidance & Management Commentary
Reflecting strong pipeline momentum, management raised full-year 2026 revenue guidance by $33 million at the midpoint to a range of $1,811 million to $1,824 million, topping analyst estimates.
Third-quarter sales are now projected between $469 million and $472 million. Full-year Adjusted EBITDA expectation was raised to $404.1–$406.3 million, and GAAP EPS outlook was increased to $0.09–$0.11.
“Accelerating revenue growth to 44% and achieving the rule of 64 reflects growing demand for our AI infrastructure platform,” said David A. Steinberg, Co-Founder, Chairman, and CEO.
“Momentum from collaborations with OpenAI, Snowflake and Palantir marks an inflection point.” CFO Chris Greiner added, “Broad-based strength and pipeline visibility give us confidence to significantly increase our full-year expectations.”
ZETA Shares Surge Wednesday Morning
ZETA Price Action: Zeta Global Holdings shares were up 13.73% at $27.58 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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