Ziff Davis (ZD) has just wrapped up FY 2025 with fourth quarter revenue of US$406.7 million and basic EPS of roughly US$0.01. Trailing 12 month revenue came in at about US$1.5 billion with basic EPS of US$1.16. Over recent periods, revenue has moved from US$412.8 million in Q4 2024 to US$406.7 million in Q4 2025, and quarterly EPS has ranged from a loss of about US$0.09 in Q3 2025 to US$0.63 in Q2 2025. This sets up a results snapshot where investors are weighing modest profitability against tighter margins and future earnings growth potential.

See our full analysis for Ziff Davis.

With the latest earnings numbers on the table, the next step is to see how these figures compare with the widely followed narratives around Ziff Davis's growth, risks and long term profitability story.

Margins Squeezed By One Off Loss

• Over the last 12 months, Ziff Davis generated about US$1.5b of revenue with net income of US$47.4 million, which works out to a 3.3% net margin compared with 4.5% a year earlier and includes an US$85.3 million one off loss.
• Bears argue that this kind of earnings profile points to fragile profitability, yet the data gives a mixed picture:
  • The five year trend shows trailing earnings falling about 17.2% per year, which supports the cautious view that profit has been under pressure over a longer stretch.
  • At the same time, the company still produced positive trailing EPS of US$1.16 and US$47.4 million of net income, which challenges the idea that the business model is structurally broken rather than temporarily affected by the one off item.

Stay focused on how much of that US$47.4 million is repeatable versus tied to one offs. That is exactly what skeptics are debating in the detailed bear case. 🐻 Ziff Davis Bear Case

Earnings Forecasts Outrun Soft Revenue Trend

• Analysts in the data expect earnings to grow about 21.1% per year even though revenue is projected to decline roughly 5% per year over the next three years, off a trailing base of US$1.5b and a 3.3% net margin.
• Supporters of the bullish narrative point to this gap as evidence of efficiency gains and mix improvement, but the numbers leave some tension to think through:
  • The bullish view leans on higher margin areas such as Health & Wellness, Connectivity and other verticals, yet the latest trailing margin is still only 3.3%, which is some distance from the higher margin levels bulls discuss in their longer term assumptions.
  • Revenue forecasts that point to a 5% annual decline sit awkwardly next to expectations for faster earnings growth, so bulls effectively need margin expansion and mix shifts to carry most of the load rather than top line expansion.

If you want to see how bullish investors connect these margin and growth assumptions back to specific business segments, the detailed bull narrative is the next place to go. 🐂 Ziff Davis Bull Case

High P/E Meets Big DCF Gap

• At a share price of US$43.31 and trailing EPS of about US$1.16, Ziff Davis trades on a P/E of 34.6x, which is higher than both peer and industry averages of 10.6x and 20.1x, while the provided DCF fair value of US$77.26 sits well above the current price.
• What is interesting for investors is how different narratives latch onto these same numbers in opposite ways:
  • Critics highlight the 34.6x P/E relative to peers at 10.6x as evidence that the stock is expensive considering recent margin compression from 4.5% to 3.3% and the large US$85.3 million one off loss in the last 12 months.
  • Supporters point to the roughly US$34 gap between the US$43.31 share price and the US$77.26 DCF fair value as a sign that, if the 21.1% earnings growth forecasts are met, the current multiple could be justified despite those weaker trailing metrics.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Ziff Davis on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards in play, the real question is how you weigh them for your own portfolio and time frame. Take a close look at the underlying data, stress test the bullish and bearish points, and then decide where you stand based on the 2 key rewards and 2 important warning signs.

See What Else Is Out There

Ziff Davis is operating with relatively thin 3.3% margins, a sizeable one-off loss of US$85.3 million, and a comparatively high P/E ratio of 34.6x against peers.

If those tight margins and that valuation leave you uneasy, compare this setup with companies in the solid balance sheet and fundamentals stocks screener (44 results) so you can focus on sturdier financial foundations.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.