Zeta GlobalZETA

Key highlights

• Core growth accelerating: Revenue excluding one-time political spending and acquisitions grew 30% to $437 million, an acceleration from the 28% growth seen in the prior quarter. This shows the underlying business is picking up speed as more companies use the platform for their marketing data.
• Large customer spending rising: Average revenue from super-scaled customers, which are clients spending at least $1 million, rose 22% to $2.0 million. The company also increased its count of these high-value clients to 212, which is 18% more than they had a year ago.
• Cash generation surge: Free cash flow, which is the cash a company has left after paying for its operations and equipment, jumped 73% to $82 million. This brought the free cash flow margin to 16.5% for the quarter, up from 14.0% in the same period last year.
• Efficiency gains expanding margins: Adjusted profit margins reached 24.6%, an increase of 140 basis points compared to last year. Management noted that profit and cash flow are currently growing faster than total sales, which suggests the business is becoming more efficient as it scales.
• Full year outlook raised: Management raised its 2026 revenue forecast to a range of $1,853 million to $1,857 million, representing 42% growth over last year. They also increased the expected range for GAAP profit, meaning profit according to standard accounting rules, to between $0.22 and $0.24 per share.

Our take: A very strong quarter that shows clear momentum in the core business. While the headline 46% growth includes acquisitions and temporary political ads, the underlying 30% growth rate is accelerating and shows real demand for the company's AI tools. This performance reinforces the long-term case for a leader in the marketing data space.