Ziff Davis, Inc. (ZD): Business Model Canvas [Dec-2025 Updated]

You're trying to get a clear picture of a company that wears many hats, from running trusted review sites like PCMag to owning critical B2B software and the global Speedtest data from Ookla. Honestly, understanding Ziff Davis, Inc.'s (ZD) business model means seeing how they blend content with commerce and enterprise tools; for instance, in Q2 2025, they pulled in $197 million from advertising alongside $149 million from subscriptions, all while balancing $872 million in gross debt. This firm is definitely playing a diversified game, targeting everything from IT pros to everyday consumers, with a full-year revenue guidance that could hit $1.502 billion. Check out the full canvas below to see the nine building blocks driving this complex digital media and software engine.

Ziff Davis, Inc. (ZD) - Canvas Business Model: Key Partnerships

Pharmaceutical companies are key partners driving the Health & Wellness segment, which generated advertising revenue of $82.5 million in the second quarter of 2025. This segment's total revenue grew by 15.7% year-over-year in Q2 2025, reaching $99.5 million. Health & Wellness advertising comprised 42% of the company's total advertising business in Q2 2025. Management projected this segment to return to high-single-digit growth for fiscal year 2025.

E-commerce retailers form the basis for performance marketing deals within the Technology & Shopping segment. This segment's revenue increased by 17.9% to $81.7 million in the first quarter of 2025. Advertising and performance marketing revenues across Ziff Davis, Inc. surged by 15.5% to $197 million in Q2 2025. The Technology & Shopping segment specifically contributed $78.8 million in advertising revenue during Q2 2025.

Technology vendors are integral to Ziff Davis Performance Marketing, which specializes in Account-Based Marketing (ABM) for B2B and SaaS companies. This unit focuses on high-intent campaigns across IT, CRM, telephony, human resources, and business finance markets. The overall Advertising and Performance Marketing revenue stream increased by 12.3% year-over-year to $175 million in Q1 2025.

Global internet service providers license Ookla data, which fuels the Connectivity segment's subscription and licensing revenue. The Connectivity segment saw revenues rise by 14.2% to $57.4 million in Q2 2025, driven by these licensing fees. Overall Subscription and Licensing revenue for Ziff Davis, Inc. was $146 million in Q1 2025, representing a 2.0% decline year-over-year.

Strategic M&A targets, such as theSkimm, expand the portfolio, specifically bolstering the Health & Wellness vertical. Ziff Davis acquired theSkimm in March 2025 through its Everyday Health Group. The acquired entity reported approximately 5 million subscribers across its email products at the time of the deal announcement. TheSkimm previously reported $20 million in revenue in 2019 and had raised $28.4 million in capital across four funding rounds.

Here's a quick look at the segment performance driving partnership-related revenue streams as of mid-2025:

The company's overall Advertising and Performance Marketing revenue for Q2 2025 reached $197 million. The Subscription and Licensing revenue for Q2 2025 was $149 million, a 5.0% increase from the prior year period.

Key operational metrics related to partnership monetization include:

• Total Advertising and Performance Marketing Revenue (Q2 2025): $197 million.
• Total Advertising and Performance Marketing Revenue (Q1 2025): $174,240 thousand.
• Total Subscription and Licensing Revenue (Q2 2025): $149 million.
• Total Subscription and Licensing Revenue (Q1 2025): $145,828 thousand.
• Total FY2025 Revenue Guidance (Midpoint): $1,472 million.
• Sales and marketing expenses (Q1 2025) increased by 9.1% to $127.7 million, partly due to partner payments.

Finance: review Q3 2025 cash flow statement for partner payment reconciliation by end of month.

Ziff Davis, Inc. (ZD) - Canvas Business Model: Key Activities

You're looking at the engine room of Ziff Davis, Inc., the core things they must do well to keep the revenue coming in and growing. It's a mix of content scale, high-margin software, and disciplined capital deployment.

Content creation and digital publishing across 40+ brands

Ziff Davis, Inc. maintains a massive digital footprint, operating a portfolio that includes over 40+ leading brands across technology, shopping, gaming and entertainment, connectivity, health and wellness, cybersecurity, and martech. This activity is central to attracting the audience that fuels other revenue streams. For instance, brands like IGN and Mashable are key content hubs. The company's Q3 2025 total revenue reached $363.7 million, marking the fifth consecutive quarter of revenue growth.

Operating high-margin subscription software services

A critical activity is running the Subscription and Licensing segment, which provides data products, services, and usage-based fees. This stream is inherently higher margin than pure advertising. In the third quarter of 2025, this segment grew revenue by 2% year-over-year, contributing $149 million to total revenue, up from $142 million in the prior year period.

The performance of the two primary revenue sources in recent quarters shows the balance:

Strategic acquisitions and integration (M&A cadence)

Ziff Davis, Inc. actively pursues strategic acquisitions to expand its portfolio and enter new markets. The company deployed approximately $16.7 million for current and prior year acquisitions during the third quarter of 2025. This follows a period where they completed three acquisitions in Q2 2025, including the acquisition of theSkimm in March 2025, and Well+Good and Livestrong in July 2025. The cumulative M&A spend through 2024 was reported at ~$3.2 billion. Successful integration is key to realizing the value from these deals.

Deploying AI for audience segmentation and content optimization

The company is actively incorporating artificial intelligence into its operations. In Q3 2025, Ziff Davis, Inc. launched new AI platforms specifically within the health and gaming sectors. This activity is aimed at improving audience targeting and making content delivery more efficient, which should eventually translate to better ad yields and subscription conversion rates. The Health & Wellness segment, for example, showed strong performance with 13% year-over-year revenue growth in Q3 2025.

Performance marketing and affiliate commerce management

Managing performance marketing is a major activity, especially as it drives the larger revenue component. In Q3 2025, the Advertising and Performance Marketing segment grew by 5.9% compared with the prior year period. This segment is responsible for delivering advertising, marketing, and production services. The company's ability to generate significant cash flow, with Q3 2025 Free Cash Flow at $108.2 million (up 35% YoY), underpins the resources available for these marketing efforts.

Finance: draft 13-week cash view by Friday.

Ziff Davis, Inc. (ZD) - Canvas Business Model: Key Resources

You're looking at the core assets Ziff Davis, Inc. relies on to drive its business today. These aren't abstract concepts; they are hard numbers and established platforms that generate revenue and audience engagement.

Portfolio of 40+ established digital brands

Ziff Davis, Inc. maintains a portfolio of 40+ leading brands across several verticals. This diversification helps stabilize performance across market cycles. For instance, in 2025, the company expanded this base by completing acquisitions:

• The Skimm acquired in March 2025.
• Well+Good and Livestrong acquired in July 2025.
• CNET was acquired in August 2024.

These brands span technology, shopping, gaming and entertainment, health and wellness, connectivity, cybersecurity, and martech. For example, Moz, a tool for SEO data, is part of this portfolio.

Proprietary first-party data for audience targeting

The monetization engine heavily relies on proprietary systems processing first-party data, moving away from third-party cookies. This data powers AI-driven audience segmentation. The success of this strategy is visible in the Advertising and Performance Marketing segment:

The overall Q2 2025 revenue was $352.2 million, up 9.8% year-over-year.

Strong balance sheet with $457 million cash (Q2 2025)

Financially, Ziff Davis, Inc. shows a solid position as of June 30, 2025. You can see the capital structure details here:

The company deployed approximately $33.9 million for share repurchases in Q2 2025 alone.

Global IT professional community (Spiceworks)

The Spiceworks platform provides deep B2B intent data. The community scale is substantial, offering visibility into buyer needs. Here are the reported metrics:

• 18MM Global Audience of business technology decision-makers (as of Feb 2023).
• Over 600MM+ Devices indexed for buyer behavior.
• Over 80MM+ Verified Tech Contacts across verticals.

The 2025 State of IT report indicated that 43% of businesses planned to increase IT staff in 2025.

High-traffic owned and operated (O&O) web properties

The O&O properties drive the audience reach necessary for the advertising and subscription models. The Gaming & Entertainment segment, which includes IGN, demonstrated scale:

• IGN Live event reached 300 million fans globally in June 2025.

The Technology & Shopping segment revenue grew 11.3% to $80.8 million in Q2 2025.

Finance: Finance team to reconcile the Q3 2025 cash position against the Q2 2025 balance by next Tuesday.

Ziff Davis, Inc. (ZD) - Canvas Business Model: Value Propositions

You're looking at the core value Ziff Davis, Inc. delivers across its portfolio, which is clearly segmented and quantified by late 2025 performance metrics. The company's strategy centers on owning high-authority digital properties and essential infrastructure data tools.

Trusted, vertical-specific content and product reviews (PCMag, CNET)

The content value proposition is supported by the financial performance of the underlying segments. Ziff Davis, Inc. reported total revenues of $363.7 million for the third quarter of 2025, marking its fifth consecutive quarter of revenue growth, up nearly 3% year-over-year from $353.6 million in Q3 2024. The CEO specifically highlighted strong performance from CNET in Q3 2025. The company is exploring transactions because management believes every division should command a multiple higher than the current Ziff Davis, Inc. multiple.

The breadth of this content ecosystem is vast, touching on high-growth sectors:

• Health and Wellness segment revenue grew 13% year-over-year in Q3 2025.
• Three out of Ziff Davis, Inc.'s five reportable segments grew revenue in Q3 2025.
• The company has deployed over $3 billion of capital on Mergers and Acquisitions (M&A) to build this portfolio.

High-accuracy internet performance data (Ookla Speedtest)

Ookla, a Ziff Davis, Inc. company, provides the definitive measure of connectivity, underpinning its value proposition with massive, real-time data sets. This data is used by operators, governments, and regulators to drive network advancements.

The data's impact is measurable in regulatory and consumer contexts. For instance, the number of U.S. states where 60% or more of Speedtest users achieved the FCC's minimum fixed broadband standard jumped from 22 in the second half of 2024 to 38 in the first half of 2025. This shows the direct utility of the data for monitoring broadband progress.

Targeted performance marketing for advertisers

The value here is the ability to connect advertisers with highly engaged, vertical-specific audiences, evidenced by the overall financial health and segment performance. The company's strong cash generation supports ongoing capital allocation strategies, including share repurchases.

Key financial indicators supporting the platform's value:

• Q3 2025 Adjusted diluted EPS was $1.76, an increase of over 7% year-over-year.
• Free Cash Flow for Q3 2025 was $108.2 million, a 35% increase from the prior year period.
• Trailing 12 months Free Cash Flow as of the end of Q3 2025 was $261.2 million.
• The operating margin improved to 7.8% in Q3 2025, compared to -8.3% in Q3 2024.

The company reaffirmed its fiscal year 2025 guidance for total revenues at $1.47 billion at the midpoint.

Essential B2B tools for IT and Wi-Fi professionals (Ekahau)

Ekahau, part of the Ookla family of brands, delivers enterprise solutions for network planning and optimization. While specific Ekahau revenue isn't broken out, its value is tied to the broader B2B connectivity intelligence space, which is seeing market acceleration. The worldwide Enterprise Networking market saw 12% revenue growth in Q2 2025, fueled by enterprise projects and Wi-Fi 7 upgrades, suggesting a strong environment for Ekahau's professional tools.

Ekahau's value proposition is rooted in providing actionable insights for network lifecycle management, including Wi-Fi Planning & Optimization and Network Testing.

Diversified exposure across high-growth sectors: Health, Tech, Gaming

Ziff Davis, Inc. mitigates risk through diversification, though some areas face headwinds. The company's portfolio spans multiple verticals, which helps stabilize overall performance.

The decline in the Tech and Shopping segment was specifically attributed to the wind down of game publishing activities. Finance: draft 13-week cash view by Friday.

Ziff Davis, Inc. (ZD) - Canvas Business Model: Customer Relationships

You're looking at how Ziff Davis, Inc. manages its diverse user base, which spans from individual consumers reading gaming news to large B2B tech decision-makers. The relationship strategy is clearly segmented to match the value proposition for each group.

Automated self-service for digital subscriptions is the expected path for many of Ziff Davis, Inc.'s digital media consumers, especially the younger demographic that prefers digital interaction. While specific digital subscription counts aren't public, the revenue stream shows movement: Subscription and licensing revenue reached $149 million in the second quarter of 2025, marking a 5.0% increase year-over-year for that period. This suggests that the automated digital offering is finding traction, though the first quarter of 2025 saw a slight dip to $146 million (a 2.0% decline YoY). Honestly, keeping these digitally-savvy subscribers engaged requires constant value delivery, as nearly half (47%) of consumers believe subscriptions give them access to a certain lifestyle.

For the B2B side, which includes segments like Cybersecurity & Martech and the Spiceworks community, Ziff Davis, Inc. deploys dedicated sales teams for large B2B enterprise contracts. This high-touch approach is necessary for complex, high-value offerings. The Cybersecurity & Martech segment, for example, generated $67.3 million in revenue in the first quarter of 2025, even while facing a challenging 10.8% revenue decline that quarter, indicating the sales cycle for these contracts is significant and requires direct management. The need for specialized sales talent is underscored by the fact that 57% of senior tech leaders found hiring skilled IT talent challenging in 2025.

Community engagement and user-generated content (IGN, Spiceworks) form the backbone of trust for many Ziff Davis, Inc. properties. Spiceworks, for instance, leverages its community to power marketing solutions, boasting an 18MM Global Audience as of early 2023 and over 80MM+ Verified Tech Contacts across its platform. This user-generated content ecosystem is critical, as Gen Z and millennials, who are major consumers of digital media, prefer this content over traditional media. The annual 2025 State of IT Report, a product of this community engagement, provides data points like 43% of businesses planning to increase IT staff in 2025.

The direct-to-consumer relationships for digital media brands are primarily monetized through advertising on owned and operated (O&O) properties. Management noted that 35% of the company's total revenues come from ads on its O&O web traffic. Furthermore, about 40% of that O&O advertising revenue is derived specifically from search placements. This direct relationship gives Ziff Davis, Inc. control over inventory and audience data, differentiating it from purely programmatic competitors. The Health & Wellness vertical, a key D2C-facing segment, generated $82.5 million in advertising revenue in the second quarter of 2025.

Finally, high-touch, consultative relationships for major advertising partners are essential for securing the largest ad spend. Advertising and performance marketing revenue was a massive $197 million in the second quarter of 2025, representing a 15.5% year-over-year surge. This level of spend requires dedicated account management and consultative selling, especially in high-growth areas like Health & Wellness, which saw its advertising revenue grow 15.7% in Q2 2025. The company's overall fiscal 2025 revenue guidance projects growth between $1.442 billion and $1.502 billion, showing the importance of these large partner relationships to the top line.

Here's a quick look at the key customer-facing financial metrics from the first half of 2025:

The reliance on community data for B2B relationships is substantial, with Spiceworks reporting over 80MM+ Verified Tech Contacts. Also, remember that 73% of consumers report they will switch to a competitor after multiple bad experiences, so maintaining this high-touch/self-service balance is defintely critical for retention across all segments.

Finance: draft 13-week cash view by Friday.

Ziff Davis, Inc. (ZD) - Canvas Business Model: Channels

You're looking at how Ziff Davis, Inc. gets its products and services in front of customers as of late 2025. It's a mix of owned digital real estate, direct sales efforts for its B2B offerings, and media acquisitions designed to capture audience attention directly.

Owned and Operated (O&O) websites and apps

Ziff Davis, Inc. relies heavily on its portfolio of established digital properties, which include brands like CNET, Mashable, Lifehacker, and PC Mag, to drive traffic and monetize through advertising. For the third quarter of 2025, total revenues reached $363.7 million. The Advertising and Performance Marketing revenue stream saw a 5.9% year-over-year growth in Q3 2025.

Direct sales force for B2B software and large ad deals

For the Cybersecurity & Martech segment, which returned to revenue growth in Q3 2025, a direct sales approach is key for securing larger B2B contracts and enterprise-level advertising partnerships. While Ziff Davis, Inc.'s specific B2B sales force metrics aren't public, general industry benchmarks for private B2B SaaS in 2025 suggest an Average Deal Size reached $26,265. The Health & Wellness segment's advertising revenue, which benefits from brand partnerships, represented 42% of the total advertising business in Q2 2025.

Search engine optimization (SEO) for O&O traffic

SEO is a critical channel, as search traffic accounts for a significant portion of the revenue generated by the Owned and Operated sites. Specifically, about 40% of the 35% of total revenue derived from O&O web traffic ads comes directly from search. This focus on organic discovery helps Ziff Davis, Inc. maintain a more stable revenue base compared to reliance on purely programmatic channels.

Email newsletters and direct-to-inbox media (theSkimm)

The acquisition of theSkimm in March 2025 brought a strong direct-to-inbox channel into the portfolio, primarily housed within the Health & Wellness division. This channel focuses on direct audience engagement and premium subscription potential.

• Newsletter Subscribers: 5 million across six newsletters.
• Total Audience Across Platforms: Over 16 million.
• Highly Engaged Users (Super Users): 1 million activating regularly.
• Prior Subscriber Base: TheSkimm previously reported 7 million subscribers.

App stores for Ookla and other utility software

Utility software, such as that provided by Ookla, uses app stores as a primary distribution point. While specific revenue figures for app store downloads are not itemized in the latest reports, the Connectivity segment, which includes Ookla, is a key part of the overall business structure. The company's Subscription and Licensing revenue grew 2% year-over-year in Q3 2025. The performance of utility software often feeds into this subscription or licensing bucket.

Ziff Davis, Inc. (ZD) - Canvas Business Model: Customer Segments

You're looking at the different groups of people and businesses that Ziff Davis, Inc. (ZD) serves, which is key to understanding where their money comes from. The company clearly splits its focus between consumers and business clients, with advertising being a major common thread.

For the second quarter of 2025, Ziff Davis reported total revenues of $352.2 million, with advertising and performance marketing making up $197 million of that total. This shows that attracting eyeballs and clicks from consumers across their media properties is central to the business.

Here's a look at how the revenue broke down by the segments that serve these customer groups in Q2 2025:

Consumers seeking product reviews and news are primarily served by the Health & Wellness, Technology & Shopping, and Gaming & Entertainment segments. The Health & Wellness segment was the largest contributor to revenue in Q2 2025 at $99.5 million. The Technology & Shopping segment, which includes CNET and RetailMeNot, brought in $80.8 million in Q2 2025.

B2B Enterprise clients, particularly those using software and data solutions from Ookla and Ekahau, fall under the Connectivity segment. This segment showed strong growth, with revenue reaching $57.4 million in Q2 2025, up 14.2% year-over-year.

Advertisers and performance marketers are a cross-segment customer base, but their spend is captured in the Advertising and Performance Marketing revenue line, which grew 15.5% to $197 million in Q2 2025. Pharma advertising was a key driver for the Health & Wellness segment's 15.7% growth.

IT professionals and small-to-midsize businesses are a core audience for the Cybersecurity & Martech segment, which generated $68.3 million in Q2 2025 revenue.

Digital media subscribers are a key part of the Subscription and Licensing revenue stream, which was $149 million in Q2 2025.

• Humble Bundle subscribers pay $14.99 monthly for Humble Choice in December 2025, with 5% of that membership fee going to charity.
• Ookla's data collection relies on over 11 million consumer-initiated tests conducted daily on Speedtest.
• In January 2025, Ookla data showed the median fixed internet download speed in the USA was 262.59 Mbps.
• For the nine months ended September 30, 2025, Ziff Davis reported total revenues of $1,044.6 million (calculated from Q3 revenue of $363.7M and $680.9M for the first six months).

If you're assessing the B2B side, remember that the Connectivity segment maintained a robust adjusted EBITDA margin of 47.3% in Q2 2025.

Ziff Davis, Inc. (ZD) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Ziff Davis, Inc.'s expenses as of the middle of 2025. It's all about the outlay required to keep the content engine running and the debt serviced. Here's the quick math on the major cost buckets based on the second quarter of 2025 results.

The primary operational costs for Ziff Davis, Inc. in the second quarter ended June 30, 2025, are detailed below, showing where the money went to generate the $352.2 million in total revenues for that period. The largest single expense category in the operating costs was Sales and Marketing.

Content creation and editorial staff salaries are embedded within the $48,974 thousand in Direct costs and the $16,478 thousand in Research, development, and engineering for Q2 2025. Honestly, separating pure editorial salaries from the broader Direct Costs category isn't possible with the public filings.

Technology infrastructure and hosting costs are represented by several line items that cover both the physical and intellectual capital investment. These figures reflect the ongoing spend to support digital properties.

• Depreciation and amortization for Q2 2025 was $57,606 thousand.
• Research, development, and engineering expenses for Q2 2025 totaled $16,478 thousand.
• Total operating costs and expenses for Q2 2025 reached $318,726 thousand.

Sales and marketing expenses to drive traffic were substantial, hitting $141,598 thousand for the three months ended June 30, 2025. This was up from $124,766 thousand in the same period last year.

Acquisition-related costs and integration expenses show up in a specific line item, plus the actual cash deployment for M&A activity. You need to look at both the non-recurring costs and the capital outlay.

• Acquisition, integration, and other costs recognized in the income statement for Q2 2025 were $3,987 thousand.
• Cash deployed for current and prior year acquisitions during Q2 2025 was approximately $11.4 million.

Interest expense on gross debt is a key non-operating cost. Ziff Davis, Inc. reported a specific figure for this liability service in Q2 2025, which is tied to the overall leverage structure.

The interest expense, net for the quarter was $6,523 thousand, compared to $1,804 thousand in Q2 2024. Finance: draft 13-week cash view by Friday.

Ziff Davis, Inc. (ZD) - Canvas Business Model: Revenue Streams

You're looking at the core ways Ziff Davis, Inc. (ZD) brings in cash as of late 2025. The business model relies heavily on a mix of advertising, recurring subscriptions, and transaction-based revenue across its diverse digital properties.

The company's overall financial health in mid-2025 showed strong momentum, with management reaffirming the full-year outlook based on solid quarterly results.

Here are the hard numbers we have for the primary revenue streams based on the Second Quarter 2025 results:

The full-year 2025 revenue guidance that Ziff Davis, Inc. reaffirmed projects total revenues between $1.442 billion and $1.502 billion.

For the specific components you asked about, the data is often nested within the broader segment reporting, but we can pull out related metrics:

• Affiliate and e-commerce revenue (RetailMeNot): While the specific dollar amount for RetailMeNot is not explicitly broken out in the top-line revenue figures, the company noted the deployment of AI chat at RetailMeNot as part of its strategic execution in Q2 2025.
• B2B software licensing fees (Ekahau, Spiceworks): These fees likely contribute to the Subscription and Licensing revenue line. A concrete metric related to the B2B software side is the Spiceworks paid subscription launch, which secured over 20,000+ paying business customers by the Q2 2025 earnings release.

To give you a better picture of where the revenue is coming from across the five reportable segments in Q2 2025, here's a look at the segment revenue:

Also, remember that 35% of Ziff Davis, Inc.'s total revenues are ads on its owned and operated web traffic, and about 40% of that specific portion comes from search.