UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 0-25965 ZIFF DAVIS, INC. (Exact name of registrant as specified in its charter) OR (State or other jurisdiction (I.R.S. Empl ...

Financial Data and Key Metrics Changes - Q2 2025 revenues were $352.2 million, reflecting growth of nearly 10% compared to $320.8 million in the prior year period [23] - Adjusted EBITDA for Q2 2025 was $107.7 million, up nearly 12% from $96.3 million in the prior year [23] - Adjusted diluted EPS increased to $1.24 from $1.18 in 2024, reflecting growth of more than 5% [23] - Adjusted EBITDA margin for the quarter was 30.6% [23] - Free cash flow for Q2 2025 was $26.9 million, 7.5% higher than the prior year period [32] Business Line Data and Key Metrics Changes - Four of the five reportable segments grew in revenues in Q2 2025, with the Digital Media segment growing nearly 13% [8] - Tech and Shopping's revenues grew over 11%, with adjusted EBITDA growth of over 5% [9] - Gaming and Entertainment revenues grew nearly 8%, with adjusted EBITDA growth of almost 24% [10] - Health and Wellness revenues increased nearly 16%, with adjusted EBITDA up 11% [11] - Connectivity revenues were up over 14%, with adjusted EBITDA growth of over 12% [13] - Cybersecurity and Martech segment's revenue declined less than 1% but posted over 5% adjusted EBITDA growth [15] Market Data and Key Metrics Changes - Advertising and performance marketing revenues grew 15.5% year over year, while subscription and licensing revenues grew by 5% [25] - Other revenues declined by $2.2 million year over year, primarily due to a decline in the contribution from the Hungable Games publishing business [26] Company Strategy and Development Direction - The company is committed to repurchasing shares and has completed five tuck-in acquisitions in the first half of the year [7] - The focus remains on identifying and integrating durable high-quality assets while maintaining a disciplined approach to capital allocation [20] - The company aims for double-digit total revenue growth, with expectations of mid-30s adjusted EBITDA margins in the long term [51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Cybersecurity and Martech segment returning to growth in Q3 [8] - The company anticipates at least mid-single-digit revenue growth for both Q3 and Q4 2025, with Q4 potentially being stronger than Q3 [31] - Health and Wellness and Connectivity businesses are expected to be the largest contributors to second-half growth [31] Other Important Information - The company has a healthy balance sheet with $457 million in cash and cash equivalents and $140 million in long-term investments [27] - The company has repurchased nearly 1.4 million shares since the beginning of Q2 2025, totaling over $170 million since June 30, 2024 [29] Q&A Session Summary Question: What are you hoping to communicate to the market regarding intrinsic value versus current public market valuation? - Management hopes investors will assess each of the five segments, noting that four segments collectively grew 13% and that there are differing levels of growth and margin profiles [36][38] Question: Can you update us on trends in the ad market? - The ad business grew a little over 15%, with health and wellness being very strong and gaming up mid-teens [44][50] Question: Can you unpack the incremental EBITDA margin and any factors affecting it? - Management indicated that there are no specific changes in cost structure affecting margins, and advised looking at performance over multiple quarters for a clearer picture [55][60] Question: What are the trends in health and wellness advertising participation? - The increase in advertiser participation is attributed to expanding beyond pharma to include more health and wellness brands [80][82]

©2025 Ziff Davis. All rights reserved. www.ziffdavis.com SECOND QUARTER 2025 RESULTS August 6, 2025 Exhibit 99.2 Safe Harbor for Forward-looking Statements Certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those regarding our 2025 financial guidance. These forward-looking statements are based on management's current expectations or beliefs as of August 6, 2025 ("Release Date") and are subject to n ...

Exhibit 99.1 Ziff Davis Reports Second Quarter 2025 Financial Results and Reaffirms 2025 Guidance NEW YORK, NY -- August 6, 2025 -- Ziff Davis, Inc. (NASDAQ: ZD) ("Ziff Davis" or "the Company") today reported unaudited financial results for the second quarter ended June 30, 2025. "We are very pleased with our second quarter results, which exceeded expectations and marked our strongest quarterly revenue growth since 2021," said Vivek Shah, Chief Executive Officer of Ziff Davis. "Our new segment reporting is ...

Summary of Ziff Davis (ZD) FY Conference Call - May 14, 2025 Company Overview - Ziff Davis has built a portfolio through systematic acquisitions and growth in digital media and internet businesses, focusing on value creation across five vertical categories [4][14] - The company aims for organic growth and growth through acquisitions, with a diversified business model including advertising, subscription, and licensing revenue [4] Financial Performance - Reported a revenue growth of 5% in the quarter, with the Digital Media segment growing 9% [5] - Reaffirmed guidance for mid-single-digit growth across revenue, EBITDA, and EPS for the year [5] - Strong M&A activity expected to continue, with a healthy balance sheet [6] Advertising and Market Trends - Advertising revenues increased by 12% in Q1, with strong performance across tech, shopping, health, and gaming categories [7][11] - Health and wellness sector driven by a strong FDA drug pipeline, while gaming benefits from upcoming console releases [8][9] - Concerns about tariffs affecting the tech and shopping categories, but no immediate signs of impact observed [10][11] Segment Analysis Technology and Shopping - The CNET Group and RetailMeNot segment grew 14% in revenue and 44% in adjusted EBITDA, driven by organic growth and margin expansion [21] - B2B businesses have been a drag on growth but are now profitable [22] Gaming and Entertainment - IGN Entertainment segment grew mid-single digits, with strong advertising growth but some challenges in subscription offerings [26][28] - Anticipated growth from new gaming IP and streaming platforms [30] Health and Wellness - Everyday Health Group showed mid to high single-digit revenue growth and double-digit EBITDA growth, benefiting from a favorable pharma advertising environment [32][34] Connectivity - Ookla segment maintained flat revenue despite a 25% decline in wireless access point sales industry-wide, with expectations for growth as Wi-Fi 7 is introduced [41][42] Cybersecurity and Martech - This segment declined due to tough year-over-year comparisons, but there is optimism for sequential growth throughout the year [44][46] AI and Intellectual Property - Ziff Davis filed a lawsuit against OpenAI for unauthorized use of its content, emphasizing the need for compensation for IP usage [47][49] - 35% of the company's revenues are web traffic-based, with 40% of that from search, indicating a diversified revenue model [51][52] M&A Strategy - The company is focused on tuck-in acquisitions that are synergistic with existing businesses, with a robust pipeline across all segments [63][64] - Historical targets include 20% cash-on-cash returns and maintaining a gross debt to EBITDA ratio of three times [66] Market Outlook - The company is optimistic about returning to organic growth and a consistent M&A cadence, with all segments positioned for potential growth [76][78] - The management believes that the current market valuation does not reflect the company's performance and potential [68][70] Conclusion - Ziff Davis is positioned for growth across its diversified portfolio, with strong financial performance and a proactive approach to M&A and market challenges [80][81]

Revenue Growth - Total revenues for the three months ended March 31, 2025, were $328.636 million, an increase from $314.485 million in the same period of 2024, representing a growth of approximately 4.0%[155] - Revenues for the three months ended March 31, 2025, were $328.6 million, a 4.5% increase from $314.5 million in the same period of 2024[174] - Advertising and performance marketing revenue increased by $19.2 million, primarily driven by a $13.6 million increase in the Technology & Shopping segment[175] - Technology & Shopping's revenues increased by 17.9% to $81.7 million for the three months ended March 31, 2025, driven by a $13.6 million rise in advertising and performance marketing revenues[191] - Health & Wellness's revenues grew by 7.3% to $85.8 million, with a notable $4.5 million increase in advertising and performance marketing revenues[198] - Connectivity's revenues increased by 5.0% to $55.8 million, mainly due to a $3.4 million rise in subscription and licensing revenues[200] - Cybersecurity & Martech's revenues decreased by 10.8% to $67.3 million, primarily due to a $6.1 million drop in subscription and licensing revenue[203] Customer Metrics - The Technology & Shopping segment generated $81.690 million in revenues for Q1 2025, up from $69.267 million in Q1 2024, reflecting a growth of about 18.5%[155] - The Health & Wellness segment reported revenues of $85.786 million for Q1 2025, compared to $79.978 million in Q1 2024, marking an increase of approximately 7.3%[155] - The number of customers in the Gaming & Entertainment segment increased to 531,000 in Q1 2025 from 451,000 in Q1 2024, indicating a growth of about 17.7%[164] - The average quarterly revenue per customer in the Cybersecurity & Martech segment decreased to $53.85 in Q1 2025 from $57.79 in Q1 2024, a decline of approximately 4.0%[164] - The average revenue per customer in the Health & Wellness segment was $7.20 in Q1 2025, a slight decrease from $7.41 in Q1 2024[164] - The total number of customers in the Health & Wellness segment decreased to 1,820,000 in Q1 2025 from 1,564,000 in Q1 2024, reflecting a growth of about 16.4%[164] Expenses and Costs - Direct costs for the three months ended March 31, 2025, were $47.2 million, representing 14.4% of revenues, a slight decrease from 14.6% in 2024[176] - Sales and marketing expenses rose to $127.7 million, accounting for 38.9% of revenues, up from 37.2% in the prior year[177] - Research, development, and engineering costs decreased by 10.7% to $15.9 million, representing 4.8% of revenues[178] - General, administrative, and other related costs decreased by 5.3% to $46.9 million, accounting for 14.3% of revenues[179] - Depreciation and amortization expenses increased by 15.2% to $55.8 million, representing 17.0% of revenues[180] - Interest expense, net increased by 246.6% to $6.1 million compared to $1.8 million in the prior year[181] Income and Taxation - Income from equity method investment was $6.6 million for the three months ended March 31, 2025, compared to a loss of $0.6 million in the same period of 2024[189] - The effective tax rate for the three months ended March 31, 2025, was 32.8%, down from 42.2% in the prior year[186] Cash Flow and Indebtedness - Cash and cash equivalents decreased to $431.0 million as of March 31, 2025, down from $505.9 million at the end of 2024[207] - Net cash provided by operating activities fell by $54.9 million to $20.6 million for the three months ended March 31, 2025, primarily due to significant working capital usage[215] - The company had outstanding indebtedness of $864.8 million as of March 31, 2025[212] - Net cash provided by operating activities decreased by $54.9 million during Q1 2025, primarily due to significant working capital usage by TDS Gift Cards, which had a negative impact of $(84.0) million[215] Share Repurchase Program - As of March 31, 2025, a total of 9,508,692 shares have been repurchased under the 2020 Program at an aggregate cost of $614.5 million[219] - The Board authorized an increase in the share repurchase program by an additional 5 million shares, raising the total authorization to 15 million shares[218]

Financial Data and Key Metrics Changes - Q1 2025 revenues were $328.6 million, reflecting a growth of 4.5% compared to $314.5 million in Q1 2024 [21] - Adjusted EBITDA for Q1 2025 was $100.2 million, slightly down from $100.8 million in the prior year, with an adjusted EBITDA margin of 30.5% [21][22] - Adjusted diluted EPS for Q1 2025 was $1.14, impacted by higher net interest expense and depreciation [22] Business Line Data and Key Metrics Changes - Tech and Shopping segment revenues grew nearly 18%, with adjusted EBITDA increasing nearly 44% [8] - Gaming and Entertainment revenues grew by nearly 4%, with a 7% increase in ad revenue, while subscription revenues were slightly down [9] - Health and Wellness revenues grew over 7%, with adjusted EBITDA growth of over 12% [10] - Connectivity revenues grew by 5%, with subscription and licensing growing by 7% [11] - Cybersecurity and Martech segment declined nearly 11% in revenues, attributed to timing benefits from the previous year [12] Market Data and Key Metrics Changes - Advertising and performance marketing revenue grew by 12.3% compared to the prior period, while subscription and licensing revenues declined by 2% [23] - The company noted strong performance in the advertising markets across tech and shopping, gaming and entertainment, and health and wellness [13] Company Strategy and Development Direction - The company is actively pursuing M&A opportunities, having completed two acquisitions in Q1 and another signed in early Q2 [7][15] - Focus remains on identifying compelling assets within verticals to leverage platforms and technology for value generation [15][16] - The company is committed to capital allocation strategies that include share repurchases and acquisitions to enhance shareholder value [14][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the advertising market, with expectations for continued growth despite potential recessionary risks [13][37] - The company reaffirmed its full-year guidance, expecting revenue growth of 5% and adjusted EBITDA growth of 6% at the midpoint [7][27] - Management highlighted the importance of maintaining a robust balance sheet while being active in M&A and share repurchases [25][27] Other Important Information - The company filed a lawsuit against OpenAI to protect its intellectual property and the integrity of journalism [17][18] - Management emphasized the need for a balanced digital ecosystem that respects copyrights and compensates content creators [18] Q&A Session Summary Question: Update on the overall ad market - Management noted strong Q1 performance with ad business growth of over 12%, with positive trends expected to continue [34][35] Question: Priorities for improving connectivity growth - Focus is on the Wi-Fi segment, anticipating strong demand with the rollout of Wi-Fi 7 [38][39] Question: Potential macro impacts on advertising demand - Management indicated low direct impact from tariffs, with optimism in health and wellness and gaming sectors [46][47] Question: Pipeline visibility for the rest of the year - Upfront commitments for pharma advertising were strong, with optimism for both direct-to-consumer and provider sides [56] Question: Update on generative AI impact - Approximately 35% of revenues depend on traffic, with AI overviews increasing but unclear on their overall impact [65][66] Question: Capital allocation and M&A market outlook - The M&A environment is favorable, with ongoing active participation across all divisions [78][82]

Financial Data and Key Metrics Changes - Q1 2025 revenues were $328.6 million, reflecting a growth of 4.5% compared to $314.5 million in Q1 2024 [20] - Adjusted EBITDA for Q1 2025 was $100.2 million, slightly down from $100.8 million in the prior year, with an adjusted EBITDA margin of 30.5% [20][21] - Adjusted diluted EPS for Q1 2025 was $1.14, impacted by higher net interest expenses and depreciation [21] Business Line Data and Key Metrics Changes - Tech and Shopping segment revenues grew nearly 18%, with adjusted EBITDA increasing nearly 44% [8] - Gaming and Entertainment revenues grew by nearly 4%, with a 7% increase in ad revenue, while subscription revenues slightly declined [9] - Health and Wellness segment revenues grew over 7%, with adjusted EBITDA growth exceeding 12% [10] - Connectivity revenues grew by 5%, with subscription and licensing growing by 7% [11] - Cybersecurity and MarTech segment declined nearly 11% due to timing benefits from the previous year [12] Market Data and Key Metrics Changes - Advertising and performance marketing revenue grew by 12.3% compared to the prior period, while subscription and licensing revenues declined by 2% [22] - The company noted strong performance in the advertising markets across tech and shopping, health and wellness, and gaming and entertainment [13] Company Strategy and Development Direction - The company is focused on M&A activity, having completed two acquisitions in Q1 and another signed in early Q2, with a pipeline of opportunities across all segments [7][15] - The strategy includes simplifying B2B product offerings and reducing expenses to improve margins [9] - The company aims to leverage its platforms and technology to identify compelling assets for acquisition [15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about Q2 growth, reaffirming full-year guidance of 5% revenue growth and 6% adjusted EBITDA growth at the midpoint [7][25] - The company has not experienced notable negative impacts from macroeconomic volatility or tariff discussions to date [25] - Management remains focused on long-term shareholder value rather than short-term quarterly results [27] Other Important Information - The company is actively managing operating costs and capital expenses while continuing share repurchases, having bought back 4.25 million shares over the last four quarters [14][24] - A lawsuit against OpenAI was filed to protect the integrity of journalism and the company's intellectual property rights [16][18] Q&A Session Summary Question: Update on the overall ad market - Management reported strong Q1 performance with ad business growth of over 12%, with positive trends expected to continue [32][33] Question: Priorities for improving connectivity growth - Focus is on the Wi-Fi segment, anticipating strong demand for better wireless networks and the upcoming Wi-Fi 7 deployment [36] Question: Potential macro impacts on advertising demand - Management feels insulated from direct tariff impacts, with optimism in health and wellness and gaming sectors [44][48] Question: Upfront commitments for pharma advertising - Upfront commitments for the year are strong, with optimism for both direct-to-consumer and provider advertising [52][54] Question: Impact of generative AI on business - Approximately 35% of revenues depend on traffic, with AI overviews now accounting for over 20% of top queries [63][66] Question: Capital allocation and M&A market outlook - The M&A environment is favorable, with ongoing active participation across all divisions, and the company is inclined to leverage its position for acquisitions and buybacks [74][80]

Company Performance - Ziff Davis reported quarterly earnings of $1.14 per share, exceeding the Zacks Consensus Estimate of $1.10 per share, but down from $1.27 per share a year ago, representing an earnings surprise of 3.64% [1] - The company posted revenues of $328.64 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.58% and up from $314.49 million year-over-year [2] - Over the last four quarters, Ziff Davis has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Ziff Davis shares have declined approximately 41.8% since the beginning of the year, in contrast to the S&P 500's decline of 4.3% [3] - The current Zacks Rank for Ziff Davis is 4 (Sell), indicating expectations for the stock to underperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.24 on revenues of $333.38 million, and for the current fiscal year, it is $6.72 on revenues of $1.45 billion [7] - The outlook for the Internet - Software industry is relatively strong, ranking in the top 37% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

[Financial Performance](index=1&type=section&id=Financial%20Performance) [First Quarter 2025 Financial Highlights](index=1&type=section&id=FIRST%20QUARTER%202025%20RESULTS) Ziff Davis reported a 4.5% revenue increase to $328.6 million in Q1 2025, with net income up 128.1% to $24.2 million, though Adjusted EBITDA slightly decreased and free cash flow turned negative - CEO Vivek Shah expressed satisfaction with Q1 performance, which surpassed internal targets, citing accelerating revenue growth, a healthy M&A cadence, and an active share buyback program as reasons for optimism for the rest of the year[2](index=2&type=chunk) Q1 2025 vs Q1 2024 Financial Results (in millions, except per share amounts) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$328.6** | **$314.5** | **4.5%** | | Income from operations | $35.1 | $35.9 | (2.0)% | | **Net income** | **$24.2** | **$10.6** | **128.1%** | | Net income per diluted share | $0.56 | $0.23 | 143.5% | | **Adjusted EBITDA** | **$100.2** | **$100.8** | **(0.6)%** | | Adjusted diluted EPS | $1.14 | $1.27 | (10.2)% | | Net cash provided by operating activities | $20.6 | $75.6 | (72.7)% | | **Free cash flow** | **$(5.0)** | **$47.4** | **(110.6)%** | Q1 2025 Revenue by Segment (in millions) | Segment | Q1 2025 Revenue | Q1 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | Technology & Shopping | $81.7 | $69.3 | 17.9% | | Gaming & Entertainment | $38.0 | $36.6 | 3.8% | | Health & Wellness | $85.8 | $80.0 | 7.3% | | Connectivity | $55.8 | $53.1 | 5.0% | | Cybersecurity & Martech | $67.3 | $75.5 | (10.8)% | - During Q1 2025, the company deployed approximately **$39.2 million** for acquisitions and **$34.9 million** for share repurchases[5](index=5&type=chunk) [Fiscal Year 2025 Guidance](index=2&type=section&id=ZIFF%20DAVIS%20GUIDANCE) Ziff Davis reaffirmed its full-year 2025 guidance, projecting revenues between $1.44 billion and $1.50 billion, and Adjusted EBITDA between $505 million and $542 million Fiscal Year 2025 Guidance (in millions, except per share data) | Metric | Low Estimate | High Estimate | | :--- | :--- | :--- | | Revenues | $1,442 | $1,502 | | Adjusted EBITDA | $505 | $542 | | Adjusted diluted EPS | $6.64 | $7.28 | - The Adjusted effective tax rate for 2025 is anticipated to be between **23.25%** and **25.25%**[7](index=7&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Ziff Davis reported total assets of $3.52 billion, a decrease from $3.70 billion, primarily due to reduced cash and accounts receivable, while total liabilities also decreased Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $431,007 | $505,880 | | Total current assets | $1,072,319 | $1,272,069 | | **TOTAL ASSETS** | **$3,515,875** | **$3,704,334** | | Total current liabilities | $704,774 | $899,647 | | Long-term debt | $864,829 | $864,282 | | **TOTAL LIABILITIES** | **$1,694,510** | **$1,893,452** | | **TOTAL STOCKHOLDERS' EQUITY** | **$1,821,365** | **$1,810,882** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Total revenues grew to $328.6 million in Q1 2025, with net income significantly increasing to $24.2 million, positively impacted by an equity method investment and absence of prior year's investment loss Statement of Operations Summary (in thousands) | Line Item | Three months ended Mar 31, 2025 | Three months ended Mar 31, 2024 | | :--- | :--- | :--- | | Total revenues | $328,636 | $314,485 | | Total operating costs and expenses | $293,506 | $278,624 | | Income from operations | $35,130 | $35,861 | | Income before income tax expense | $26,196 | $19,503 | | **Net income** | **$24,239** | **$10,627** | | **Diluted EPS** | **$0.56** | **$0.23** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operating activities significantly decreased to $20.6 million in Q1 2025, leading to negative free cash flow, primarily due to working capital changes Cash Flow Summary (in thousands) | Cash Flow Activity | Three months ended Mar 31, 2025 | Three months ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $20,613 | $75,558 | | Net cash used in investing activities | $(64,829) | $(71,481) | | Net cash used in financing activities | $(35,006) | $(6,311) | | **Net change in cash and cash equivalents** | **$(74,873)** | **$(2,833)** | | Cash and cash equivalents at end of period | $431,007 | $734,779 | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Explanation of Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Adjusted EBITDA, Adjusted net income, and Free cash flow to provide insights into core business performance by excluding non-cash or non-recurring items - The company uses non-GAAP measures for internal financial and operational decision-making, period-to-period comparisons, and determining annual incentive compensation for executives[21](index=21&type=chunk) - Key non-GAAP measures are defined as follows: - **Adjusted EBITDA:** Net income adjusted for items like interest, taxes, D&A, share-based compensation, and acquisition costs - **Adjusted net income:** Net income adjusted for items like amortization, share-based compensation, and acquisition costs - **Free cash flow:** Net cash from operating activities less purchases of property and equipment[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20MEASURES) This section details reconciliations from GAAP to non-GAAP metrics, adjusting for items like depreciation, amortization, share-based compensation, and acquisition costs to bridge Net Income to Adjusted EBITDA and Adjusted Net Income, and operating cash flow to Free Cash Flow [Reconciliation of Net Income to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20income%20to%20Adjusted%20EBITDA) For Q1 2025, Net Income of $24.2 million was reconciled to Adjusted EBITDA of $100.2 million, with major adjustments including depreciation, amortization, and share-based compensation, offset by equity method investment income Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net income** | **$24,239** | **$10,627** | | Depreciation and amortization | $55,832 | $48,453 | | Share-based compensation | $9,752 | $8,872 | | (Income) loss from equity method investments, net of tax | $(6,630) | $645 | | Loss on investment, net | — | $10,705 | | Other adjustments | $17,585 | $21,159 | | **Adjusted EBITDA** | **$100,178** | **$100,751** | Q1 2025 Adjusted EBITDA by Segment (in thousands) | Segment | Revenues | Adjusted EBITDA | | :--- | :--- | :--- | | Technology & Shopping | $81,690 | $21,006 | | Gaming & Entertainment | $38,026 | $12,146 | | Health & Wellness | $85,786 | $29,355 | | Connectivity | $55,820 | $28,059 | | Cybersecurity & Martech | $67,314 | $22,178 | | Corporate | — | $(12,566) | | **Total** | **$328,636** | **$100,178** | [Reconciliation of Net Income to Adjusted Net Income](index=12&type=section&id=Reconciliation%20of%20Net%20income%20to%20Adjusted%20net%20income) GAAP Net Income of $24.2 million ($0.56 per diluted share) was adjusted to a non-GAAP Adjusted Net Income of $48.9 million ($1.14 per diluted share) for Q1 2025, primarily by adding back amortization and share-based compensation Reconciliation of Net Income to Adjusted Net Income (in thousands, except per share) | Description | Q1 2025 | Per diluted share | Q1 2024 | Per diluted share | | :--- | :--- | :--- | :--- | :--- | | **Net income** | **$24,239** | **$0.56** | **$10,627** | **$0.23** | | Amortization | $21,868 | $0.51 | $20,085 | $0.44 | | Share-based compensation | $9,816 | $0.23 | $7,786 | $0.17 | | (Income) loss from equity method investment, net of tax | $(6,630) | $(0.16) | $645 | $0.01 | | Other adjustments | $(353) | $(0.01) | $19,329 | $0.42 | | **Adjusted net income** | **$48,940** | **$1.14** | **$58,472** | **$1.27** | [Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow](index=15&type=section&id=Reconciliation%20of%20Net%20cash%20provided%20by%20operating%20activities%20to%20Free%20cash%20flow) In Q1 2025, net cash from operating activities of $20.6 million resulted in a negative Free Cash Flow of $(5.0) million after accounting for property and equipment purchases, a significant decline from Q1 2024 Free Cash Flow Reconciliation (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $20,613 | $75,558 | | Less: Purchases of property and equipment | $(25,619) | $(28,129) | | **Free cash flow** | **$(5,006)** | **$47,429** |