j2 Global(ZD) - 2025 Q3 - Quarterly Results

Financial Performance - Q3 2025 revenues increased by 2.9% to $363.7 million compared to $353.6 million in Q3 2024[6] - Income from operations rose 197.0% to $28.4 million, significantly improving from a loss of $(29.3) million in Q3 2024[6] - Net loss decreased to $(3.6) million from $(48.6) million in Q3 2024, marking a 92.6% improvement[6] - Adjusted EBITDA for Q3 2025 was $124.1 million, slightly down by 0.5% from $124.7 million in Q3 2024[6] - Adjusted net income for the quarter was $71.5 million, a decrease of 0.8% compared to $72.1 million in Q3 2024[6] - Free cash flow increased by 35.0% to $108.2 million from $80.1 million in Q3 2024[6] - Total revenues for the three months ended September 30, 2025, were $363.711 million, an increase from $353.580 million in the same period of 2024, representing a growth of 3.2%[18] - Net income for the nine months ended September 30, 2025, was $46.984 million, compared to a net loss of $1.040 million in the same period of 2024[20] Cost Management - Operating costs and expenses for the three months ended September 30, 2025, totaled $335.283 million, a decrease from $382.884 million in the same period of 2024, reflecting a reduction of 12.4%[18] - The company incurred a goodwill impairment of $17.579 million for the three months ended September 30, 2025, compared to $85.273 million in the same period of 2024[18] - Share-based compensation for the three months ended September 30, 2025, amounted to $12,197 thousand, compared to $10,161 thousand in the same period of 2024[31] - Sales and marketing expenses decreased to $(133,762) from $(127,418) year-over-year, indicating a focus on cost management[39][42] - Research, development, and engineering costs were reduced to $(14,077) from $(15,255), reflecting efficiency improvements[39][42] - General, administrative, and other related costs decreased to $(38,733) from $(52,417), showcasing effective expense control measures[39][42] - Depreciation and amortization expenses were reported at $(26,124), down from $(51,351) in the prior year, indicating a reduction in asset-related costs[39][42] Guidance and Projections - The company reaffirmed its 2025 revenue guidance range of $1,442 million to $1,502 million[8] - Adjusted EBITDA guidance for 2025 is set between $505 million and $542 million[8] - Adjusted diluted EPS is projected to be between $6.64 and $7.28 for 2025[8] Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2025, were $215.986 million, slightly down from $232.082 million in the same period of 2024[20] - Total cash and cash equivalents at the end of the period were $503.368 million, down from $386.122 million at the end of September 2024[20] - The company spent $85.888 million on property and equipment purchases in the nine months ended September 30, 2025, compared to $79.476 million in the same period of 2024[20] - Free cash flow for the year-to-date 2025 was $130,098, with net cash provided by operating activities totaling $215,986[50] Adjustments and Non-GAAP Measures - The adjusted effective tax rate is calculated based on the GAAP effective tax rate with adjustments for non-GAAP adjustments to net income[29] - For the three months ended September 30, 2025, the adjusted net income was $71,470, with an adjusted effective tax rate of approximately 25.2%[39] - Total non-GAAP adjustments for the quarter amounted to $24,015, indicating significant adjustments made to reconcile GAAP to non-GAAP financial measures[39][42] - For the nine months ended September 30, 2025, the adjusted net income was $172,042, with an adjusted effective tax rate of approximately 24.6%[44] - The total non-GAAP adjustments for the same period amounted to $69,066 in share-based compensation and $27,292 in transaction and integration charges[44] Investment and Credit Management - The company reported a provision for credit losses on investments of $17.566 million for the nine months ended September 30, 2025, compared to no provision in the same period of 2024[20] - The company reported a provision for credit losses on investments of $(17,566), reflecting a cautious approach to credit risk management[39][42]