j2 Global(US:ZD)2026-02-24 01:23Financial Performance - Revenues for Q4 2025 decreased to $406.7 million, down 1.5% from $412.8 million in Q4 2024[4] - Net income for Q4 2025 was $0.4 million, a significant decrease of 99.4% compared to $64.1 million in Q4 2024, impacted by a $58.0 million loss on sale of business[4] - Adjusted EBITDA for Q4 2025 decreased to $163.2 million, down 5.0% from $171.8 million in Q4 2024[4] - Full year 2025 revenues increased by 3.5% to $1.45 billion compared to $1.40 billion in 2024[4] - Adjusted net income for the full year 2025 decreased to $272.5 million, down 7.4% from $294.5 million in 2024[4] - Net income for the year ended December 31, 2025, was $47,354 thousand, a decrease of 25% from $63,047 thousand in 2024[21] - Basic net income per common share for the year ended December 31, 2025, was $1.16, down from $1.42 in 2024[19] - The company reported a net income of $370 thousand for the three months ended December 31, 2025, compared to $64.1 million in the same period of 2024, showing a significant decline[32] - For the year ended December 31, 2025, Ziff Davis reported an adjusted net income of $272,546,000, or $6.63 per diluted share, compared to $294,461,000, or $6.62 per diluted share in 2024[40] Cash Flow and Investments - Free cash flow for Q4 2025 increased by 20.4% to $157.8 million compared to $131.1 million in Q4 2024[4] - Net cash provided by operating activities for the full year 2025 increased by 4.3% to $407.1 million compared to $390.3 million in 2024[4] - Cash and cash equivalents at the end of the year were $607,011 thousand, up from $505,880 thousand at the beginning of the year[21] - Free cash flow for the full year 2025 was $287,870, with net cash provided by operating activities totaling $407,068[56] - Free cash flow for the full year 2024 was $283,680, with net cash provided by operating activities totaling $390,315[56] Operational Efficiency - The company reported a 61.1% increase in income from operations for the full year 2025, reaching $183.1 million compared to $113.6 million in 2024[4] - Operating costs and expenses totaled $320,667 thousand for the three months ended December 31, 2025, down from $334,301 thousand in 2024, reflecting a 4% reduction[19] - Income from operations increased to $86,045 thousand for the three months ended December 31, 2025, compared to $78,522 thousand in 2024, representing a 9.4% increase[19] Losses and Impairments - The company reported a loss on the sale of businesses amounting to $57,988 thousand for the year ended December 31, 2025[21] - The loss on sale of businesses for the year ended December 31, 2025, was $57.99 million, compared to a loss of $3.78 million in 2024, indicating increased divestiture activity[32] - The company reported a goodwill impairment of $17,579,000 for the year ended December 31, 2025, compared to $85,273,000 in 2024[40] - The company incurred transaction, integration, and other charges of $17.12 million for the year ended December 31, 2025, down from $40.40 million in 2024, indicating improved integration efficiency[37] Tax and Financial Adjustments - The adjusted effective tax rate is calculated based on the GAAP effective tax rate with adjustments for non-GAAP items, reflecting the company's tax strategy[30] - The adjusted effective tax rate for the three months ended December 31, 2025, was approximately 21.4%[44] - For the year ended December 31, 2025, the adjusted net income was $272,546, with an adjusted effective tax rate of approximately 23.5%[50] - The total non-GAAP adjustments for the three months ended December 31, 2025, included $20,677,000 for amortization and $36,903,000 for share-based compensation[44] - The total non-GAAP adjustments for 2025 amounted to $89,743, which included provisions for credit losses and goodwill impairment[50] Shareholder Actions - The company deployed approximately $174 million in share repurchases during 2025, indicating confidence in its intrinsic value[2]