Financial Data and Key Metrics Changes - For the full year 2025, Ziff Davis grew revenues by 3.5% and adjusted EBITDA increased slightly, generating almost $290 million in free cash flow [4][16] - In Q4 2025, revenues declined by 1.5% to $406.7 million, and adjusted EBITDA decreased by 5% to $163.2 million, with an adjusted EBITDA margin of 40.1% [15][16] - Fiscal year 2025 total revenue was $1,451.3 million, with adjusted EBITDA of $495.1 million and an adjusted diluted EPS of $6.63, reflecting a slight increase from the previous year [16][25] Business Line Data and Key Metrics Changes - The Tech and Shopping segment experienced an 18% decline in revenues, significantly impacting overall performance, while the other four segments grew over 6% [4][5] - The Health and Wellness segment achieved record revenue and adjusted EBITDA, growing year-over-year revenues by 8.6% [7][8] - Connectivity revenues increased by 11%, driven by strong growth in services like Speedtest and Downdetector [8][9] Market Data and Key Metrics Changes - The gaming and entertainment segment saw a revenue growth of 1.5% in Q4, consistent with its full-year growth rate [6] - The advertising and performance marketing revenue declined by 4.4% in Q4 2025, while subscription and licensing revenue increased by 4% [18][19] - The overall revenue decline associated with the exited games publishing business was approximately $14 million, impacting consolidated revenue growth by about 1% [20] Company Strategy and Development Direction - The company is focused on delivering profitable growth and strong free cash flow generation in 2026, with expectations of mid-single-digit revenue decline in the Tech and Shopping segment [11][23] - Ziff Davis plans to continue its active M&A strategy, seeking high-quality brands in high-value categories, leveraging its strong cash flow generation [22][47] - The company is also exploring opportunities in AI content licensing, emphasizing the need for proper compensation frameworks [12][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in the Tech and Shopping segment due to declining web search traffic affecting affiliate commerce revenues [5][32] - The outlook for 2026 includes expectations of low to mid-single-digit revenue growth in Gaming and Entertainment, Health and Wellness, and Cybersecurity and MarTech segments [11][12] - Management expressed confidence in overcoming current challenges in Tech and Shopping, anticipating improvements in the second half of 2026 [11][40] Other Important Information - The company repurchased approximately 4.8 million shares for nearly $174 million in fiscal year 2025, with an additional 740,000 shares repurchased since January 1, 2026 [21][22] - Ziff Davis closed seven acquisitions in 2025, investing a total of $68.7 million to support its M&A program [22][26] - The company has significant leverage capacity, with gross leverage at 1.8 times trailing 12 months adjusted EBITDA [20] Q&A Session Summary Question: AI search tailwinds in Tech and Shopping - Management noted that lost search traffic can be offset by other engagement sources, but high-intent consumer traffic is harder to replace, particularly in affiliate commerce [31][32] Question: Growth rate expectations for Tech and Shopping - Management believes Tech and Shopping should achieve mid-single-digit growth in the long term, despite current challenges [45][46] Question: M&A opportunities in the current market - Management sees unique opportunities in the digital media space due to compelling valuations and intends to focus on high-quality brands [47][48] Question: Trends in the advertising market - Management indicated that the advertising market is segmented, with Gaming & Entertainment and Health & Wellness showing stable growth, while Tech and Shopping faces challenges [50][51] Question: Impact of AI on Health & Wellness - Management expressed confidence that search dynamics are not a concern for Health & Wellness, as much of the inventory is not search-based [56][57]

Core Insights - The Company is the first media entity in Japan to integrate 15 of its media brands onto the TollBit platform, enabling monetization of AI-driven traffic across its media properties [1][3] - TollBit acts as a digital "tollbooth" for AI agents and bots, allowing content owners to set rules, charge for access, and monitor AI activity, thus providing a scalable mechanism for content monetization beyond traditional models [1][2] - The Company has started generating initial revenue from AI buyers through the TollBit platform, validating AI content licensing as a viable commercial model for premium digital media [1][4] Company Developments - The integration with TollBit allows the Company to monitor, manage, and monetize AI access to its digital content, transforming unauthorized scraping into legitimate, revenue-generating licensed use [3][4] - The Company has recorded transactions from AI buyers licensing content, indicating tangible demand for high-quality content in the AI ecosystem [3][4] - The Company aims to explore additional partnerships and licensing opportunities as the AI content monetization ecosystem matures [7] Industry Context - The integration with TollBit represents a significant step for the media industry, showcasing that AI content licensing is generating actual transactions and revenue [4][6] - As AI reshapes the media landscape, content creators are encouraged to define how their work is used and compensated, highlighting the value of quality content in the AI ecosystem [5][6] - The early traction with TollBit helps the industry understand responsible AI content partnerships and ensures a sustainable Internet economy [6]