Core Insights - Meridian Growth Fund's third-quarter 2025 performance was negatively impacted by sector positioning and strict investment discipline, resulting in a return of -1.78%, while the Russell 2500 Growth Index returned 10.73% [1] Company Overview - Ziff Davis, Inc. operates through two segments: Business Cloud Services and Digital Media, with a recent rebound in stock price following a return to organic growth after nearly four years [3] - The company reported a revenue of $363.7 million in Q3 2025, up from $353.6 million in the same period last year, indicating growth potential [4] Investment Analysis - The management team of Ziff Davis has a strong track record in capital allocation and value creation through strategic acquisitions, which has restored investor confidence [3] - Despite Ziff Davis's potential, the fund suggests that certain AI stocks may offer greater upside potential with less downside risk [4] - Ziff Davis's stock closed at $32.82 per share with a market capitalization of $1.346 billion, and it has seen a significant decline of 45.29% over the last 52 weeks [2]

Core Insights - Ziff Davis reported its fifth consecutive quarter of revenue growth, with Q3 2025 revenues increasing by 2.9% to $363.7 million compared to $353.6 million in Q3 2024 [3][7] - The company is exploring value-creating opportunities, including potential sales of entire divisions, while continuing its share repurchase program [2][3] Financial Performance - Income from operations rose significantly by 197.0% to $28.4 million in Q3 2025, compared to a loss of $(29.3) million in Q3 2024 [7] - Net loss decreased to $(3.6) million in Q3 2025 from $(48.6) million in Q3 2024, with net loss per diluted share improving to $(0.09) from $(1.11) [7] - Adjusted EBITDA for Q3 2025 was $124.1 million, slightly down from $124.7 million in Q3 2024 [7] - Free cash flow increased to $108.2 million in Q3 2025 from $80.1 million in Q3 2024 [7] Shareholder Value Initiatives - Ziff Davis engaged outside advisors to evaluate potential sales of certain business divisions, indicating a strategic focus on maximizing shareholder value [2][3] - The company deployed approximately $44.4 million for share repurchases in Q3 2025 [7]