NEW YORK, August 5, 2026, 10:08 EDT — U.S. equities kick off the session.
- Zeta was last quoted at $28.00, rising 15.4%, as of 9:53 EDT.
- Revenue for the second quarter climbed 44%, while free cash flow was up 73%.
- The midpoint for 2026 free cash flow increased by 8.6%, compared to a 1.8% rise in revenue.
Zeta Global Holdings Corp. stock jumped after revenue exceeded company forecasts by approximately 5%. The firm also saw faster cash generation. Executives increased all significant full-year financial targets.
The action did not spark a general advance in marketing software stocks. As of about 9:53 EDT, latest available quotes showed main competitors were mostly flat.
| Stock | Latest price | Day move |
|---|---|---|
| Zeta Global Holdings Corp. NYSE:ZETA | $28.00 | up 15.4% |
| Braze Inc. NASDAQ:BRZE | $26.38 | down 0.1% |
| Klaviyo Inc. NYSE:KVYO | $19.32 | up 1.2% |
The surge narrowed the gap to consensus analyst price targets. The average estimate from 14 analysts was $29.61, indicating a potential gain of 5.8% over the $28.00 level.
Prior to Wednesday’s rise, the same target implied a 22.0% increase. Almost 75% of that buffer was erased during a single morning session. Projections may change as additional analysts revise their estimates.
The quarter provided the earnings foundation for the repricing. Revenue surpassed the earlier guidance midpoint by about $22 million.
| Second-quarter measure | Q2 2026 | Comparison | Change |
|---|---|---|---|
| Revenue | $442.8 million | $308.4 million in Q2 2025 | up 43.5% |
| Revenue versus prior guide | $442.8 million | $420.5 million midpoint | increase of 5.3% |
| Adjusted EBITDA | $91.7 million | $58.8 million | rise of 56.0% |
| Free cash flow | $58.0 million | $33.6 million | climbed 72.7% |
| GAAP net income | $8.2 million | Loss of $12.8 million | turnaround of $21.0 million |
Adjusted EBITDA margin rose to 20.7%, increasing by 170 basis points. GAAP net margin stood at 1.8%. Stock-based compensation amounted to $52.1 million, representing 11.8% of revenue. Adjusted EBITDA and free cash flow are non-GAAP metrics defined by the company.
The updates to guidance were mixed. Changes in cash flow were significantly larger compared to revenue.
| Full-year 2026 measure | Previous midpoint | New midpoint | Revision |
|---|---|---|---|
| Revenue | $1.785 billion | $1.818 billion | Increase of $33 million; up 1.8% |
| Adjusted EBITDA | $397.3 million | $405.2 million | Increase of $7.9 million; up 2.0% |
| Free cash flow | $235.0 million | $255.3 million | Up $20.3 million; up 8.6% |
| GAAP EPS | $0.03 | $0.10 | Increase of $0.07; new midpoint more than triple |
The increase in free-cash-flow percentage was 4.7 times greater than the rise in revenue. This puts greater emphasis for investors on cash conversion. The company’s updated guidance points to a free-cash-flow margin between 14.0% and 14.1%.
Customer economics saw further gains. The number of super-scaled customers climbed 17% to 197, while average revenue per customer at this level also rose 17% to $1.8 million. Zeta classifies these accounts as generating at least $1 million within a 12-month period.
Chief Financial Officer Chris Greiner said the performance was “driven by AI adoption and usage across the platform.” The customer numbers offer an initial indication of that statement. Zeta Global
On Wednesday, three companies increased their price targets, though their estimates continued to diverge significantly. The implied movements below are based on the $28.00 share price.
| Firm and analyst | Recommendation | Prior target | New target | Implied move |
|---|---|---|---|---|
| RBC Capital Markets, division of Royal Bank of Canada NYSE:RY — Matthew Swanson | Outperform | $29 | $31 | +10.7% |
| B. Riley Securities, part of B. Riley Financial NASDAQ:RILY — Zach Cummins | Buy | $30 | $32 | +14.3% |
| Morgan Stanley NYSE:MS — Elizabeth Porter | Equal-weight | $23 | $25 | -10.7% |
| 14-analyst consensus | Buy | — | $29.61 | +5.8% |
RBC and B. Riley kept their ratings positive. Morgan Stanley maintained a new price target that stayed under the current market level. Following Wednesday’s rally, this divergence provides little consensus support.
Zeta projects third-quarter revenue in the range of $469 million to $472 million, reflecting an overall increase of 39% to 40%. Excluding acquisitions and political revenue, the company forecasts growth of 23% to 24%. Adjusted EBITDA margin is anticipated to be between 24.4% and 24.7%.
Risks: Shares are presently trading close to the average analyst price target. Growth, when excluding acquisitions and political revenue, lags behind the reported headline rate. Stock-based compensation stays elevated, and integration-related expenses could put pressure on cash conversion.
Wednesday’s response indicates that simply surpassing revenue expectations may no longer suffice. Investors are placing greater emphasis on margins and cash flow.
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