From The Motley Fool · Motley Fool Transcribing · · 2m
Zeta Global Q3 2026 Earnings Beat
Zeta Global reports 46% revenue growth and 55% EBITDA expansion as AI adoption accelerates.
In brief
Zeta Global reports 46% revenue growth and 55% EBITDA expansion as AI adoption accelerates. Zeta Global achieved $493 million revenue with 46% year-over-year growth and $121 million adjusted EBITDA, driven by Athena AI adoption. Originally reported by The Motley Fool.
Q3 2026 Results
Zeta Global reported 21st consecutive quarter exceeding financial expectations with $493 million revenue.
Revenue Growth
Revenue grew 46% year-over-year driven by increased Athena adoption and usage.
Adjusted EBITDA
Adjusted EBITDA reached $121 million, a 55% year-over-year increase while achieving the Rule of 71.
GAAP Net Income
GAAP net income was $38 million, representing $0.14 per diluted share compared to a loss of $0.02 in the prior year.
Free Cash Flow
Free cash flow increased 73% year-over-year to $82 million, reflecting efficient translation of growth into cash.
Super-Scaled Customers
212 accounts generated at least $1 million in annual revenue, representing 18% year-over-year growth.
Super-Scaled ARPU
Super-scaled quarterly ARPU grew to $2 million, up 22% year-over-year as customers migrate from AI experimentation to deployment.
Athena Usage
50% of super-scaled customers use Athena, up from just over 40% in the second quarter.
Athena Revenue
Athena contributes 70% of total revenue, with top adopters growing revenue over 70%.
Net Revenue Retention
Net revenue retention for Athena adopters is 110% to 115% range, 500 basis points higher than company average.
Sales Productivity
Sales pipeline creation per seller increased 32% year-over-year while total quota carrier headcount grew 11% to 203.
RFP Activity
RFP activity grew over 100% year-over-year, indicating accelerated replacement cycle for legacy marketing technology.
Code Automation
90% of total code output is automated, reducing time from idea to shipment by 27% and increasing time to first review 300%.
2026 Revenue Guidance
2026 revenue guidance raised to $1.853 billion to $1.857 billion, reflecting 42% year-over-year growth.
2026 Adjusted EBITDA Guidance
2026 adjusted EBITDA guidance increased to $414.1 million to $415.2 million, a $9.4 million increase from prior expectations.
2026 Free Cash Flow Guidance
2026 free cash flow guidance of $270.6 million to $271.6 million represents 64% to 65% conversion from adjusted EBITDA.
Political Candidate Revenue
$13 million expected in fourth quarter, an increase of $5 million compared to previous guidance.
The headline
Zeta Global achieved $493 million revenue with 46% year-over-year growth and $121 million adjusted EBITDA, driven by Athena AI adoption.
