Ziff Davis’ cash position surged to approximately $1.61 billion during the second quarter of 2026 following the $1.22 billion sale of its Connectivity business, giving the digital media company significant capital to deploy toward acquisitions, share repurchases and other strategic opportunities.
The Connectivity transaction generated total proceeds of approximately $1.216 billion, consisting of $1.179 billion received in cash at closing and another $37 million held in escrow. Cash proceeds net of cash divested totaled approximately $1.134 billion.
As a result, cash and cash equivalents increased to $1.606 billion at June 30 from $573.8 million at the end of 2025, an increase of more than $1 billion in six months.
Ziff Davis has already begun deploying some of that capital. The company spent approximately $121.5 million on share repurchases during Q2 and approximately $9.2 million on current and prior-year acquisitions.
Cash generation also accelerated. Operating cash flow from continuing and discontinued operations increased 55.9% to $89 million, while free cash flow more than doubled to $54 million from $26.9 million.
The remaining business generated Q2 revenue of $286.7 million, down 2.7% year-over-year. Adjusted EBITDA declined 3.7% to $76.8 million, although adjusted diluted EPS increased 13.2% to $1.03.
GAAP results included a $54.8 million goodwill impairment, contributing to an operating loss of $44.7 million and a net loss from continuing operations of $52.2 million.
Following the Connectivity divestiture, Ziff Davis’ continuing portfolio is concentrated across Technology & Shopping, Gaming & Entertainment, Health & Wellness, and Cybersecurity & Martech.
KEY QUOTES:
“With the successful sale of our Connectivity business, our significant share repurchases, and our robust free cash flow, Ziff Davis is in a very strong financial position.”
“We are focused on deploying capital strategically to maximize long-term shareholder returns.”
Vivek Shah, CEO of Ziff Davis
