Here's the hot stuff from Zeta Global Holdings
$ZETA (-2,71%) (NYSE: ZETA) Q2 2026 Earnings Release, delivered fresh on August 4, 2026, after the U.S. market closed:
🚀 Top-Line Performance & Strong AI Boost
The AI marketing cloud company blows its own forecasts out of the water, delivering its 20th consecutive “beat & raise” quarter and celebrates extremely high demand for its AthenaAI infrastructure:
Total revenue: Soared by +44% YoY to $443 million and massively exceeded its own guidance midpoint ($420.5 million) by +$23 million.
Super-Scaled Customers: The number of large customers rose by +17% YoY to 197. At the same time, average revenue per user (ARPU) among these giants grew by +17% YoY to $1.8 million —which shows that Zeta is drawing its biggest fish ever deeper into the ecosystem.
Strategic AI Tailwind: New partnerships with OpenAI, Snowflake, and Palantir are rapidly fueling the adoption of Zeta’s own Data Cloud and intelligence layer.
🔮 Profitability Leap & The “Rule of 64”
In addition to robust growth, Zeta Global is now finally taking profitability to the next level:
Positive GAAP Net Income: For the first time in a second quarter, Zeta has turned a profit, reporting an unadjusted net income of $8 million or $0.03 in GAAP EPS .
Adjusted EBITDA: Climbed to a whopping $92 million (forecast was ~$86.5 million). The adjusted EBITDA margin expanded by 170 basis points to 20.7%.
Rule of 64: With revenue growth of 44% and an adjusted EBITDA margin of just over 20%, the company has surpassed the “Rule of 64” (far exceeding the legendary “Rule of 40” for absolute high performers in the SaaS industry).
Free Cash Flow: Grew strongly, rising by +73% YoY to $58 million.
🤖 Major guidance upgrade for Q3 and full-year 2026
CEO David A. Steinberg is raising the bar on the annual forecast due to booming AI adoption and a full pipeline:
Q3 2026 Outlook: Revenue is expected to reach $469 million to $472 million (+39% to 40% YoY).
FY 2026 Revenue Forecast: Significantly to 1.811 to 1.824 billion USD (implying a massive annual growth rate of +39%).
⚡ 💡 Jack’s takeaway
An absolutely monster quarter in a class of its own! Anyone who feared a slowdown in growth following the flood of political advertising and the Marigold acquisition was proven wrong by Zeta. With a whopping +44% top-line growth, a solid $8 million in unadjusted GAAP net income, and the achievement of the “Rule of 64” (organically, even the “Rule of 49”), management has reaffirmed that AthenaAI is flying off the shelves. The 20th consecutive “beat & raise” quarter provides massive fuel for the bulls!
