emeis: Half-Year Review (H1 2025) of the Liquidity Agreement Entered Into With Natixis ODDO BHF
Under the liquidity agreement entrusted by emeis S.A. (the ' Company ') (Paris:EMEIS) to Natixis ODDO BHF, the following resources were recorded in the dedicated liquidity account as of 30 June 2025:
- 78,274 shares
- €896,286.87 in cash
During the 2025 first half-year, it was carried out a total of :
It should be noted that as of the date of the signature of the liquidity agreement, on 1 December 2022, the following resources were allocated:
- 68,000 shares
- €415,560.44 in cash
It should also be noted that at the last half-yearly review as of December 31, 2024 1, the following resources were recorded in the dedicated liquidity account:
- 133,610 shares
- €264,189.80 in cash
The aggregated data for each trading day of the 2025 first half-year are as set out in appendix of this press release.
About emeis
With nearly 83,500 experts and professionals in the fields of health, care and support for the frail, emeis is present in some twenty countries and covers five business lines: psychiatric clinics, medical care and rehabilitation clinics, nursing homes, homecare services and residences.
Every year, emeis welcomes nearly 280,000 residents, patients, and other beneficiaries. emeis is committed to meeting one of the major challenges facing our society: the growing number of people made vulnerable by accidents, old age and mental illness.
emeis, 50.3% owned by Caisse des Dépôts, CNP Assurances, MAIF, and MACSF Épargne Retraite, is listed on Euronext Paris (ISIN: FR001400NLM4) and is a member of the SBF 120 and CAC Mid 60 indices.
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Yahoo
35 minutes ago
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Super Group Reports Financial Results for Second Quarter of 2025
Revenue of $579.4 million for the second quarter of 2025 representing the highest revenue recorded in a quarter Profit before tax of $38.8 million for the second quarter of 2025 Non-GAAP Adjusted EBITDA ex-US of $162.0 million and a loss of $5.4 million from the U.S. amounted to Adjusted EBITDA of $156.7 million, representing the highest Adjusted EBITDA recorded in a quarter Raising full-year Adjusted EBITDA guidance - Group: $470-$480 million; Ex-U.S.: $500-$510 million Unrestricted cash of $393.0 million as of June 30, 2025 NEW YORK, August 06, 2025--(BUSINESS WIRE)--Super Group (SGHC) Limited (NYSE: SGHC) ("SGHC", the "Company" or "Super Group"), the parent company of Betway, a leading online sports betting and gaming business, and Spin, the multi-brand online casino, today announced its second quarter 2025 unaudited consolidated financial results. Neal Menashe, Chief Executive Officer of Super Group, commented: "We had a Super first half of 2025, driven by a record-breaking second quarter. The quarter's success was fueled by strong execution across our key markets, a full calendar of global sporting events, increased deposits, high customer retention, and margin expansion. While our decision to exit the U.S. was difficult, we believe that this step demonstrates our commitment to capital efficiency and long-term profitability. With continued focus on scaling our technology globally, Super Group should be even better positioned for sustained, profitable growth." Alinda van Wyk, Chief Financial Officer of Super Group, stated: "Q2 marked the strongest quarterly financial performance in Super Group's history, with revenue up 30% year-over-year and Adjusted EBITDA up 78% year-over-year to $157 million, delivering a healthy 27% margin. These results underscore our scalable, cost-efficient operating model and controlled marketing spend. We ended the quarter with $393 million in unrestricted cash and zero debt, and returned $20 million to shareholders, bringing our 12-month capital returns to $166 million. Driven by our continued focus on core markets, we are raising our full-year Adjusted EBITDA guidance and remain confident in delivering long-term value to our shareholders." Financial Highlights: Revenue increased by 30% to $579.4 million for the second quarter of 2025 from $446.5 million in the same period of the prior year, driven by growth from the Africa, Europe and North America markets partially offset by declines from the LATAM, Middle East and Asia-Pacific markets. Profit before tax was $38.8 million for the second quarter of 2025 and includes a non-cash charge of $63.9 million related to the impairment of Digital Gaming Corporation Limited ("DGC")' iGaming related assets and $22.6 million relating to onerous contracts. By comparison, profit before tax for the second quarter of 2024 was $22.1 million and included a non-cash charge of $39.6 million related to the impairment of DGC's sportsbook assets. Adjusted EBITDA, a non-GAAP financial measure, increased by 78% to $156.7 million for the second quarter of 2025 compared to $88.2 million in the second quarter of 2024. Monthly Active Customers increased by 21% to 5.5 million for the second quarter of 2025 compared to 4.5 million in the second quarter of 2024. Balance Sheet: Total Assets: $1.1 billion; Total Liabilities: $454.4 million; Total Equity: $662.3 million. Cash and cash equivalents was $393.0 million as of June 30, 2025 compared to $388.0 million at December 31, 2024. Dividends of $20.2 million was paid during the quarter, bringing the 12-month capital returns to $166 million. Guidance 2025 Super Group is raising its full-year Group Adjusted EBITDA guidance to $470-$480 million. Ex-U.S. Adjusted EBITDA is now expected to be between $500-$510 million, up from greater than $480 million compared to prior guidance. U.S. Adjusted EBITDA is expected to be a loss of $30 million, excluding one-off cost of U.S. exit. Interim Financial Statements: The Group intends to publish a condensed set of interim accounts for the six months ended June 30, 2025 and comparative period by the end of August 2025, which will include a condensed Statement of Profit or Loss and Other Comprehensive Income, condensed statement of Financial Position, condensed Statement of Changes in Equity, condensed Statement of Cash Flows and relevant notes. Revenue by Geographical Region for the Three Months Ended June 30, 2025 in $ millions: Betway Spin Total Africa and Middle East 225 4 229 Asia-Pacific 9 28 37 Europe 81 28 109 North America 37 162 199 South/Latin America 3 2 5 Total revenue 355 224 579 % % % Africa and Middle East 63 % 2 % 40 % Asia-Pacific 3 % 13 % 6 % Europe 23 % 12 % 19 % North America 10 % 72 % 34 % South/Latin America 1 % 1 % 1 % Revenue by Geographical Region for the Three Months Ended June 30, 2024 in $ millions*: Betway Spin Total Africa and Middle East 164 1 165 Asia-Pacific 7 33 40 Europe 49 23 72 North America 41 120 161 South/Latin America 4 5 9 Total revenue 265 182 447 % % % Africa and Middle East 62 % 1 % 37 % Asia-Pacific 3 % 18 % 9 % Europe 18 % 13 % 16 % North America 15 % 65 % 36 % South/Latin America 2 % 3 % 2 % * The Group has adopted a change in presentation currency from Euros to USD at January 1, 2025. Accordingly, the comparative table has been re-presented retrospectively as outlined under the change in presentation currency note. Revenue by Geographical Region for the Six Months Ended June 30, 2025 in $ millions: Betway Spin Total Africa and Middle East 426 6 432 Asia-Pacific 14 56 70 Europe 151 53 204 North America 76 304 380 South/Latin America 6 4 10 Total revenue 673 423 1,096 % % % Africa and Middle East 63 % 1 % 39 % Asia-Pacific 3 % 13 % 6 % Europe 22 % 13 % 19 % North America 11 % 72 % 35 % South/Latin America 1 % 1 % 1 % Revenue by Geographical Region for the Six Months Ended June 30, 2024 in $ millions: Betway Spin Total Africa and Middle East 316 1 317 Asia-Pacific 16 62 78 Europe 90 43 133 North America 76 238 314 South/Latin America 8 8 16 Total revenue 506 352 858 % % % Africa and Middle East 62 % 0 % 37 % Asia-Pacific 3 % 18 % 9 % Europe 18 % 12 % 15 % North America 15 % 68 % 37 % South/Latin America 2 % 2 % 2 % Revenue by product line for the Three Months Ended June 30, 2025 in $ millions: Betway Spin Total Online casino1 230 224 454 Sports betting1 116 — 116 Brand licensing2 8 — 8 Other3 1 — 1 Total revenue 355 224 579 Revenue by product line for the Three Months Ended June 30, 2024 in $ millions: Betway Spin Total Online casino1 166 182 348 Sports betting1 91 — 91 Brand licensing2 6 — 6 Other3 2 — 2 Total revenue 265 182 447 Revenue by product line for the Six Months Ended June 30, 2025 in $ millions: Betway Spin Total Online casino1 436 423 859 Sports betting1 222 — 222 Brand licensing2 12 — 12 Other3 3 — 3 Total revenue 673 423 1,096 Revenue by product line for the Six Months Ended June 30, 2024 in $ millions *: Betway Spin Total Online casino1 318 351 669 Sports betting1 170 — 170 Brand licensing2 12 — 12 Other3 6 1 7 Total revenue 506 352 858 1 Sports betting and online casino revenues are not within the scope of IFRS 15 'Revenue from Contracts with Customers' and are treated as derivatives under IFRS 9 'Financial Instruments'. 2 Brand licensing revenues are within the scope of IFRS 15 'Revenue from Contracts with Customers'. 3 Other relates to profit share, royalties and outsource fees from external customers. * The Group has adopted a change in presentation currency from Euros to USD at January 1, 2025. Accordingly, the comparative table has been re-presented retrospectively as outlined under the change in presentation currency note. Non-GAAP Financial Information This press release includes non-GAAP financial information not presented in accordance with the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. EBITDA, Adjusted EBITDA, Adjusted EBITDA ex-US, Adjusted EBITDA US are non-GAAP company-specific performance measures that Super Group ("the Group") uses to supplement the Company's results presented in accordance with IFRS. EBITDA is defined as profit before depreciation, amortization, finance income, finance expense and income tax expense. Adjusted EBITDA is EBITDA adjusted for RSU expense, change in fair value of options, unrealized foreign exchange, gain on disposal of business and other adjustments. Adjusted EBITDA ex-US is Adjusted EBITDA relating to the rest of the Group, excluding Digital Gaming Corporation ("DGC"). Adjusted EBITDA US is Adjusted EBITDA relating to DGC. Super Group believes that these non-GAAP measures are useful in evaluating the Company's operating performance as they provide additional perspective on the financial performance of our core business, are similar to measures reported by the Company's public competitors and are regularly used by securities analysts, institutional investors and other interested parties in analyzing operating performance and prospects. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with IFRS. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by IFRS to be recorded in Super Group's financial statements. In order to compensate for these limitations, management presents non-GAAP financial measures together with IFRS results. Non-GAAP measures should be considered in addition to results and guidance prepared in accordance with IFRS, but should not be considered a substitute for, or superior to, IFRS results. Reconciliation tables of the most comparable IFRS financial measure to the non-GAAP financial measures used in this press release, and supplemental materials are included below. Super Group urges investors to review the reconciliation and not to rely on any single financial measure to evaluate its business. In addition, other companies, including companies in our industry, may calculate similarly named non-GAAP measures differently than we do, which limits their usefulness in comparing our financial results with theirs. Reconciliation of Profit for the period to EBITDA and Adjusted EBITDA for the Three Months Ended June 30: Three Months Ended June 30 Six Months Ended June 30 2025 $m 2024 * $m 2025 $m 2024 * $m Profit before taxation 39 22 127 75 Finance income (3 ) (3 ) (5 ) (6 ) Finance expense 2 1 4 3 Depreciation and amortization expense 19 23 37 45 EBITDA 57 43 163 117 Change in fair value of options — — — 14 RSU expense 3 3 9 7 Unrealized foreign exchange 4 2 2 5 Impairment of assets 66 40 66 40 US iGaming closure 23 — 23 — Market closure — — — — Gain on disposal of business — — — (44 ) Other adjustments1 4 — 5 — Adjusted EBITDA 157 88 268 139 Adjusted EBITDA, ex-US 162 106 283 181 Adjusted EBITDA, US (5 ) (18 ) (15 ) (42 ) 1 Other adjustments in 2025 mainly relates to Sportsbook acquisition related costs. * The Group has adopted a change in presentation currency from Euros to USD at January 1, 2025. Accordingly, the comparative table has been re-presented retrospectively as outlined under the change in presentation currency note. Webcast Details The Company will host a webcast at 7:45 a.m. ET tomorrow to discuss the second quarter 2025 financial results. Participants may access the live webcast and supplemental earnings presentation on the events & presentations page of the Super Group Investor Relations website at: About Super Group (SGHC) Limited Super Group (SGHC) Limited is the holding company for leading global online sports betting and gaming businesses: Betway, a premier online sports betting brand, and Spin, a multi-brand online casino offering. The Group is listed on the New York Stock Exchange (NYSE ticker: SGHC) and is licensed in multiple jurisdictions, with leading positions in key markets throughout Europe, the Americas and Africa. The Group's sports betting and online gaming offerings are underpinned by its scale and leading technology, enabling fast and effective entry into new markets. Its proprietary marketing and data analytics engine empowers it to responsibly provide a unique and personalized customer experience. Super Group has been ranked number 6 in the EGR Power 50 for the last three years. For more information, visit Forward-Looking Statements Certain statements made in this press release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, Super Group's intention to pay a dividend, including the expected timing of such dividend, expectations and projections of market opportunity, growth and profitability. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "pipeline," "possible," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the ability to implement business plans, forecasts and other expectations, and identify and realize additional opportunities; (ii) changes in the competitive and regulated industries in which Super Group operates; (iii) variations in operating performance across competitors; (iv) changes in laws and regulations affecting Super Group's business; (v) Super Group's inability to meet or exceed its financial projections; (vi) changes in general economic conditions; (vii) changes in domestic and foreign business, market, financial, political and legal conditions, including abrupt or unexpected changes in interest rates or increases in inflation or inflationary expectations and reductions in discretionary consumer spending; (viii) the ability of Super Group's customers to deposit funds in order to participate in Super Group's gaming products; (ix) Super Group's ability, and the ability of Super Group's key executives, certain employees, significant shareholders or other applicable individuals, to comply with regulatory requirements or successfully obtain a license or permit required in a particular regulated jurisdiction, or maintain, renew or expand existing licenses; (x) the effectiveness of technological solutions Super Group has in place to block customers in certain jurisdictions, including jurisdictions where Super Group's business is illegal, or which are sanctioned by countries in which Super Group operates from accessing its offerings; (xi) Super Group's ability to restrict and manage betting limits at the individual customer level based on individual customer profiles and risk level to the enterprise; (xii) Super Group's ability to protect or enforce its intellectual property rights, the confidentiality of its trade secrets and confidential information, or the costs involved in protecting or enforcing Super Group's intellectual property rights and confidential information, and Super Group's ability to obtain new licenses and maintain, renew or expand existing licenses to use the intellectual property of third parties; (xiii) compliance with applicable data protection and privacy laws in Super Group's collection, storage and use, including sharing and international transfers, of personal data; (xiv) failures, errors, defects or disruptions in Super Group's information technology and other systems and platforms; (xv) Super Group's ability to develop new products, services, and solutions, bring them to market in a timely manner, and make enhancements to its platform; (xvi) Super Group's ability to maintain and grow its market share, including its ability to enter new markets and acquire and retain paying customers; (xvii) the success, including win or hold rates, of existing and future online betting and gaming products; (xiii) competition within the broader entertainment industry; (xix) Super Group's reliance on strategic relationships with land based casinos, sports teams, event planners, local licensing partners and advertisers; (xx) events or media coverage relating to, or the popularity of, online betting and gaming industry; (xxi) trading, liability management and pricing risk related to Super Group's participation in the sports betting and gaming industry; (xxii) accessibility to the services of banks, credit card issuers and payment processing services providers due to the nature of Super Group's business; (xxiii) the regulatory approvals related to proposed acquisitions and the integration of the acquired businesses; and (xxiv) other risks and uncertainties indicated from time to time for Super Group including those under the heading "Risk Factors" in our Annual Report on Form 20-F filed with the SEC on April 3, 2025, and in Super Group's other filings with the SEC. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in other documents filed or that may be filed by Super Group from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Super Group assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Super Group does not give any assurance, representation or warranty that it will achieve its expectations in any specified time frame or at all. 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Business Wire
36 minutes ago
- Business Wire
STEP Energy Services Ltd. Reports Second Quarter 2025 Results
CALGARY, Alberta--(BUSINESS WIRE)--STEP Energy Services Ltd. (the 'Company' or 'STEP') (TSX: STEP) is pleased to announce its financial and operating results for the three and six months ended June 30, 2025. The following Press Release should be read in conjunction with the management's discussion and analysis ('MD&A') and the unaudited condensed consolidated financial statements and notes thereto as at June 30, 2025 (the 'Financial Statements'). Readers should also refer to the 'Forward-looking information & statements' legal advisory and the section regarding 'Non-IFRS Measures and Ratios' at the end of this Press Release. All financial amounts and measures are expressed in Canadian dollars unless otherwise indicated. Additional information about STEP is available on the SEDAR+ website at including the Company's Annual Information Form for the year ended December 31, 2024 dated March 11, 2025 (the 'AIF'). CONSOLIDATED HIGHLIGHTS FINANCIAL REVIEW ($000s except percentages and per share amounts) Three months ended Six months ended June 30, June 30, June 30, June 30, 2025 2024 2025 2024 Consolidated revenue $ 228,003 $ 231,375 $ 535,744 $ 551,521 Net income $ 5,853 $ 10,469 $ 30,004 $ 51,826 Per share-basic $ 0.08 $ 0.15 $ 0.42 $ 0.72 Per share-diluted $ 0.08 $ 0.14 $ 0.41 $ 0.70 Adjusted EBITDA (1) $ 34,769 $ 41,692 $ 93,729 $ 112,827 Adjusted EBITDA % (1) 15% 18% 17% 20% Free Cash Flow (1) $ 17,327 $ 20,460 $ 49,499 $ 73,943 Per share-basic (1) $ 0.24 $ 0.29 $ 0.69 $ 1.03 Per share-diluted (1) $ 0.24 $ 0.28 $ 0.67 $ 1.00 (1) Adjusted EBITDA, Free Cash Flow, Free Cash Flow per share-basic and Free Cash Flow per share-diluted are non-IFRS financial measures, Adjusted EBITDA % is a non-IFRS financial ratio. These metrics are not defined and have no standardized meaning under IFRS. See Non-IFRS Measures and Ratios. Expand ($000s except shares) June 30, December 31 2025 2024 Cash and cash equivalents $ 3,230 $ 4,362 Working capital (including cash and cash equivalents) (2) $ 76,992 $ 35,355 Total assets $ 613,516 $ 580,635 Total long-term financial liabilities (2) $ 69,713 $ 83,394 Net Debt (2) $ 43,912 $ 52,668 Shares outstanding 72,873,113 72,037,391 (2) Working Capital, Total long-term financial liabilities and Net Debt are non-IFRS financial measures. They are not defined and have no standardized meaning under IFRS. See Non-IFRS Measures and Ratios. Expand OPERATIONAL REVIEW ($000s except days, proppant, pumped, horsepower and units) Three months ended Six months ended June 30, June 30, June 30, June 30, 2025 2024 2025 2024 Fracturing services Fracturing operating days (1)(2) 312 377 799 944 Proppant pumped (tonnes) (3) 533,000 638,000 1,319,000 1,470,000 Fracturing crews 6 8 6 8 Dual fuel horsepower ('HP'), end of period 369,550 349,800 369,550 349,800 Total HP, end of period 478,400 490,000 478,400 490,000 Coiled tubing services Coiled tubing operating days (1) 1,227 1,368 2,611 2,720 Active coiled tubing units, end of period 21 23 21 23 Total coiled tubing units, end of period 35 35 35 35 (1) An operating day is defined as any coiled tubing or fracturing work that is performed in a 24-hour period, exclusive of support equipment. (2) Includes operational results from terminated operations of the U.S. fracturing cash generating unit ('CGU') of nil and 54 days for the three and six months ended June 30, 2025 (72 and 189 days for three and six months ended June 30, 2024). (3) Includes proppant pumped (tonnes) from terminated operations of the U.S. fracturing cash generating unit ('CGU') of nil and 155,330 for the three and six months ended June 30, 2025 (137,000 and 409,000 for three and six months ended June 30, 2024). Expand SECOND QUARTER 2025 HIGHLIGHTS Consolidated revenue for the three months ended June 30, 2025 of $228.0 million, was in line with revenue of $231.4 million for the three months ended June 30, 2024 and down 26% from $307.7 million for the three months ended March 31, 2025, which is typically the busiest quarter for the Company and the industry. Net income for the three months ended June 30, 2025 was $5.9 million ($0.08 per diluted share) compared to $10.5 million ($0.14 per diluted share) in the same period of 2024 and $24.2 million ($0.33 per diluted share) for the three months ended March 31, 2025. Included in net income for three months ended June 30, 2025 was share based compensation expense of $1.7 million, compared to $1.3 million during the three months ended March 31, 2025 and $2.1 million during the three months ended June 30, 2024. For the three months ended June 30, 2025, Adjusted EBITDA was $34.8 million (15% of revenue) compared to $41.7 million (18% of revenue) in Q2 2024 and $59.0 million (19% of revenue) in Q1 2025. Free Cash Flow for the three months ended June 30, 2025 was $17.3 million compared to $20.5 million in Q2 2024 and $32.2 million in Q1 2025. During the second quarter of 2025, STEP repurchased and cancelled 166,100 shares at an average price of $3.90 per share under its Normal Course Issuer Bid ('NCIB'). STEP continues to strengthen its balance sheet while investing into the long-term sustainability of the business: The Company had Net Debt of $43.9 million at June 30, 2025, compared to $52.7 million at December 31, 2024 and $84.7 million at March 31, 2025. The Company invested $13.5 million for the three months ended June 30, 2025 into sustaining and optimization capital budget expenditures, ensuring that the fleet maintains a high level of operational readiness while also selectively investing into technology to further STEP's strategy of displacing diesel with natural gas. Working Capital as at June 30, 2025 of $77.0 million was $41.6 million higher than the $35.4 million at December 31, 2024 and $26.5 million lower than the $103.5 million as at March 31, 2025. Working capital fluctuations are typical and are influenced by activity levels and timing of client receipts. SECOND QUARTER 2025 OVERVIEW Commodity prices were volatile throughout the second quarter of 2025, with both oil and natural gas prices down approximately 10% quarter over quarter. The decline in gas prices is partially attributable to the shoulder season, when the reduced demand from winter heating has yet to be replaced by power demand for summer cooling. In addition to the ongoing turmoil created by the U.S. tariffs, oil prices were also impacted by the supply announcements from the Organization of the Petroleum Exporting Countries ('OPEC') and allied non-OPEC nations ('OPEC+') and the eruption of open hostilities between Israel and Iran. Oil prices traded in a wide range from $57 to $75 (USD) per barrel, with the benchmark West Texas Intermediate ('WTI') crude price averaging $63.72 (USD) per barrel in Q2 2025, down from $71.42 (USD) per barrel in Q1 2025. Henry Hub averaged $3.52 (USD) per million cubic feet ('Mcf') in Q2 2025, down from $3.87 (USD) per Mcf in Q1 2025, while AECO-C Daily averaged $1.75 (CAD) per Mcf in Q2 2025, down from $2.12 (CAD) per Mcf in Q1 2025. Natural gas prices typically benefit from the winter heating season, with colder weather driving higher demand. Oilfield service levels are primarily reflected in drilling rig counts publicly reported by Baker Hughes and estimates made by Primary Vision for fracturing crews in the U.S. Land based drilling rigs in the U.S. averaged 556 rigs in the second quarter, down from 572 rigs in the first quarter. Canadian rig counts were down due to spring break up, averaging 127 during the second quarter, compared to 214 in the first quarter, which is typically the busiest drilling season in Canada. U.S. fracturing fleets declined in the second quarter to an average of 192, down from 202 in the first quarter of 2025. STEP's consolidated revenue in the second quarter was $228.0 million, down from $307.7 million in the first quarter of 2025 and in line with the $231.4 million recorded in the same period from the prior year despite the termination of the U.S. fracturing business. Despite the spring break up conditions, the fracturing service line had good utilization through the quarter, with 312 operating days across six crews, pumping 533 thousand tons of sand. Coiled tubing services were also well utilized, operating 1,227 days across 21 units. Adjusted EBITDA of $34.8 million (15% Adjusted EBITDA %) was down from the $59.0 million (19% Adjusted EBITDA %) in the first quarter of 2025 and down from $41.7 million (18% Adjusted EBITDA %) in the same period last year. The Company's margins continue to be impacted by the cumulative effect of several years of high inflation which increase the cost profile, oversupply of fracturing capacity in the market causing pricing pressure, and increased sand volumes which are generally at lower margins. Net income was $5.9 million in Q2 2025 ($0.08 diluted income per share), lower than the $24.2 million in Q1 2025 ($0.33 diluted income per share) and the $10.5 million net income in Q2 2024 ($0.14 diluted income per share). Net income included $1.7 million in share‐based compensation expense (Q1 2025 ‐ $1.3 million, Q2 2024 ‐ $2.1 million expense) and $1.7 million in finance costs (Q1 2025 ‐ $2.0 million, Q2 2024 ‐ $2.8 million). Free Cash Flow was $17.3 million in Q2 2025 ($0.24 diluted Free Cash Flow per share), sequentially lower than the $32.2 million ($0.43 diluted Free Cash Flow per share) in Q1 2025 and lower than the $20.5 million ($0.28 diluted Free Cash Flow per share) in Q2 2024. While working capital decreased by $26.5 million from the first quarter of 2025 to land at $77.0 million at the end of the second quarter, this was still significantly higher than the $35.4 million at the end of the fourth quarter of 2024. While the build in working capital is typical for the first half of the year, which follows a slower Q4 that realizes a sizable working capital recovery, the increase in the current year was inflated by the inclusion of $11.4 million in assets held for sale reclassified from property and equipment related to the terminated U.S. fracturing operations. Net Debt decreased to $43.9 million from $52.7 million at the close of 2024. The decrease in Net Debt and improvement in Adjusted EBITDA resulted in a 12-month trailing Funded Debt to Adjusted Bank EBITDA of 0.42:1.00, well under the limit of 3.00:1 in the Company's Credit Facilities (as defined in Capital Management – Debt below). The Company continued its Normal Course Issuer Bid in the second quarter and acquired 166,100 shares at a weighted average price of $3.90 per share in the quarter. Late in the first quarter of 2025, management committed to a plan to terminate the Company's U.S. fracturing operations. Active operations were terminated and equipment has been marshalled to STEP's yards for sale or transfer to Canada. Certain costs associated with legacy fracturing operations and decommissioning were incurred in the second quarter, resulting in Adjusted EBITDA from terminated operations of negative $2.9 million, which is not included in the Q2 reported Adjusted EBITDA of $34.8 million. These costs are expected to reduce to more modest levels for the balance of the year. Market Outlook The initial uncertainty stemming from the decisions made by the U.S. administration has lessened as markets discover that the tactical nature of these decisions means that they are likely to change through the course of negotiations. Similarly, the geopolitical tensions created by the conflict in the Middle East have also eased as the primary actors have backed away from deeper confrontation. Commodity prices continue to look for direction, drifting sideways until a clear catalyst for growth or recession becomes apparent. North American gas prices are shifting from the shoulder season in Q2 to the more pronounced summer power demand season, although high storage levels will limit upside to price until the anticipated draw from new LNG offtake facilities begins to be felt in the markets. Canada's first shipment of liquified natural gas ('LNG') departed the LNG Canada facility on June 30, 2025, marking the successful start of operations for Canada's first large scale LNG export facility. The multiyear outlook for natural gas continues to show promise, with approximately 10 billion cubic feet ('BCF') per day of demand from additional LNG facilities in Canada and the U.S. expected by 2030, in addition to the demand for more power generation. Oil prices have retreated from the second quarter spikes back to the mid $60s (USD) per barrel. Demand has remained relatively resilient, absorbing the additional OPEC+ supply that has been added to the market this year. Global crude oil and related product inventory levels are near the bottom of their five-year range, providing some buffer in the event that demand from the summer driving season isn't enough to consume supply. Oil demand is expected to grow modestly, but catalysts for increased oil production in North America are limited, given the global market dynamics. STEP's revenue is largely driven by natural gas and natural gas liquids ('NGLs'), which should shield STEP's schedule from the worst of the commodity price volatility. However, if the volatility continues and commodity prices weaken it is likely that clients could defer work into later quarters or trim their core capital programs. STEP maintains close contact with its clients and will adjust its operations if activity slows. The third quarter fracturing schedule is expected to see a modest uptick in activity, although more client supplied sand, along with shifting client schedules and competitive pressures will likely result in flat to down sequential revenue. Margins on work with client supplied sand are typically higher relative to margins on work with STEP supplied sand, given the high volumes of sand pumped by many STEP clients. Offsetting this higher margin work is inflation on input costs, driven in many instances by the escalating tariff actions taken by governments around the world. The remission of tariffs on proppant imported from the U.S. provides some relief, but the ongoing tariffs on many products entering the U.S. and Canada are resulting in cost inflation that can be difficult to pass through to clients. STEP's trial of the NGx, Canada's first 100% natural gas powered fracturing pump is expected to see steady utilization as clients respond positively to the increased diesel displacement that this pump offers. Coiled tubing activity is expected to stay relatively steady across all regions, with a slight increase in activity relative to the second quarter. Increased market penetration with STEP's Coil+ split string technology is expected to offset the lower industry demand associated with a slowing rig count. Similar to fracturing, tariffs continue to impact the industry, particularly on the cost of coiled tubing strings, which is tariffed when it enters the U.S. as raw steel and then again when it enters Canada and is tariffed by the Canadian government. STEP has submitted a request for remission of the Canadian tariffs and is optimistic that it will be successful given the recent reversal of tariffs on proppant entering Canada. Expectations for the fourth quarter remain modest. This quarter is typically characterized by slower activity as clients exhaust their annual capital budgets, resulting in margin compression for service providers as increased competition and lower fixed cost leverage weigh on results. The slower than expected ramp in demand coming from newly commissioned LNG facilities in Canada and the U.S. is limiting drawdown of natural gas inventories and is not expected to create sufficient market incentive for producers to add to their capital budgets for the year. Further clarity on this is likely to be forthcoming late in the third quarter or early in the fourth quarter. Views on 2026 are beginning to clarify, with activity in the first quarter expected to be in line with the first quarter of 2025. Activity levels through the year will likely be affected by the ramp in production at LNG Canada, which will process approximately 2 BCF per day when fully operational. On balance, pricing is largely in line with what was expected in 2025. Increased oilfield service capacity and limited producer growth has put downward pressure on margins relative to 2024. Cost control remains a focus for STEP as it navigates the current economic uncertainty. Free Cash Flow will be committed towards additional fleet investments required for sustaining and optimization needs, as well as additional debt repayment. The increase in STEP's share price and the cautious outlook meant that the NCIB was used only sparingly in the second quarter. The Company will retain the flexibility to engage opportunistically on the NCIB if conditions change. FINANCIAL REVIEW Revenue For the three and six months ended June 30, 2025, revenue decreased 1% to $228.0 million and 3% to $535.7 million compared to $231.4 million and $551.5 million for the three and six months ended June 30, 2024. Alignment with large scale operators continues to provide a strong baseline of utilization for fracturing and coiled tubing operations in both the quarter and for the year to date. STEP operated six fracturing crews during the quarter, down from eight for the same period of the prior year. Fracturing operating days for the quarter were down 17% and have decreased by 15% for the year to date. The reduction in fracturing crews and operating days is all associated with the termination of U.S. fracturing operations during 2025. Despite the declines in operating days and active fleets, fracturing revenue was up 4% for the quarter and only declined by 2% for the year to date reflecting the increased proppant pumped for the Canadian Frac CGU as a result of higher pumping intensity. STEP deactivated one coiled tubing spread during the quarter bringing the total active spreads back down to 21 which is down two spreads from the prior year. Coiled tubing operating days for the quarter were down 10% and have decreased by 4% for the year to date. New technology offerings and strategic client alignment in all operating basins have allowed the Company to maintain utilization levels per active spread despite the decrease in activity in the market as whole. Operating expenses Operating expenses includes employee costs, direct operating expenses such as repairs, transportation and facility costs, material and inventory costs, depreciation of equipment and share-based compensation for operational employees. The following table provides a summary of operating expenses: Employee costs and general operating expenses decreased slightly compared to the prior year for both the quarter and year to date as the wind down of U.S. fracturing operations was partially offset by inflationary impacts. Material and inventory costs increased significantly compared to the prior year for both the quarter and year to date as changes in sand mix, increases in STEP supplied sand and currency fluctuations increased the cost of materials. Selling, general and administrative expenses The following table provides a summary of selling, general and administrative expenses: Selling, general and administrative expenses were in line with the prior year for both the quarter and year to date. Share-based compensation expense was slightly lower in the second quarter of 2025 compared to the same period of 2024 as the share price was lower, however this was largely offset by higher employee costs. For the year to date, the higher employee costs in 2025 compared to the prior year have been largely offset by reduced general expenses. Terminated Operations Results from consolidated operations include the results from the terminated operations presented below. In the first quarter of 2025, the U.S. fracturing CGU was subject to changes in business conditions that materially impacted its expected economic performance. As a result, STEP decided to exit this market and terminated all further work related to these operations. The results of the terminated operations are as follows: ($000's) Three months ended Six months ended June 30, June 30, June 30, June 30, 2025 2024 2025 2024 U.S. Fracturing services terminated operations Fracturing operating days (1) - 72 54 189 Proppant pumped (tonnes) - 137,000 155,330 409,000 Fracturing crews - 2 - 2 (1) An operating day is defined as any coiled tubing or fracturing work that is performed in a 24-hour period, exclusive of support equipment. Expand NON-IFRS MEASURES AND RATIOS This Press Release includes terms and performance measures commonly used in the oilfield services industry that are not defined under IFRS. The terms presented are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS measures have no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The non-IFRS measures should be read in conjunction with the Company's quarterly financial statements and Annual Financial Statements and the accompanying notes thereto. 'Adjusted EBITDA' is a financial measure not presented in accordance with IFRS and is equal to net (loss) income before finance costs, depreciation and amortization, (gain) loss on disposal of property and equipment, current and deferred income tax provisions and recoveries, equity and cash settled share-based compensation, transaction costs, unrealized (gain) loss on derivatives, foreign exchange (gain) loss, impairment losses and Adjusted EBITDA from terminated operations (1). 'Adjusted EBITDA %' is a non-IFRS ratio and is calculated as Adjusted EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA % are presented because they are widely used by the investment community as they provide an indication of the results generated by the Company's normal course business activities prior to considering how the activities are financed and the results are taxed. The Company uses Adjusted EBITDA and Adjusted EBITDA % internally to evaluate operating and segment performance, because management believes they provide better comparability between periods. (1) STEP has expanded the definition of Adjusted EBITDA to exclude the Adjusted EBITDA from terminated operations in order to provide clarity on the Company's normal course business activities to users of these documents. As a reminder, in Q1 2025, the U.S. fracturing CGU was subject to changes in business conditions that materially impacted its expected future economic performance. As a result, STEP began an orderly process to terminate operations of this CGU following completion of the work scope in Q1 2025. The Company expects to transfer the U.S. fracturing CGU's recently refurbished Tier 4 dual fuel equipment to Canada and will dispose of the remaining equipment over the next several quarters. As not all the equipment is being disposed of, the accounting presentation does not meet the test for the IFRS standard for discontinued operations. The following table presents a reconciliation of the non-IFRS financial measure of Adjusted EBITDA to the IFRS financial measure of net income: (1) Adjusted EBITDA from terminated operations is calculated in the same manner as the calculation of Adjusted EBITDA but does not include non-applicable items, such as unrealized (gain) loss on derivatives nor foreign exchange losses (gain) amounts. The calculation of Adjusted EBITDA from terminated operations is as follows: 'Free Cash Flow' is a financial measure not presented in accordance with IFRS and is equal to net cash provided by operating activities adjusted for changes in non-cash Working Capital from operating activities, sustaining capital expenditures, term loan principal repayments and lease payments (net of sublease receipts). The Company may deduct or include additional items in its calculation of Free Cash Flow that are unusual, non-recurring or non-operating in nature. Free Cash Flow is presented as this measure is widely used in the investment community as an indication of the level of cash flow generated by ongoing operations. Management uses Free Cash Flow to evaluate the adequacy of internally generated cash flows to manage debt levels, invest in the growth of the business or return capital to shareholders. The following table presents a reconciliation of the non-IFRS financial measure of Free Cash Flow to the IFRS financial measure of net cash provided by operating activities. 'Free Cash Flow per share-basic' is a financial measure not presented in accordance with IFRS and is equal to Free Cash Flow divided by the weighted average number of shares outstanding – basic. Management uses Free Cash Flow per share-basic to evaluate the adequacy of internally generated cash flows to manage debt levels, invest in the growth of the business or return capital to shareholders on a normalized per basic share basis. The following table presents a reconciliation of the non-IFRS financial measure of Free Cash Flow per share-basic to the IFRS financial measure of net cash provided by operating activities. 'Free Cash Flow per share-diluted' is a financial measure not presented in accordance with IFRS and is equal to Free Cash Flow divided by the weighted average number of shares outstanding – diluted. Management uses Free Cash Flow per share-basic to evaluate the adequacy of internally generated cash flows to manage debt levels, invest in the growth of the business or return capital to shareholders on a normalized per diluted share basis. The following table presents a reconciliation of the non-IFRS financial measure of Free Cash Flow per share-basic to the IFRS financial measure of net cash provided by operating activities. 'Working Capital', 'Total long-term financial liabilities' and 'Net Debt' are financial measures not presented in accordance with IFRS. 'Working Capital' is equal to total current assets less total current liabilities. 'Total long-term financial liabilities' is comprised of loans and borrowings, long-term lease obligations and other liabilities. 'Net Debt' is equal to loans and borrowings before deferred financing charges less cash and cash equivalents and CCS derivatives. The data presented is intended to provide additional information about items on the statement of financial position and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. The following table represents the composition of the non-IFRS financial measure of Working Capital (including cash and cash equivalents). The following table presents the composition of the non-IFRS financial measure of Total long-term financial liabilities. The following table presents the composition of the non-IFRS financial measure of Net Debt. The oilfield services industry involves many risks, which may influence the ultimate success of the Company. The risks and uncertainties set out in the AIF and Annual MD&A are not the only ones the Company is facing. There are additional risks and uncertainties that the Company does not currently know about or that the Company currently considers immaterial which may also impair the Company's business operations and can cause the price of the Common Shares to decline. Readers should review and carefully consider the disclosure provided under the heading ' Risk Factors ' in the AIF and ' Risk Factors and Risk Management ' in the Annual MD&A, both of which are available on and the disclosure provided in the MD&A under the headings ' Market Outlook '. In addition, global and national risks associated with market uncertainty due to changing tariffs and other trade barriers may adversely affect the Company by, among other things, reducing economic activity resulting in lower demand, and pricing, for crude oil and natural gas products, and thereby the demand and pricing for the Company's services. Other than as supplemented in this Press Release, the Company's risk factors, and management thereof has not changed substantially from those disclosed in the AIF and Annual MD&A. FORWARD-LOOKING INFORMATION & STATEMENTS Certain statements contained in this Press Release constitute 'forward-looking statements' or 'forward-looking information' within the meaning of applicable securities laws (collectively, 'forward-looking statements'). These statements relate to the expectations of management about future events, results of operations and the Company's future performance (both operational and financial) and business prospects. All statements other than statements of historical fact are forward-looking statements. The use of any of the words 'anticipate', 'plan', 'contemplate', 'continue', 'estimate', 'expect', 'intend', 'propose', 'might', 'may', 'will', 'shall', 'project', 'should', 'could', 'would', 'believe', 'predict', 'forecast', 'pursue', 'potential', 'objective' and 'capable' and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. While the Company believes the expectations reflected in the forward-looking statements included in this Press Release are reasonable, such statements are not guarantees of future performance or outcomes and may prove to be incorrect and should not be unduly relied upon. In particular, but without limitation, this Press Release contains forward-looking statements pertaining to: 2025 and 2026 industry conditions and outlook, including commodity pricing and demand for oil and gas; the effect of LNG facilities on export capacity, natural gas storage, and industry activity levels; anticipated utilization and activity levels, revenue, pricing, and schedule; capabilities of the NGx, including fuel savings, and the Company's intent to invest in the technology; the oil and gas industry's ability to withstand volatility; the Company's ability to transfer assets where economic returns are most favorable; the Company's ability to test and evaluate next generation technologies; the effect large clients and their programs may have on the Company's activity levels; the Company's intention to invest in the development of next generation coiled tubing and fracturing technologies; the effect of tariffs and other trade barriers, inflation and cost increases on the Company and its margins; the Company's view that the NCIB is an effective means to provide value to shareholders; the impact of weather and break up on the Company's operations; the Company's ability to meet all financial commitments including interest payments over the next twelve months; the Company's plans regarding equipment; the Company's ability to manage its capital structure and adjust the Company's budget in light of market conditions; expected debt repayment and Funded Debt to Adjusted Bank EBITDA ratios; expected income tax and derivative liabilities; adequacy of resources to funds operations, financial obligations and planned capital expenditures; the Company's ability to retain its existing clients; the monitoring of impairment, amount and age of balances owing, and the Company's financial assets and liabilities denominated in U.S. dollars, and exchange rates; the Company's expected compliance with covenants under its Credit Facilities and its ability to satisfy its financial commitments thereunder. The forward-looking information and statements contained in this Press Release reflect several material factors and expectations and assumptions of the Company including, without limitation: the effect of macroeconomic factors, including global energy security concerns and levels of oil and gas inventories; 2025 and 2026 activity levels; the effect of tariffs, trade barriers, and related market concerns; levels of oil and gas production and LNG demand and export capacity on the market for the Company's services; that the Company will continue to conduct its operations in a manner consistent with past operations; the Company will continue as a going concern; the general continuance of current or, where applicable, assumed industry conditions; pricing of the Company's services; the Company's ability to market successfully to current and new clients; actual performance and availability of the NGx; predictable effect of seasonal weather and break up on the Company's operations; the Company's ability to utilize its equipment; the Company's ability to collect on trade and other receivables; Client demand for dual fuel fleets and emissions reduction technologies; the Company's ability to obtain and retain qualified staff and equipment in a timely and cost effective manner; levels of deployable equipment; future capital expenditures to be made by the Company; future funding sources for the Company's capital program; the Company's future debt levels; the expected receipt of tax amounts previously paid by the Company; the availability of unused credit capacity on the Company's credit lines; the impact of competition on the Company; the Company's ability to obtain financing on acceptable terms; the Company's continued compliance with financial covenants; the amount of available equipment in the marketplace; and client activity levels and spending. The Company believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable, but no assurance can be given that these factors, expectations and assumptions will prove correct. Actual results could also differ materially from those anticipated in these forward‐looking statements due to the risk factors set forth under the heading 'Risk Factors' in the AIF and under the heading Risk Factors and Risk Management in this Press Release. Any financial outlook or future orientated financial information contained in this Press Release regarding prospective financial performance, financial position or cash flows is based on the assumptions about future events, including economic conditions and proposed courses of action based on management's assessment of the relevant information that is currently available. Projected operational information, including the Company's capital program, contains forward looking information and is based on a number of material assumptions and factors, as are set out above. These projections may also be considered to contain future oriented financial information or a financial outlook. The actual results of the Company's operations will likely vary from the amounts set forth in these projections and such variations may be material. Readers are cautioned that any such financial outlook and future oriented financial information contains herein should not be used for purposes other than those for which it is disclosed herein. The forward-looking information and statements contained in this Press Release speak only as of the date of the document, and none of the Company or its subsidiaries assumes any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws. The reader is cautioned not to place undue reliance on forward-looking information. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS STEP will host a conference call on Thursday, August 7, 2025 at 9:00 a.m. MT to discuss the results for the second quarter. To listen to the webcast of the conference call, please click on the following URL: You can also visit the Investors section of our website at and click on 'Reports, Presentations & Key Dates'. To participate in the Q&A session, please call the conference call operator at: 1-800-717-1738 (toll free) 15 minutes prior to the call's start time and ask for 'STEP Energy Services Second Quarter 2025 Earnings Results Conference Call' The conference call will be archived on STEP's website at About Step STEP is an energy services company that provides coiled tubing, fluid and nitrogen pumping and hydraulic fracturing solutions. Our combination of modern equipment along with our commitment to safety and quality execution has differentiated STEP in plays where wells are deeper, have longer laterals and higher pressures. STEP has a high-performance, safety-focused culture and its experienced technical office and field professionals are committed to providing innovative, reliable and cost-effective solutions to its clients. Founded in 2011 as a specialized deep capacity coiled tubing company, STEP has grown into a North American service provider delivering completion and stimulation services to exploration and production ('E&P') companies in Canada and the U.S. Our Canadian services are focused in the Western Canadian Sedimentary Basin ('WCSB'), while in the U.S., our coiled tubing services are concentrated in the Permian and Eagle Ford in Texas, the Uinta-Piceance, and Niobrara-DJ basins in Colorado and the Bakken in North Dakota. Our four core values; Safety, Trust, Execution and Possibilities inspire our team of professionals to provide differentiated levels of service, with a goal of flawless execution and an unwavering focus on safety.
Business Wire
2 hours ago
- Business Wire
Ziff Davis Reports Second Quarter 2025 Financial Results and Reaffirms 2025 Guidance
NEW YORK--(BUSINESS WIRE)--Ziff Davis, Inc. (NASDAQ: ZD) ('Ziff Davis' or 'the Company') today reported unaudited financial results for the second quarter ended June 30, 2025. 'We are very pleased with our second quarter results, which exceeded expectations and marked our strongest quarterly revenue growth since 2021,' said Vivek Shah, Chief Executive Officer of Ziff Davis. 'Our new segment reporting is providing greater transparency into the intrinsic value of our key businesses, including breakthrough results from our Connectivity and Health & Wellness businesses.' SECOND QUARTER 2025 RESULTS Q2 2025 quarterly revenues increased 9.8% to $352.2 million compared to $320.8 million for Q2 2024. Income from operations increased 17.2% to $33.5 million compared to $28.6 million for Q2 2024. Net income (1) decreased to $26.3 million compared to $36.9 million for Q2 2024. Net income per diluted share (1) decreased to $0.62 in Q2 2025 compared to $0.77 for Q2 2024. Adjusted EBITDA (2) for the quarter increased 11.8% to $107.7 million compared to $96.3 million for Q2 2024. Adjusted net income (2) decreased to $51.6 million compared to $53.7 million for Q2 2024. Adjusted net income per diluted share (1)(2) (or 'Adjusted diluted EPS') for the quarter increased 5.1% to $1.24 compared to $1.18 for Q2 2024. Net cash provided by operating activities was $57.1 million in Q2 2025 compared to $50.6 million in Q2 2024. Free cash flow (2) was $26.9 million in Q2 2025 compared to $25.1 million in Q2 2024. Ziff Davis deployed approximately $11.4 million for current and prior year acquisitions during the quarter and $33.9 million related to share repurchases in Q2 2025. The following table reflects results for the three and six months ended June 30, 2025 and 2024, respectively (in millions, except per share amounts). Notes: (1) GAAP effective tax rates were approximately 16.8% and 19.9% for the three months ended June 30, 2025 and 2024, respectively, and 24.9% and 27.9% for the six months ended June 30, 2025 and 2024, respectively. Adjusted effective tax rates were approximately 24.6% and 23.3% for the three months ended June 30, 2025 and 2024, respectively, and 24.2% and 23.6% for the six months ended June 30, 2025 and 2024, respectively. (2) For definitions of non-GAAP financial measures and reconciliations of GAAP to non-GAAP financial measures refer to section 'Non-GAAP Financial Measures' further in this release. (3) The revenues associated with each of the reportable segments may not foot precisely since each is presented independently. (4) Prior period segment information is presented on a comparable basis to conform to our new segment presentation with no effect on previously reported consolidated results. Expand ZIFF DAVIS GUIDANCE The Company reaffirms its guidance for fiscal year 2025 as follows (in millions, except per share data): ____________________ (1) It is anticipated that the Adjusted effective tax rate for 2025 will be between 23.25% and 25.25%. Expand A reconciliation of forward-looking Adjusted EBITDA and Adjusted diluted EPS to the corresponding GAAP financial measures is not available without unreasonable effort due primarily to variability and difficulty in making accurate forecasts and projections of certain non-operating items such as (Gain) loss on investments, net, Other (income) loss, net, and other unanticipated items that may arise in the future. EARNINGS CONFERENCE CALL AND AUDIO WEBCAST Ziff Davis will host a live audio webcast and conference call discussing its second quarter 2025 financial results on Thursday, August 7, 2025, at 8:30AM ET. The live webcast and call will be accessible by phone by dialing (844) 985-2014 or via Following the event, the audio recording and presentation materials will be archived and made available at ABOUT ZIFF DAVIS Ziff Davis, Inc. (NASDAQ: ZD) is a vertically focused digital media and internet company whose portfolio includes leading brands in technology, shopping, gaming and entertainment, health and wellness, connectivity, cybersecurity, and martech. For more information, visit 'Safe Harbor' Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995, including those contained in Vivek Shah's quote, and the 'Ziff Davis Guidance' section regarding the Company's expected fiscal 2025 financial performance. These forward-looking statements are based on management's current expectations or beliefs and are subject to numerous assumptions, risks, and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties include, among other items: the Company's ability to grow advertising, licensing, and subscription revenues, profitability, and cash flows, particularly in light of an uncertain U.S. or worldwide economy, including the possibility of economic downturn or recession; the Company's ability to make interest and debt payments; the Company's ability to identify, close, and successfully transition acquisitions; customer growth and retention; the Company's ability to create compelling content; our reliance on third-party platforms; the threat of content piracy and developments related to artificial intelligence; increased competition and rapid technological changes; variability of the Company's revenue based on changing conditions in particular industries and the economy generally; protection of the Company's proprietary technology or infringement by the Company of intellectual property of others; the risk of losing critical third-party vendors or key personnel; the risks associated with fraudulent activity, system failure, or a security breach; risks related to our ability to adhere to our internal controls and procedures; the risk of adverse changes in the U.S. or international regulatory environments, including but not limited to the imposition or increase of taxes or regulatory-related fees; the risks related to supply chain disruptions, increased tariffs and trade protection measures, inflationary conditions, and rising interest rates; the risk of liability for legal and other claims; and the numerous other factors set forth in Ziff Davis' filings with the Securities and Exchange Commission ('SEC'). For a more detailed description of the risk factors and uncertainties affecting Ziff Davis, refer to our most recent Annual Report on Form 10-K and the other reports filed by Ziff Davis from time-to-time with the SEC, each of which is available at The forward-looking statements provided in this press release, including those contained in Vivek Shah's quote and in the 'Ziff Davis Guidance' portion regarding the Company's expected fiscal 2025 financial performance are based on limited information available to the Company at this time, which is subject to change. Although management's expectations may change after the date of this press release, the Company undertakes no obligation to revise or update these statements. Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Total revenues $ 352,209 $ 320,800 $ 680,845 $ 635,285 Operating costs and expenses: Direct costs 48,974 50,024 96,182 95,911 Sales and marketing 141,598 124,766 269,278 241,766 Research, development, and engineering 16,478 16,795 32,354 34,569 General, administrative, and other related costs 54,070 48,505 100,980 98,015 Depreciation and amortization 57,606 52,141 113,438 100,594 Total operating costs and expenses 318,726 292,231 612,232 570,855 Income from operations 33,483 28,569 68,613 64,430 Interest expense, net (6,523 ) (1,804 ) (12,654 ) (3,573 ) Loss on sale of businesses — — — (3,780 ) Gain (loss) on investments, net 4,340 3,051 4,340 (7,654 ) Other (loss) income, net (5,786 ) 5,267 (8,589 ) 5,163 Income before income tax expense and income from equity method investment 25,514 35,083 51,710 54,586 Income tax expense (4,286 ) (6,990 ) (12,873 ) (15,221 ) Income from equity method investment, net of tax 5,115 8,817 11,745 8,172 Net income $ 26,343 $ 36,910 $ 50,582 $ 47,537 Net income per common share: Basic $ 0.63 $ 0.81 $ 1.20 $ 1.04 Diluted $ 0.62 $ 0.77 $ 1.19 $ 1.02 Weighted average shares outstanding: Basic 41,732,800 45,492,809 42,143,165 45,676,726 Expand ZIFF DAVIS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED, IN THOUSANDS) Six months ended June 30, 2025 2024 Cash flows from operating activities: Net income $ 50,582 $ 47,537 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 113,438 100,594 Non-cash operating lease costs 4,325 5,538 Share-based compensation 21,479 20,472 Provision for credit losses on accounts receivable 1,012 1,336 Deferred income taxes, net (7,320 ) (7,869 ) Loss on sale of businesses — 3,780 Changes in fair value of contingent consideration (2,318 ) — Income from equity method investments, net (11,745 ) (8,172 ) (Gain) loss on investments, net (4,340 ) 7,654 Other 1,701 1,779 Decrease (increase) in: Accounts receivable 147,417 44,215 Prepaid expenses and other current assets (523 ) (9,138 ) Other assets 1,900 (375 ) Increase (decrease) in: Accounts payable (231,065 ) (80,548 ) Deferred revenue 464 13,108 Accrued liabilities and other current liabilities (7,320 ) (13,789 ) Net cash provided by operating activities 77,687 126,122 Cash flows from investing activities: Purchases of property and equipment (55,752 ) (53,633 ) Acquisitions, net of cash received (50,345 ) (56,698 ) Distribution from equity method investment 9,196 — Proceeds from sale of equity investments 25,250 19,455 Proceeds from sale of businesses, net of cash divested — 7,860 Other 51 (124 ) Net cash used in investing activities (71,600 ) (83,140 ) Cash flows from financing activities: Repurchase of common stock (68,834 ) (87,928 ) Issuance of common stock under employee stock purchase plan 3,751 4,525 Deferred payments for acquisitions (213 ) (7,417 ) Other (1,592 ) (940 ) Net cash used in financing activities (66,888 ) (91,760 ) Effect of exchange rate changes on cash and cash equivalents 12,180 (1,600 ) Net change in cash and cash equivalents (48,621 ) (50,378 ) Cash and cash equivalents at beginning of period 505,880 737,612 Cash and cash equivalents at end of period $ 457,259 $ 687,234 Expand Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles ('GAAP'), we use the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income (loss), Adjusted net income (loss) per diluted share, Free cash flow, and Adjusted effective tax rate (collectively the 'non-GAAP financial measures'). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision making and as means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results or, in certain cases, may be non-cash in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, (2) certain measures are used to determine the amount of annual incentive compensation paid to our named executive officers, and (3) they are used by the analyst community to help them analyze the health of our business. These non-GAAP financial measures are not measures presented in accordance with GAAP, and our use of these terms may vary from that of other companies, limiting their usefulness for comparison purposes. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. These non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP. Non-GAAP financial measures exclude the certain items listed below. We believe that excluding these items from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which exclude similar items. We believe that non-GAAP financial measures provide meaningful supplemental information regarding operational performance. We further believe these measures are useful to investors in that they allow for greater transparency of certain line items in the Company's financial statements. Adjusted EBITDA is defined as Net income (loss) with adjustments to reflect the addition or elimination of certain items including, but not limited to: Interest expense, net. Interest expense is generated primarily from interest due on outstanding debt, partially offset by interest income generated from the interest earned on cash, cash equivalents, and investments; (Gain) loss on debt extinguishment, net. This is a non-cash expense that relates to extinguishments of long-term debt obligations. We believe this (gain) loss does not represent recurring core business operating results of the Company; (Gain) loss on sale of businesses. This gain or loss relates to the sales of businesses and does not represent recurring core business operating results of the Company; (Gain) loss on investments, net. This item includes realized gains and losses, unrealized gains and losses, and impairment charges on debt and equity investments. The amount of gain or loss depends on the share price for investments with readily determinable fair value and on observable price changes for investments without a readily determinable fair value, and does not represent core business operating results of the Company; Other (income) loss, net. This income or expense relates to other non-operating items and does not represent recurring core business operating results of the Company; Income tax (benefit) expense. This benefit or expense depends on the pre-tax loss or income of the Company, statutory tax rates, tax regulations, and different tax rates in various jurisdictions in which the Company operates and which the Company does not have the control over; (Income) loss from equity method investment, net of tax. This is a non-cash income or expense as it relates primarily to our investment in OCV Fund I, LP (the 'OCV Fund'). We believe that gain or loss resulting from our equity method investment does not represent core business operating results of the Company; Depreciation and amortization. This is a non-cash expense at it relates to use and associated reduction in value of certain assets including equipment, fixtures, and certain capitalized internal-use software and website development costs, and identifiable definite-lived intangible assets of the acquired businesses; Share-based compensation. This is a non-cash expense as it relates to awards granted under the various share-based incentive plans of the Company. We view the economic cost of share-based awards to be the dilution to our share base; Acquisition, integration, and other costs. This includes adjustments to contingent consideration, lease terminations, retention bonuses, other acquisition-specific items, and other costs, such as severance, third-party debt modification costs, litigation costs from discrete, complex, or unusual proceedings, and legal settlements. These expenses do not represent core business operating results of the Company; Disposal related costs. These are expenses associated with the disposal of certain businesses that do not represent core business operating results of the Company; Lease asset impairments and other charges. These expenses are incurred in connection with impaired right-of-use ('ROU') assets of the Company. Associated expenses are comprised of insurance, utility, and other charges related to assets that are no longer in use, and partially offset by the sublease income earned. These expenses do not represent core business operating results of the Company; and Goodwill impairment. This is a non-cash expense that is recorded when the carrying value of the reporting unit exceeds its fair value and does not represent core business operating results of the Company. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Total Revenues. Adjusted net income (loss) is defined as Net income (loss) with adjustments to reflect the addition or elimination of certain statement of operations items including, but not limited to: Interest, net. This reflects the difference between the imputed and coupon interest expense associated with the 4.625% Senior Notes and a charge that the Company determined to be penalty interest associated with the 1.75% Convertible Notes, offset in part by a certain interest income earned by the Company. These net expenses do not represent core business operating results of the Company; (Gain) loss on debt extinguishment, net. This is a non-cash expense that relates to extinguishments of long-term debt obligations. We believe this gain or loss does not represent recurring core business operating results of the Company; (Gain) loss on sale of businesses. This gain or loss relates to the sales of businesses and does not represent recurring core business operating results of the Company; (Gain) loss on investments, net. This item includes realized gains and losses, unrealized gains and losses, and impairment charges on debt and equity investments. The amount of gain or loss depends on the share price for investments with readily determinable fair value and on observable price changes for investments without a readily determinable fair value, and does not represent core business operating results of the Company; (Income) loss from equity method investment, net of tax. This is a non-cash income or expense as it relates primarily to our investment in the OCV Fund. We believe that gains or losses resulting from our equity method investment do not represent core business operating results of the Company; Amortization. Includes the amortization of patents and intangible assets that we acquired. This is a non-cash expense as it primarily relates to identifiable definite-lived intangible assets of the acquired businesses. We believe that acquired intangible assets represent cost incurred by the acquiree to build value prior to the acquisition and the amortization of this cost does not represent core business operating results of the Company; Share-based compensation. This is a non-cash expense as it relates to awards granted under the various share-based incentive plans of the Company. We view the economic cost of share-based awards to be the dilution to our share base; Acquisition, integration, and other costs. This includes adjustments to contingent consideration, lease terminations, retention bonuses, other acquisition-specific items, and other costs, such as severance, third-party debt modification costs, litigation costs from discrete, complex, or unusual proceedings, and legal settlements. These expenses do not represent core business operating results of the Company; Disposal related costs. These are expenses associated with the disposal of certain businesses that do not represent core business operating results of the Company; Lease asset impairments and other charges. These expenses are incurred in connection with impaired ROU assets of the Company. Associated expenses are comprised of insurance, utility, and other charges related to assets that are no longer in use, and partially offset by the sublease income earned. These expenses do not represent core business operating results of the Company; and Goodwill impairment. This is a non-cash expense that is recorded when the carrying value of the reporting unit exceeds its fair value and does not represent core business operating results of the Company. Adjusted net income (loss) per diluted share is calculated by dividing Adjusted net income (loss) by the diluted weighted average shares of common stock outstanding excluding the effect of convertible debt dilution. Free cash flow is defined as Net cash provided by operating activities, less purchases of property and equipment, plus changes in contingent consideration (if any). Adjusted effective tax rate is calculated based upon the GAAP effective tax rate with adjustments for the tax applicable to non-GAAP adjustments to Net income (loss), generally based upon the effective marginal tax rate of each adjustment. The following table sets forth a reconciliation of Net income to Adjusted EBITDA: Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net income $ 26,343 $ 36,910 $ 50,582 $ 47,537 Interest expense, net 6,523 1,804 12,654 3,573 Loss on sale of businesses — — — 3,780 (Gain) loss on investment, net (4,340 ) (3,051 ) (4,340 ) 7,654 Other loss (income), net 5,786 (5,267 ) 8,589 (5,163 ) Income tax expense 4,286 6,990 12,873 15,221 Income from equity method investment, net of tax (5,115 ) (8,817 ) (11,745 ) (8,172 ) Depreciation and amortization 57,606 52,141 113,438 100,594 Share-based compensation 11,727 11,600 21,479 20,472 Acquisition, integration, and other costs 3,987 3,837 3,430 10,103 Disposal related costs — 77 1 573 Lease asset impairments and other charges 851 40 871 843 Adjusted EBITDA $ 107,654 $ 96,264 $ 207,832 $ 197,015 Expand Three months ended June 30, 2024 Technology & Shopping Gaming & Entertainment Health & Wellness Connectivity Cybersecurity & Martech Corporate (1) Total (Loss) income from operations $ (8,067 ) $ 8,198 $ 13,302 $ 21,702 $ 11,547 $ (18,113 ) $ 28,569 Depreciation and amortization 19,863 2,841 13,013 7,617 8,800 7 52,141 Share-based compensation 1,625 327 1,509 764 1,222 6,153 11,600 Acquisition, integration, and other costs 4,086 916 2,276 (5,923 ) 471 2,011 3,837 Disposal related costs — — — — 20 57 77 Lease asset impairments and other charges (162 ) — 15 — 105 82 40 Adjusted EBITDA $ 17,345 $ 12,282 $ 30,115 $ 24,160 $ 22,165 $ (9,803 ) $ 96,264 Expand ____________________ Figures above are net of inter-segment revenues and operating costs and expenses. Prior period segment information is presented on a comparable basis to conform to our new segment presentation with no effect on previously reported consolidated results. (1) Corporate includes certain unallocated overhead costs that were historically presented within the Digital Media reportable segment. Expand The following tables set forth a reconciliation of Net income to Adjusted net income with adjustments presented on after-tax basis: Three months ended June 30, 2025 Per diluted share (1) 2024 Per diluted share (1) Net income $ 26,343 $ 0.62 $ 36,910 $ 0.77 Interest, net 61 — 17 — Gain on sale of businesses — — (3,668 ) (0.08 ) Gain on investments, net (4,340 ) (0.10 ) (2,591 ) (0.06 ) Income from equity method investment, net of tax (5,115 ) (0.12 ) (8,817 ) (0.19 ) Amortization 23,183 0.56 21,179 0.47 Share-based compensation 7,842 0.19 9,421 0.21 Acquisition, integration, and other costs 3,002 0.07 1,214 0.03 Disposal related costs — — 60 — Lease asset impairment and other charges 656 0.02 14 — Dilutive effect of the convertible debt — — — 0.03 Adjusted net income $ 51,632 $ 1.24 $ 53,739 $ 1.18 Expand Six months ended June 30, 2025 Per diluted share (1) 2024 Per diluted share (1) Net income $ 50,582 $ 1.19 $ 47,537 $ 1.02 Interest, net 122 — 12 — Loss on sale of business — — 112 — (Gain) loss on investments, net (4,340 ) (0.10 ) 7,077 0.15 Income from equity method investment, net (11,745 ) (0.28 ) (8,172 ) (0.18 ) Amortization 45,051 1.07 41,264 0.90 Share-based compensation 17,658 0.42 17,207 0.38 Acquisition, integration and other costs 2,560 0.06 6,085 0.13 Disposal related costs 1 — 432 0.01 Lease asset impairment and other charges 683 0.02 657 0.01 Dilutive effect of the convertible debt — — — 0.03 Adjusted net income $ 100,572 $ 2.38 $ 112,211 $ 2.45 Expand ____________________ (1) The reconciliation of Net income per diluted share to Adjusted net income per diluted share may not foot since each is calculated independently. Expand The following are the adjustments to certain statement of operations items used to derive Adjusted net income, which we believe provide useful information about our operating results and enhance the overall understanding of past financial performance and future prospects of the Company. Three months ended June 30, 2025 GAAP amount Adjustments Adjusted non-GAAP amount Interest, net (Gain) loss on sale of business (Gain) loss on investments, net (Income) loss from equity method investments, net Amortization Share-based compensation Acquisition, integration, and other costs Disposal related costs Lease asset impairments and other charges Direct costs $ (48,974 ) $ — $ — $ — $ — $ — $ 68 $ (6 ) $ — $ — $ (48,912 ) Sales and marketing $ (141,598 ) — — — — — 1,349 1,237 — — $ (139,012 ) Research, development, and engineering $ (16,478 ) — — — — — 937 303 — — $ (15,238 ) General, administrative, and other related costs $ (54,070 ) — — — — — 9,373 2,453 — 851 $ (41,393 ) Depreciation and amortization $ (57,606 ) — — — — 30,658 — — — — $ (26,948 ) Interest expense, net $ (6,523 ) 82 — — — — — — — — $ (6,441 ) Gain on investments, net $ 4,340 — — (4,340 ) — — — — — — $ — Other loss, net $ (5,786 ) — — — — — — — — — $ (5,786 ) Income tax expense (1) $ (4,286 ) (21 ) — — — (7,475 ) (3,885 ) (985 ) — (195 ) $ (16,847 ) Income from equity method investment, net of tax $ 5,115 — — — (5,115 ) — — — — — $ — Total non-GAAP adjustments $ 61 $ — $ (4,340 ) $ (5,115 ) $ 23,183 $ 7,842 $ 3,002 $ — $ 656 Expand ____________________ (1) Adjusted effective tax rate was approximately 24.6% for the three months ended June 30, 2025. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $16,847 and the denominator is $68,479, which equals adjusted net income of $51,632 plus adjusted income tax expense. Expand Three months ended June 30, 2024 GAAP amount Adjustments Adjusted non-GAAP amount Interest, net (Gain) loss on sale of business (Gain) loss on investments, net (Income) loss from equity method investments, net Amortization Share-based compensation Acquisition, integration, and other costs Disposal related costs Lease asset impairments and other charges Direct costs $ (50,024 ) $ — $ — $ — $ — $ — $ 62 $ 101 $ — $ — $ (49,861 ) Sales and marketing $ (124,766 ) — — — — — 1,093 1,949 — — $ (121,724 ) Research, development, and engineering $ (16,795 ) — — — — — 1,071 1,271 — — $ (14,453 ) General, administrative, and other related costs $ (48,505 ) — — — — — 9,374 516 77 40 $ (38,498 ) Depreciation and amortization $ (52,141 ) — — — — 27,856 — — — — $ (24,285 ) Interest expense, net $ (1,804 ) 23 — — — — — — — — $ (1,781 ) Gain on investments, net $ 3,051 — — (3,051 ) — — — — — — $ — Other income, net $ 5,267 — (4,890 ) — — — — (537 ) — — $ (160 ) Income tax expense (1) $ (6,990 ) (6 ) 1,222 460 — (6,677 ) (2,179 ) (2,086 ) (17 ) (26 ) $ (16,299 ) Income from equity method investment, net of tax $ 8,817 — — — (8,817 ) — — — — — $ — Expand ____________________ (1) Adjusted effective tax rate was approximately 23.3% for the three months ended June 30, 2024. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $16,299 and the denominator is $70,037, which equals adjusted net income of $53,739 plus adjusted income tax expense. Expand Six months ended June 30, 2025 GAAP amount Adjustments Adjusted non-GAAP amount Interest, net (Gain) loss on sale of business (Gain) loss on investments, net (Income) loss from equity method investments, net Amortization Share-based compensation Acquisition, integration, and other costs Disposal related costs Lease asset impairments and other charges Direct costs $ (96,182 ) $ — $ — $ — $ — $ — $ 131 $ 60 $ — $ — $ (95,991 ) Sales and marketing $ (269,278 ) — — — — — 2,335 2,219 — — $ (264,724 ) Research, development, and engineering $ (32,354 ) — — — — — 1,727 238 — — $ (30,389 ) General, administrative, and other related costs $ (100,980 ) — — — — — 17,286 913 1 871 $ (81,909 ) Depreciation and amortization $ (113,438 ) — — — — 59,449 — — — — $ (53,989 ) Interest expense, net $ (12,654 ) 163 — — — — — — — — $ (12,491 ) Gain on investments, net $ 4,340 — — (4,340 ) — — — — — — $ — Other loss, net $ (8,589 ) — — — — — — — — — $ (8,589 ) Income tax expense (1) $ (12,873 ) (41 ) — — — (14,398 ) (3,821 ) (870 ) — (188 ) $ (32,191 ) Income from equity method investment, net $ 11,745 — — — (11,745 ) — — — — — $ — Expand Six months ended June 30, 2024 GAAP amount Adjustments Adjusted non-GAAP amount Interest, net (Gain) loss on sale of business (Gain) loss on investments, net (Income) loss from equity method investments, net Amortization Share-based compensation Acquisition, integration, and other costs Disposal related costs Lease asset impairments and other charges Direct costs $ (95,911 ) $ — $ — $ — $ — $ — $ 123 $ 271 $ — $ — $ (95,517 ) Sales and marketing $ (241,766 ) — — — — — 1,851 2,490 — — $ (237,425 ) Research, development, and engineering $ (34,569 ) — — — — — 2,161 1,494 40 — $ (30,874 ) General, administrative, and other related costs $ (98,015 ) — — — — — 16,337 5,848 533 843 $ (74,454 ) Depreciation and amortization $ (100,594 ) — — — — 54,280 — — — — $ (46,314 ) Interest expense, net $ (3,573 ) 16 — — — — — — — — $ (3,557 ) Loss on sale of business $ (3,780 ) — 3,780 — — — — — — — $ — Loss on investments, net $ (7,654 ) — — 7,654 — — — — — — $ — Other income, net $ 5,163 — (4,890 ) — — — — (537 ) — — $ (264 ) Income tax expense (1) $ (15,221 ) (4 ) 1,222 (577 ) — (13,016 ) (3,265 ) (3,481 ) (141 ) (186 ) $ (34,669 ) Income from equity method investment, net $ 8,172 — — — (8,172 ) — — — — — $ — Total non-GAAP adjustments $ 12 $ 112 $ 7,077 $ (8,172 ) $ 41,264 $ 17,207 $ 6,085 $ 432 $ 657 Expand ____________________ (1) Adjusted effective tax rate was approximately 23.6% for the six months ended June 30, 2024. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $34,669 and the denominator is $146,880, which equals adjusted net income of $112,211 plus adjusted income tax expense. Expand ZIFF DAVIS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED, IN THOUSANDS) The following tables set forth a reconciliation of Net cash provided by operating activities to Free cash flow: 2025 Q1 Q2 Q3 Q4 YTD Net cash provided by operating activities $ 20,613 $ 57,074 $ — $ — $ 77,687 Less: Purchases of property and equipment (25,619 ) (30,133 ) — — (55,752 ) Free cash flow $ (5,006 ) $ 26,941 $ — $ — $ 21,935 Expand Expand
