Ziff Davis posts Q2 revenue dip but cash surge after $1.2B Connectivity sale

Ziff Davis reported second‑quarter revenue of $286.7 million, a 2.7% decline year‑on‑year, while adjusted EBITDA fell 3.7% to $76.8 million. The company completed the sale of its Connectivity segment to Accenture for $1.2 billion, leaving it with $1.6 billion in cash and cash equivalents. Free cash flow doubled to $54 million and the share price rose about 10% after the results.

Chief Executive Officer Vivek Shah said the transaction was transformative and will be used to pay roughly $200 million in tax obligations and to retire $149 million of convertible debt. The firm also accelerated its share‑repurchase program, buying back 2.6 million shares in the quarter and a further 700,000 shares since July 1. CFO Bret Richter highlighted the strong balance‑sheet position, with cash exceeding debt by $734 million.