Zeta Global spent $42.2 million on research and development in the three months ended June 30, up 38.1% from the comparable period. That is a big bill, but it grew more slowly than revenue, which climbed 43.5% to $442.8 million.
The surface reading is straightforward: Zeta is growing quickly and putting profit on the scoreboard. Operating margin moved from negative 1.7% to 3.8%, while net income went from a $12.8 million loss to an $8.2 million profit.
The balance sheet also shows movement during the transition. Accounts receivable rose 30.3% to $327.1 million, faster than the company’s cash balance moved in the other direction. Cash fell 15.2% to $310.0 million. The company also repurchased $55.6 million of stock during the first six months of 2026, according to its cash-flow discussion, so the filing shows both a shrinking cash pile and a larger share count in the latest three-month period.
Zeta’s own explanation for the working-capital movement is detailed rather than dramatic. The cash-flow section compares six-month periods and points to receivables, lower accrued expenses, lower accounts payable, lower deferred revenue, and acquisition-related payments.
"Changes in operating assets and liabilities were primarily driven by increases in accounts receivable of $19.1 million and other current assets of $0.7 million and decreases in deferred revenue of $6.5 million and accrued expenses and other current liabilities of $3.5 million, partially offset by an increase in accounts payable of $2.7 million and other non-current liabilities of $1.2 million and decreases in prepaid expenses of $1.9 million."
Zeta Global, 10-Q filed August 5, 2026
In plain English, more of the reported business sat in receivables during that six-month comparison, while several liabilities declined. The filing does not turn that accounting movement into a broader explanation of customer payment timing.
The expense base is still moving too. Zeta attributed one increase in sales and marketing costs to employee-related spending, stock compensation, and other sales and marketing expenses.
"This increase was primarily driven by higher employee-related costs of $12.3 million, stock-based compensation of $1.0 million and other sales and marketing-related expenses of $4.3 million."
Zeta Global, 10-Q filed August 5, 2026
The expense increase accompanied a 43.5% revenue increase and a 3.8% operating margin. Stock compensation was $52.1 million for the latest three-month period, up 12.1%, and diluted shares increased 18.1% to 256.6 million. Zeta made it into the black, but more shares were participating in the result.
The annual backdrop makes the latest margin number notable without settling the question. Zeta’s operating margin was 0.4% in 2025, after years of losses, so 3.8% in the latest three-month period is higher. At the latest close of $24.23, the company carried a $5.3 billion market capitalization and a 4.0x enterprise-value-to-sales ratio, numbers that leave the filing’s profit conversion relevant to how the business is read.
Zeta’s next quarterly report should provide the next factual checkpoint: whether accounts receivable and cash moved in the same directions again, and how the diluted share count changed alongside net income.
Zeta’s latest filing shows rapid growth, emerging profit, and a cash-conversion question in the same three-month period.