Marketing technology company Zeta Global (NYSE: ZETA) reported Q1 CY2026 results topping the market’s revenue expectations, with sales up 49.9% year on year to $396.3 million. Guidance for next quarter’s revenue was better than expected at $420.5 million at the midpoint, 0.8% above analysts’ estimates.
Is now the time to buy Zeta Global? Find out by accessing our full research report, it’s free.
Zeta Global (ZETA) Q1 CY2026 Highlights:
- Revenue: $396.3 million vs analyst estimates of $370.5 million (49.9% year-on-year growth, 7% beat)
- The company lifted its revenue guidance for the full year to $1.79 billion at the midpoint from $1.76 billion, a 1.7% increase
- EBITDA guidance for the full year is $397.3 million at the midpoint, above analyst estimates of $391.1 million
- Operating Margin: -4.8%, up from -6.1% in the same quarter last year
- Free Cash Flow Margin: 10.5%, down from 14.2% in the previous quarter
- Billings: $398.2 million at quarter end, up 53.1% year on year
- Market Capitalization: $4.35 billion
Company Overview
Powered by an AI engine that processes over one trillion consumer signals monthly, Zeta Global (NYSE: ZETA) operates a data-driven cloud platform that helps companies target, connect, and engage with consumers through personalized marketing across channels like email, social media, and video.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Zeta Global’s 29.9% annualized revenue growth over the last five years was impressive. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis.
Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. Zeta Global’s annualized revenue growth of 36.9% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
This quarter, Zeta Global reported magnificent year-on-year revenue growth of 49.9%, and its $396.3 million of revenue beat Wall Street’s estimates by 7%. Company management is currently guiding for a 36.3% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 26.7% over the next 12 months, a deceleration versus the last two years. Still, this projection is noteworthy and suggests the market is forecasting success for its products and services.
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
Zeta Global’s billings punched in at $398.2 million in Q1, and over the last four quarters, its growth was fantastic as it averaged 36.6% year-on-year increases. This alternate topline metric grew faster than total sales, meaning the company collects cash upfront and then recognizes the revenue over the length of its contracts - a boost for its liquidity and future revenue prospects. 
Customer Acquisition Efficiency
The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability.
It’s relatively expensive for Zeta Global to acquire new customers as its CAC payback period checked in at 78.6 months this quarter. The company’s slow recovery of its sales and marketing expenses indicates it operates in a competitive market. A silver lining is that once it acquires its customers, they typically don’t leave and increase their spending - a sign of high switching costs.
Key Takeaways from Zeta Global’s Q1 Results
We were impressed by how significantly Zeta Global blew past analysts’ billings expectations this quarter. We were also glad its EBITDA outperformed Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The stock traded up 6.4% to $19.66 immediately following the results.
Zeta Global put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
