Zeta Global Holdings Corp. (ZETA): A Bull Case Theory

We came across a bullish thesis on Zeta Global Holdings Corp. on RS Capital’s Substack by Riyado Sofian. In this article, we will summarize the bulls’ thesis on ZETA. Zeta Global Holdings Corp.'s share was trading at $19.47 as of January 28th. ZETA’s forward P/E was 20.92 according to Yahoo Finance.

Zeta Global Holdings Corp. operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally. ZETA reported its 17th consecutive beat-and-raise quarter, reinforcing management’s execution strength and underscoring why the stock remains a high-conviction holding.

Revenue reached a record $337 million, up 26% year over year, despite tough political advertising comps and the lapping of the LiveIntent acquisition. While headline growth appears to be moderating, underlying core revenue accelerated to 28% year-over-year when excluding the effects of political activity and M&A, highlighting sustained demand for Zeta’s platform.

Customer dynamics further validate the land-and-expand strategy, with Super Scaled Customers growing sequentially as smaller clients graduate into higher-revenue tiers, driving long-term monetization. Profitability continues to inflect meaningfully, as operating leverage pushed adjusted EBITDA up 46% year over year to a record 23% margin, while dilution declined and free cash flow surged 83%, positioning the company as an emerging cash flow compounder. Management once again raised full-year guidance and issued conservative initial 2026 guidance, which notably excludes contributions from the pending Marigold acquisition that is expected to lift revenue and earnings materially.

Beyond the numbers, Zeta is entering a new growth phase driven by multiple catalysts, including the upcoming commercialization of Athena, its AI-powered conversational agent, record deal pipeline momentum from Zeta Live, expanding multi-channel adoption through the OneZeta model, and increasing success winning larger enterprise contracts against legacy competitors.

With a net cash balance, accelerating free cash flow, a newly expanded buyback program, and valuation at just 13.9x forward EV/EBITDA, the stock reflects little of this momentum. As continued execution, upward estimate revisions, and strategic catalysts unfold, Zeta appears positioned for a significant rerating, supporting the view that the shares remain deeply undervalued with substantial upside over the next several years.

Previously, we covered a bullish thesis on Zeta Global Holdings Corp. (ZETA) by jasmichelle7 in January 2025, which highlighted the company’s rebound potential following a short report, strong AI-driven marketing platform, and improving cash flow profile. ZETA’s stock price has appreciated by approximately 3.89% since our coverage due to consistent earnings beats. Riyado Sofian shares a similar view but emphasizes operating leverage, guidance momentum, and AI-led catalysts driving a rerating.

Zeta Global Holdings Corp. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held ZETA at the end of the third quarter which was 34 in the previous quarter. While we acknowledge the potential of ZETA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.