Zedge (ZDGE) Company Report

Zedge reported Q1 2026 revenue of $7.6 million, an increase of 5.8% year-over-year, driven by strong Zedge marketplace performance, with subscription revenue up 29% and active subscribers growing 54% to nearly 1.1 million.
The company achieved GAAP net income of $0.8 million (EPS of $0.06) and Adjusted EBITDA of $1.2 million, reflecting significant improvement from prior year losses, primarily due to restructuring savings.
Data Seeds, an emerging enterprise business, is gaining traction, securing a second order from an existing AI sector customer approximately 25 times the value of the original Q4 FY25 order, though Data Seeds revenue was insignificant in Q1 2026.
Zedge maintained a strong liquidity position with $18.5 million in cash and no debt, repurchased approximately 240,000 Class B shares, and paid its first quarterly dividend.
Free cash flow was $0.6 million for the quarter, negatively impacted by a $350,000 cash outflow for tax withholding payments related to restructuring compensation, which are not expected to recur.

Dec 12, 2025, 4:00 PM

Transcript

Zedge Reports Q1 2026 Revenue Growth and Strong Subscription Performance

ZDGE

Earnings

Revenue Acceleration/Inflection

New Projects/Investments

Zedge reported Q1 2026 total revenue of $7.6 million, an increase of 5.8% year-over-year, primarily driven by strong Zedge marketplace performance, which offset declines in Emojipedia and GuruShots.
The company achieved GAAP net income of $0.8 million and non-GAAP net income of $0.9 million for Q1 2026, with Adjusted EBITDA reaching $1.2 million.
Zedge Plus subscription revenue increased 29% year-over-year, with the net active subscriber base growing 54% to nearly 1.1 million.
Zedge is experiencing traction with its Data Seeds offering, securing a second order from an existing AI sector customer that was approximately 25 times larger than the initial order, and has a robust pipeline of prospective customers.
Zedge ended the quarter with $18.5 million in cash and no debt, repurchased 240,000 Class B shares, and paid its first quarterly dividend.

Dec 12, 2025, 4:00 PM

Transcript

Zedge Reports Q1 2026 Results with Revenue Growth and Strong Subscription Performance

ZDGE

Earnings

Revenue Acceleration/Inflection

New Projects/Investments

Zedge reported Q1 2026 revenue of $7.6 million, an increase of 5.8% year-over-year, with GAAP net income of $0.8 million and non-GAAP EPS of $0.07.
The Zedge Marketplace demonstrated strong growth, driven by a 29% increase in subscription revenue and a 54% rise in net active subscribers to nearly 1.1 million, offsetting anticipated declines in Emojipedia and GuruShots.
The company's new enterprise initiative, DataSeeds, is gaining traction, with a second order from an existing AI customer being approximately 25 times larger than the initial order, and a robust pipeline of prospective customers.
Zedge maintained a strong liquidity position with $18.5 million in cash and no debt, and repurchased 240,000 Class B shares during the quarter, with $600,000 remaining under the current buyback authorization.

Dec 12, 2025, 4:00 PM

Transcript

Zedge Reports Strong Q1 Fiscal 2026 Performance

ZDGE

Earnings

Dividends

Share Buyback

Zedge reported a strong start to fiscal 2026, with first-quarter revenue increasing 5.6% to 5.8% to approximately $7.6 million.
The company achieved profitability with net income of $0.788 million and earnings per share of $0.06 in Q1 fiscal 2026, a significant improvement from a net loss in the prior year.
Active subscriptions saw over 50% year-over-year growth, reaching approximately 1.1 million, and subscription revenue rose by 29%.
Zedge demonstrated confidence in its strategy by initiating a share repurchase program, buying back 240,000 Class B shares, and issuing its first quarterly dividend.
Despite a high gross margin of 93.74%, Zedge faces challenges with its net margin and an Altman Z-Score of 2.38, indicating some financial stress.

Dec 12, 2025, 11:40 AM

Morningstar

Zedge Reports First Quarter Fiscal 2026 Results

ZDGE

Earnings

Share Buyback

Dividends

Zedge, Inc. reported revenue of $7.6 million for the first quarter of fiscal 2026, an increase of 5.8% year-over-year, with GAAP diluted EPS of $0.06 and Non-GAAP diluted EPS of $0.07.
Active subscriptions reached a record 1.1 million, growing 54% year-over-year, contributing to a 29% year-over-year increase in subscription revenue and a 29.2% increase in ARPMAU to $0.099.
The company repurchased approximately 240,000 shares of Class B Common Stock and paid its first quarterly dividend.

Dec 12, 2025, 11:30 AM

8-K

Zedge Reports Fiscal 2025 Results with Subscription Growth and Shareholder Returns

ZDGE

Earnings

Dividends

Share Buyback

Zedge Inc. reported a 47% year-over-year increase in active subscriptions to nearly 1 million and a 21% rise in subscription revenue for fiscal 2025, despite an overall revenue decline of 1.5% for the fourth quarter and 2.3% for the full year.
The company's net loss for the fourth quarter was $0.559 million, resulting in a basic and diluted loss per share of $0.04.
For the full fiscal year, Zedge's net loss significantly reduced to $2.39 million from $9.17 million the previous year, with a basic and diluted loss per share of $0.17.
Zedge repurchased approximately 1.1 million shares for $3.33 million during the fiscal year, including 640,000 shares valued at $2.1 million between May 1 and July 31, 2025.
The company initiated its first quarterly dividend at $0.016 per share, reflecting management's confidence in its financial stability.

Oct 28, 2025, 10:49 AM

Morningstar

Zedge, Inc. Reports Fourth Quarter and Full Year Fiscal 2025 Results

ZDGE

Earnings

Share Buyback

New Projects/Investments

For the fourth quarter of fiscal 2025, Zedge, Inc. reported revenue of $7.5 million and a GAAP net loss of ($0.6) million, resulting in a GAAP diluted EPS of ($0.04). For the full fiscal year 2025, revenue was $29.4 million and GAAP net loss was ($2.4) million, with a GAAP diluted EPS of ($0.17).
Active subscriptions reached a record 984K, marking a 47% year-over-year increase, and subscription revenue grew 21% year-over-year in Q4 fiscal 2025. Average Revenue Per Monthly Active User (ARPMAU) also increased 16.9% in Q4 fiscal 2025.
Zedge repurchased approximately 640,000 shares of its common stock during Q4 and a total of 1.3 million shares for the full fiscal year 2025. The company also ended fiscal 2025 with approximately $19 million in cash and no debt.
The company introduced new AI features across its platforms, developed new products including Tapedeck and Syncat, and expanded into the enterprise market with DataSeeds.AI.