Zedge Inc【ZDGE】株式ニュース

Zedge Reports Third Quarter Fiscal 2026 ResultsJune 11, 2026 4:10 PM
ACCESS NewswireSubscription revenue increased 32%, and active subscriptions1 grew 41% to nearly 1.3 millionARPMAU1 for the Zedge Marketplace increased 21% to $0.119; Zedge Premium GTV1 increased 17%GAAP net income of $0.9 million; free cash flow2 increased 55% year over yearDataSeeds.AI fulfilled first six-figure order, demonstrating enterprise-scale execution capabilityNEW YORK, NY / ACCESS Newswire / June 11, 2026 / Zedge, Inc. (NYSE American:ZDGE), $ZDGE, a company that builds and operates creator communities serving 20 million monthly active users, today announced results for its third quarter fiscal 2026, ended April 30, 2026.Jonathan Reich, Zedge's CEO, commented:"In our third quarter, we continued to demonstrate that the core Zedge Marketplace business is resilient and becoming more efficient. Subscription revenue grew 32% year over year, and active subscriptions reached nearly 1.3 million, both continuing a multi-quarter trend. ARPMAU increased 21%, and Zedge Premium GTV increased 17%, reflecting the benefits of our ongoing focus on acquiring and retaining higher-value users. While total advertising revenue declined year over year, that decline was entirely attributable to Emojipedia, which we are managing for overall return in light of Google's changes to its search results page. Within the Zedge Marketplace, advertising revenue was essentially flat year over year, a resilient result given that the prior year benefited from a one-time integration bonus from an ad platform partner. Encouragingly, iOS revenue within the Zedge Marketplace grew 35% year over year, reinforcing our message that, as we attract and monetize higher-value users in premium markets, the quality of our revenue continues to improve."On the DataSeeds.AI front, I am excited to report that we fulfilled our first six-figure order this quarter stemming from an existing customer relationship with a leading technology company. At the same time, we are beginning to see interest from new prospects, which strengthens our confidence in this offernig. This milestone reflects our growing capacity to deepen customer relationships and scale production. While revenue remains lumpy at this stage, successfully delivering projects of this size, on spec and within tight timeframes, is a necessary capability for DataSeeds' future growth."Our Innovation Team continues to advance - with four alpha products now live, and we remain on track to achieve our goal of six alpha launches this fiscal year. Our framework remains consistent: pre-validate, build fast, measure against clear KPIs and invest in the winners while quickly ceasing to spend on those that do not meet our criteria. Each launch compounds the next, as reusable infrastructure and lessons from prior releases shorten our time-to-market."Financially, cash flow from operations increased over 40%, while free cash flow increased 55% year over year to $1.2 million and is now up 10% year to date, and our cash and cash equivalents balance strengthened to $19.7 million with no debt. We also increased our quarterly dividend by 25% during the quarter, opportunistically repurchased shares when conditions warranted and invested in innovation, all without compromising our strong balance sheet. Subsequent to quarter's end, our board added $2 million to our existing share repurchase authorization, bringing total available capacity to approximately $2.2 million, reflecting our continued confidence in the value of our shares."Third Quarter Highlights (fiscal 2026 versus fiscal 2025)Revenue increased 3.0% to $8.0 million;GAAP operating income of $1.1 million, compared to $0.2 million;GAAP net income and diluted EPS of $0.9 million and $0.07, compared to $0.2 million and $0.01, respectively;Non-GAAP net income and diluted Non-GAAP EPS of $1.0 million and $0.07, compared to $0.9 million and $0.06, respectively;Free cash flow of $1.2 million, compared to $0.8 million;Adjusted EBITDA2 of $1.3 million, compared to $1.2 million;ARPMAU increased 21.2% to $0.119;Zedge Premium GTV increased 16.6%;Active subscriptions increased 40.6% to nearly 1.3 million;Deferred revenue of $6.2 million, up 25.7% year over year;Cash and cash equivalents were $19.7 million at quarter's end;Paid a quarterly dividend of $0.02 per share.Third Quarter Select Financial Metrics: FY26 versus FY25*($ in MM except for per share amounts) Q3 '26 Q3 '25 Change YTD '26 YTD '25 Change Total Revenue $8.0 $7.8 3.0% $23.9 $21.9 8.8%Advertising Revenue $5.4 $5.6 -4.0% $16.1 $15.1 6.1%Digital Goods and Services Revenue $0.5 $0.5 6.9% $1.5 $1.7 -12.3%Subscription Revenue $1.7 $1.3 31.9% $4.8 $3.7 31.1%Other Revenue $0.5 $0.4 4.6% $1.4 $1.4 4.9%GAAP Operating Income (Loss) $1.1 $0.2 571.3% $(0.9) $(2.5) 64.1%Operating Margin 13.4% 2.1% -3.8% -11.5% GAAP Net Income (Loss) $0.9 $0.2 400.5% $(0.6) $(1.8) 68.7%GAAP Diluted EPS $0.07 $0.01 600.0% $(0.05) $(0.13) 61.5%Non-GAAP Net Income $1.0 $0.9 12.0% $2.6 $0.6 322.6%Non-GAAP Diluted EPS $0.07 $0.06 17.7% $0.20 $0.04 342.1%Cash Flow from Operations $1.2 $0.9 40.3% $2.9 $2.7 5.7%Free Cash Flow $1.2 $0.8 54.9% $2.6 $2.4 9.7%Adjusted EBITDA $1.3 $1.2 1.0% $3.6 $1.5 146.6%Shares Repurchased (M) 0.08 0.22 0.33 0.68 nm = not measurable/meaningful
*percentages are based off of actuals versus the rounded numbers in the tableSelect Zedge Marketplace Metrics: FY26 versus FY25*(in MM except ARPMAU and where noted) Q3 '26 Q3 '25 Change MAU 19.6 22.1 -11.3%Well-Developed Markets 4.3 5.2 -17.3%Emerging Markets 15.3 16.9 -9.5%Active Subscriptions (in 000s) 1,260 896 40.6%ARPMAU $0.119 $0.099 21.2%Zedge Premium GTV $0.72 $0.61 16.6%*percentages are based off of actuals versus the rounded numbers in the tableNon-GAAP and Supplemental Metrics (Please see our 10-Q for full explanation of these terms)1 We use the following supplemental business metrics in this release because we believe they are useful in evaluating Zedge's operational performance.Monthly active users, or MAU, captures the number of unique users that used our Zedge App during the previous 30 days of the relevant period, is useful for evaluating consumer engagement with our App, which correlates to advertising revenue as more users drive more ad impressions.Zedge Premium Gross Transaction Value, or GTV, is the total dollar amount of transactions conducted through Zedge Premium. As Zedge Premium is an internal focus for growth, we believe this metric will help investors evaluate our progress in growing this part of our business.Average Revenue Per Monthly Active User for our Zedge Marketplace, or ARPMAU, is useful in evaluating how well we monetize our user base.An Active Subscription is a subscription that has commenced and not been canceled, including paused subscriptions and subscriptions in free trials, grace periods, or account hold. This is important because it is a source of recurring revenue.2 Throughout this release, Non-GAAP Net Income, Non-GAAP EPS, Free Cash Flow (FCF) and Adjusted EBITDA are non-GAAP financial measures intended to provide useful information that supplements Zedge's results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measures at the end of this release for an explanation of Zedge's formulations of Non-GAAP Net Income, Non-GAAP EPS, Free Cash Flow and Adjusted EBITDA and reconciliations to the most directly comparable GAAP measures. Trended Financial Information*(in M except for EPS, ARPMAU, Paid Subscriptions) Q125 Q225 Q325 Q425 Q126 Q226 Q326 FY24 FY25 YTD FY26 Total Revenue $7.2 $7.0 $7.8 $7.5 $7.6 $8.3 $8.0 $30.1 $29.4 $23.9 Advertising Revenue $4.9 $4.7 $5.6 $5.2 $5.2 $5.6 $5.4 $21.0 $20.3 $16.1 Digital Goods and Services Revenue $0.6 $0.6 $0.5 $0.5 $0.5 $0.5 $0.5 $3.5 $2.2 $1.5 Subscription Revenue $1.2 $1.2 $1.3 $1.4 $1.5 $1.6 $1.7 $4.3 $5.1 $4.8 Other Revenue $0.5 $0.4 $0.4 $0.4 $0.5 $0.5 $0.5 $1.2 $1.8 $1.4 GAAP Operating Income (Loss) $(0.5) $(2.2) $0.2 $(0.7) $0.9 $(2.9) $1.1 $(11.8) $(3.2) $(0.9)GAAP Net Income (Loss) $(0.3) $(1.7) $0.2 $(0.6) $0.8 $(2.3) $0.9 $(9.2) $(2.4) $(0.6)GAAP Diluted EPS (Loss per share) $(0.02) $(0.12) $0.01 $(0.04) $0.06 $(0.18) $0.07 $(0.65) $(0.17) $(0.05)Non GAAP Net Income (Loss) $(0.0) $(0.2) $0.9 $0.1 $0.9 $0.8 $1.0 $1.8 $0.7 $2.6 Non-GAAP Diluted EPS (Loss per share) $(0.00) $(0.01) $0.06 $0.00 $0.07 $0.06 $0.07 $0.13 $0.05 $0.20 Cash Flow from Operations $1.2 $0.7 $0.9 $0.7 $0.8 $0.9 $1.2 $5.9 $3.4 $2.9 Free Cash Flow $1.0 $0.6 $0.8 $0.5 $0.6 $0.8 $1.2 $4.7 $2.9 $2.6 Adjusted EBITDA $0.3 $(0.1) $1.2 $0.3 $1.2 $1.1 $1.3 $4.7 $1.8 $3.6 Adjusted EBITDA Margin 4.0% -1.1% 16.1% 4.1% 15.6% 13.9% 15.8% 15.6% 6.0% 15.1%MAU 25.0 24.7 22.1 23.2 22.2 20.4 19.6 nm nm nm Well-developed Markets 5.5 5.6 5.2 5.4 4.9 4.8 4.3 nm nm nm Emerging Markets 19.5 19.1 16.9 17.8 17.3 15.6 15.3 nm nm nm Active Subscriptions (in 000s) 698 791 896 984 1,075 1,175 1,260 nm nm nm ARPMAU $0.077 $0.078 $0.099 $0.093 $0.099 $0.115 $0.119 nm nm nm Zedge Premium - GTV $0.68 $0.68 $0.61 $0.64 $0.66 $0.79 $0.72 $2.15 $2.62 $2.16 Shares Repurchased 0.22 0.24 0.22 0.64 0.24 0.01 0.08 0.21 1.32 0.33 nm = not measurable/meaningful
*numbers may not add due to roundingEarnings Announcement and Supplemental InformationManagement will host an earnings conference call today at 4:30 pm Eastern to discuss its earnings results, outlook, and strategy, followed by a Q&A session with investors.Live Call-in Info:Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 184704
Webcast URL: https://www.webcaster5.com/Webcast/Page/2205/53991Replay:Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 53991About ZedgeZedge builds and operates creator communities that serve 20 million monthly active users across its platforms. Zedge Marketplace, our flagship platform, is a leading marketplace for mobile personalization content that powers a vibrant creator ecosystem including a full generative AI creation suite. DataSeeds.AI is our B2B business, delivering managed, multimodal datasets that are ethically sourced, rights-cleared, built to spec and delivered at scale to frontier AI developers. The content foundation for DataSeeds.AI is supplied by Zedge's proprietary creator communities, including Zedge Marketplace contributors and photo competition community GuruShots, the world's most popular photo competition game, which is supplemented by crowdsourced content. For more information please visit: investor.zedge.netFollow us on X: @ZedgeFollow us on LinkedInForward-Looking StatementsAll statements above that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate," "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.Contact:Brian Siegel, IRC, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
brian@haydenir.com
ir@zedge.net CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value data) April 30, July 31, 2026 2025 (Unaudited) Assets Current assets: Cash and cash equivalents $19,692 $18,609 Trade accounts receivable 3,908 3,164 Prepaid expenses and other current assets 799 671 Total Current assets 24,399 22,444 Property and equipment, net 1,224 1,290 Intangible assets, net 1,065 4,922 Goodwill 2,138 1,931 Deferred tax assets, net 5,041 4,823 Other assets 437 244 Total assets $34,304 $35,654 Liabilities and stockholders' equity Current liabilities: Trade accounts payable $1,258 $1,471 Accrued expenses and other current liabilities 2,178 2,867 Deferred revenues 4,159 3,425 Total Current liabilities 7,595 7,763 Deferred revenues--non-current 1,998 1,937 Other liabilities 153 53 Total liabilities 9,746 9,753 Commitments and contingencies (Note 9) Stockholders' equity: Preferred stock, $.01 par value; authorized shares-2,400; no shares issued and outstanding - - Class A common stock, $.01 par value; authorized shares-2,600; 525 shares issued and outstanding at April 30, 2026 and July 31, 2025 5 5 Class B common stock, $.01 par value; authorized shares-40,000; 15,238 shares issued and 12,523 outstanding at April 30, 2026 and 15,073 shares issued and 12,692 shares outstanding at July 31, 2025 152 151 Additional paid-in capital 49,676 49,768 Accumulated other comprehensive loss (1,057) (1,509)Accumulated deficit (16,080) (15,505)Treasury stock, 2,715 shares at April 30, 2026 and 2,381 shares at July 31, 2025, at cost (8,138) (7,009)Total stockholders' equity 24,558 25,901 Total liabilities and stockholders' equity $34,304 $35,654 ZEDGE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per share data)
(unaudited) Three Months Ended Nine Months Ended April 30, April 30, 2026 2025 2026 2025 Revenues $7,992 $7,757 $23,856 $21,930 Costs and expenses: Direct cost of revenues (excluding amortization of capitalized software and technology development costs which is included below) 550 452 1,651 1,360 Selling, general and administrative 6,235 6,343 18,848 20,278 Depreciation and amortization 133 225 536 924 Impairment of intangible assets - - 3,570 - Restructuring charges - 577 - 1,058 Impairment of capitalized software and technology development costs - - 145 827 Income (loss) from operations 1,074 160 (894) (2,517)Interest and other income, net 135 154 403 507 Net loss resulting from foreign exchange transactions (26) (41) (211) (141)Income (loss) before income taxes 1,183 273 (702) (2,151)Income tax expense (benefit) 257 88 (127) (318)Net income (loss) $926 $185 $(575) $(1,833)Other comprehensive income: Changes in foreign currency translation adjustment 117 448 452 287 Total other comprehensive income 117 448 452 287 Total comprehensive income (loss) $1,043 $633 $(123) $(1,546)Income (loss) per share attributable to Zedge, Inc. common stockholders: Basic $0.07 $0.01 $(0.04) $(0.13)Diluted $0.07 $0.01 $(0.04) $(0.13)Weighted-average number of shares used in calculation of income (loss) per share: Basic 13,002 13,720 12,992 13,835 Diluted 13,272 13,940 12,992 13,835 ZEDGE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited) Nine Months Ended April 30, 2026 2025 Operating activities Net loss $(575) $(1,833)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation 43 48 Amortization of intangible assets 286 335 Amortization of capitalized software and technology development costs 207 541 Stock-based compensation 457 1,308 Impairment charge of capitalized software and technology development costs 145 827 Impairment charge of intangible assets 3,570 - Deferred income taxes (218) (184)Change in assets and liabilities: Trade accounts receivable (744) 87 Prepaid expenses and other current assets (128) (353)Other assets (42) (54)Trade accounts payable and accrued expenses (892) 229 Deferred revenues 795 1,797 Net cash provided by operating activities 2,904 2,748 Investing activities Capitalized software and technology development costs (278) (329)Purchase of property and equipment (26) (49)Net cash used in investing activities (304) (378)Financing activities Purchase of treasury stock in connection with share buyback program and stock awards vesting (1,129) (2,030)Payment of cash dividends (677) - Proceeds from exercise of stock options 129 - Net cash used in financing activities (1,677) (2,030)Effect of exchange rate changes on cash and cash equivalents 160 95 Net increase in cash and cash equivalents 1,083 435 Cash and cash equivalents at beginning of period 18,609 19,998 Cash and cash equivalents at end of period $19,692 $20,433 Supplemental cash flow information: Cash paid for income taxes $176 $194 Non-cash operating and financing activities: ROU assets obtained in exchange for lease liabilities $286 $111 Use of Non-GAAP Measures and Key Performance Indcators (KPI)Adjusted EBITDA, defined as earnings (loss) before interest, taxes, depreciation and amortization, stock compensation expense, transaction-related expenses and other non-recurring expenses, Free Cash Flow, a common metric used by investors for valuation, and non-GAAP net income (loss) and EPS (or loss per share) (which adjust out stock compensation expense, transaction-related expenses and other non-recurring expenses from GAAP net income (loss) and EPS (loss pershare)), represent measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures we present. Our management also believes these measures are useful in evaluating our core operating results. However, these are not measures of financial performance under GAAP and should not be considered an alternative to net income or operating income/margin as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity. Numbers in the following reconciliation tables may not add due to rounding.Reconciliation of Adjusted EBITDA to Net Income (Loss) Q125 Q225 Q325 Q425 Q126 Q226 Q326 FY24 FY25 YTD FY26 Net Income (Loss) $(0.3) $(1.7) $0.2 $(0.6) $0.8 $(2.3) $0.9 $(9.2) $(2.4) $(0.6)Excluding: Interest and other income (expense), net $(0.2) $(0.2) $(0.2) $(0.2) $(0.2) $(0.1) $(0.1) $(0.6) $(0.7) $(0.4)Income tax expense (benefit) $0.0 $(0.5) $0.1 $(0.0) $0.2 $(0.6) $0.3 $(2.2) $(0.3) $(0.1)Depreciation and amortization $0.4 $0.3 $0.2 $0.2 $0.2 $0.2 $0.1 $2.5 $1.1 $0.5 EBITDA $(0.1) $(2.0) $0.3 $(0.5) $1.1 $(2.8) $1.2 $(9.5) $(2.2) $(0.6)Adjustments: Asset impairments and restructuring charges $0.0 $1.3 $0.6 $0.6 $0.0 $3.7 $0.0 $12.0 $2.5 $3.7 Stock-based compensation $0.4 $0.6 $0.3 $0.1 $0.1 $0.3 $0.1 $2.1 $1.4 $0.5 Expenses related to restructuring activities and business combination $0.0 $0.0 $0.0 $0.1 $0.0 $0.0 $0.0 $0.2 $0.1 $0.0 Adjusted EBITDA $0.3 $(0.1) $1.2 $0.3 $1.2 $1.1 $1.3 $4.7 $1.8 $3.6 *numbers may not add due to roundingReconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income Q125 Q225 Q325 Q425 Q126 Q226 Q326 FY24 FY25 YTD FY26 GAAP Net Income (Loss) $(0.3) $(1.7) $0.2 $(0.6) $0.8 $(2.3) $0.9 $(9.2) $(2.4) $(0.6)Adjustments: Asset impairments and restructuring charges $0.0 $1.3 $0.6 $0.6 $0.0 $3.7 $0.0 $12.0 $2.5 $3.7 Stock-based compensation $0.4 $0.6 $0.3 $0.1 $0.1 $0.3 $0.1 $2.1 $1.4 $0.5 Expenses related to restructuring activities and business combination $0.0 $0.0 $0.0 $0.1 $0.0 $0.0 $0.0 $0.2 $0.1 $0.0 Income tax effect on non-GAAP items $(0.1) $(0.4) $(0.2) $(0.2) $(0.0) $(0.9) $(0.0) $(3.3) $(0.9) $(1.0)Non-GAAP Net Income (Loss) $(0.0) $(0.2) $0.9 $0.1 $0.9 $0.8 $1.0 $1.8 $0.7 $2.6 Non-GAAP basic EPS (loss per share) $(0.00) $(0.01) $0.06 $0.00 $0.07 $0.06 $0.08 $0.13 $0.05 $0.20 Non-GAAP diluted EPS (loss per share) $(0.00) $(0.01) $0.06 $0.00 $0.07 $0.06 $0.07 $0.13 $0.05 $0.20 Weighted average shares used to compute Non-GAAP basic earnings per share 14.1 13.9 13.7 13.4 13.0 13.0 13.0 14.1 13.7 13.0 Weighted average shares used to compute Non-GAAP diluted earnings per share 14.1 13.9 13.9 13.4 13.3 13.0 13.3 14.1 13.7 13.3 *numbers may not add due to roundingFree Cash Flow Calculation Q125 Q225 Q325 Q425 Q126 Q226 Q326 FY24 FY25 YTD FY26 Cash Flow from Operations $1.2 $0.7 $0.9 $0.7 $0.8 $0.9 $1.2 $5.9 $3.4 $2.9 Capital Expenditures $0.2 $0.1 $0.1 $0.2 $0.2 $0.1 $0.0 $1.2 $0.5 $0.3 Free Cash Flow $1.0 $0.6 $0.8 $0.5 $0.6 $0.8 $1.2 $4.7 $2.9 $2.6 SOURCE: Zedge, Inc.View the original press release on ACCESS NewswireOriginal: Zedge Reports Third Quarter Fiscal 2026 Results

Zedge Reports Second Quarter Fiscal 2026 ResultsMarch 12, 2026 4:10 PM
ACCESS NewswireRecord quarterly results across total revenue, advertising and subscription revenue, active subscriptions1, ARPMAU1, Zedge Premium GTV1Revenue increased 18% year over year to $8.3 millionSubscription revenue increased 33%, and active subscriptions grew 49% to nearly 1.2 millionARPMAU increased 48% to a quarterly record of $0.115; Zedge Premium GTV increased 16%NEW YORK CITY, NY / ACCESS Newswire / March 12, 2026 / Zedge, Inc. (NYSE AMERICAN:ZDGE), $ZDGE, a leader in digital marketplaces and interactive games that provide content, enable creativity, empower self-expression and facilitate community, today announced results for its second quarter fiscal 2026, ended January 31, 2026.Jonathan Reich, Zedge's CEO, commented:"We delivered a strong second quarter, highlighted by record monetization performance in the Zedge Marketplace. Revenue increased 18% year over year, driven by seasonal strength combined with strong advertising and subscription optimization. Subscription revenue increased 33%, active subscriptions reached a record 1.2 million, ARPMAU increased 48% to a record $0.115 and Zedge Premium GTV also reached a new quarterly high. These results reflect continued improvement in the quality of our revenue and our ability to monetize our audience more effectively, even as overall MAU1 trended lower."Innovation remains a central focus across the organization. Within our current portfolio, we are excited by the prospects for DataSeeds as the demand for high-quality AI training data is substantial and not likely to slow down any time soon. DataSeeds continues to generate interest from both new and existing customers, including repeat customers placing larger orders. While revenue remains early-stage and lumpy given the limited number of deals, the pipeline is expanding, and we are investing thoughtfully to support that growth."For Tapedeck, we are currently focusing on expanding the music catalog. Separately, our Innovation Team recently launched two new alpha products as part of our commitment to introduce up to six alphas this fiscal year, placing us halfway toward that goal. Our framework is disciplined - launch quickly, measure performance against clear thresholds and invest behind the opportunities that demonstrate traction This approach increases our shots on goal while maintaining thoughtful capital allocation."Financially, free cash flow2 increased 31% year over year to $0.8 million. Cash and cash equivalents increased sequentially to $19.1 million. We continue to operate with no debt, and we are now paying a quarterly dividend, reflecting confidence in our cash generation while continuing to invest in innovation."Second Quarter Highlights (fiscal 2026 versus fiscal 2025)Revenue increased 18.3% to $8.3 million;GAAP operating loss of ($2.9) million, compared to a loss of ($2.2) millionGAAP operating loss included a ($3.7) million asset impairment charge related to Emojipedia in the second quarter of fiscal 2026 and ($1.3) million in restructuring charges in the prior year's quarter;GAAP net loss and diluted loss per share (EPS) of ($2.3) million and ($0.18), compared to a net loss of ($1.7) million and ($0.12) per share;Non-GAAP net income2 and diluted EPS2 of $0.8 million and $0.06, compared to a non-GAAP net loss and EPS of ($0.2) million and ($0.01);Free cash flow of $0.8 million, compared to $0.6 million;Adjusted EBITDA2 of $1.1 million, compared to ($0.1) million;ARPMAU increased 47.6%;Zedge Premium GTV increased 15.7%;Active subscriptions increased 48.5% to 1.2 million;Cash and cash equivalents were $19.1 million at quarter's end;Paid a quarterly dividend of $0.016 per share.Second Quarter Select Financial Metrics: FY26 versus FY25*(in M except for EPS) Q2 '26 Q2 '25 Change 1H'26 1H'25 Change Total Revenue $8.3 $7.0 18.3% $15.9 $14.2 11.9%Advertising Revenue $5.6 $4.7 18.3% $10.7 $9.6 12.1%Digital Goods and Services Revenue $0.5 $0.6 -11.5% $1.0 $1.3 -19.6%Subscription Revenue $1.6 $1.2 32.5% $3.2 $2.4 30.6%Other Revenue $0.5 $0.4 19.6% $1.0 $0.9 5.0%GAAP Operating Income (Loss) $(2.9) $(2.2) -30.3% $(2.0) $(2.7) 26.1%Operating Margin -35.0% -31.8% -12.5% -18.9% GAAP Net Income (Loss) $(2.3) $(1.7) -36.3% $(1.5) $(2.0) 25.7%GAAP Diluted EPS (Loss per share) $(0.18) $(0.12) -50.0% $(0.12) $(0.14) 14.3%Non-GAAP Net Income (loss) $0.8 $(0.2) 476.6% $1.7 $(0.3) 744.7%Non- GAAP Diluted EPS (loss per share) $0.06 $(0.01) 503.7% $0.13 $-0.02 782.5%Cash Flow from Operations $0.9 $0.7 21.2% $1.7 $1.9 -10.4%Free Cash Flow $0.8 $0.6 31.2% $1.4 $1.6 -11.5%Adjusted EBITDA $1.1 $(0.1) 1580.7% $2.3 $0.2 1009.1%Shares Repurchased 0.01 0.24 -95.7% 0.25 0.46 -46.4%nm = not measurable/meaningful
*numbers/percentages are based off of actuals versus the rounded numbers in the tableSelect Zedge Marketplace Metrics: FY26 versus FY25*(in MM except for ARPMAU and where noted) Q2 '26 Q2 '25 Change MAU 20.4 24.7 -17.4%Well-Developed Markets 4.8 5.6 -14.3%Emerging Markets 15.6 19.1 -18.3%Active Subscriptions (in 000s) 1,175 791 48.5%ARPMAU $0.115 $0.078 47.6%Zedge Premium - Gross Transaction Value (GTV) $0.79 $0.68 15.7%*numbers/percentages are based off of actuals versus the rounded numbers in the table1 We use the following supplemental business metrics in this release because we believe they are useful in evaluating Zedge's operational performance.Monthly active users, or MAU, captures the number of unique users that used our Zedge App during the previous 30 days of the relevant period, is useful for evaluating consumer engagement with our App, which correlates to advertising revenue as more users drive more ad impressions for sale. It also allows readers and potential advertisers to evaluate the size of our user base.Zedge Premium Gross Transaction Value, or GTV, is the total dollar amount of transactions conducted through Zedge Premium. As Zedge Premium is an internal focus for growth, we believe this metric will help investors evaluate our progress in growing this part of our business.Average Revenue Per Monthly Active User for our Zedge Marketplace, or ARPMAU, is useful in evaluating how well we monetize our user base.An Active Subscription is a subscription that has commenced and not been canceled, including paused subscriptions and subscriptions in free trials, grace periods, or account hold. This is important because it is a source of recurring revenue.2 Throughout this release, Non-GAAP Net Income, Non-GAAP EPS, Free Cash Flow (FCF) and Adjusted EBITDA are non-GAAP financial measures intended to provide useful information that supplement Zedge's results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial measures at the end of this release for an explanation of Zedge's formulations of Non-GAAP Net Income, Non-GAAP EPS, Free Cash Flow and Adjusted EBITDA and reconciliations to the most directly comparable GAAP measures.Trended Financial Information*(in M except for EPS, ARPMAU, Paid Subscriptions) Q125 Q225 Q325 Q425 Q126 Q226 FY24 FY25 YTD FY26 Total Revenue $7.2 $7.0 $7.8 $7.5 $7.6 $8.3 $30.1 $29.4 $15.9 Advertising Revenue $4.9 $4.7 $5.6 $5.2 $5.2 $5.6 $21.0 $20.3 $10.7 Digital Goods and Services Revenue $0.6 $0.6 $0.5 $0.5 $0.5 $0.5 $3.5 $2.2 $1.0 Subscription Revenue $1.2 $1.2 $1.3 $1.4 $1.5 $1.6 $4.3 $5.1 $3.2 Other Revenue $0.5 $0.4 $0.4 $0.4 $0.5 $0.5 $1.2 $1.8 $1.0 GAAP Operating Income (Loss) $(0.5) $(2.2) $0.2 $(0.7) $0.9 $(2.9) $(11.8) $(3.2) $(2.0)GAAP Net Income (Loss) $(0.3) $(1.7) $0.2 $(0.6) $0.8 $(2.3) $(9.2) $(2.4) $(1.5)GAAP Diluted EPS (Loss per share) $(0.02) $(0.12) $0.01 $(0.04) $0.06 $(0.18) $(0.65) $(0.17) $(0.12)Non GAAP Net Income (Loss) $(0.0) $(0.2) $0.9 $0.1 $0.9 $0.8 $1.8 $0.7 $1.7 Non-GAAP Diluted EPS (Loss per share) $(0.00) $(0.01) $0.06 $0.00 $0.07 $0.06 $0.13 $0.05 $0.12 Cash Flow from Operations $1.2 $0.7 $0.9 $0.7 $0.8 $0.9 $5.9 $3.4 $1.7 Free Cash Flow $1.0 $0.6 $0.8 $0.5 $0.6 $0.8 $4.7 $2.9 $1.4 Adjusted EBITDA $0.3 $(0.1) $1.2 $0.3 $1.2 $1.1 $4.7 $1.8 $2.3 MAU 25.0 24.7 22.1 23.2 22.2 20.4 nm nm nm Well-developed Markets 5.5 5.6 5.2 5.4 4.9 4.8 nm nm nm Emerging Markets 19.5 19.1 16.9 17.8 17.3 15.6 nm nm nm Active Subscriptions (in 000s) 698 791 896 984 1,075 1,175 nm nm nm ARPMAU $0.077 $0.078 $0.099 $0.093 $0.099 $0.115 nm nm nm Zedge Premium - GTV $0.68 $0.68 $0.61 $0.64 $0.66 $0.79 $2.15 $2.62 $1.44 Shares Repurchased 0.22 0.24 0.22 0.64 0.24 0.01 0.21 1.32 0.25 nm = not measurable/meaningful
*numbers may not add due to roundingEarnings Announcement and Supplemental InformationManagement will host an earnings conference call today at 4:30 pm Eastern to discuss its earnings results, outlook, and strategy, followed by a Q&A session with investors.Live Call-in Info:
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 238586
Webcast URL: https://www.webcaster5.com/Webcast/Page/2205/53597Replay:
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 53597About ZedgeZedge empowers tens of millions of consumers and creators each month with its suite of interconnected platforms that enable creativity, self-expression and e-commerce and foster community through fun competitions. Zedge's ecosystem of product offerings includes the Zedge Marketplace, a freemium marketplace offering mobile phone wallpapers, video wallpapers, ringtones, notification sounds, and pAInt, a generative AI image and audio maker; GuruShots, "The World's Greatest Photography Game," a skill-based photo challenge game; and Emojipedia, the #1 trusted source for ‘all things emoji.'For more information, visit: investor.zedge.netFollow us on X: @Zedge
Follow us on LinkedInForward-Looking StatementsAll statements above that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate," "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.Contact:
Brian Siegel, IRC, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
brian@haydenir.com
ir@zedge.netCONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value data) January 31, July 31, 2026 2025 (Unaudited) Assets Current assets: Cash and cash equivalents $19,106 $18,609 Trade accounts receivable 3,765 3,164 Prepaid expenses and other current assets 1,062 671 Total Current assets 23,933 22,444 Property and equipment, net 1,238 1,290 Intangible assets, net 1,128 4,922 Goodwill 2,069 1,931 Deferred tax assets, net 4,982 4,823 Other assets 473 244 Total assets $33,823 $35,654 Liabilities and stockholders' equity Current liabilities: Trade accounts payable $1,437 $1,471 Accrued expenses and other current liabilities 2,305 2,867 Deferred revenues 3,994 3,425 Total Current liabilities 7,736 7,763 Deferred revenues--non-current 2,041 1,937 Other liabilities 180 53 Total liabilities 9,957 9,753 Commitments and contingencies (Note 9) Stockholders' equity: Preferred stock, $.01 par value; authorized shares-2,400; no shares issued and outstanding - - Class A common stock, $.01 par value; authorized shares-2,600; 525 shares issued and outstanding at January 31, 2026 and July 31, 2025 5 5 Class B common stock, $.01 par value; authorized shares-40,000; 15,189 shares issued and 12,554 outstanding at January 31, 2026 and 15,073 shares issued and 12,692 shares outstanding at July 31, 2025 152 151 Additional paid-in capital 49,774 49,768 Accumulated other comprehensive loss (1,174) (1,509)Accumulated deficit (17,006) (15,505)Treasury stock, 2,635 shares at January 31, 2026 and 2,381 shares at July 31, 2025, at cost (7,885) (7,009)Total stockholders' equity 23,866 25,901 Total liabilities and stockholders' equity $33,823 $35,654 ZEDGE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per share data)
(unaudited) Three Months Ended Six Months Ended January 31, January 31, 2026 2025 2026 2025 Revenues $8,254 $6,979 $15,864 $14,173 Costs and expenses: Direct cost of revenues (excluding amortization of capitalized software and technology development costs which is included below) 561 447 1,116 908 Selling, general and administrative 6,683 7,126 12,599 13,935 Depreciation and amortization 187 317 403 698 Impairment of intangible assets 3,570 - 3,570 - Restructuring charges - 481 - 481 Impairment of capitalized software and technology development costs 145 827 145 827 Loss from operations (2,892) (2,219) (1,969) (2,676)Interest and other income, net 124 171 268 352 Net loss resulting from foreign exchange transactions (138) (86) (184) (100)Loss before income taxes (2,906) (2,134) (1,885) (2,424)Income taxes benefit (617) (455) (384) (406)Net loss $(2,289) $(1,679) $(1,501) $(2,018)Other comprehensive income (loss): Changes in foreign currency translation adjustment 236 (132) 335 (161)Total other comprehensive income (loss) 236 (132) 335 (161)Total comprehensive loss $(2,053) $(1,811) $(1,166) $(2,179)Income loss per share attributable to Zedge, Inc. common stockholders: Basic and diluted $(0.18) $(0.12) $(0.12) $(0.15)Weighted-average number of shares used in calculation of income (loss) per share: Basic and diluted 12,950 13,882 12,988 13,872 ZEDGE, INC.
CONDENSEDCONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited) Six Months Ended January 31, 2026 2025 Operating activities Net loss $(1,501) $(2,018)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation 28 30 Amortization of intangible assets 224 224 Amortization of capitalized software and technology development costs 151 444 Stock-based compensation 379 982 Impairment charge of capitalized software and technology development costs 145 827 Impairment charge of intangible assets 3,570 - Deferred income taxes (159) (184)Change in assets and liabilities: Trade accounts receivable (601) 416 Prepaid expenses and other current assets (391) (360)Other assets (18) (39)Trade accounts payable and accrued expenses (817) 322 Deferred revenues 673 1,234 Net cash provided by operating activities 1,683 1,878 Investing activities Capitalized software and technology development costs (237) (236)Purchase of property and equipment (20) (30)Net cash used in investing activities (257) (266)Financing activities Purchase of treasury stock in connection with share buyback program and stock awards vesting (876) (1,494)Payment of cash dividends (208) - Proceeds from exercise of stock options 45 - Net cash used in financing activities (1,039) (1,494)Effect of exchange rate changes on cash and cash equivalents 110 (62)Net increase in cash and cash equivalents 497 56 Cash and cash equivalents at beginning of period 18,609 19,998 Cash and cash equivalents at end of period $19,106 $20,054 Supplemental cash flow information: Cash paid for income taxes $114 $130 Non-cash operating and financing activities: ROU assets obtained in exchange for lease liabilities $286 $111 Dividend payable included in accrued expenses and other current liabilities (1) $209 $- (1) Dividend payable was paid on February 10, 2026.Use of Non-GAAP MeasuresAdjusted EBITDA, defined as earnings (loss) before interest, taxes, depreciation and amortization, stock compensation expense, transaction-related expenses and other non-recurring expenses, Free Cash Flow, a common metric used by investors for valuation, and non-GAAP net income (loss) and EPS (or loss per share) (which adjust out stock compensation expense, transaction-related expenses and other non-recurring expenses from GAAP net income (loss) and EPS (loss per share)), represent measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures we present. Our management also believes these measures are useful in evaluating our core operating results. However, these are not measures of financial performance under GAAP and should not be considered an alternative to net income or operating income/margin as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity. Numbers in the following reconciliation tables may not add due to rounding.Reconciliation of Adjusted EBITDA to Net Income (Loss) Q125 Q225 Q325 Q425 Q126 Q226 FY24 FY25 YTD FY26 Net Income (Loss) $(0.3) $(1.7) $0.2 $(0.6) $0.8 $(2.3) $(9.2) $(2.4) $(1.5)Excluding: Interest and other income (expense), net $(0.2) $(0.2) $(0.2) $(0.2) $(0.2) $(0.1) $(0.6) $(0.7) $(0.3)Income tax expense (benefit) $0.0 $(0.5) $0.1 $(0.0) $0.2 $(0.6) $(2.2) $(0.3) $(0.4)Depreciation and amortization $0.4 $0.3 $0.2 $0.2 $0.2 $0.2 $2.5 $1.1 $0.4 EBITDA $(0.1) $(2.0) $0.3 $(0.5) $1.1 $(2.8) $(9.5) $(2.2) $(1.8)Adjustments: Asset impairments and restructuring charges $0.0 $1.3 $0.6 $0.6 $0.0 $3.7 $12.0 $2.5 $3.7 Stock-based compensation $0.4 $0.6 $0.3 $0.1 $0.1 $0.3 $2.1 $1.4 $0.4 Expenses related to restructuring activities and business combination $0.0 $0.0 $0.0 $0.1 $0.0 $0.0 $0.2 $0.1 $0.0 Adjusted EBITDA $0.3 $(0.1) $1.2 $0.3 $1.2 $1.1 $4.7 $1.8 $2.3 *numbers may not add due to roundingReconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income Q125 Q225 Q325 Q425 Q126 Q226 FY24 FY25 YTD FY26 GAAP Net Income (Loss) $(0.3) $(1.7) $0.2 $(0.6) $0.8 $(2.3) $(9.2) $(2.4) $(1.5)Adjustments: Asset impairments and restructuring charges $0.0 $1.3 $0.6 $0.6 $0.0 $3.7 $12.0 $2.5 $3.7 Stock-based compensation $0.4 $0.6 $0.3 $0.1 $0.1 $0.3 $2.1 $1.4 $0.4 Expenses related to restructuring activities and business combination $0.0 $0.0 $0.0 $0.1 $0.0 $0.0 $0.2 $0.1 $0.0 Income tax effect on non-GAAP items $(0.1) $(0.4) $(0.2) $(0.2) $(0.0) $(0.9) $(3.3) $(0.9) $(0.9)Non-GAAP Net Income (Loss) $(0.0) $(0.2) $0.9 $0.1 $0.9 $0.8 $1.8 $0.7 $1.7 Non-GAAP basic EPS (loss per share) $(0.00) $(0.01) $0.06 $0.00 $0.07 $0.06 $0.13 $0.05 $0.13 Non-GAAP diluted EPS (loss per share) $(0.00) $(0.01) $0.06 $0.00 $0.07 $0.06 $0.13 $0.05 $0.12 Weighted average shares used to compute Non-GAAP basic earnings per share 14.1 13.9 13.7 13.4 13.0 13.0 14.1 13.7 13.0 Weighted average shares used to compute Non-GAAP diluted earnings per share 14.1 13.9 13.9 13.4 13.3 13.0 14.1 13.7 13.3 *numbers may not add due to roundingFree Cash Flow Calculation Q125 Q225 Q325 Q425 Q126 Q2260 FY24 FY25 YTD FY26 Cash Flow from Operations $1.2 $0.7 $0.9 $0.7 $0.8 $0.9 $5.9 $3.4 $1.7 Capital Expenditures $0.2 $0.1 $0.1 $0.2 $0.2 $0.1 $1.2 $0.5 $0.3 Free Cash Flow $1.0 $0.6 $0.8 $0.5 $0.6 $0.8 $4.7 $2.9 $1.4 SOURCE: Zedge, Inc.View the original press release on ACCESS NewswireOriginal: Zedge Reports Second Quarter Fiscal 2026 Results