“Fiscal yea 2026 was a st o g ecove y yea fo Zedge. Ou ele tless focus o mo etizatio imp oveme t d ove solid eve ue gai s, especially withi ou subsc iptio offe i gs, whe e eve ue g ew ea ly 30%. Ove all eve ue i c eased app oximately 8%, despite a ma ked decli e at Emojipedia that educed ou co solidated eve ue g owth by app oximately 300 basis poi ts. Combi ed with the be efits of ou FY2025 est uctu i g, these imp oveme ts co t ibuted to sig ifica t g owth i o -GAAP EPS2, adjusted EBITDA2 a d f ee cash flow. Ou st o ge cash ge e atio e abled us to etu app oximately $2.7 millio to stockholde s th ough sha e epu chases3 a d qua te ly divide ds, the latte of which we i itiated du i g the yea a d subseque tly i c eased by 25%, all while still addi g cash to ou bala ce sheet.
“F om a p oduct sta dpoi t, the majo sto y was establishi g DataSeeds.AI as a comme cial busi ess, secu i g epeat o de s f om ew a d existi g custome s, i cludi g ou fi st six-figu e o de , a d putti g the people a d i f ast uctu e i place to suppo t la ge a d mo e complex p ojects. That p og ess excited Howa d Jo as about the oppo tu ity, so much so that he led a $7.7 millio i side i vestme t i Zedge i Septembe to accele ate DataSeeds’ g owth. I light of the i vestme t, Howa d is taki g a mo e active ole i helpi g us accele ate, scale a d u lock this busi ess’s pote tial. The Compa y also hi ed Mo is Be ge , who has a lo g a d successful t ack eco d, as ou CEO ea lie this mo th.
“DataSeeds has the i g edie ts to become a mea i gful g owth busi ess fo Zedge. It combi es established c eato commu ities, co te t assets a d expe ie ce ope ati g co sume applicatio s with pu pose-built data collectio tech ology a d the DataSeeds P oductio Cloud. These capabilities allow us to p oduce ights-clea ed, multimodal datasets tailo ed to complex custome equi eme ts. The busi ess has al eady established comme cial t actio th ough epeat o de s, g owi g o de sizes a d the pote tial to expa d i to ew p oducts a d se vices, evide ced by ou i itial model-evaluatio e gageme t. We see oom to build o that fou datio ac oss t ai i g data, model evaluatio , a otatio a d data e ichme t, a d specialized datasets fo physical AI a d obotics.”
- Reve ue i c eased 4.0% to $7.8 millio ;
- Subsc iptio eve ue i c eased 25.6% to $1.8 millio ;
- GAAP ope ati g i come of $0.3 millio , compa ed to a ($0.7) millio loss;
- GAAP et i come a d diluted EPS of $0.4 millio a d $0.03, compa ed to a et loss of ($0.6) millio a d a loss pe sha e of ($0.04), espectively;
- No -GAAP et i come² a d diluted No -GAAP EPS of $0.5 millio a d $0.04, compa ed to $0.1 millio a d $0.00, espectively;
- F ee cash flow i c eased 220.3% to $1.6 millio , compa ed to $0.5 millio ;
- Adjusted EBITDA i c eased 75.6% to $0.5 millio , compa ed to $0.3 millio ;
- ARPMAU i c eased 30.5% to $0.121;
- Zedge P emium GTV¹ i c eased 1.9%;
- Active subsc iptio s i c eased 35.3% to app oximately 1.3 millio ;
- Defe ed eve ue i c eased 13.4% to $6.1 millio ;
- Cash a d cash equivale ts we e $20.3 millio as of July 31, 2026;
- Paid a qua te ly divide d of $0.02 pe sha e.
- Reve ue i c eased 7.6% to $31.6 millio ;
- Subsc iptio eve ue i c eased 29.5% to $6.6 millio ;
- GAAP ope ati g loss a owed to ($0.6) millio f om ($3.2) millio ;
- GAAP et loss a d diluted EPS a owed to ($0.1) millio a d ($0.02) compa ed to ($2.4) millio a d ($0.17), espectively;
- No -GAAP et i come a d diluted No -GAAP EPS of $3.1 millio a d $0.24, compa ed to $0.7 millio a d $0.05, espectively;
- F ee cash flow i c eased 46.6% to $4.2 millio , compa ed to $2.9 millio ;
- Adjusted EBITDA i c eased 134.2% to $4.1 millio , compa ed to $1.8 millio ;
- Repu chased 686,477 sha es.
| % | % | % | % | % | % | % | % | % | % | % | % |
m = ot measu able/mea i gful*pe ce tages a e based off of actuals ve sus the ou ded umbe s i the table; FY2026 amou ts a e p elimi a y a d subject to audit completio
(i MM except fo ARPMAU a d whe e oted) | Q4 FY26 | Q4 FY25 | Cha ge | Well-developed ma kets (millio s) | 4.2 | 5.4 | -22.2 | % | Eme gi g ma kets (millio s) | 15.1 | 17.8 | -15.2 | % |
*pe ce tages a e based off of actuals ve sus the ou ded umbe s i the table
1 We use the followi g suppleme tal busi ess met ics i this elease because we believe they a e useful i evaluati g Zedge’s ope atio al pe fo ma ce (Please see ou 10-K fo full expla atio of the suppleme tal busi ess met ics):
Mo thly active use s, o MAU, captu es the umbe of u ique use s that used ou Zedge App du i g the fi al 30 days of the eleva t pe iod. It is useful fo evaluati g co sume e gageme t with ou App, which co elates to adve tisi g eve ue as mo e use s d ive mo e ad imp essio s.
Zedge P emium G oss T a sactio Value, o GTV, is the total dolla amou t of t a sactio s co ducted th ough Zedge P emium. As Zedge P emium is a i te al focus fo g owth, we believe this met ic will help i vesto s evaluate ou p og ess i g owi g this pa t of ou busi ess.
Ave age Reve ue Pe Mo thly Active Use fo ou Zedge Ma ketplace, o ARPMAU, is useful i evaluati g how well we mo etize ou use base.
A Active Subsc iptio is a subsc iptio that has comme ced a d ot bee ca celed, i cludi g paused subsc iptio s a d subsc iptio s i f ee t ials, g ace pe iods, o accou t hold. This is impo ta t because it is a sou ce of ecu i g eve ue.
2 Th oughout this elease, No -GAAP Net I come, No -GAAP EPS, F ee Cash Flow (FCF) a d Adjusted EBITDA a e o -GAAP fi a cial measu es i te ded to p ovide useful i fo matio that suppleme ts Zedge’s esults i acco da ce with GAAP. Please efe to the Reco ciliatio of No -GAAP Fi a cial Measu es at the e d of this elease fo a expla atio of Zedge’s fo mulatio s of No -GAAP Net I come, No -GAAP EPS, F ee Cash Flow a d Adjusted EBITDA a d eco ciliatio s to the most di ectly compa able GAAP measu es.
3 The sha e epu chase was suspe ded i Q1 FY27 i light of the Septembe capital aise.
Ma ageme t will host a ea i gs co fe e ce call this afte oo , Octobe 26 at 4:30 p.m. Easte to discuss its ea i gs esults, outlook, a d st ategy, followed by a Q&A sessio with i vesto s.
Zedge builds a d ope ates c eato commu ities that se ve 20 millio mo thly active use s ac oss its platfo ms. Zedge Ma ketplace, its flagship platfo m, is a leadi g ma ketplace fo mobile pe so alizatio co te t a d a co e p ofit a d cash flow ge e ato . DataSeeds.AI is Zedge’s B2B AI data busi ess, p ovidi g ma aged, multimodal data c eatio a d elated se vices fo AI develope s a d e te p ises. DataSeeds d aws o Zedge’s p op ieta y c eato commu ities, i cludi g Zedge Ma ketplace co t ibuto s a d the Gu uShots photog aphy commu ity, as well as b oade c owdsou ci g a d a etwo k of p oductio pa t e s to delive ights-clea ed data built to custome specificatio s.
Fo mo e i fo matio , visit: i vesto .zedge. et
Follow us o X: @ZedgeFollow us o Li kedI
All stateme ts above that a e ot pu ely about histo ical facts, i cludi g, but ot limited to, those i which we use the wo ds “believe,” “a ticipate,” “expect,” “pla ,” “i te d,” “estimate,” “ta get” a d simila exp essio s, a e fo wa d-looki g stateme ts withi the mea i g of the P ivate Secu ities Litigatio Refo m Act of 1995. While these fo wa d-looki g stateme ts ep ese t ou cu e t judgme t of what may happe i the futu e, actual esults may diffe mate ially f om the esults exp essed o implied by these stateme ts due to ume ous impo ta t facto s. Ou fili gs with the SEC p ovide detailed i fo matio o such stateme ts a d isks a d should be co sulted alo g with this elease. To the exte t pe mitted u de applicable law, we assume o obligatio to update a y fo wa d-looki g stateme ts.
Adjusted EBITDA, defi ed as ea i gs (loss) befo e i te est, taxes, dep eciatio a d amo tizatio , stock compe satio expe se, t a sactio – elated expe ses a d othe o – ecu i g expe ses, F ee Cash Flow, a commo met ic used by i vesto s fo valuatio , a d o -GAAP et i come (loss) a d EPS (o loss pe sha e) (which adjust out stock compe satio expe se, t a sactio – elated expe ses a d othe o – ecu i g expe ses f om GAAP et i come (loss) a d EPS (loss pe sha e)), ep ese t measu es that we believe a e customa ily used by i vesto s a d a alysts to evaluate the fi a cial pe fo ma ce of compa ies i additio to the GAAP measu es we p ese t. Ou ma ageme t also believes these measu es a e useful i evaluati g ou co e ope ati g esults. Howeve , these a e ot measu es of fi a cial pe fo ma ce u de GAAP a d should ot be co side ed a alte ative to et i come o ope ati g i come/ma gi as a i dicato of ou ope ati g pe fo ma ce o to et cash p ovided by ope ati g activities as a measu e of ou liquidity. Numbe s i the followi g eco ciliatio tables may ot add due to ou di g.
Excludi g: | I te est a d othe i come (expe se), et | $ | (0.2 | ) | $ | (0.2 | ) | $ | (0.2 | ) | $ | (0.2 | ) | $ | (0.2 | ) | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.6 | ) | $ | (0.7 | ) | $ | (0.6 | ) | I come tax expe se (be efit) | $ | 0.0 | $ | (0.5 | ) | $ | 0.1 | $ | (0.0 | ) | $ | 0.2 | $ | (0.6 | ) | $ | 0.3 | $ | (0.0 | ) | $ | (2.2 | ) | $ | (0.3 | ) | $ | (0.1 | ) | Dep eciatio a d amo tizatio | $ | 0.4 | $ | 0.3 | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.1 | $ | 0.2 | $ | 2.5 | $ | 1.1 | $ | 0.7 | Asset impai me ts a d est uctu i g cha ges | $ | 0.0 | $ | 1.3 | $ | 0.6 | $ | 0.6 | $ | 0.0 | $ | 3.7 | $ | 0.0 | $ | 0.0 | $ | 12.0 | $ | 2.5 | $ | 3.7 | Stock-based compe satio | $ | 0.4 | $ | 0.6 | $ | 0.3 | $ | 0.1 | $ | 0.1 | $ | 0.3 | $ | 0.1 | $ | 0.1 | $ | 2.1 | $ | 1.4 | $ | 0.5 | Expe ses elated to est uctu i g activities a d busi ess combi atio | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.1 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.2 | $ | 0.1 | $ | 0.0 |
* umbe s may ot add due to ou di g
| Q125 | Q225 | Q325 | Q425 | Q126 | Q226 | Q326 | Q426 | FY24 | FY25 | FY26 | $ | (0.3 | ) | $ | (1.7 | ) | $ | 0.2 | $ | (0.6 | ) | $ | 0.8 | $ | (2.3 | ) | $ | 0.9 | $ | 0.4 | $ | (9.2 | ) | $ | (2.4 | ) | $ | (0.1 | ) | Asset impai me ts a d est uctu i g cha ges | $ | 0.0 | $ | 1.3 | $ | 0.6 | $ | 0.6 | $ | 0.0 | $ | 3.7 | $ | 0.0 | $ | 0.0 | $ | 12.0 | $ | 2.5 | $ | 3.7 | Stock-based compe satio | $ | 0.4 | $ | 0.6 | $ | 0.3 | $ | 0.1 | $ | 0.1 | $ | 0.3 | $ | 0.1 | $ | 0.1 | $ | 2.1 | $ | 1.4 | $ | 0.5 | Expe ses elated to est uctu i g activities a d busi ess combi atio | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.1 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.2 | $ | 0.1 | $ | 0.0 | I come tax effect o o -GAAP items | $ | (0.1 | ) | $ | (0.4 | ) | $ | (0.2 | ) | $ | (0.2 | ) | $ | (0.0 | ) | $ | (0.9 | ) | $ | (0.0 | ) | $ | (0.0 | ) | $ | (3.3 | ) | $ | (0.9 | ) | $ | (1.0 | ) | $ | (0.0 | ) | $ | (0.2 | ) | $ | 0.9 | $ | 0.1 | $ | 0.9 | $ | 0.8 | $ | 1.0 | $ | 0.5 | $ | 1.8 | $ | 0.7 | $ | 3.1 | $ | (0.00 | ) | $ | (0.01 | ) | $ | 0.06 | $ | 0.00 | $ | 0.07 | $ | 0.06 | $ | 0.08 | $ | 0.04 | $ | 0.13 | $ | 0.05 | $ | 0.24 | $ | (0.00 | ) | $ | (0.01 | ) | $ | 0.06 | $ | 0.00 | $ | 0.07 | $ | 0.06 | $ | 0.07 | $ | 0.04 | $ | 0.13 | $ | 0.05 | $ | 0.24 | Weighted ave age sha es used to compute No -GAAP basic ea i gs pe sha e | 14.1 | 13.9 | 13.7 | 13.4 | 13.0 | 13.0 | 13.0 | 13.0 | 14.1 | 13.7 | 13.0 | Weighted ave age sha es used to compute No -GAAP diluted ea i gs pe sha e | 14.1 | 13.9 | 13.9 | 13.4 | 13.3 | 13.0 | 13.3 | 13.2 | 14.1 | 13.7 | 13.0 |
* umbe s may ot add due to ou di g
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