Zedge (ZDGE) AI Stock Analysis

• Market Cap: $38.60M
• Dividend Yield: N/A
• Average Volume (3M): 43.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -1.29%
• EPS Growth: 86.87%
• Country: US
• Employees: 106
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.06
• Shares Outstanding: 12,517,121
• 10 Day Avg. Volume: 54,425
• 30 Day Avg. Volume: 43,846
• PEG Ratio: 0.31
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 16.54
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 0.70
• Enterprise Value/Ebitda: 8.20
• 1Y Price Target: $6.00
• Price Target Upside: 146.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.18
• Revenue Forecast (FY): $29.80M

• Rating: 61 Neutral
• Price Target: $3.00 ▲(23.46% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by solid financial resilience (no debt and positive free cash flow) and an earnings call showing improving operating momentum (record revenue growth and positive adjusted EBITDA). These positives are tempered by weak technical trend signals and the ongoing profitability/GAAP-loss overhang (including the Emojipedia impairment), with valuation constrained by the negative P/E.

Positive Factors

Balance Sheet Strength

Zero reported debt and a conservative capital structure give the company durable financial flexibility. With cash on hand and no debt service requirements, management can fund product development, weather revenue volatility, return capital via dividends/buybacks, and selectively pursue growth without refinancing risk.

Cash Generation & Margins

Sustained positive operating and free cash flow, combined with very high gross margins (~92% TTM), indicate strong unit economics and internal funding capacity. This supports reinvestment in product development and marketing while reducing dependency on external capital as the company pursues longer-term profitability recovery.

Subscription & Marketplace Momentum

Rapid subscription growth and rising deferred revenue signal improving recurring revenue and higher customer lifetime value. Strengthened marketplace monetization and rising premium transaction volumes create more predictable revenue streams and scalable monetization levers as the company focuses on higher‑value users.

Negative Factors

MAU Contraction

A shrinking active user base constrains total addressable ad impressions and marketplace reach, pressuring long‑term monetization unless higher‑value user acquisition offsets volume declines. Reliance on quality over quantity raises acquisition cost sensitivity and extends the timeline to scale sustainable revenue growth.

Emojipedia Impairment & GAAP Drag

A material non‑cash impairment highlights structural limitations in legacy assets and directly widened GAAP losses, undermining reported profitability. Such write‑downs signal the need to reassess legacy product economics and can weigh on investor confidence and management bandwidth as resources shift to higher‑priority initiatives.

Early, Lumpy New-Business Revenue

Promising pipeline activity for new offerings like DataSeeds remains early and unpredictable; lumpy sales reduce revenue visibility and complicate operating cadence. Combined with noted alpha product failures, this raises execution risk and could delay anticipated margin and scale benefits if commercial adoption takes longer than planned.

Zedge Business Overview & Revenue Model

Company Description

Zedge (ZDGE) is a mobile content platform that specializes in offering a wide range of personalization tools for smartphones, including wallpapers, ringtones, and notification sounds. Operating in the mobile technology sector, Zedge allows users to customize their devices with unique content, enhancing user experience and engagement. The platform is available across various app stores, making it accessible to a global audience.

How the Company Makes Money

Zedge primarily generates revenue from its consumer-facing mobile personalization platform via advertising and transactions tied to digital content. Advertising revenue is earned by serving ads within its apps/web properties to its user base, with earnings generally dependent on user engagement, ad impressions, and advertiser demand mediated through ad networks and related ad-tech partners (specific partners: null). Zedge also earns revenue from direct purchases and other in-app transactions for premium or paid digital goods made available on its marketplace, where users pay to obtain certain content and Zedge retains a portion of the transaction value (exact revenue share terms: null). In addition, Zedge supports a creator ecosystem in which creators can upload and monetize content; Zedge’s monetization is tied to marketplace activity and its ability to attract users and drive conversion to paid items. Other potential revenue sources such as licensing, subscriptions, or digital-collectible sales may contribute depending on the period, but specific breakdowns by stream, material partnerships, and current contribution levels are not provided here (null).

Zedge Financial Statement Overview

Summary

Balance sheet strength (zero debt) and positive operating/free cash flow support resilience, while revenue has stabilized and losses have narrowed. However, profitability remains the key gap with negative TTM net margins and sub-breakeven EBIT/EBITDA.

Income Statement

TTM (Trailing-Twelve-Months) revenue growth rebounded to ~4.3% after a small decline in FY2025, and gross margins remain exceptionally high (roughly ~92% TTM), indicating strong underlying unit economics. However, profitability is still a key weakness: TTM net margin is negative (~-6.0%) and EBIT/EBITDA are still below breakeven, even though losses have narrowed meaningfully versus FY2024–FY2025. Overall, the top line is stabilizing and cost discipline appears improved, but the business has not yet demonstrated consistent earnings power post-FY2022.

Balance Sheet

The balance sheet is a clear strength with essentially no leverage (TTM total debt at $0 and near-zero debt levels historically), which reduces financial risk and increases flexibility. Equity remains solid at ~$23.9M TTM against ~$33.8M in assets, though equity has trended down from FY2021–FY2023 levels, reflecting recent loss years. Returns on equity are negative TTM (about -7.2%), highlighting that while the capital structure is conservative, shareholder capital is not currently generating profits.

Cash Flow

Cash generation is notably better than reported earnings: TTM operating cash flow is positive (~$3.2M) and free cash flow is also positive (~$3.5M) with modest growth. Free cash flow is slightly above net income in TTM (helped by the net loss), which supports liquidity and provides a cushion while profitability recovers. The main watch-out is that cash flow levels are well below FY2021–FY2022 peaks, suggesting the business is still in a lower cash-earning phase than earlier in the cycle.

Breakdown	TTM	Jul 2025	Jul 2024	Jul 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	31.09M	29.40M	30.09M	27.24M	26.55M	19.57M
Gross Profit	28.19M	26.41M	25.78M	21.73M	22.94M	17.11M
EBITDA	2.40M	-1.57M	-8.91M	-3.29M	13.57M	9.31M
Net Income	-1.88M	-2.39M	-9.17M	-6.10M	9.71M	8.25M
Balance Sheet
Total Assets	33.82M	35.65M	38.20M	46.83M	54.63M	37.48M
Cash, Cash Equivalents and Short-Term Investments	19.11M	18.61M	20.00M	18.13M	17.09M	24.91M
Total Debt	227.00K	197.00K	203.00K	2.33M	195.00K	231.00K
Total Liabilities	9.96M	9.75M	7.30M	7.97M	10.44M	4.32M
Stockholders Equity	23.87M	25.90M	30.90M	38.86M	44.19M	33.16M
Cash Flow
Free Cash Flow	3.48M	3.34M	4.66M	1.70M	10.88M	9.48M
Operating Cash Flow	3.23M	3.42M	5.85M	3.16M	11.49M	10.13M
Investing Cash Flow	-540.00K	-549.00K	-1.19M	-2.42M	-18.95M	-5.48M
Financing Cash Flow	-3.92M	-4.37M	-2.64M	387.00K	-223.00K	15.10M

Zedge Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZDGE, the sentiment is Negative. The current price of 2.43 is below the 20-day moving average (MA) of 3.07, below the 50-day MA of 3.23, and below the 200-day MA of 3.22, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 46.10 is Neutral, neither overbought nor oversold. The STOCH value of 42.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZDGE.

Zedge Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZDGE	61 Neutral	$38.60M	-4.41	-7.19%	―	-1.29%	86.87%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
BODI	56 Neutral	$80.13M	-25.25	-175.73%	―	-37.41%	60.58%
IZEA	54 Neutral	$63.28M	1,786.29	0.09%	―	7.12%	78.68%
CCG	50 Neutral	$61.79M	-8.99	-9.17%	―	105.31%	95.66%
ASST	43 Neutral	$624.97M	-1.51	-54.47%	―	―	―

Zedge Corporate Events

Zedge Shareholders Back Leadership, Board Declares Quarterly Dividend

At its Annual Meeting of Stockholders held on January 14, 2026, Zedge, Inc. shareholders elected all nominated directors to one-year terms, ratified the appointment of UHY LLP as the company’s independent registered public accounting firm for the fiscal year ending July 31, 2026, and approved an amendment to the 2016 Stock Option and Incentive Plan that increases the pool of Class B common shares available for equity awards by 150,000, signaling continued support for the existing leadership and compensation framework. Also on January 14, 2026, Zedge’s board declared a quarterly cash dividend of $0.016 per share, payable on or about February 10, 2026 to shareholders of record as of January 30, 2026, underscoring the company’s ongoing practice of returning capital to its investors.

The most recent analyst rating on (ZDGE) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Zedge stock, see the ZDGE Stock Forecast page.