Zedge Inc (ZDGE)
XASE:ZDGE
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Zedge
(NYSE MKT:ZDGE)
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Rating:69Neutral
Price Target:
$3.50
▲(44.03% Upside)
Action:Reiterated
Date:06/18/26
The score is driven primarily by solid underlying financial strength (no debt, positive free cash flow, high gross margins) and a constructive latest earnings update showing improved monetization, subscription growth, and profitability. Offsetting this are still-mixed longer-term profitability consistency and a weak-to-neutral technical setup with the stock trading below key moving averages.
Positive Factors
Balance sheet strength
Zero reported debt and a cash balance (~$19.7M reported) give the company durable financial flexibility. Low leverage reduces refinancing risk, enables consistent dividends and buybacks, and funds disciplined investment in product and M&A without stressing liquidity over the next several quarters.
Negative Factors
Declining monthly active users (MAUs)
A declining MAU base constrains long‑term revenue growth potential and ad inventory scale; rising ARPMAU helps but cannot fully offset loss of reach. Sustained user declines would force higher marketing or product spend to regain scale, pressuring margins and making growth more expensive over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Zero reported debt and a cash balance (~$19.7M reported) give the company durable financial flexibility. Low leverage reduces refinancing risk, enables consistent dividends and buybacks, and funds disciplined investment in product and M&A without stressing liquidity over the next several quarters.
Read all positive factors
Zedge (ZDGE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.08M
Dividend YieldN/A
Average Volume (3M)43.85K
Price to Earnings (P/E)―
Beta (1Y)0.58
Revenue Growth6.14%
EPS Growth35.52%
CountryUS
Employees106
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.09
Shares Outstanding12,543,856
10 Day Avg. Volume54,425
30 Day Avg. Volume43,846
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)2.13
Price to Sales (P/S)1.88
P/FCF Ratio16.54
Enterprise Value/Market Cap0.51
Enterprise Value/Revenue0.64
Enterprise Value/Gross Profit0.71
Enterprise Value/Ebitda-32.68
Forecast
1Y Price Target
$6.00Price Target Upside146.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.31
Revenue Forecast (FY)$29.80M
Zedge Business Overview & Revenue Model
Company Description
Zedge, Inc. runs a digital content and publishing service that reaches users across the globe. This platform allows individuals to customize their mobile devices with a range of options, such as unique ringtones, personalized home screen app icons...
How the Company Makes Money
Zedge primarily generates revenue from advertising and consumer transactions tied to its mobile personalization platform. Advertising revenue is earned by displaying ads to users across its apps and related properties, typically via third-party ad...
Zedge Earnings Call Summary
Earnings Call Date:Jun 11, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 16, 2026
Earnings Call Sentiment Positive
The call emphasized profitable core operations, improving monetization per user, strong subscription growth (~32% subscription revenue growth; ~40.6% subscriber growth), a significant free cash flow improvement (+55% YoY), and balance sheet strength (cash $19.7M, no debt), along with tangible progress in DataSeeds and TapeDeck. Offsetting items include a decline in overall MAUs, advertising pressure driven by Emojipedia and Google search changes (advertising down ~4% for the quarter and prior-year one-time ad bonus), lumpy and early-stage revenue for DataSeeds, and several alpha products still unproven. On balance, the positive financial results, cash generation, and clear product milestones outweigh the operational and revenue predictability challenges.Positive Updates
GAAP Profitability and Improved Earnings
GAAP operating income of $1.1M versus $0.2M a year ago; GAAP net income of $0.9M and diluted EPS of $0.07 (prior year $0.2M and $0.01). Non-GAAP net income $1.0M and non-GAAP EPS $0.07 (vs $0.9M and $0.06 prior year). Adjusted EBITDA $1.3M, up 1% year-over-year.
Negative Updates
Decline in Overall Monthly Active Users (MAUs)
Overall monthly active users declined during the quarter, reducing scale even as monetization per user improved. Management is investing across marketing, product, and data science to stabilize and grow MAUs, but recovery remains a work in progress.
Read all updates
Q3-2026 Updates
Positive
Negative
GAAP Profitability and Improved Earnings
GAAP operating income of $1.1M versus $0.2M a year ago; GAAP net income of $0.9M and diluted EPS of $0.07 (prior year $0.2M and $0.01). Non-GAAP net income $1.0M and non-GAAP EPS $0.07 (vs $0.9M and $0.06 prior year). Adjusted EBITDA $1.3M, up 1% year-over-year.
Read all positive updates
Company Guidance
Management's guidance for the remainder of fiscal 2026 is to: strengthen monetization in the Zedge Marketplace, build DataSeeds deliberately, execute prioritized opportunities, and advance the innovation pipeline in a disciplined way — a plan supported by Q3 results: total revenue $8.0M (+3% YoY); subscription revenue +32% YoY with net active subscribers ~1.3M (up ~40–41%); Zedge Premium GTV +16.6–17% YoY; record average revenue per monthly active user ~$0.12 (up ~21.2% to $0.119); iOS revenue +35% YoY now 6.5% of total (vs 5.1% a year ago); deferred revenue $6.2M (+26% YoY); free cash flow $1.2M (+55% YoY, +10% YTD); adjusted EBITDA $1.3M (+1% YoY); GAAP operating income $1.1M (vs $0.2M prior year), GAAP net income $0.9M and diluted EPS $0.07 (non‑GAAP net income $1.0M, EPS $0.07); SG&A $6.2M (‑1.7% YoY); cash $19.7M and no debt; dividend up 25% to $0.02/share; and ~1.5M shares repurchased (~$4.8M) with remaining repurchase capacity ≈ $2.2M — all of which management says enables continued investment in DataSeeds and the alpha product pipeline (4 live, targeting 6 this fiscal year).Zedge Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.32M | 29.40M | 30.09M | 27.24M | 26.55M | 19.57M |
| Gross Profit | 28.42M | 26.41M | 25.78M | 21.73M | 22.94M | 17.11M |
| EBITDA | -615.00K | -1.57M | -8.91M | -3.29M | 13.57M | 9.31M |
| Net Income | -1.13M | -2.39M | -9.17M | -6.10M | 9.71M | 8.25M |
Balance Sheet | ||||||
| Total Assets | 34.30M | 35.65M | 38.20M | 46.83M | 54.63M | 37.48M |
| Cash, Cash Equivalents and Short-Term Investments | 19.69M | 18.61M | 20.00M | 18.13M | 17.09M | 24.91M |
| Total Debt | 194.00K | 197.00K | 203.00K | 2.33M | 195.00K | 231.00K |
| Total Liabilities | 9.75M | 9.75M | 7.30M | 7.97M | 10.44M | 4.32M |
| Stockholders Equity | 24.56M | 25.90M | 30.90M | 38.86M | 44.19M | 33.16M |
Cash Flow | ||||||
| Free Cash Flow | 3.85M | 3.34M | 4.66M | 1.70M | 10.88M | 9.48M |
| Operating Cash Flow | 3.58M | 3.42M | 5.85M | 3.16M | 11.49M | 10.13M |
| Investing Cash Flow | -475.00K | -549.00K | -1.19M | -2.42M | -18.95M | -5.48M |
| Financing Cash Flow | -4.02M | -4.37M | -2.64M | 387.00K | -223.00K | 15.10M |
Zedge Technical Analysis
Negative
2.43
Price Trends
3.11
Negative
3.09
Negative
3.04
Negative
Market Momentum
0.03
Positive
46.51
Neutral
2.94
Positive
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 3.14, below the 50-day MA of 3.11, and below the 200-day MA of 3.04, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 46.51 is Neutral, neither overbought nor oversold. The STOCH value of 2.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZDGE.
Zedge Risk Analysis
Zedge disclosed 66 risk factors in its most recent earnings report. Zedge reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zedge Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $39.08M | -34.28 | -4.53% | ― | 6.14% | 35.52% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $63.44M | 12.04 | 18.73% | ― | -37.04% | ― | |
51 Neutral | $63.22M | -105.49 | -1.21% | ― | -19.12% | 96.40% | |
49 Neutral | $1.18B | -1.05 | -135.28% | ― | 743.87% | 30.37% | |
46 Neutral | $32.88M | -6.12 | -10.32% | ― | ― | ― |
* Communication Services Sector Average
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Zedge Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Zedge Highlights Strong Subscriber Growth and Monetization Strategy
Positive
Jun 17, 2026
In June 2026, Zedge, Inc. used an investor conference presentation to underline its positioning as a high‑margin, cash‑generative consumer mobile app publisher that is self‑funding new growth initiatives. Management highlighted r...
DividendsFinancial Disclosures
Zedge Boosts Quarterly Dividend Following Strong Financial Performance
Positive
Mar 25, 2026
On March 25, 2026, Zedge, Inc. announced that its board approved a 25% increase in the company’s quarterly cash dividend, raising it from $0.016 to $0.02 per share of Class B common stock. The dividend is payable on April 15, 2026, to shareh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.