Zedge Inc (ZDGE)
XASE:ZDGE
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Zedge
(NYSE MKT:ZDGE)
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Rating:64Neutral
Price Target:
$3.00
▲(23.46% Upside)
Action:ReiteratedDate:03/26/26
The score is supported primarily by strong financial resilience (zero debt, positive free cash flow) and an earnings update showing improving operating momentum and underlying profitability. This is tempered by weak technical momentum and the ongoing profitability/GAAP-loss overhang (including the Emojipedia impairment), with valuation constrained by negative earnings despite a modest dividend yield.
Positive Factors
Balance Sheet Strength
Zero reported debt and a conservative capital structure materially reduce financial risk and increase strategic optionality. This durability provides the company flexibility to fund staged product development, sustain a dividend/buybacks, and weather cyclical ad softness without near-term refinancing pressure.
Negative Factors
MAU Contraction
A shrinking active user base constrains the top-of-funnel for ad impressions and marketplace conversions. Prioritizing higher-value users can raise ARPMAU, but a structurally smaller MAU pool increases sensitivity to churn, limits network effects, and raises marketing cost per incremental dollar of revenue over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Zero reported debt and a conservative capital structure materially reduce financial risk and increase strategic optionality. This durability provides the company flexibility to fund staged product development, sustain a dividend/buybacks, and weather cyclical ad softness without near-term refinancing pressure.
Read all positive factors
Zedge (ZDGE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.60M
Dividend YieldN/A
Average Volume (3M)43.85K
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth-1.29%
EPS Growth86.87%
CountryUS
Employees106
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.06
Shares Outstanding12,517,121
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/Revenue0.63
Enterprise Value/Gross Profit0.70
Enterprise Value/Ebitda8.20
Forecast
1Y Price Target
$6.00Price Target Upside146.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.18
Revenue Forecast (FY)$29.80M
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 t...
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...
Zedge Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 15, 2026
Earnings Call Sentiment Positive
The call presented a mix of strong operational and financial improvements — record revenue, double-digit top-line growth, meaningful subscription gains, a return to non-GAAP profitability and positive adjusted EBITDA, and a healthy cash position — while also disclosing notable challenges including an impairment at Emojipedia that widened GAAP losses, continued MAU contraction, early-stage and lumpy revenue from DataSeeds, and some product failures. Management emphasized disciplined innovation, monetization optimization, and selective scaling of DataSeeds, positioning the company for potentially continued improvement as new initiatives mature.Positive Updates
Record Revenue and Top-Line Growth
Total revenue of $8.3M in Q2, up 18.3% year-over-year; company described this as a record level in its seasonally strongest quarter driven by advertising optimization and subscriptions.
Negative Updates
MAU Contraction Continues
Management acknowledged ongoing monthly active user (MAU) contraction and is prioritizing acquisition of higher-value users rather than restoring raw MAU levels, indicating user base breadth remains a challenge.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Top-Line Growth
Total revenue of $8.3M in Q2, up 18.3% year-over-year; company described this as a record level in its seasonally strongest quarter driven by advertising optimization and subscriptions.
Read all positive updates
Company Guidance
Management’s guidance emphasized three priorities for the remainder of fiscal 2026—strengthen marketplace monetization, build DataSeeds deliberately, and expand the innovation pipeline in a disciplined way—and included several forward-looking operational and financial notes: they expect DataSeeds to increase its contribution in 2026, are halfway to their goal of up to six alpha products this fiscal year (4 launched), and will remain selective on deals while building an OTS catalog; financially they highlighted strong liquidity and capital allocation flexibility with $19.1M cash, zero debt, ~ $500k of buyback capacity, a quarterly dividend and a double‑digit free cash flow yield; they reiterated recent Q2 metrics supporting that position (Q2 revenue $8.3M, +18.3% YoY; Zedge Marketplace +21% YoY; advertising +18.3%; Zedge Plus revenue +33% YoY with net active subscribers +49% to ~1.2M; deferred revenue $6.0M, +39% YoY and +5% sequentially; Zedge Premium GTV +15.7% with “op amount” +47.6%); operating results and cash flow to note for modeling: cost of revenue 6.8% of revenue (vs 6.4% LY), SG&A $6.7M (down ~6%), GAAP loss from operations $2.9M, GAAP net loss $2.3M (EPS -$0.18), non‑GAAP net income $0.8M (EPS $0.06), adjusted EBITDA $1.1M (vs -$0.1M LY), cash flow from operations $0.9M and free cash flow $0.8M, and an Emojipedia impairment of $3.7M; they also cautioned that last year’s one‑time $450k ad partner integration bonus will not repeat into Q3.Zedge Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| 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
Positive
2.43
Price Trends
3.06
Negative
3.03
Negative
3.20
Negative
Market Momentum
-0.04
Negative
49.30
Neutral
52.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZDGE, the sentiment is Positive. The current price of 2.43 is below the 20-day moving average (MA) of 2.92, below the 50-day MA of 3.06, and below the 200-day MA of 3.20, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 49.30 is Neutral, neither overbought nor oversold. The STOCH value of 52.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $38.60M | -4.41 | -7.19% | ― | -1.29% | 86.87% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $71.94M | -25.25 | -175.73% | ― | -37.41% | 60.58% | |
55 Neutral | $62.58M | -16.19 | 0.09% | ― | 7.12% | 78.68% | |
50 Neutral | $66.81M | -8.99 | -10.39% | ― | 105.31% | 95.66% | |
43 Neutral | $708.88M | -0.82 | -54.47% | ― | ― | ― |
* Communication Services Sector Average
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Zedge Corporate Events
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...
Executive/Board ChangesDividendsShareholder Meetings
Zedge Shareholders Back Leadership, Board Declares Quarterly Dividend
Positive
Jan 15, 2026
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 fo...
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.