Zedge (ZDGE) AI Stock Analysis

• Market Cap: $33.29M
• Dividend Yield: N/A
• Average Volume (3M): 43.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: -2.30%
• EPS Growth: 73.45%
• Country: US
• Employees: 106
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.00
• Shares Outstanding: 12,479,136
• 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: 0.40
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 0.51
• Enterprise Value/Ebitda: -8.57
• 1Y Price Target: $5.00
• Price Target Upside: 106.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $2.50 ▲(3.31% Upside)

Zedge's overall stock score reflects significant financial challenges, including declining revenue and profitability, which weigh heavily on the score. Technical analysis indicates bearish momentum, further impacting the stock's outlook. While the earnings call highlighted some positive strategic initiatives and subscription growth, the overall sentiment remains cautious due to ongoing revenue declines and profitability issues.

Positive Factors

Subscription Revenue Growth

The significant growth in subscription revenue and active subscribers indicates strong demand for Zedge's premium offerings, suggesting a durable revenue stream that can support future growth and stability.

Deferred Revenue Growth

The substantial increase in deferred revenue indicates strong future cash flow potential and profitability, providing a buffer for financial planning and investment in strategic initiatives.

Operational Restructuring

The restructuring effort to reduce expenses enhances operational efficiency, potentially improving profitability and allowing for reinvestment in growth areas, strengthening the company's long-term financial health.

Negative Factors

Revenue Decline

The decline in total revenue highlights challenges in maintaining growth across all segments, which could impact the company's ability to invest in new opportunities and sustain competitive advantage.

Profitability Challenges

Persistent profitability challenges, as indicated by negative net margins, could hinder Zedge's ability to generate sustainable returns and invest in future growth, impacting long-term viability.

Segment Weaknesses

Significant revenue decline in specific segments like GuruShots suggests competitive pressures and market challenges, potentially affecting overall business performance and strategic focus.

Zedge Business Overview & Revenue Model

Company Description

Zedge, Inc. (ZDGE) is a mobile content platform that specializes in providing personalized content for smartphone users. The company operates primarily in the technology sector, focusing on mobile applications that offer customizable ringtones, wallpapers, and other digital assets. Zedge's core products include its popular mobile app, which allows users to download and customize their mobile devices with unique content tailored to their preferences.

How the Company Makes Money

Zedge generates revenue primarily through advertising and in-app purchases. The company offers a freemium model, where users can access a wide range of content for free, supported by advertisements. Additionally, Zedge provides premium features and content that users can purchase within the app. This includes exclusive wallpapers, ringtones, and other digital assets. Zedge also partners with various advertisers and brands to promote their products within its platform, further enhancing its revenue streams. The combination of ad revenue, in-app purchases, and partnerships allows Zedge to effectively monetize its user base.

Zedge Financial Statement Overview

Summary

Zedge faces significant financial challenges, with declining revenue and profitability impacting its overall performance. Despite a strong equity position and minimal leverage, negative profitability metrics and declining revenue growth are concerning. Cash flow generation shows some positive trends, but the overall financial health is moderate, with potential risks due to profitability issues.

Income Statement

Zedge's income statement reveals a challenging financial period with declining revenue and profitability. The company experienced a significant revenue decline of 38.3% in the most recent year, coupled with negative net profit and EBIT margins. Despite a strong gross profit margin of 93.7%, the negative net profit margin of -8.1% indicates profitability issues. The declining revenue growth trend and negative margins suggest financial instability and potential risks.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.0076, indicating minimal leverage and financial stability. However, the negative return on equity of -9.2% reflects inefficiencies in generating returns for shareholders. The equity ratio is healthy, suggesting a solid asset base, but the negative ROE highlights profitability challenges.

Cash Flow

Cash flow analysis indicates a positive free cash flow growth rate of 3.4%, showcasing some improvement in cash generation. The operating cash flow to net income ratio of 0.44 suggests moderate cash flow efficiency. However, the free cash flow to net income ratio of 0.98 indicates that most of the net income is being converted into free cash flow, which is a positive sign. Despite these strengths, the overall cash flow performance is moderate due to profitability issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.40M	29.40M	30.09M	27.24M	26.55M	19.57M
Gross Profit	26.41M	26.41M	25.78M	21.73M	22.94M	17.11M
EBITDA	-1.57M	-1.57M	-8.91M	-3.29M	13.57M	9.31M
Net Income	-2.39M	-2.39M	-9.17M	-6.10M	9.71M	8.25M
Balance Sheet
Total Assets	35.65M	35.65M	38.20M	46.83M	54.63M	37.48M
Cash, Cash Equivalents and Short-Term Investments	18.61M	18.61M	20.00M	18.13M	17.09M	24.91M
Total Debt	197.00K	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	25.90M	25.90M	30.90M	38.86M	44.19M	33.16M
Cash Flow
Free Cash Flow	3.67M	3.34M	4.66M	1.70M	10.88M	9.48M
Operating Cash Flow	3.42M	3.42M	5.85M	3.16M	11.49M	10.13M
Investing Cash Flow	-549.00K	-549.00K	-1.19M	-2.42M	-18.95M	-5.48M
Financing Cash Flow	-4.37M	-4.37M	-2.64M	387.00K	-223.00K	15.10M

Zedge Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.42 is below the 20-day moving average (MA) of 2.76, below the 50-day MA of 2.98, and below the 200-day MA of 2.93, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 35.59 is Neutral, neither overbought nor oversold. The STOCH value of 11.95 is Positive, 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
BODI	53 Neutral	$32.51M	-0.54	-102.66%	―	-37.41%	60.58%
CCG	52 Neutral	$79.15M	-8.78	―	―	105.31%	95.66%
IZEA	51 Neutral	$87.68M	―	-6.62%	―	7.12%	78.68%
ZDGE	50 Neutral	$33.29M	-14.77	-8.42%	―	-2.30%	73.45%

Zedge Corporate Events

Zedge Inc. Reports Fiscal 2025 Earnings and Strategic Outlook

Zedge Inc., a prominent player in digital marketplaces and interactive games, offers a platform for content creation, self-expression, and community engagement. The company operates in the digital content and gaming sector, with unique offerings such as mobile phone wallpapers, ringtones, and interactive games like GuruShots.

Zedge Inc’s Earnings Call: Mixed Sentiment and Strategic Focus

Zedge Inc’s recent earnings call painted a mixed picture of the company’s financial health and strategic direction. While there was notable growth in subscription revenue and new business contracts, the call also highlighted challenges such as a decline in total revenue and setbacks in specific business segments like GuruShots and Emojipedia. The company is committed to driving future growth through innovation and strategic investments.

Zedge Highlights Strategic Initiatives at Investor Conference

On October 20, 2025, Zedge, Inc. presented a slide presentation at an investor conference, highlighting its strategic initiatives and financial performance. The company emphasized its innovation-driven approach, focusing on rapid product development and leveraging AI to enhance user engagement. Zedge reported significant growth in its core business metrics, including a 38% increase in net subscriptions and a 46% rise in gross transaction value since the beginning of FY24. The company also announced a restructuring effort in Q2 FY25, resulting in $4 million in annualized cost reductions, and highlighted its disciplined capital allocation strategy, including share repurchases and dividend initiations.

The most recent analyst rating on (ZDGE) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Zedge stock, see the ZDGE Stock Forecast page.

Zedge Initiates Quarterly Cash Dividend Program

On October 14, 2025, Zedge, Inc. announced the initiation of a quarterly cash dividend program, with a dividend of $0.016 per share payable on November 7, 2025, to enhance shareholder value. This move reflects Zedge’s confidence in its long-term growth, supported by a strong cash position and debt-free balance sheet, and does not hinder its investment in innovation and product development.

The most recent analyst rating on (ZDGE) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Zedge stock, see the ZDGE Stock Forecast page.