Zedge (ZDGE) AI Stock Analysis

• Market Cap: $36.15M
• Dividend Yield: N/A
• Average Volume (3M): 43.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -1.29%
• EPS Growth: 86.87%
• Country: US
• Employees: 106
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.07
• 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: 0.37
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 0.50
• Enterprise Value/Ebitda: -31.85
• 1Y Price Target: $6.00
• Price Target Upside: 146.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $3.00 ▲(23.46% Upside)

Zedge's overall stock score is driven by a mixed financial performance and valuation challenges, offset by positive earnings call insights. The company's strong subscription growth and strategic initiatives provide a foundation for future improvement, but profitability and cash flow remain areas of concern.

Positive Factors

Strong Subscription Growth

The significant increase in active subscriptions indicates strong user engagement and a successful monetization strategy, which can drive sustained revenue growth.

DataSeeds Expansion

The expansion of DataSeeds with substantial orders suggests potential for long-term growth in a promising sector, enhancing Zedge's market position.

Low Leverage

Minimal leverage provides financial stability and flexibility, allowing Zedge to invest in growth opportunities without significant debt burdens.

Negative Factors

Negative Net Profit Margin

A negative net profit margin indicates ongoing profitability challenges, which can hinder long-term financial sustainability and shareholder returns.

Free Cash Flow Challenges

Challenges in free cash flow generation can limit the company's ability to reinvest in growth initiatives and manage operational expenses effectively.

Declining Performance in Emojipedia

Declining performance in Emojipedia reflects challenges in adapting to market changes, potentially impacting overall revenue and user engagement.

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 generates revenue primarily through in-app advertising and premium content sales. Its freemium model allows users to access a vast library of free content, while also offering paid features such as exclusive wallpapers and ringtones. The company partners with brands and advertisers to promote their products through targeted ads within the app, contributing to its advertising revenue. Additionally, Zedge may collaborate with mobile device manufacturers and other technology firms to bundle its services, further expanding its revenue opportunities.

Zedge Financial Statement Overview

Summary

Zedge faces financial challenges with declining revenue and profitability, despite a strong equity position and minimal leverage. Cash flow generation shows some positive trends, but overall financial health is moderate 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.40M	30.09M	27.24M	26.55M	19.57M
Gross Profit	26.41M	25.78M	21.73M	22.94M	17.11M
EBITDA	-1.57M	-8.91M	-3.29M	13.57M	9.31M
Net Income	-2.39M	-9.17M	-6.10M	9.71M	8.25M
Balance Sheet
Total Assets	35.65M	38.20M	46.83M	54.63M	37.48M
Cash, Cash Equivalents and Short-Term Investments	18.61M	20.00M	18.13M	17.09M	24.91M
Total Debt	197.00K	203.00K	2.33M	195.00K	231.00K
Total Liabilities	9.75M	7.30M	7.97M	10.44M	4.32M
Stockholders Equity	25.90M	30.90M	38.86M	44.19M	33.16M
Cash Flow
Free Cash Flow	3.34M	4.66M	1.70M	10.88M	9.48M
Operating Cash Flow	3.42M	5.85M	3.16M	11.49M	10.13M
Investing Cash Flow	-549.00K	-1.19M	-2.42M	-18.95M	-5.48M
Financing Cash Flow	-4.37M	-2.64M	387.00K	-223.00K	15.10M

Zedge Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZDGE, the sentiment is Neutral. The current price of 2.43 is below the 20-day moving average (MA) of 2.45, below the 50-day MA of 2.79, and below the 200-day MA of 2.90, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 57.07 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
ZDGE	56 Neutral	$36.15M	-30.82	-4.52%	―	-1.29%	86.87%
CCG	52 Neutral	$75.93M	-8.43	―	―	105.31%	95.66%
BODI	52 Neutral	$82.08M	-1.86	-102.66%	―	-37.41%	60.58%
IZEA	51 Neutral	$83.57M	-23.77	-6.62%	―	7.12%	78.68%

Zedge Corporate Events

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.

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.