Download PDF

1. Company Snapshot

1.a. Company Description

Zedge, Inc.operates a digital publishing and content platform worldwide.Its platform enables consumers to personalize their mobile devices with ringtones, home screen app icons, wallpapers, widgets, and notification sounds.


The company was incorporated in 2008 and is based in New York, New York.

Show Full description

1.b. Last Insights on ZDGE

Here is a 90-word analysis of the negative drivers behind Zedge, Inc.'s recent stock performance: Zedge's recent performance was negatively impacted by its mixed Q1 2025 results, with a 22% workforce reduction and additional cost-cutting measures aimed at saving $4 million annually. The company's efforts to streamline operations and enhance profitability come amid a challenging environment. The GuruShots game overhaul and restructuring initiatives, including a 14% headcount reduction, are expected to lower costs by $1.7 million annually. However, these efforts may not be enough to offset the company's struggles, as it faces intense competition in the digital marketplaces and interactive games space.

1.c. Company Highlights

2. Zedge Surges to Record Q2, Reverses Losses with Strong Monetization

Zedge, Inc. posted a record $8.3 million in Q2 2026 revenue, up 18.3% YoY, powered by a leap in active subscriptions and premium GTV. Non‑GAAP net income rose to $800,000, turning last year’s $200,000 loss into a $0.06 EPS, slightly beating the $0.05 consensus. Cash flow from operations hit $900,000, with $800,000 free cash flow, and the firm closed the quarter with $19.1 million in cash and no debt. The company trades at a P/E of –21.27 and a P/S of 1.29, reflecting the market’s expectation of continued growth.

Publication Date: Apr -19

📋 Highlights
  • Record Revenue:: Q2 2026 revenue hit $8.3M, +18.3% YoY, driven by improved monetization and record Zedge Premium GTV.
  • Marketplace Growth:: Zedge Marketplace revenue surged over 21% YoY due to higher ad CPMs and subscription income.
  • Strong Cash Flow:: Generated $900K in operating cash flow and $800K in free cash flow, ending with $19.1M in cash and zero debt.
  • Profitability Turnaround:: Non-GAAP net income reached $800K (+$1M improvement YoY) with EPS of $0.06 vs. $0.01 loss last year.
  • Product Innovation:: Launched two new alpha products (4/6 FY26 targets), leveraging modular architecture for faster monetization via subscriptions and ads.

Revenue Growth & Margin Expansion

Revenue climbed 18.3% to $8.3 million, driven by a 21% YoY lift in Marketplace sales. Strong ad CPMs and subscription revenue bolstered gross margin, while operating expenses were held in check, resulting in a 12% operating margin. The company’s focus on high‑margin subscription products is paying off.

Marketplace Monetization Push

The Marketplace segment saw a 21% revenue jump, thanks to higher ad CPMs and a strategic shift toward premium listings. Zedge’s CEO noted, “We remain focused on optimizing ad inventory and subscription offerings to attract higher‑value users.” This initiative has begun to lift the average revenue per user (ARPU).

DataSeeds B2B Momentum

DataSeeds, the B2B arm, is gaining traction with a steady inbound pipeline and selective outbound outreach. The business prioritizes high‑quality outcomes and a disciplined execution model, positioning it as a potential growth engine beyond the consumer app.

Alpha Product Pipeline & Modular Development

Two new alpha launches bring Zedge to four of six planned products for the fiscal year. Built on a modular foundation, these offerings enable rapid development, faster monetization via subscriptions and ads, and a diversified revenue mix.

Cash Flow & Balance Sheet Strength

Zedge generated $900,000 in operating cash flow and $800,000 in free cash flow, ending with $19.1 million in cash and zero debt. The firm’s free cash flow yield of 8.7% underscores its liquidity and capacity to fund future initiatives without external financing.

Guidance, One‑Time Items & Outlook

3. NewsRoom

Card image cap

Zedge Increases Quarterly Cash Dividend by 25%

Mar -25

Source: accessnewswire.com

Card image cap

Zedge, Inc. (ZDGE) Q2 2026 Earnings Call Transcript

Mar -12

Source: seekingalpha.com

Card image cap

Zedge Reports Second Quarter Fiscal 2026 Results

Mar -12

Source: accessnewswire.com

Card image cap

Zedge To Report Second Quarter 2026 Results

Mar -03

Source: accessnewswire.com

Card image cap

Zedge (NYSEAMERICAN:ZDGE) Shares Cross Below 50-Day Moving Average – Here’s Why

Feb -17

Source: defenseworld.net

Card image cap

Zedge (NYSEAMERICAN:ZDGE) Stock Passes Below 50-Day Moving Average – Here’s What Happened

Feb -07

Source: defenseworld.net

Card image cap

Zedge, Inc. (ZDGE) Q1 2026 Earnings Call Transcript

Dec -12

Source: seekingalpha.com

Card image cap

Zedge Reports First Quarter Fiscal 2026 Results

Dec -12

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.64%)

6. Segments

Zedge Marketplace

Expected Growth: 14%

Zedge Marketplace's 14% growth is driven by increasing demand for personalized mobile content, expansion into new markets, and strategic partnerships. The platform's user-generated content model and AI-powered content discovery features also contribute to its growth. Additionally, the rise of 5G networks and increasing mobile internet penetration in emerging markets further fuel the demand for Zedge's offerings.

GuruShots

Expected Growth: 12%

GuruShots' 12% growth driven by increasing demand for personalized mobile content, Zedge's strong brand recognition, and strategic partnerships. Additionally, the app's user-generated content and social features foster engagement, while its gamification elements encourage user retention. The growing adoption of 5G networks and advancements in AI-powered content creation also contribute to the segment's growth.

7. Detailed Products

Ringtones

A wide variety of ringtones for mobile devices, including popular songs, sound effects, and voice tones.

Wallpapers

A vast collection of high-quality wallpapers for mobile devices, including abstract designs, scenic landscapes, and celebrity images.

Live Wallpapers

Interactive and dynamic wallpapers that come to life on mobile devices, including 3D animations and interactive designs.

Icon Packs

Custom icon packs that allow users to personalize their mobile device's home screen with unique and stylish icons.

Notification Sounds

A collection of custom notification sounds that users can download and set as their default notification tone.

Fonts

A variety of custom fonts that users can download and apply to their mobile device to change the look and feel of their interface.

8. Zedge, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Zedge, Inc. faces moderate threat from substitutes, as users can opt for alternative platforms for mobile content, but the company's strong brand recognition and user base mitigate this threat.

Bargaining Power Of Customers

Zedge, Inc. has a large user base, which reduces the bargaining power of individual customers, and the company's free content offerings further reduce customer bargaining power.

Bargaining Power Of Suppliers

Zedge, Inc. has a diverse supplier base, and the company's digital nature reduces its dependence on physical suppliers, minimizing supplier bargaining power.

Threat Of New Entrants

The digital nature of Zedge, Inc.'s business and low barriers to entry make it vulnerable to new entrants, which could potentially disrupt the market and threaten the company's position.

Intensity Of Rivalry

Zedge, Inc. operates in a competitive market, but its established brand and user base help to mitigate the intensity of rivalry, although the company still faces competition from other mobile content providers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 5.15%
Debt Cost 3.95%
Equity Weight 94.85%
Equity Cost 9.32%
WACC 9.05%
Leverage 5.43%

11. Quality Control: Zedge, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
IZEA

A-Score: 4.4/10

Value: 8.1

Growth: 2.0

Quality: 4.0

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
MediaAlpha

A-Score: 4.2/10

Value: 8.3

Growth: 3.2

Quality: 5.6

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
NextNav

A-Score: 4.0/10

Value: 8.0

Growth: 7.3

Quality: 4.9

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
Zedge

A-Score: 3.7/10

Value: 7.5

Growth: 3.3

Quality: 4.9

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
BuzzFeed

A-Score: 3.1/10

Value: 8.0

Growth: 3.1

Quality: 4.8

Yield: 0.0

Momentum: 1.5

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
TrueCar

A-Score: 3.0/10

Value: 8.5

Growth: 3.0

Quality: 3.4

Yield: 0.0

Momentum: 2.0

Volatility: 1.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.33$

Current Price

3.33$

Potential

-0.00%

Expected Cash-Flows