Zedge (NYSEAMERICAN:ZDGE) Issues Quarterly Earnings Results

Zedge (NYSEAMERICAN:ZDGE) announced its quarterly earnings data on Monday. The company reported $0.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.02, FiscalAI reports. The firm had revenue of $7.77 million during the quarter, compared to the consensus estimate of $7.20 million.

Here are the key takeaways from Zedge’s conference call:

• DataSeeds gained commercial traction, with repeat customer orders, its first six-figure engagement, expansion into model evaluation, and growing interest in multimodal and robotics data. Management plans to invest in sales, marketing, engineering, and production capabilities to scale the business.
• Fiscal 2026 results improved substantially, with revenue up 7.6% to $31.6 million, adjusted EBITDA up 134% to $4.1 million, and free cash flow up 46.6% to $4.2 million. Zedge ended the year with $20.3 million in cash and no debt, and the subsequent insider-led financing lifted pro forma cash to approximately $28 million.
• Zedge Marketplace monetization continued to strengthen, as subscription revenue rose nearly 30% for the year, active subscriptions increased 35% to about 1.3 million, and fourth-quarter average revenue per monthly active user rose more than 30% to $0.121.
• Marketplace monthly active users fell 17% year over year, and management acknowledged that reversing the decline remains a priority. The company may take a more measured approach to paid user acquisition, while Emojipedia revenue continued to decline and DataSeeds revenue is expected to remain uneven because project timing and sizes vary.

Zedge Price Performance

Shares of ZDGE stock opened at $2.56 on Wednesday. Zedge has a 52-week low of $2.21 and a 52-week high of $4.70. The stock has a 50 day moving average price of $2.93 and a 200 day moving average price of $3.07.

Zedge News Summary

Here are the key news stories impacting Zedge this week:

• Positive Sentiment: Zedge reported fiscal Q4 EPS of $0.04, exceeding the $0.02 consensus estimate, while revenue of $7.77 million topped expectations of $7.20 million. Zedge quarterly earnings results
• Positive Sentiment: Management highlighted growth in subscriptions and its DataSeeds training-data business. Subscribers reached approximately 1.3 million, while average revenue per monthly user increased 30%, providing potential longer-term growth drivers. Zedge long-term investor takeaways
• Neutral Sentiment: Zedge plans to maintain roughly a $20 million cash cushion while scaling DataSeeds in fiscal 2027. The approach supports financial flexibility but may limit near-term investment or growth acceleration. Zedge cash cushion and DataSeeds plans
• Negative Sentiment: Maxim Group lowered its EPS forecasts across several upcoming periods, including Q1 2027 to $0.02 from $0.07, Q2 2027 to $0.05 from $0.08, Q3 2027 to $0.05 from $0.06, Q2 2028 to $0.05 from $0.08, and Q3 2028 to $0.04 from $0.06. The reductions signal weaker expected profitability despite the recent quarterly beat and are likely the main source of selling pressure. Zedge analyst estimates

About Zedge

Zedge, Inc (NYSE American: ZDGE) operates a mobile-first digital content platform that enables users to discover, customize and share content for smartphones and other personal devices. Its principal consumer product is the Zedge app, which offers wallpapers, video wallpapers, ringtones, notification sounds, stickers and other personalization content.

The company provides both free and premium content, with offerings from independent creators as well as technology-assisted and user-generated content.