Form 8-K
8-K — Zedge, Inc.
Accession: 0001213900-26-112482
Filed: 2026-10-26
Period: 2026-10-26
CIK: 0001667313
SIC: 7372 (SERVICES-PREPACKAGED SOFTWARE)
Item: Results of Operations and Financial Condition
Item: Financial Statements and Exhibits
Documents
8-K — ea0309598-8k_zedge.htm (Primary)
EX-99.1 — EARNINGS RELEASE, DATED OCTOBER 26, 2026, REPORTING THE RESULTS OF OPERATIONS FOR ZEDGE, INC.'S FISCAL QUARTER ENDED JULY 31, 2026 (ea030959801ex99-1.htm)
XML — IDEA: XBRL DOCUMENT (R1.htm)
8-K — CURRENT REPORT
8-K (Primary)
Filename: ea0309598-8k_zedge.htm · Sequence: 1
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0001667313
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2026-10-26
2026-10-26
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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): October 26, 2026
Zedge, Inc.
(Exact
name of registrant as specified in its charter)
Delaware
1-37782
26-3199071
(State
or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS
Employer
Identification No.)
1178 Broadway, Ste.
1450 (3rd Floor)
New York, NY
10001
(Address
of principal executive offices)
(Zip
Code)
Registrant’s
telephone number, including area code: (330) 577-3424
Not
Applicable
(Former
name or former address, if changed since last report.)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions (see General Instruction A.2. below):
☐
Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class
Trading
Symbol
Name
of each exchange on which registered
Class B common stock, par value $0.01 per share
ZDGE
NYSE
American
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item
2.02. Results of Operations and Financial Condition
On
October 26, 2026, Zedge, Inc. (the “Registrant”) issued a press release announcing its results of operations for its fiscal
quarter ended July 31, 2026. A copy of the press release issued by the Registrant concerning the foregoing results is furnished herewith
as Exhibit 99.1 and is incorporated herein by reference.
The
Registrant is furnishing the information contained in this Report, including Exhibit 99.1, pursuant to Item 2.02 of Form 8-K promulgated
by the Securities and Exchange Commission (the “SEC”). This information shall not be deemed to be “filed” with
the SEC or incorporated by reference into any other filing with the SEC unless otherwise expressly stated in such filing. In addition,
this Report and the press release contain statements intended as “forward-looking statements” that are subject to the cautionary
statements about forward-looking statements set forth in the press release.
Item 9.01
Financial Statements and Exhibits.
(d)
Exhibits.
Exhibit
No.
Document
99.1
Earnings Release, dated October 26, 2026, reporting the results of operations for Zedge, Inc.’s fiscal quarter ended July 31, 2026.
104
Cover Page Interactive Data File (embedded within the
Inline XBRL document)
1
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
ZEDGE, INC.
By:
/s/ Jonathan
Reich
Name:
Jonathan Reich
Title:
President and Chief Operating Officer
Dated:
October 26, 2026
2
EXHIBIT INDEX
Exhibit
No.
Document
99.1
Earnings Release, dated October 26, 2026, reporting the results of operations for Zedge, Inc.’s fiscal quarter ended July 31, 2026.
104
Cover Page Interactive Data File (embedded within the
Inline XBRL document).
3
EX-99.1 — EARNINGS RELEASE, DATED OCTOBER 26, 2026, REPORTING THE RESULTS OF OPERATIONS FOR ZEDGE, INC.'S FISCAL QUARTER ENDED JULY 31, 2026
EX-99.1
Filename: ea030959801ex99-1.htm · Sequence: 2
Exhibit 99.1
Zedge Reports Fourth Quarter and Full-Year Fiscal
2026 Results
Subscription revenue increased 26% year-over-year
in Q4 and 30% in fiscal 2026
ARPMAU¹ increased 31% to $0.121; active
subscriptions¹ grew 35% to approximately 1.3 million
Full-year Free Cash Flow² increased 47%
to $4.2 million
New York, NY – Oct. 26, 2026: Zedge, Inc. (NYSE AMERICAN:
ZDGE), $ZDGE, a company that builds and operates creator communities serving 20 million monthly active users, today announced its
financial results for the fourth quarter and fiscal year ended July 31, 2026.
Jonathan Reich, President and COO, commented:
“Fiscal year 2026 was a strong recovery year for Zedge. Our relentless
focus on monetization improvement drove solid revenue gains, especially within our subscription offerings, where revenue grew nearly 30%.
Overall revenue increased approximately 8%, despite a marked decline at Emojipedia that reduced our consolidated revenue growth by approximately
300 basis points. Combined with the benefits of our FY2025 restructuring, these improvements contributed to significant growth in non-GAAP
EPS2, adjusted EBITDA2 and free cash flow. Our stronger cash generation enabled us to return approximately $2.7
million to stockholders through share repurchases3 and quarterly dividends, the latter of which we initiated during the year
and subsequently increased by 25%, all while still adding cash to our balance sheet.
“From a product standpoint, the major story was establishing
DataSeeds.AI as a commercial business, securing repeat orders from new and existing customers, including our first six-figure order, and
putting the people and infrastructure in place to support larger and more complex projects. That progress excited Howard Jonas about the
opportunity, so much so that he led a $7.7 million insider investment in Zedge in September to accelerate DataSeeds’ growth. In
light of the investment, Howard is taking a more active role in helping us accelerate, scale and unlock this business’s potential. The
Company also hired Morris Berger, who has a long and successful track record, as our CEO earlier this month.
Morris Berger, Chief Executive Officer, added:
“DataSeeds has the ingredients to become a meaningful growth
business for Zedge. It combines established creator communities, content assets and experience operating consumer applications with purpose-built
data collection technology and the DataSeeds Production Cloud. These capabilities allow us to produce rights-cleared, multimodal datasets
tailored to complex customer requirements. The business has already established commercial traction through repeat orders, growing order
sizes and the potential to expand into new products and services, evidenced by our initial model-evaluation engagement. We see room to
build on that foundation across training data, model evaluation, annotation and data enrichment, and specialized datasets for physical
AI and robotics.”
Fourth Quarter Highlights (fiscal 2026 versus fiscal 2025)
● Revenue increased 4.0% to $7.8 million;
o Subscription revenue increased 25.6% to $1.8 million;
● GAAP operating income of $0.3 million, compared to a ($0.7) million loss;
● GAAP net income and diluted EPS of $0.4 million and $0.03, compared to a
net loss of ($0.6) million and a loss per share of ($0.04), respectively;
● Non-GAAP net income² and diluted Non-GAAP EPS of $0.5 million and $0.04,
compared to $0.1 million and $0.00, respectively;
● Free cash flow increased 220.3% to $1.6 million, compared to $0.5 million;
● Adjusted
EBITDA increased 75.6% to $0.5 million, compared to $0.3 million;
● ARPMAU
increased 30.5% to $0.121;
● Zedge
Premium GTV¹ increased 1.9%;
● Active
subscriptions increased 35.3% to approximately 1.3 million;
● Deferred
revenue increased 13.4% to $6.1 million;
● Cash
and cash equivalents were $20.3 million as of July 31, 2026;
● Paid
a quarterly dividend of $0.02 per share.
Full-Year Fiscal 2026 Highlights (versus fiscal 2025)
● Revenue
increased 7.6% to $31.6 million;
o Subscription revenue increased 29.5% to $6.6 million;
● GAAP
operating loss narrowed to ($0.6) million from ($3.2) million;
● GAAP
net loss and diluted EPS narrowed to ($0.1) million and ($0.02) compared to ($2.4) million and ($0.17), respectively;
● Non-GAAP
net income and diluted Non-GAAP EPS of $3.1 million and $0.24, compared to $0.7 million and $0.05, respectively;
● Free
cash flow increased 46.6% to $4.2 million, compared to $2.9 million;
● Adjusted
EBITDA increased 134.2% to $4.1 million, compared to $1.8 million;
● Repurchased
686,477 shares.
Fourth Quarter and Full-Year Select Financial
Metrics: FY26 versus FY25*
($ in millions except per-share amounts)
Q4 FY26
Q4 FY25
Change
FY26
FY25
Change
Total Revenue
$ 7.8
$ 7.5
+4.0 %
$ 31.6
$ 29.4
+7.6 %
Advertising Revenue
$ 5.1
$ 5.2
-1.9 %
$ 21.2
$ 20.3
+4.1 %
Digital Goods and Services Revenue
$ 0.4
$ 0.5
-2.2 %
$ 2.0
$ 2.2
-10.2 %
Subscription Revenue
$ 1.8
$ 1.4
+25.6 %
$ 6.6
$ 5.1
+29.5 %
Other Revenue
$ 0.5
$ 0.4
+11.6 %
$ 1.9
$ 1.8
+6.5 %
GAAP Operating Income (Loss)
$ 0.3
$ (0.7 )
nm
$ (0.6 )
$ (3.2 )
+80.0 %
Operating Margin
3.3 %
-9.6 %
-2.0 %
-11.0 %
GAAP Net Income (Loss)
$ 0.4
$ (0.6 )
nm
$ (0.1 )
$ (2.4 )
94.5 %
GAAP Diluted EPS (Loss per share)
$ 0.03
$ (0.04 )
nm
$ (0.02 )
$ (0.17 )
+88.2 %
Non-GAAP Net Income
$ 0.5
$ 0.1
nm
$ 3.1
$ 0.7
+357.0 %
Non- GAAP Diluted EPS
$ 0.04
$ 0.00
nm
$ 0.24
$ 0.05
+383.1 %
Cash Flow from Operations
$ 1.7
$ 0.7
+145.0 %
$ 4.6
$ 3.4
+33.1 %
Free Cash Flow
$ 1.6
$ 0.5
+220.3 %
$ 4.2
$ 2.9
+46.6 %
Adjusted EBITDA
$ 0.5
$ 0.3
+75.6 %
$ 4.1
$ 1.8
+134.2 %
Shares Repurchased
0.36
0.64
-44.2 %
0.69
1.32
-48.1 %
nm = not measurable/meaningful
* percentages are based off of actuals versus the rounded numbers in the
table; FY2026 amounts are preliminary and subject to audit completion
2
Select Zedge Marketplace Metrics: Q4 FY26 versus
Q4 FY25*
(in MM except for ARPMAU and where noted)
Q4 FY26
Q4 FY25
Change
MAU
19.3
23.2
-16.8 %
Well-developed markets (millions)
4.2
5.4
-22.2 %
Emerging markets (millions)
15.1
17.8
-15.2 %
Active subscriptions (in 000s)
1,332
984
+35.3 %
ARPMAU
$ 0.121
$ 0.093
+30.5 %
Zedge Premium GTV
$ 0.65
$ 0.64
+1.9 %
* percentages are based off of actuals versus the rounded numbers in the table
Non-GAAP and Supplemental Metrics
1 We use the following supplemental business metrics in this release
because we believe they are useful in evaluating Zedge’s operational performance (Please see our 10-K for full explanation of the
supplemental business metrics):
Monthly active users, or MAU, captures the number of unique users
that used our Zedge App during the final 30 days of the relevant period. It is useful for evaluating consumer engagement with our App,
which correlates to advertising revenue as more users drive more ad impressions.
Zedge Premium Gross Transaction Value, or GTV, is the total dollar
amount of transactions conducted through Zedge Premium. As Zedge Premium is an internal focus for growth, we believe this metric will
help investors evaluate our progress in growing this part of our business.
Average Revenue Per Monthly Active User for our Zedge Marketplace,
or ARPMAU, is useful in evaluating how well we monetize our user base.
An Active Subscription is a subscription that has commenced and
not been canceled, including paused subscriptions and subscriptions in free trials, grace periods, or account hold. This is important
because it is a source of recurring revenue.
2 Throughout this release, Non-GAAP Net Income, Non-GAAP EPS, Free
Cash Flow (FCF) and Adjusted EBITDA are non-GAAP financial measures intended to provide useful information that supplements Zedge’s
results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measures at the end of this release for an explanation
of Zedge’s formulations of Non-GAAP Net Income, Non-GAAP EPS, Free Cash Flow and Adjusted EBITDA and reconciliations to the most
directly comparable GAAP measures.
3 The share repurchase was suspended in Q1 FY27 in light of the
September capital raise.
Earnings Announcement and Supplemental Information
Management will host an earnings conference call this afternoon, October
26 at 4:30 p.m. Eastern to discuss its earnings results, outlook, and strategy, followed by a Q&A session with investors.
Live Call-in Info:
Toll Free:
888-506-0062
International:
973-528-0011
Participant Access Code:
465347
Webcast URL: https://www.webcaster5.com/Webcast/Page/2205/54612
Replay:
Toll Free:
877-481-4010
International:
919-882-2331
Replay Passcode:
54612
3
About Zedge
Zedge builds and operates creator communities
that serve 20 million monthly active users across its platforms. Zedge Marketplace, its flagship platform, is a leading marketplace for
mobile personalization content and a core profit and cash flow generator. DataSeeds.AI is Zedge’s B2B AI data business, providing
managed, multimodal data creation and related services for AI developers and enterprises. DataSeeds draws on Zedge’s proprietary
creator communities, including Zedge Marketplace contributors and the GuruShots photography community, as well as broader crowdsourcing
and a network of production partners to deliver rights-cleared data built to customer specifications.
For more information, visit: investor.zedge.net
Follow us on X: @Zedge
Follow us on LinkedIn
Forward-Looking Statements
All statements above that are not purely about
historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,”
“plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current
judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements
due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted
along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.
Contact:
Brian Siegel, IRC, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
brian@haydenir.com
ir@zedge.net
4
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value
data)
(audited)
July 31,
2026
2025
Assets
Current assets:
Cash and cash equivalents
$ 20,335
$ 18,609
Trade accounts receivable
3,371
3,164
Prepaid expenses and other current assets
440
671
Total Current assets
24,146
22,444
Property and equipment, net
1,159
1,290
Intangible assets, net
1,002
4,922
Goodwill
2,093
1,931
Deferred tax assets, net
5,126
4,823
Other assets
393
244
Total assets
$ 33,919
$ 35,654
Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable
$ 1,268
$ 1,471
Accrued expenses and other current liabilities
2,425
2,867
Deferred revenues
4,201
3,425
Total Current liabilities
7,894
7,763
Deferred revenues--non-current
1,878
1,937
Other liabilities
126
53
Total liabilities
9,898
9,753
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $.01 par value; authorized shares—2,400; no shares issued and outstanding
-
-
Class A common stock, $.01 par value; authorized shares—2,600; 525 shares issued and outstanding at July 31, 2026 and 2025
5
5
Class B common stock, $.01 par value; authorized shares—40,000; and 15,472 shares issued, and 12,400 outstanding at July 31, 2026 and 15,073 shares issued and 12,692 shares outstanding at July 31, 2025.
155
151
Additional paid-in capital
49,913
49,768
Accumulated other comprehensive loss
(1,180 )
(1,509 )
Accumulated deficit
(15,636 )
(15,505 )
Treasury stock, 3,072 shares at July 31, 2026 and 2,381shares at July 31, 2025, at cost
(9,236 )
(7,009 )
Total stockholders’ equity
24,021
25,901
Total liabilities and stockholders’ equity
$ 33,919
$ 35,654
5
ZEDGE, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per share
data)
(audited)
Three Months Ended
Years Ended
July 31,
July 31,
2026
2025
2026
2025
Revenues
$ 7,770
$ 7,468
$ 31,626
$ 29,398
Costs and expenses:
Direct cost of revenues (excluding amortization of capitalized software and technology development costs which is included below)
578
481
2,229
1,841
Selling, general and administrative
6,763
6,909
25,611
27,187
Depreciation and amortization
171
225
707
1,149
Impairment of intangible assets
-
-
3,570
-
Impairment of capitalized software and technology development costs
-
-
145
827
Restructuring charges
-
547
-
1,605
Loss on disposal of property and equipment
-
21
-
21
Income (loss) from operations
258
(715 )
(636 )
(3,232 )
Interest and other income, net
139
160
542
666
Net income (loss) resulting from foreign exchange transactions
39
(10 )
(172 )
(151 )
Income (loss) before income taxes
436
(565 )
(266 )
(2,717 )
Income tax benefit
(8 )
(6 )
(135 )
(325 )
Net income (loss)
$ 444
$ (559 )
$ (131 )
$ (2,392 )
Other comprehensive income (loss):
Changes in foreign currency translation adjustment
(123 )
36
329
323
Total other comprehensive income (loss)
(123 )
36
329
323
Total comprehensive income (loss)
$ 321
$ (523 )
$ 198
$ (2,069 )
Income (loss) per share attributable to Zedge, Inc. common stockholders:
Basic
$ 0.03
$ (0.04 )
$ (0.01 )
$ (0.17 )
Diluted
$ 0.03
$ (0.04 )
$ (0.01 )
$ (0.17 )
Weighted-average number of shares used in calculation of loss per share:
Basic
12,995
13,441
12,993
13,736
Diluted
13,184
13,441
12,993
13,736
6
ZEDGE, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
(in thousands)
(audited)
Year ended July 31,
2026
2025
Operating activities
Net loss
$
(131
)
$
(2,392
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation
58
63
Amortization of intangible assets
349
447
Amortization of capitalized software and technology development costs
299
639
Loss on disposal of property and equipment
-
21
Stock-based compensation
530
1,445
Impairment charge of capitalized software and technology development costs
145
827
Impairment charge of ROU asset
-
140
Impairment charge of intangible assets
3,570
-
Deferred income taxes
(303
)
(479
)
Change in assets and liabilities:
Trade accounts receivable
(207
)
242
Prepaid expenses and other current assets
231
(78
)
Other assets
(75
)
(94
)
Trade accounts payable and accrued expenses
(628
)
378
Deferred revenues
717
2,263
Net cash provided by operating activities
4,555
3,422
Investing activities
Capitalized software and technology development costs
(317
)
(466
)
Purchase of property and equipment
(27
)
(83
)
Net cash used in investing activities
(344
)
(549
)
Financing activities
Purchase of treasury stock in connection with share buyback program and stock awards vesting
(1,913
)
(4,433
)
Payment of cash dividends
(940
)
-
Proceeds from exercise of stock options
245
62
Net cash used in financing activities
(2,608
)
(4,371
)
Effect of exchange rate changes on cash and cash equivalents
123
109
Net increase (decrease) in cash and cash equivalents
1,726
(1,389
)
Cash and cash equivalents at beginning of period
18,609
19,998
Cash and cash equivalents at end of period
$
20,335
$
18,609
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for income taxes
$
198
$
220
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
ROU assets obtained in exchange for lease liabilities
$
286
$
111
Exercise price of stock options settled through net share exercise
$
314
$
-
7
Use of Non-GAAP Measures and Key Performance Indicators (KPI)
Adjusted EBITDA, defined as earnings (loss) before interest, taxes,
depreciation and amortization, stock compensation expense, transaction-related expenses and other non-recurring expenses, Free Cash Flow,
a common metric used by investors for valuation, and non-GAAP net income (loss) and EPS (or loss per share) (which adjust out stock compensation
expense, transaction-related expenses and other non-recurring expenses from GAAP net income (loss) and EPS (loss per share)), represent
measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition
to the GAAP measures we present. Our management also believes these measures are useful in evaluating our core operating results. However,
these are not measures of financial performance under GAAP and should not be considered an alternative to net income or operating income/margin
as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity. Numbers in
the following reconciliation tables may not add due to rounding.
Reconciliation of Adjusted EBITDA to Net Income (Loss)
Q125
Q225
Q325
Q425
Q126
Q226
Q326
Q426
FY24
FY25
FY26
Net Income (Loss)
$
(0.3
)
$
(1.7
)
$
0.2
$
(0.6
)
$
0.8
$
(2.3
)
$
0.9
$
0.4
$
(9.2
)
$
(2.4
)
$
(0.1
)
Excluding:
Interest and other income (expense), net
$
(0.2
)
$
(0.2
)
$
(0.2
)
$
(0.2
)
$
(0.2
)
$
(0.1
)
$
(0.1
)
$
(0.1
)
$
(0.6
)
$
(0.7
)
$
(0.6
)
Income tax expense (benefit)
$
0.0
$
(0.5
)
$
0.1
$
(0.0
)
$
0.2
$
(0.6
)
$
0.3
$
(0.0
)
$
(2.2
)
$
(0.3
)
$
(0.1
)
Depreciation and amortization
$
0.4
$
0.3
$
0.2
$
0.2
$
0.2
$
0.2
$
0.1
$
0.2
$
2.5
$
1.1
$
0.7
EBITDA
$
(0.1
)
$
(2.0
)
$
0.3
$
(0.5
)
$
1.1
$
(2.8
)
$
1.2
$
0.5
$
(9.5
)
$
(2.2
)
$
(0.1
)
Adjustments:
Asset impairments and restructuring charges
$
0.0
$
1.3
$
0.6
$
0.6
$
0.0
$
3.7
$
0.0
$
0.0
$
12.0
$
2.5
$
3.7
Stock-based compensation
$
0.4
$
0.6
$
0.3
$
0.1
$
0.1
$
0.3
$
0.1
$
0.1
$
2.1
$
1.4
$
0.5
Expenses related to restructuring activities and business combination
$
0.0
$
0.0
$
0.0
$
0.1
$
0.0
$
0.0
$
0.0
$
0.0
$
0.2
$
0.1
$
0.0
Adjusted EBITDA
$
0.3
$
(0.1
)
$
1.2
$
0.3
$
1.2
$
1.1
$
1.3
$
0.5
$
4.7
$
1.8
$
4.1
* numbers may not add due to rounding
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income
Q125
Q225
Q325
Q425
Q126
Q226
Q326
Q426
FY24
FY25
FY26
GAAP Net Income (Loss)
$ (0.3 )
$ (1.7 )
$ 0.2
$ (0.6 )
$ 0.8
$ (2.3 )
$ 0.9
$ 0.4
$ (9.2 )
$ (2.4 )
$ (0.1 )
Adjustments:
Asset impairments and restructuring charges
$ 0.0
$ 1.3
$ 0.6
$ 0.6
$ 0.0
$ 3.7
$ 0.0
$ 0.0
$ 12.0
$ 2.5
$ 3.7
Stock-based compensation
$ 0.4
$ 0.6
$ 0.3
$ 0.1
$ 0.1
$ 0.3
$ 0.1
$ 0.1
$ 2.1
$ 1.4
$ 0.5
Expenses related to restructuring activities and business combination
$ 0.0
$ 0.0
$ 0.0
$ 0.1
$ 0.0
$ 0.0
$ 0.0
$ 0.0
$ 0.2
$ 0.1
$ 0.0
Income tax effect on non-GAAP items
$ (0.1 )
$ (0.4 )
$ (0.2 )
$ (0.2 )
$ (0.0 )
$ (0.9 )
$ (0.0 )
$ (0.0 )
$ (3.3 )
$ (0.9 )
$ (1.0 )
Non-GAAP Net Income (Loss)
$ (0.0 )
$ (0.2 )
$ 0.9
$ 0.1
$ 0.9
$ 0.8
$ 1.0
$ 0.5
$ 1.8
$ 0.7
$ 3.1
Non-GAAP basic EPS (loss per share)
$ (0.00 )
$ (0.01 )
$ 0.06
$ 0.00
$ 0.07
$ 0.06
$ 0.08
$ 0.04
$ 0.13
$ 0.05
$ 0.24
Non-GAAP diluted EPS (loss per share)
$ (0.00 )
$ (0.01 )
$ 0.06
$ 0.00
$ 0.07
$ 0.06
$ 0.07
$ 0.04
$ 0.13
$ 0.05
$ 0.24
Weighted average shares used to compute Non-GAAP basic earnings per share
14.1
13.9
13.7
13.4
13.0
13.0
13.0
1 3.0
14.1
13.7
13.0
Weighted average shares used to compute Non-GAAP diluted earnings per share
14.1
13.9
13.9
13.4
13.3
13.0
13.3
13.2
14.1
13.7
13.0
* numbers may not add due to rounding
Free Cash Flow Calculation
Q125
Q225
Q325
Q425
Q126
Q226
Q326
Q426
FY24
FY25
FY26
Cash Flow from Operations
$ 1.2
$ 0.7
$ 0.9
$ 0.7
$ 0.8
$ 0.9
$ 1.2
$ 1.7
$ 5.9
$ 3.4
$ 4.6
Capital Expenditures
$ 0.2
$ 0.1
$ 0.1
$ 0.2
$ 0.2
$ 0.1
$ 0.0
$ 0.0
$ 1.2
$ 0.5
$ 0.3
Free Cash Flow
$ 1.0
$ 0.6
$ 0.8
$ 0.5
$ 0.6
$ 0.8
$ 1.2
$ 1.6
$ 4.7
$ 2.9
$ 4.2
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