Zedge Reports Fourth Quarter and Full-Year Fiscal 2026 Results

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 CITY, NY / ACCESS Newswire / October 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 EPS 2, adjusted EBITDA 2 and free cash flow. Our stronger cash generation enabled us to return approximately $2.7 million to stockholders through share repurchases 3 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)

Full-Year Fiscal 2026 Highlights (versus fiscal 2025)

Fourth Quarter and Full-Year Select Financial Metrics: FY26 versus FY25*

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

Select Zedge Marketplace Metrics: Q4 FY26 versus Q4 FY25*

*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

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

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

[email protected]

CONDENSED CONSOLIDATED BALANCESHEETS

(in thousands, except par value data)

(audited)

ZEDGE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except per share data)

(audited)

ZEDGE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(audited)

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.

*numbers may not add due to rounding

SOURCE: Zedge, Inc.