Zedge (NYSEAMERICAN:ZDGE – Get Free Report) announced its quarterly earnings results on Monday. The company reported $0.04 earnings per share for the quarter, beating the consensus estimate of $0.02 by $0.02, FiscalAI reports. The firm had revenue of $7.77 million during the quarter, compared to analyst estimates of $7.20 million. Zedge had a positive return on equity of 11.18% and a negative net margin of 3.62%.
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 Trading Up 1.8%
Shares of ZDGE opened at $2.76 on Tuesday. Zedge has a 12 month low of $2.21 and a 12 month high of $4.70. The stock’s 50 day moving average is $2.94 and its two-hundred day moving average is $3.07. The firm has a market cap of $34.61 million, a P/E ratio of -30.66 and a beta of 1.20.
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.
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