Zedge Reports Fourth Quarter and Full Year Fiscal 2025 Results

About this update from Zedge, Inc.

Active subscriptions 1 reached a record 984K, up 47% year-over-year; subscription revenue grew 21% year-over-year ARPMAU 1 grew 17% year-over-year Repurchased 640,000 shares during Q4 and 1.3 million in the fiscal year Introduced first dividend post year-end NEW YORK, NY / ACCESS Newswire / October 28, 2025 / Zedge, Inc. (NYSE AMERICAN:ZDGE), $ZDGE, a leader in digital marketplaces and interactive games that provide content, enable creativity, empower self-expression and facilitate community, today announced results for its fourth quarter and full year fiscal 2025, ended July 31, 2025. Jonathan Reich, Zedge's CEO, commented: "We closed the year with solid operating performance, healthy underlying metrics and positive cash flow. Fourth quarter revenue was about flat year-over-year. Growth in our core businesses was offset by expected softness at GuruShots, which stabilized on a sequential basis, and by the absence of a one-time Zedge Premium boost that contributed to results in the prior-year quarter. Zedge+ subscription revenue increased 21%, ARPMAU rose 17% and Zedge Premium GTV 1 continued to expand, reflecting ongoing demand for premium and personalized content. "We also ended fiscal 2025 with a solid balance sheet, including roughly $19 million in cash and no debt. During the fourth quarter, we took a more aggressive approach to capital deployment, focusing on areas with strong long-term value potential. This included the repurchase of 640,000 shares of our common stock and continued investment in new product initiatives. We also had cash outlays related to our cost-cutting initiatives and the final payment of the GuruShots retention bonus implemented at the time of the 2022 acquisition, neither of which is expected to recur. "During fiscal 2025, we introduced new AI features across our platforms, developed new products including Tapedeck and Syncat, expanded into the enterprise market with DataSeeds.AI, weathered the temporary revenue declines due to uncertainty related to TikTok's business in the U.S. and repurchased more than 1.3 million shares of our common stock. We also better positioned ourselves for improved profitability and free cash flow in fiscal 2026 by implementing cost-cutting measures, including rightsizing our underperforming GuruShots business and closing our Norway office, while maintaining flexibility to invest in growth opportunities." Fourth Quarter Highlights (fiscal 2025 versus fiscal 2024) Fiscal Year Highlights (2025 versus 2024) nm = not measurable/meaningful *numbers/percentages are based off of actuals versus the rounded numbers in the table; numbers in the parentheses are negative/losses *numbers/percentages are based off of actuals versus the rounded numbers in the table; Fiscal 2026 Commentary Reich continued: "Fiscal 2026 will be a year of innovation focused on unlocking growth. Our recently announced Product Innovation Team is focused on rapidly testing and developing new product concepts and leveraging AI, vibe coding, and automations to deliver more "shots on goal" with fewer resources. " Syncat is the first example of this approach, developed by three team members in about a month. Building on that success, we plan to launch six new product concepts or "alphas" in fiscal 2026, each measured against specific KPIs to determine whether it warrants further investment or should be quickly discontinued. This model will provide us with more opportunities for success while also maintaining tight cost control. "We also launched Tapedeck in September, following our traditional development process. It represents a significant expansion of our premium product portfolio into music and leverages our expertise in nurturing artist communities and managing marketplaces. Most early metrics are tracking ahead of our targets. Tapedeck not only expands our creator economy footprint but also creates new monetization opportunities across advertising, subscriptions and premium features . " "Finally, DataSeeds.AI continues to gain traction in the B2B data licensing market. We signed our first customer contract in fiscal 2025 with a leading AI developer and since then, have added new customers while receiving additional orders from an existing customer. We are also in active discussions with several prospects that could significantly expand the platform's contribution in fiscal 2026. Our ability to provide rights-cleared, ethically-sourced content-on-demand datasets at scale positions us as a differentiated supplier in a rapidly growing market. This is aside from demand from adjacent verticals, including e-commerce vendors and stock photo businesses. "Our capital allocation strategy reflects confidence in both our core business and our innovation pipeline, as well as the full impact of our cost-cutting actions taken in early 2025. The AI-first development model is capital-efficient, as we can fund multiple product experiments, scale DataSeeds.AI's B2B expansion, enhance our core platforms and advance GuruShots 2.0 planning simultaneously while returning cash to shareholders through dividends and share repurchases, ensuring we maintain ample liquidity and flexibility to pursue opportunities as they emerge. "We're focused on five strategic priorities for fiscal 2026: expanding and diversifying our revenue base; accelerating AI innovation across all products and internal functions; scaling our new product releases including DataSeeds.AI and Tapedeck; leveraging the structural improvements we've made, including greater operational efficiency, profitability discipline and systematic innovation; and returning capital to shareholders via a balanced capital allocation strategy. With our strong balance sheet and cash generation, we are positioned to invest in and deliver sustained growth and expanded margins, while also returning capital to shareholders, all of which we believe will create long-term shareholder value." nm = not measurable/meaningful *numbers may not add due to rounding 1 We use the following supplemental business metrics in this release because we believe they are useful in evaluating Zedge's operational performance. 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 supplement 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. Earnings Announcement and Supplemental Information Management will host an earnings conference call today at 11:00 am 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: 327251 Webcast URL: https://www.webcaster5.com/Webcast/Page/2205/53057 Replay: Toll Free: 877-481-4010 International: 919-882-2331 Replay Passcode: 53057 About Zedge Zedge empowers tens of millions of consumers and creators each month with its suite of interconnected platforms that enable creativity, self-expression and e-commerce and foster community through fun competitions. Zedge's ecosystem of product offerings includes the Zedge Marketplace, a freemium marketplace offering mobile phone wallpapers, video wallpapers, ringtones, notification sounds, and pAInt, a generative AI image and audio maker; GuruShots, "The World's Greatest Photography Game," a skill-based photo challenge game; and Emojipedia, the #1 trusted source for ‘all things emoji.' 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 [email protected] [email protected] ZEDGE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (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. CONDENSEDCONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (audited) Use of Non-GAAP Measures 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, and non-GAAP net income and EPS (which adjust out stock compensation expense, transaction-related expenses and other non-recurring expenses from GAAP net income and EPS), 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 *numbers may not add due to rounding SOURCE: Zedge, Inc. View the original press release on ACCESS Newswire

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