Zedge Reports Second Quarter Fiscal 2026 Results

About this update from Zedge, Inc.

Record quarterly results across total revenue, advertising and subscription revenue, active subscriptions 1 , ARPMAU 1 , Zedge Premium GTV 1 Revenue increased 18% year over year to $8.3 million Subscription revenue increased 33%, and active subscriptions grew 49% to nearly 1.2 million ARPMAU increased 48% to a quarterly record of $0.115; Zedge Premium GTV increased 16% NEW YORK CITY, NY / ACCESS Newswire / March 12, 2026 / 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 second quarter fiscal 2026, ended January 31, 2026. Jonathan Reich, Zedge's CEO, commented: "We delivered a strong second quarter, highlighted by record monetization performance in the Zedge Marketplace. Revenue increased 18% year over year, driven by seasonal strength combined with strong advertising and subscription optimization. Subscription revenue increased 33%, active subscriptions reached a record 1.2 million, ARPMAU increased 48% to a record $0.115 and Zedge Premium GTV also reached a new quarterly high. These results reflect continued improvement in the quality of our revenue and our ability to monetize our audience more effectively, even as overall MAU 1 trended lower. "Innovation remains a central focus across the organization. Within our current portfolio, we are excited by the prospects for DataSeeds as the demand for high-quality AI training data is substantial and not likely to slow down any time soon. DataSeeds continues to generate interest from both new and existing customers, including repeat customers placing larger orders. While revenue remains early-stage and lumpy given the limited number of deals, the pipeline is expanding, and we are investing thoughtfully to support that growth. "For Tapedeck, we are currently focusing on expanding the music catalog. Separately, our Innovation Team recently launched two new alpha products as part of our commitment to introduce up to six alphas this fiscal year, placing us halfway toward that goal. Our framework is disciplined - launch quickly, measure performance against clear thresholds and invest behind the opportunities that demonstrate traction This approach increases our shots on goal while maintaining thoughtful capital allocation. "Financially, free cash flow 2 increased 31% year over year to $0.8 million. Cash and cash equivalents increased sequentially to $19.1 million. We continue to operate with no debt, and we are now paying a quarterly dividend, reflecting confidence in our cash generation while continuing to invest in innovation." Second Quarter Highlights (fiscal 2026 versus fiscal 2025) Second Quarter Select Financial Metrics: FY26 versus FY25* nm = not measurable/meaningful *numbers/percentages are based off of actuals versus the rounded numbers in the table Select Zedge Marketplace Metrics: FY26 versus FY25* *numbers/percentages are based off of actuals versus the rounded numbers in the table 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. Trended Financial Information* nm = not measurable/meaningful *numbers may not add due to rounding Earnings Announcement and Supplemental Information Management will host an earnings conference call today at 4:30 pm 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: 238586 Webcast URL: https://www.webcaster5.com/Webcast/Page/2205/53597 Replay: Toll Free: 877-481-4010 International: 919-882-2331 Replay Passcode: 53597 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] CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value data) ZEDGE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except per share data) (unaudited) ZEDGE, INC. CONDENSEDCONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) (1) Dividend payable was paid on February 10, 2026. 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, 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 *numbers may not add due to rounding SOURCE: Zedge, Inc. View the original press release on ACCESS Newswire

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