Key Highlights

  • Fiscal 2026 revenue rose 7.6% to $31.6 million, and subscription revenue increased 29.5% to $6.6 million.
  • Fourth quarter revenue grew 4.0% to $7.8 million, with GAAP net income of $0.4 million.
  • Free cash flow reached $4.2 million for the year, and adjusted EBITDA was $4.1 million.
  • A $7.7 million insider investment was led by Howard Jonas in September, and Morris Berger became CEO.

Zedge, Inc. (NYSE American:ZDGE) reported fourth quarter and full-year results for the fiscal year ended July 31, 2026 on October 26, 2026. The company, which builds and operates creator communities serving 20 million monthly active users, said fiscal 2026 revenue increased 7.6% to $31.6 million. Fourth quarter revenue rose 4.0% to $7.8 million. The company noted that fiscal 2026 amounts are preliminary and subject to audit completion.

Full-Year and Quarterly Results

Subscription revenue grew 29.5% to $6.6 million for the year and 25.6% to $1.8 million in the fourth quarter. Advertising revenue was $21.2 million for the year, up 4.1%, and $5.1 million in the quarter, down 1.9%. Management said a decline at Emojipedia reduced consolidated revenue growth by about 300 basis points.

The GAAP operating loss narrowed to $0.6 million from $3.2 million, and the GAAP net loss narrowed to $0.1 million, or $0.02 per share, from $2.4 million, or $0.17 per share. Non-GAAP net income was $3.1 million, or $0.24 per diluted share, versus $0.7 million, or $0.05. Adjusted EBITDA rose 134.2% to $4.1 million.

Cash Flow, Users and Capital Returns

Free cash flow increased 46.6% to $4.2 million for the year and 220.3% to $1.6 million in the fourth quarter. Cash and cash equivalents were $20.3 million as of July 31, 2026. Monthly active users in the quarter were 19.3 million, down 16.8%, while active subscriptions rose 35.3% to about 1.3 million and average revenue per monthly active user increased 30.5% to $0.121.

The company repurchased 686,477 shares during the year and paid a quarterly dividend of $0.02 per share in the fourth quarter. Management said it returned about $2.7 million to stockholders through buybacks and dividends, and that it subsequently raised the dividend by 25%. The share repurchase program was suspended in the first quarter of fiscal 2027 in light of the September capital raise.

Why This Could Matter

Management tied the results to its DataSeeds.AI business, which provides managed, multimodal data creation for AI developers and enterprises. Jonathan Reich, President and COO, said DataSeeds became a commercial business during the year, with repeat orders and a first six-figure order. Howard Jonas led a $7.7 million insider investment in September to accelerate its growth, and Mr. Jonas is taking a more active role. The company hired Morris Berger as Chief Executive Officer earlier in October.

Closing Summary

Zedge ended fiscal 2026 with revenue of $31.6 million, narrower GAAP losses, higher free cash flow and a new chief executive. The company also reported a September capital raise tied to DataSeeds.AI and held an earnings call on October 26 at 4:30 p.m. Eastern Time.