Zedge to Present at The LD Micro Main Event XIX on October 20, 2025October 10, 2025 7:00 AM EDT | Source: LD MicroNew York, New York--(Newsfile Corp. - October 10, 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, announced today that CEO Jonathan Reich will be presenting at the LD Micro Main Event XIX at the Hotel del Coronado in San Diego on Octobe ...

New SynCat app showcases AI-driven product development strategy; conceived and built in weeks by a team of two using AI and vibe coding NEW YORK, NY / ACCESS Newswire / October 9, 2025 / (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 the next step in its AI evolution with the formation of a dedicated Product Innovation Team charged with leveraging the power of AI to ...

NEW YORK, NY / ACCESS Newswire / October 6, 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, announces the launch of Tapedeck , a groundbreaking new music app and service designed to give musicians more control and fairer compensation for their work. Since 2017, Zedge has made it easier for creators across the globe to make a living making art through its thriving ...

User Engagement and Metrics - As of April 30, 2025, the Zedge App had been installed nearly 707 million times and had 22.1 million monthly active users (MAU), a decrease of 20.2% compared to the same period last year[100][117]. - Zedge App's Monthly Active Users (MAU) decreased by 20.2% to 22.1 million in Q2 2025 from 27.7 million in Q2 2024[119]. - Approximately 896,000 active subscribers were reported as of April 30, 2025, following the introduction of a subscription tier in the iOS version of the app[103]. - Emojipedia received approximately 46.3 million monthly page views and had about 10.9 million MAU as of April 30, 2025, with 49.7% of users located in well-developed markets[111]. Revenue and Financial Performance - Average Revenue Per Monthly Active User (ARPMAU) for the three months ended April 30, 2025, increased by 32.7% year-over-year, driven by higher advertising prices and strong subscription revenue growth[118]. - Total revenues for Q2 2025 were $7,757, a slight increase of 1.3% compared to $7,658 in Q2 2024[130]. - Subscription revenue for the three months ended April 30, 2025, increased by 13.4%, while subscription billings rose by 22.9% compared to the same period last year[118]. - Subscription revenue increased by 13.4% to $1,272 in Q2 2025 from $1,122 in Q2 2024, driven by new subscription offerings[134]. - Other revenues surged by 109.2% to $431 in Q2 2025 from $206 in Q2 2024, primarily due to increased Zedge Premium net revenue[135]. - Zedge Premium net revenue increased by 112.9% to $430 in Q2 2025 from $202 in Q2 2024, attributed to AI generative features[132]. - For the nine months ended April 30, 2025, subscription billings increased by 33.4% compared to the same period in the prior year[138]. Operational Challenges and Restructuring - The acquisition of GuruShots has faced challenges, leading to a restructuring plan aimed at achieving breakeven and revamping the offering to attract new users[108]. - Monthly Active Payers (MAP) for GuruShots decreased by 33.8% to 3,578 in Q2 2025 from 5,408 in Q2 2024[126]. - Average Revenue Per Monthly Active Payer (ARPMAP) for GuruShots decreased by 17.1% to $44.1 in Q2 2025 from $53.2 in Q2 2024[126]. - For the nine months ended April 30, 2025, income from operations related to the Zedge Marketplace decreased by 50.6% to $2.2 million from $4.5 million in the prior year, primarily due to higher user acquisition costs and restructuring charges[170]. - For the nine months ended April 30, 2025, the loss from operations related to GuruShots decreased by 70.8% to $4.8 million from $16.3 million in the prior year, mainly due to the prior period's impairment loss of $11.9 million on intangible assets[171]. Expenses and Cost Management - Selling, general and administrative (SG&A) expenses decreased by 6.1% to $6,343,000 in Q3 2025 compared to Q3 2024, with SG&A as a percentage of revenues at 81.8% compared to 88.2%[145][146]. - SG&A expenses increased by 8.0% to $20,278,000 in the nine months ended April 30, 2025, with SG&A as a percentage of revenues rising to 92.5% from 83.4%[147]. - Stock-based compensation expenses decreased by 11.7% to $603,000 in Q3 2025 compared to Q3 2024, and by 21.8% to $1,308,000 in the nine months ended April 30, 2025 compared to the same period in the prior year[149][150]. - Depreciation and amortization expenses decreased by 61.4% to $583,000 in Q3 2025 compared to Q3 2024, and by 56.4% to $924,000 in the nine months ended April 30, 2025[153][154]. Cash Flow and Financial Position - As of April 30, 2025, the company had cash and cash equivalents of $20.4 million and working capital of $17.5 million, compared to $20.0 million and $17.7 million, respectively, at July 31, 2024[172]. - Net cash provided by operating activities for the nine months ended April 30, 2025, was $2.7 million, a decrease from $5.2 million in the prior year, primarily due to a net loss of $1.8 million adjusted for non-cash items[175][176]. - In the nine months ended April 30, 2025, the company repurchased 683,506 shares of Class B common stock for approximately $2.0 million, compared to 60,206 shares for approximately $152,000 in the prior period[179]. - The company does not anticipate paying dividends on common stock until achieving sustainable profitability and retaining minimum cash reserves[181]. - One major customer represented 35% of revenue for the nine months ended April 30, 2025, compared to two customers representing 31% and 10% in the prior year[183]. - Cash used in investing activities for the nine months ended April 30, 2025, was primarily for capitalized software and technology development costs[177]. External Factors and Risks - The majority of users and employees are located outside the U.S., exposing the company to foreign exchange fluctuations and macroeconomic uncertainties[96]. - The ongoing geopolitical conflicts, particularly in Israel, have raised concerns about potential business disruptions and implications for the company's operations[97]. - Interest and other income, net decreased by 18.1% to $154,000 in Q3 2025 compared to Q3 2024, while it increased by 16.8% to $507,000 in the nine months ended April 30, 2025[158][159]. - The net loss resulting from foreign exchange transactions was $41,000 in Q3 2025, a decrease from a loss of $80,000 in Q3 2024, and for the nine months ended April 30, 2025, the loss was $223,000 compared to $141,000 in the prior year[161][162]. - Income tax expense was $88,000 in Q3 2025 compared to an income tax benefit of $137,000 in Q3 2024, resulting from a pre-tax income of $273,000 in the current year period[166].

Financial Data and Key Metrics Changes - Total revenue returned to growth, up 1.3% to $7,800,000, despite challenges in the advertising market [15][19] - Adjusted EBITDA increased 46% year over year to $1,200,000 [19] - Free cash flow generated was $800,000, impacted by restructuring payments and retention bonuses [6][19] - GAAP net income was $200,000, compared to $100,000 in the prior year, with non-GAAP net income at $900,000, up from $500,000 [18][19] Business Line Data and Key Metrics Changes - Zedge Plus subscriber base grew to nearly 900,000, a 37% year over year increase [7] - Zedge Premium revenue more than doubled, driven by expanded offerings and increased usage [7][16] - Deferred revenue reached $4,900,000, growing by 111% over the past seven quarters [15][19] - Gurushots revenue declined 45% year over year due to reduced user acquisition spending [16][19] Market Data and Key Metrics Changes - Monthly active users (MAU) declined year over year, but the focus shifted to attracting higher lifetime value users [8][31] - Average revenue per monthly active user increased by 33% year over year, indicating improved monetization [8][16] Company Strategy and Development Direction - The company is focusing on AI innovation, creator community empowerment, and B2B expansion through dataseeds.ai [13][14] - Plans to roll out an AI audio generator and enhance user-generated content capabilities [11][41] - The introduction of dataseeds.ai aims to supply enterprise customers with high-quality datasets for AI training [10][38] Management's Comments on Operating Environment and Future Outlook - Management highlighted resilience despite macroeconomic volatility and disruptions in the ad market [5][15] - The company expects to see the benefits of restructuring initiatives materialize in Q4 and into fiscal year 2026 [19][44] - Management remains optimistic about future growth driven by product innovation and strategic discipline [15][47] Other Important Information - The company ended the quarter with $20,400,000 in cash and no debt, after share repurchases [6][19] - Restructuring charges of $600,000 were recorded, with expectations for further reductions in Q4 [17][50] Q&A Session Summary Question: Can you rank the different pieces of advertising revenue? - Management stated that advertising efforts are comprehensive and difficult to rank precisely, but highlighted the optimization of CPMs [22][30] Question: How long was TikTok back in the market during the quarter? - Management clarified that TikTok returned mid-February, impacting advertising revenue positively after their reentry [24][29] Question: What is being done to stabilize and grow monthly active users? - The focus is on well-developed markets, with efforts to optimize user acquisition for high-value users [31][32] Question: Can you comment on the new features for Emojipedia? - Management mentioned testing new features like creating emojis with AI and the upcoming release of digital stickers [33] Question: How did Zedge Premium perform this quarter? - Zedge Premium continues to be a core part of the marketplace, with new content available on the web [36] Question: What is the rollout plan for dataseeds.ai? - Management is actively building relationships with prospective customers and has published a research paper to demonstrate advantages [37][38] Question: What will the AI audio generator look like? - The feature will allow users to create custom ringtones and sounds based on text prompts, with a limited rollout planned [41][42]

Financial Data and Key Metrics Changes - Total revenue returned to growth in Q3, up 1.3% to $7,800,000, despite challenges in the advertising market [14][15] - Adjusted EBITDA increased 46% year over year to $1,200,000, with GAAP net income of $200,000 compared to a loss of $100,000 last year [17][18] - Free cash flow was $800,000 for the quarter, impacted by restructuring and retention bonus payments totaling approximately $1,000,000 [6][17] Business Line Data and Key Metrics Changes - Zedge Plus subscriber base grew to nearly 900,000, a 37% year over year increase, with subscription revenue up 13% [7][14] - Deferred revenue reached $4,900,000, growing by 111% over the past seven quarters, indicating a strong recurring revenue stream [14][15] - Zedge Premium revenue more than doubled, driven by expanded offerings and increased usage of the paint.ai image generator [7][15] Market Data and Key Metrics Changes - Monthly active users (MAU) declined year over year, but the focus has shifted to attracting higher lifetime value (LTV) users in developed markets [8][30] - Average revenue per monthly active user increased by 33% year over year, reflecting improved monetization strategies [8][15] Company Strategy and Development Direction - The company is focusing on AI innovation, creator community empowerment, and B2B expansion through initiatives like dataseeds.ai, a B2B content marketplace [10][13] - Plans to roll out an AI audio generator as part of the Paint GenAI creation suite, enhancing user-generated content capabilities [11][40] - The company aims to stabilize and grow its user base by prioritizing high-value users in well-developed markets [30][31] Management's Comments on Operating Environment and Future Outlook - Management noted the resilience of the business despite macroeconomic volatility and challenges in the advertising market [5][6] - The restructuring efforts are expected to yield significant cash flow improvements in the upcoming quarters, with a focus on sustaining growth and higher margins [18][46] - Management expressed confidence in the performance marketing efforts and product roadmap to achieve growth targets [9][13] Other Important Information - The company ended the quarter with $20,400,000 in cash and no debt, even after share repurchases [6][18] - The introduction of new features like digital stickers and the Mojipedia sandbox is aimed at enhancing user engagement [11][32] Q&A Session Summary Question: How would you rank the different pieces of advertising revenue? - Management indicated that advertising is a comprehensive effort, making it difficult to rank specific components [20][21] Question: How long was TikTok back in the market during the quarter? - Management clarified that TikTok returned mid-February, impacting advertising revenue for part of the quarter [22][23] Question: Should we expect monthly active users to continue declining? - Management is focused on stabilizing MAU by prioritizing high-value users in developed markets [30][31] Question: Can you comment on the new features in Mojipedia? - Management mentioned testing new features like creating emojis with AI and the upcoming release of digital stickers [32][33] Question: How is Zedge Premium performing? - Management noted that Zedge Premium continues to be a core part of the marketplace, with new artist onboarding and web availability driving growth [34][35] Question: What is the rollout plan for dataseeds.ai? - Management is actively building relationships with prospective customers and has published a research paper to demonstrate the advantages of their dataset [36][37] Question: What will the AI audio generator look like? - Management plans to roll out the AI audio generator on a limited basis before June, allowing users to create custom ringtones [40][41]

Revenue Growth - Active subscribers increased by 37% to nearly 900,000, while subscription revenue rose by 13% to $1.3 million[5] - Total revenue for Q3 fiscal 2025 was $7.8 million, a 1.3% increase compared to $7.7 million in Q3 fiscal 2024[17] - Total revenue for FY23 was $27.2 million, with a projected increase to $30.1 million in FY24, representing a growth of approximately 10.7%[20] - Advertising revenue reached $18.3 million in FY23, expected to grow to $21.0 million in FY24, indicating a year-over-year increase of about 14.8%[20] - Total revenues for the three months ended April 30, 2025, were $7,757,000, a slight increase from $7,658,000 in the same period of 2024[29] Profitability Metrics - GAAP net income improved by 63.7% to $0.2 million, with GAAP diluted EPS increasing by 70.8% to $0.01[17] - Non-GAAP net income increased by 81.5% to $0.9 million, with non-GAAP diluted EPS rising by 89.4% to $0.06[17] - Non-GAAP Net Income for FY23 was $1.9 million, projected to decrease to $1.8 million in FY24, indicating a decline of about 5.3%[21] - Net Income for Q223 was $1.6 million, while Q323 reported a loss of $7.7 million[34] Cash Flow and Free Cash Flow - Free cash flow for the quarter was $0.8 million, despite restructuring payments of approximately $1.0 million[3] - Free Cash Flow (FCF) for FY23 was $1.7 million, with an anticipated increase to $4.7 million in FY24, representing a growth of approximately 176.5%[20] - Cash Flow from Operations in Q423 reached $2.3 million, contributing to a total of $3.2 million for FY23[34] - The company expects Free Cash Flow to reach $4.7 million in FY24 and $2.4 million in FY25[34] User Engagement - Monthly Active Users (MAU) peaked at 32.2 million in Q223, with a slight decline to 30.9 million in Q423, reflecting a decrease of approximately 4.0%[20] - Active subscriptions increased from 631,000 in Q323 to 647,000 in Q423, marking a growth of about 2.5%[20] - Average Revenue Per Monthly Active User (ARPMAU) improved from $0.052 in Q223 to $0.063 in Q124, an increase of approximately 21.2%[20] Shareholder Actions - The company repurchased approximately 220,000 shares for roughly $536,000, leaving $3.8 million of the $5 million authorization available[3] - The company repurchased shares totaling $0.75 million in FY23, with a plan to continue share repurchases in FY24[20] Asset and Liability Management - Cash and cash equivalents increased to $20,433,000 as of April 30, 2025, compared to $19,998,000 at the end of July 31, 2024[28] - Total current liabilities rose to $7,290,000 as of April 30, 2025, up from $6,250,000 at July 31, 2024, primarily due to an increase in deferred revenues[28] - Total assets decreased to $37,831,000 as of April 30, 2025, from $38,195,000 at July 31, 2024[28] New Initiatives - The company launched DataSeeds.AI, a new content marketplace for AI training sets, creating new B2B revenue opportunities[7] Impairments and Expenses - The company recorded an impairment charge of $827,000 related to capitalized software and technology development costs during the nine months ended April 30, 2025[31] - Stock-based compensation expenses for the nine months ended April 30, 2025, were $1,308,000, down from $1,673,000 in the same period of 2024[31] - The company reported stock-based compensation of $0.8 million in Q223, totaling $2.5 million for FY23[34] Adjusted Metrics - Adjusted EBITDA increased by 46.0% to $1.2 million compared to $0.9 million in the previous year[17] - Adjusted EBITDA for Q423 was $1.6 million, with a year-to-date total of $5.7 million for FY23[34]

User Engagement and Growth - As of January 31, 2025, the Zedge App had been installed nearly 696 million times and had 24.7 million monthly active users (MAU), a decrease of 14.2% compared to the same period last year[100][118] - Users in emerging markets represented about 77.3% of MAU as of January 31, 2025, slightly down from 78.1% in the same period last year[118] - MAU for the Zedge App decreased by 14.2% to 24.7 million in Q1 2025 from 28.8 million in Q1 2024[120] Revenue Performance - Average Revenue Per Monthly Active User (ARPMAU) for the three months ended January 31, 2025, increased by 8.7% year-over-year, driven by higher advertising prices and strong subscription revenue growth[119] - Subscription revenue for the three months ended January 31, 2025, increased by 13.3% year-over-year, while subscription billings rose by 26.7% in the same period[119] - Total revenues decreased by 10.2% to $6,979,000 in Q1 2025 from $7,771,000 in Q1 2024[127] - Advertising revenue decreased by 14.3% to $4,698,000 in Q1 2025 from $5,482,000 in Q1 2024[128] - Subscription revenue increased by 13.3% to $1,233,000 in Q1 2025 from $1,088,000 in Q1 2024[130] - Other revenues increased by 53.2% to $432,000 in Q1 2025 from $282,000 in Q1 2024[130] - Zedge Premium net revenue increased by 55.6% to $431,000 in Q1 2025 from $277,000 in Q1 2024[131] User Acquisition and Engagement Strategies - The acquisition of GuruShots in April 2022 has faced challenges, with revenue declining, prompting the company to cut costs and restructure its user acquisition strategy[104][108] - GuruShots has introduced a revamped onboarding experience, resulting in improved engagement, retention, and revenue from new users[107] - The company is exploring new features for Emojipedia, including artificial intelligence enhancements, expected to be released by the end of the calendar year[112] Financial Metrics and Losses - Monthly Active Payers (MAPs) decreased by 22.2% to 4,672 in Q1 2025 from 6,009 in Q1 2024[124] - Average Revenue Per Monthly Active Payer (ARPMAP) decreased by 21.0% to $39.8 in Q1 2025 from $50.4 in Q1 2024[124] - Net loss decreased by 81.8% to $1,679,000 in Q1 2025 from $9,230,000 in Q1 2024[127] - For the six months ended January 31, 2025, income from operations related to the Zedge Marketplace decreased to $976,000 from $3.3 million, a decline of 70.7%[165] - For the three months ended January 31, 2025, loss from operations related to GuruShots decreased to $2.3 million from $13.6 million, primarily due to a prior period impairment loss of $11.9 million[163] - Total segment income (loss) from operations for the three months ended January 31, 2025, was a loss of $2.2 million, representing an 81.4% decrease compared to the prior year[162] Cost Management and Restructuring - The company recorded approximately $0.5 million in restructuring charges for the three and six months ended January 31, 2025, related to global restructuring implemented in January 2025[152] - Global headcount as of January 31, 2025, totaled 106, reflecting a 22% reduction due to corporate restructuring[145] - SG&A expenses increased 9.2% to $7,126,000 in Q1 2025 and 15.9% to $13,935,000 for the six months ended January 31, 2025, primarily due to higher PUA and compensation expenses[143][144] - Stock-based compensation expenses decreased 11.7% to $603,000 in Q1 2025 and 17.5% to $982,000 for the six months ended January 31, 2025[146][147] - Depreciation and amortization expenses decreased 58.4% to $317,000 in Q1 2025 and 54.6% to $698,000 for the six months ended January 31, 2025, primarily due to an $11.9 million impairment charge recorded in Q2 of fiscal 2024[149][150] Cash Flow and Capital Management - Cash and cash equivalents as of January 31, 2025, were $20.0 million, unchanged from July 31, 2024, while working capital decreased to $16.8 million from $17.7 million[168] - Cash provided by operating activities decreased by $934,000 to $1.9 million for the six months ended January 31, 2025, compared to $2.8 million in the prior year[170] - In the six months ended January 31, 2025, the company repurchased 464,419 shares of Class B common stock for approximately $1.5 million[175] Tax and Foreign Exchange - The benefit from income taxes decreased by $2.0 million in Q1 2025 compared to the same period in the prior year, resulting from changes in deferred tax assets related to impairment losses[160] - Net loss from foreign exchange transactions was $86,000 in Q1 2025, compared to a net gain of $76,000 in Q1 2024, primarily due to unfavorable FX movements[157] Customer Concentration - One major customer represented 31% of total revenue for the six months ended January 31, 2025, compared to two customers representing 29% and 11% in the prior year[177]

Revenue Performance - Zedge reported a 10.2% year-over-year revenue decline to $7.0 million, primarily due to uncertainty surrounding TikTok's U.S. ad spend[10]. - Total revenue for Q1 2025 was $6.979 million, a decrease from $7.771 million in Q1 2024, representing a decline of approximately 10.2% year-over-year[26]. - Advertising revenue for Q1 2025 was $4.9 million, down from $5.5 million in Q1 2024, indicating a decrease of about 10.9%[18]. - The company anticipates total revenue for FY24 to be approximately $30.1 million, reflecting a growth target of about 10.7% compared to FY23[18]. Subscriber and User Engagement - Active subscribers for Zedge Marketplace increased by 22% to 791,000, while subscription revenue grew by 13% to $1.2 million[13]. - Monthly Active Users (MAU) decreased by 14% to 24.7 million, reflecting challenges in user engagement[13]. - Active subscriptions increased to 791,000 in Q1 2025, up from 648,000 in Q1 2024, reflecting a growth of about 22.1% year-over-year[18]. Financial Metrics - Free cash flow for the quarter was $0.6 million, a decrease of 50% compared to the previous year[10]. - Cash flow from operations for Q1 2025 was $1.3 million, compared to $1.6 million in Q1 2024, a decrease of approximately 18.8%[18]. - The company reported a free cash flow of $0.8 million for Q1 2025, down from $1.2 million in Q1 2024, a decline of about 33.3%[18]. - Free Cash Flow for the first half of FY25 was $1.6 billion, with a trailing twelve months (TTM) Free Cash Flow yield of 41.7%[34]. - Zedge's trailing twelve-month free cash flow yield is above 41%, making it an attractive value stock for aggressive share repurchases[8]. Profitability and Loss - Adjusted EBITDA for the quarter was ($0.1) million, a significant decline from $1.5 million in the previous year[10]. - GAAP net loss for Q1 2025 was $1.679 million, compared to a net loss of $9.230 million in Q1 2024, showing an improvement of approximately 81.8%[26]. - Net loss for the six months ended January 31, 2025, was $2.018 billion, a decrease from $9.246 billion in the same period of 2024[28]. - Adjusted EBITDA for the first half of FY25 was $0.2 billion, compared to $4.7 billion for FY24[31]. Restructuring and Cost Management - Zedge's restructuring efforts are expected to save approximately $4 million annually, enhancing profitability and free cash flow[3]. - Stock-based compensation expenses amounted to $982 million for the six months ended January 31, 2025, down from $1.190 billion in the prior year[28]. - Impairment charges for capitalized software and technology development costs were $827 million, with no such charges in the previous year[28]. Assets and Liabilities - Total assets as of January 31, 2025, were $37.092 million, a slight decrease from $38.195 million as of July 31, 2024[25]. - Total liabilities increased to $8.887 million as of January 31, 2025, compared to $7.299 million as of July 31, 2024, representing an increase of approximately 21.8%[25]. - Deferred revenue increased significantly to $1.234 billion from $53 million year-over-year[28]. - The company reported a significant reduction in trade accounts receivable, which stood at $416 million compared to a negative $480 million in the previous year[28]. Future Plans - The company plans to introduce new AI creation features in the Zedge Marketplace and Emojipedia to drive user engagement and growth in fiscal 2026[7].

Core Insights - Zedge has announced a restructuring of its subsidiary GuruShots aimed at improving profitability and positioning for long-term growth [1] Group 1: Company Restructuring - The restructuring of GuruShots is intended to streamline operations and enhance financial performance [1] - Zedge aims to leverage this restructuring to better align with market demands and improve overall efficiency [1] Group 2: Financial Performance - The company is focusing on profitability improvements as a key objective of the restructuring [1] - Long-term growth strategies are being prioritized to ensure sustainable financial health [1]