Zedge, Inc. (AMEX:ZDGE) reported EPS of $0.07, beating estimates and showcasing strong financial performance with a revenue of $7.6 million.The company achieved a record 1.1 million active subscriptions, indicating significant growth and a 29% increase in subscription revenue.Zedge's P/S ratio of 1.23 and EV/Sales ratio of 0.60 suggest it may be undervalued relative to its sales, with a strong balance sheet indicated by a current ratio of approximately 2.89.Zedge, Inc. (NYSE AMERICAN: ZDGE), a leading digit ...

User Engagement and Active Users - Zedge reported 22.2 million monthly active users (MAU) as of October 31, 2025, a key performance indicator for the Zedge App[91] - As of October 31, 2025, Zedge had approximately 1.1 million active subscribers for its Zedge+ subscription service, which offers an ad-free experience[94] - Monthly Active Users (MAU) for the Zedge App decreased by 11.2% to 22.2 million for the three months ended October 31, 2025, compared to 25.0 million in the same period last year[107] - Emojipedia recorded 43.6 million monthly page views and approximately 7.2 million MAU as of October 31, 2025, with 42.1% of users in developed markets[101] Revenue and Financial Performance - Total revenue for the three months ended October 31, 2025, increased by 5.8% to $7,610,000 compared to $7,194,000 in the same period last year[120] - Subscription revenue increased by 28.6% to $1,520,000 for the three months ended October 31, 2025, compared to $1,182,000 in the same period last year[121] - Digital goods and services revenue declined by 27.3% to $468,000 for the three months ended October 31, 2025, primarily due to a 28.4% decrease in Monthly Active Payers (MAP) for GuruShots[127] - Average Revenue Per Monthly Active User (ARPMAU) for the Zedge App increased by 29.2% to $0.0991 for the three months ended October 31, 2025, driven by higher advertising prices and strong subscription revenue growth[108] Cost and Expenses - Direct cost of revenues increased by 20.4% to $555,000 for the three months ended October 31, 2025, compared to $461,000 in the same period last year, reflecting higher data center costs[130] - SG&A expenses decreased by 13.0% to $5.9 million for the three months ended October 31, 2025, compared to $6.8 million in the prior year, primarily due to lower personnel-related expenses and the expiration of an $8 million retention bonus program[132] - Stock-based compensation expense fell by 72.6% to $104,000 for the three months ended October 31, 2025, down from $379,000 in the same period last year, mainly due to the full amortization of $4 million related to the GuruShots acquisition[134] - Depreciation and amortization expenses decreased by 43.3% to $216,000 for the three months ended October 31, 2025, compared to $381,000 in the prior year, largely due to a $0.8 million impairment charge recognized in the second quarter of fiscal 2025[136] Strategic Initiatives - The company introduced pAInt, a generative AI wallpaper maker, in fiscal 2023, enhancing user engagement through text-to-image and image-to-image capabilities[92] - The company is developing DataSeeds.AI, which creates custom datasets for enterprise AI teams, leveraging its creator ecosystem[95] - Zedge's monetization strategy includes advertising revenue, in-app sales of Zedge Credits, and subscription offerings[94] - Zedge's strategy includes reducing paid user acquisition costs for GuruShots to improve return on ad spend[99] Market and Economic Conditions - The ongoing geopolitical tensions, particularly in Israel, pose risks to Zedge's operations and workforce stability[84] - The Creator Economy, which Zedge is part of, is estimated to be worth between $191 billion and $250 billion globally in 2025[88] Shareholder and Customer Concentration - The company repurchased 238,460 shares of Class B common stock for approximately $776,000 during the three months ended October 31, 2025, under its share repurchase program[158] - In the three months ended October 31, 2025, one large customer represented 34% of the company's revenue, compared to 30% in the same period of 2024[162] - As of October 31, 2025, two customers accounted for 42% and 14% of the accounts receivable balance, respectively[162] - At July 31, 2024, three customers represented 43%, 12%, and 11% of the accounts receivable balance, indicating a concentration of revenue sources[162] Income and Taxation - Income tax expense rose by 375.5% to $233,000 for the three months ended October 31, 2025, compared to $49,000 in the prior year, reflecting a higher effective tax rate of 22.8%[142] Segment Performance - Segment income from operations for the Zedge Marketplace increased by 66.4% to $1.6 million for the three months ended October 31, 2025, compared to $0.9 million in the prior year, attributed to higher revenue and lower SG&A[148] - Total segment income improved to $914,000 for the three months ended October 31, 2025, compared to a loss of $457,000 in the prior year, marking a 300.0% increase[147] Liquidity and Cash Position - Cash and cash equivalents stood at $18.5 million as of October 31, 2025, with working capital of $14.6 million, indicating stable liquidity compared to $18.6 million and $14.7 million at July 31, 2025[150]

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $7.6 million, up 5.8% year-over-year [14] - Advertising revenue increased by 6% for the quarter, driven by strong growth in the Zedge marketplace [15] - GAAP income from operations was $0.9 million, compared to a loss of $0.5 million last year [17] - Non-GAAP net income was $0.9 million, with EPS of $0.07, compared to break-even last year [17] - Free cash flow was negatively impacted by approximately $350,000 due to tax withholding payments related to restructuring [18] Business Line Data and Key Metrics Changes - Zedge marketplace revenue increased significantly, supported by strong advertising CPMs and subscription revenues [14][15] - Zedge Plus subscription revenue rose by 29% year-over-year, with net active subscribers growing by 54% to nearly 1.1 million [15] - Deferred revenue reached $5.7 million, up 7% sequentially and 55% year-over-year, indicating future revenue potential [16] - Cost of revenue increased to 7.3% from 6.4% last year due to reduced partner discounts and new licensing fees [17] Market Data and Key Metrics Changes - The company is seeing a growing interest in its Data Seeds offering, with a robust pipeline of prospective customers [5][7] - The market for rights-cleared and high-quality datasets is expanding, as evidenced by significant licensing agreements in the industry [8] Company Strategy and Development Direction - The company aims to build products that resonate with users, scale successful ones, and allocate capital to enhance long-term shareholder value [12] - The focus remains on innovation, with plans to introduce additional alpha products throughout fiscal 2026 [10] - The company is committed to a disciplined approach to capital allocation, including share repurchases and dividends [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's leaner cost structure and efficient operating model entering fiscal 2026 [11] - The company anticipates strong cash generation for the remainder of fiscal 2026, despite temporary pressures this quarter [11] - Management is optimistic about the growth potential in both consumer and enterprise markets [12] Other Important Information - The company repurchased 240,000 Class B shares during the quarter and paid its first quarterly dividend [12] - The restructuring actions taken earlier this year are expected to yield ongoing savings and operational efficiencies [11] Q&A Session Summary Question: How is Data Seeds recognized as revenue? - Revenue from Data Seeds is recognized when the product is delivered and accepted, currently grouped under digital goods and services [20][21] Question: What is the typical sales process for Data Seeds? - The sales process involves operational steps beyond content production, including contract negotiations, and clarity on timelines is expected in the coming quarters [24][25] Question: What is the current operating status of GuruShots? - GuruShots is currently incurring losses, with operating losses partially attributed to Data Seeds, and is stabilizing at around $150,000 per month [29][30] Question: What is the outlook for Emojipedia? - Management is monitoring the impact of AI Overviews on Emojipedia and hopes to stabilize its performance in the coming quarters [31] Question: What was the impact of restructuring costs on free cash flow? - Restructuring costs included approximately $330,000 in tax withholding payments, which impacted free cash flow during Q1 2026 [36] Question: How much is left in the share buyback program? - There is approximately $600,000 remaining under the current buyback authorization [37]

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $7.6 million, up 5.8% year-over-year [14] - Advertising revenue increased by 6% for the quarter, while Zedge+ subscription revenue rose by 29% year-over-year [15] - Free cash flow was negatively impacted by approximately $350,000 due to tax withholding payments related to restructuring [18] Business Line Data and Key Metrics Changes - Active subscriptions reached a record 1.1 million, up more than 50% year-over-year [4] - Deferred revenue, primarily from subscriptions, reached $5.7 million, up 7% sequentially and 55% year-over-year [16] - Cost of revenue increased to 7.3% from 6.4% last year due to reduced partner discounts and new licensing fees [16] Market Data and Key Metrics Changes - The Zedge Marketplace showed strong growth, offsetting declines at Emojipedia and GuruShots [15] - Average revenue per monthly active user increased by 29.2%, indicating improved monetization efficiency [16] Company Strategy and Development Direction - The company is focused on building products that customers love and scaling successful ones while maintaining disciplined capital allocation [12] - DataSeeds is emerging as a key enterprise business, with a robust pipeline of prospective customers [6] - The company is investing in innovation and product development, with plans to introduce additional alpha products throughout fiscal 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's leaner cost structure and efficient operating model entering fiscal 2026 [11] - The company anticipates strong cash generation for the remainder of fiscal 2026, despite temporary pressures this quarter [11] - Management is monitoring the impact of AI advancements on Emojipedia and is hopeful for stabilization [30] Other Important Information - The company repurchased 240,000 Class B shares and paid its first quarterly dividend, reflecting confidence in long-term value creation [12] - The DataSeeds Production Cloud is a key asset that allows the company to deliver custom datasets for AI training [7] Q&A Session Summary Question: How is DataSeeds recognized as revenue? - Revenue from DataSeeds is recognized when the product is delivered and accepted, grouped under digital goods and services for now [20][22] Question: What is the typical sales process for DataSeeds? - The sales process involves operational steps beyond content production, and clarity on conversion timelines is expected in the coming quarters [24] Question: What is the current operating status of GuruShots? - GuruShots is currently incurring losses, with operating losses partially attributed to DataSeeds, but stabilization is expected [28] Question: What is the outlook for Emojipedia? - The future of Emojipedia is uncertain, with management needing more time to assess the impact of AI advancements [30] Question: What was the impact of restructuring costs on free cash flow? - Restructuring costs included approximately $330,000 in withholding taxes, impacting free cash flow for Q1 2026 [34] Question: How much is left in the share buyback program? - There is $600,000 remaining under the current buyback authorization [35]

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $7.6 million, up 5.8% year-over-year [14] - Advertising revenue increased by 6% for the quarter, driven by strong growth in the Zedge marketplace [14] - GAAP net income was $0.8 million, compared to a loss of $0.3 million last year, with EPS of $0.06 [17] - Free cash flow was negatively impacted by approximately $350,000 due to restructuring-related tax payments [18] Business Line Data and Key Metrics Changes - Zedge marketplace revenue increased significantly, supported by strong advertising CPMs and subscription revenues [14] - Zedge Plus subscription revenue rose by 29% year-over-year, with net active subscribers growing 54% to nearly 1.1 million [15] - Deferred revenue reached $5.7 million, up 7% sequentially and 55% year-over-year, indicating future revenue potential [16] Market Data and Key Metrics Changes - The core business remains healthy and resilient, with a strong subscription engine scaling effectively [12] - The Data Seeds initiative is gaining traction, with a robust pipeline of prospective customers [6][12] Company Strategy and Development Direction - The company is focused on building products that customers love, scaling successful ones, and allocating capital to enhance long-term shareholder value [12] - The strategy includes a disciplined approach to capital allocation, with share repurchases and dividends reflecting confidence in long-term value creation [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory for fiscal 2026, emphasizing innovation and expanding operating leverage [12] - The company is monitoring the impact of AI developments on its products, particularly regarding Emojipedia [31] Other Important Information - The company has a leaner cost structure and a more efficient operating model entering fiscal 2026 [11] - The Data Seeds Production Cloud is a key asset that allows for the delivery of high-quality datasets for AI training [8] Q&A Session Summary Question: How is Data Seeds recognized as revenue? - Revenue from Data Seeds is recognized when the product is delivered and accepted, currently grouped under digital goods and services [21] Question: What is the typical sales process for Data Seeds? - The sales process involves operational steps beyond production, including contract negotiations, and clarity on timelines will develop over the next few quarters [25] Question: What is the operating status of GuruShots? - GuruShots is currently incurring losses, with stabilization around $150,000 per month, and efforts are underway to evolve it towards break-even [29] Question: What is the outlook for Emojipedia? - The future of Emojipedia is uncertain, with management needing more time to assess the impact of AI developments on its performance [31] Question: What was the impact of restructuring costs on free cash flow? - Restructuring costs included approximately $330,000 in tax withholding payments, which impacted free cash flow for the quarter [35] Question: How much is left in the share buyback program? - There is approximately $600,000 remaining under the current buyback authorization [37]

Financial Performance - Active subscriptions reached a record 1.1 million, up 54% year-over-year; subscription revenue grew 29% year-over-year [2] - Total revenue increased by 5.8% to $7.6 million; advertising revenue rose by 6.0% to $5.2 million [9] - GAAP net income was $0.8 million, compared to a net loss of $0.3 million in the previous year; GAAP EPS improved to $0.06 from a loss of $0.02 [10] - Revenues for the three months ended October 31, 2025, increased to $7,610,000, up 5.8% from $7,194,000 in the same period of 2024 [27] - Net income for the three months ended October 31, 2025, was $788,000, compared to a net loss of $339,000 for the same period in 2024 [27] - Total comprehensive income for the three months ended October 31, 2025, was $887,000, compared to a loss of $368,000 in the same period of 2024 [27] - Net Income for Q126 was $0.8 million, showing improvement from a loss of $0.6 million in Q425 [31] - Adjusted EBITDA for Q126 was $1.2 million, compared to $0.3 million in Q425, indicating a positive trend [31] - Non-GAAP Net Income for Q126 was $0.9 million, a significant increase from $0.1 million in Q425 [31] Cash Flow and Assets - Free cash flow decreased by 36.8% to $0.6 million, impacted by restructuring-related compensation tax payments and reinvestments in high-potential initiatives [6] - Cash and cash equivalents at the end of the period were $18,496,000, down from $18,609,000 at the beginning of the period [29] - The company reported a net cash provided by operating activities of $825,000 for the three months ended October 31, 2025, down from $1,170,000 in the same period of 2024 [29] - Total Cash Flow from Operations for FY24 reached $5.9 million, demonstrating strong operational performance [31] Market and Growth Outlook - The company is optimistic about future growth, entering the second quarter of fiscal 2026 with a leaner operating structure and a stronger business engine [7] - DataSeeds Production Cloud is experiencing increased demand, with a significant order size increase of roughly 25X from an existing customer in the AI space [5] - The company expects to achieve a Non-GAAP diluted EPS of $0.07 for FY25, signaling growth potential [31] Shareholder Actions and Equity - The company repurchased approximately 240,000 shares of Class B Common Stock during the quarter [10] - Stockholders' equity as of October 31, 2025, was $25,895,000, slightly down from $25,901,000 as of July 31, 2025 [24] - The weighted average shares used for Non-GAAP basic EPS calculation was 14.1 million for Q125, indicating a stable share count [31] Liabilities and Expenses - Total liabilities increased to $10,064,000 as of October 31, 2025, compared to $9,753,000 as of July 31, 2025 [24] - Deferred revenues increased to $3,735,000 for current liabilities as of October 31, 2025, compared to $3,425,000 as of July 31, 2025 [24] - The company incurred $12.0 million in asset impairments and restructuring charges for FY24, impacting overall profitability [31] - Stock-based compensation expenses totaled $2.1 million for FY24, reflecting ongoing employee incentive programs [31] Other Metrics - ARPMAU increased by 29.2% to $0.099, indicating improved monetization of the user base [11] - The Zedge Marketplace showed resilience, with a GAAP operating income of $0.9 million compared to an operating loss of $0.5 million in the prior year [10] - Zedge Premium's Gross Transaction Value (GTV) decreased by 3.7% to $0.66 million [11] - Capital Expenditures for FY24 are projected at $1.2 million, with a focus on strategic investments [31]

Core Insights - Zedge, Inc. reported a record of 1.1 million active subscriptions, representing a 54% year-over-year increase [1] - Subscription revenue grew by 29% year-over-year, while ARPMAU also increased by 29% year-over-year [1] - The company achieved a revenue growth of 6%, with GAAP and Non-GAAP EPS reported at $0.06 and $0.07, respectively [1] - Zedge repurchased 240,000 shares and paid its first quarterly dividend [1] - CEO Jonathan Reich highlighted a solid start to fiscal 2026 despite challenges faced at Emojipedia and GuruShots [1]

Core Points - Zedge, Inc. will report its financial and operational results for the First Fiscal Quarter of 2026, which ended on October 31, 2025 [1] - The earnings release will be filed on Form 8-K and made available on the Zedge investor relations website [1] - The scheduled time for the earnings release is approximately 6:30 AM Eastern on December 12, 2025 [1]

User Engagement and Growth - Zedge's Zedge App had 23.3 million monthly active users (MAU) as of July 31, 2025, with a range of 22.1 million to 28.7 million MAU over the past two fiscal years [314]. - The Zedge Marketplace generated approximately 984,000 active subscribers as of July 31, 2025, following the introduction of a subscription tier in the iOS version of the app in April 2023 [317]. - GuruShots, acquired in April 2022, engages around 30-40 million amateur photographers monthly, with over 300 competitions staged each month resulting in more than 550,000 photographs uploaded [320]. - The average monthly spend per paying player in GuruShots has increased by over 6.2% annually to more than $40.9 per player [321]. - Emojipedia, acquired in August 2021, received approximately 48.4 million monthly page views and had about 8.9 million MAU as of July 31, 2025 [325]. - Zedge introduced pAInt, a generative AI wallpaper maker, in fiscal 2023, enhancing user engagement through text-to-image and other creative functionalities [315]. Revenue Generation - Zedge's revenue is primarily generated from advertising, paid subscriptions, and Zedge Premium, with a significant portion coming from advertising inventory sales [332]. - Zedge Premium allows content owners to earn 70% of revenue after a 30% fee from Google Play or the App Store, with users able to purchase content using Zedge Credits [339]. - GuruShots generates most of its revenue from virtual tokens, with players purchasing in-game goods and services, reflecting a strong engagement model [340]. - Revenue from virtual goods is recognized upon sale, with consumable virtual goods leading to repeat purchases only after existing balances are depleted [343]. - GuruShots reports revenue on a gross basis as it acts as the principal in transactions, controlling the content and pricing of virtual goods [347]. - Zedge records revenue from Zedge Premium on a net basis, accounting for a 30% platform fee and sharing 70% of gross revenue with content providers [349]. Financial Performance - Total revenues for the fiscal year ended July 31, 2025, were $29.398 million, a decrease of 2.3% from $30.091 million in the previous year [384]. - Subscription revenue increased by 17.1% to $5.093 million for the fiscal year ended July 31, 2025, primarily due to growth in lifetime subscriptions [389]. - Zedge Premium net revenue grew by 48.7% to $1.778 million for the fiscal year ended July 31, 2025, with a gross margin of 68% compared to 56% in the previous year [390]. - Subscription billings increased by 29.0% to $7.360 million for the fiscal year ended July 31, 2025, from $5.705 million in fiscal 2024 [387]. - The company experienced a net loss of $2.392 million for the fiscal year ended July 31, 2025, a significant improvement from a net loss of $9.171 million in the previous year, reflecting a 73.9% reduction [384]. - Digital goods and services revenue decreased by $1.3 million, or 37.1%, primarily due to a 27.0% decrease in GuruShots' MAP year over year [391]. Cost Management - Direct costs of revenues decreased slightly by 1.0% to $1.841 million for the fiscal year ended July 31, 2025 [384]. - Direct cost of revenues decreased by $18,000, or 1.0%, compared to fiscal 2024, remaining relatively flat at about 6.2% of revenues [392]. - Selling, general and administrative (SG&A) expenses increased by $1.6 million, or 6.1%, with SG&A as a percentage of revenues rising to 92.5% from 85.2% [393]. - Stock-based compensation expense decreased by $0.7 million, or 32.5%, primarily due to lower fair value related to deferred stock units granted [397]. - Depreciation and amortization expense decreased by $1.3 million, or 53.2%, primarily due to an $11.9 million impairment charge recorded in Q2 of fiscal 2024 [399]. - The company recorded approximately $1.6 million in restructuring charges related to global restructuring implemented in January 2025 [401]. Cash Flow and Assets - Cash and cash equivalents at July 31, 2025, were $18.6 million, down from $20.0 million at July 31, 2024 [416]. - Operating activities generated cash flows of $3.4 million, a decrease of $2.4 million from $5.9 million in fiscal 2024 [417]. - Net cash provided by operating activities was $3.4 million for the fiscal year ended July 31, 2025, with a net loss of $2.4 million adjusted for non-cash items [419]. - Cash collections for fiscal 2025 were $30.0 million, compared to $29.2 million in fiscal 2024 [421]. - The company repurchased 1,104,142 shares of Class B Common Stock for approximately $3.6 million under the 2024 Share Repurchase Plan during fiscal 2025 [426]. - The company had remaining authorization of approximately $1.4 million for future share repurchases under the 2024 Repurchase Plan as of July 31, 2025 [426]. Market Conditions and Risks - Current economic conditions, including foreign exchange fluctuations and geopolitical unrest, may negatively impact the company's performance [369]. - As of July 31, 2025, Monthly Active Users (MAU) for the Zedge App declined by 11.1% year-over-year to 23.3 million, primarily due to attrition in emerging markets [374]. - Average Revenue Per Monthly Active User (ARPMAU) for the Zedge App increased by 16.9% to $0.0925 for the three months ended July 31, 2025, driven by higher advertising rates and subscription revenue [375]. - Monthly Active Payers (MAP) for GuruShots decreased by 26.4% to 3,326 for the three months ended July 31, 2025, compared to 4,521 in the same period a year ago [380]. - Average Revenue Per Monthly Active Payer (ARPMAP) for GuruShots decreased by 17.1% to $43.5 for the three months ended July 31, 2025 [380]. Impairment and Valuation - The company recorded $11.9 million in impairment charges in Q2 of the fiscal year ending July 31, 2024, indicating potential asset recoverability issues [351]. - A $0.8 million impairment of capitalized software and technology development costs was recorded due to a strategic reassessment of GuruShots' operations [363]. - The company recognizes deferred tax assets and liabilities based on temporary differences, with a valuation allowance applied when realization is uncertain [366]. - The net loss resulting from foreign exchange transactions decreased by $39,000 to $151,000 in fiscal 2025 from $190,000 in fiscal 2024 [406]. Shareholder Returns - The company declared a dividend of $0.01615 per share to be paid on or around November 7, 2025, reflecting operational improvements and positive cash flow [430]. - The two largest customers represented 37% and 6% of revenue in fiscal 2025, compared to 31% and 9% in fiscal 2024 [432]. - The maximum principal amount of the term loan was reduced from $7 million to $2 million as of May 11, 2023, and fully prepaid on November 15, 2023 [424]. - The revolving credit facility was renewed for another four-year term on October 28, 2024 [425].

Financial Data and Key Metrics Changes - Total revenue for Q4 was $7.5 million, down 1.5% year over year, with Zedge Marketplace revenue up mid-single digits but offset by an 11% decline at Emojipedia and a 39% drop at GuruShots [14][15] - Subscription revenue increased by 21% year over year, with nearly 1 million active subscribers, a 47% increase compared to Q4 of fiscal 2024 [5][15] - Deferred revenue reached $5.4 million, up 10% sequentially and 73% year over year, indicating future revenue potential with high gross margins [15][17] - GAAP loss from operations was $0.7 million, compared to a loss of $0.1 million last year, primarily due to restructuring costs [16][17] Business Line Data and Key Metrics Changes - Zedge Marketplace performed well, while GuruShots showed signs of plateauing, with a 39% year-over-year revenue decline [5][14] - Advertising revenue was slightly up for the quarter, but total ad revenue was softer than expected due to a decline at Emojipedia [5][14] - Zedge Premium's GTV grew by 7% year over year, and ARPMAU increased by 17%, reflecting a shift towards higher-value users [15] Market Data and Key Metrics Changes - The introduction of a new Google search feature allowing users to copy emojis directly from search results has diverted traffic away from Emojipedia, impacting its performance [6][32] - The competitive impact of AI search has also affected Emojipedia's traffic, as users can now obtain emojis without visiting the site [6][32] Company Strategy and Development Direction - The company aims to expand and diversify its revenue base, focusing on innovation and optimizing monetization strategies [9][12] - Plans include further integration of audio AI capabilities into products and evaluating the future direction of GuruShots [9][11] - The company is committed to improving operational efficiency and executing a balanced capital allocation strategy, including share repurchases and dividends [12][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's cash flow generation and balance sheet, initiating a quarterly dividend of $0.016 per share [8] - The completed restructuring is expected to provide greater operating flexibility and improved cash flow and profitability in fiscal 2026 [4][12] - Management is optimistic about the potential of early-stage products like Dataseeds.ai, TapeDeck, and SyncAt, which are evolving and positioned for growth [12][13] Other Important Information - The company repurchased approximately 640,000 shares in Q4 and a total of 1.3 million shares for the full year, reflecting a disciplined capital allocation strategy [7][8] - Cash and cash equivalents at year-end were approximately $19 million, with no debt [17] Q&A Session Summary Question: Actions regarding TapeDeck and Dataseeds.ai - Management highlighted that TapeDeck aims to support indie artists and will evaluate its future based on performance metrics, while Dataseeds.ai focuses on providing datasets for AI companies [21][23] Question: Sequential improvement in monthly active users - Management attributed the improvement to discerning marketing spend and seasonal dynamics, ensuring high-value customer acquisition [27][28] Question: Focus of restructuring savings - Management indicated that restructuring savings were reinvested in marketing and user acquisition, with plans to continue prioritizing these areas if growth opportunities arise [29][30] Question: Changes affecting Emojipedia - Management explained that Google's new search feature has impacted Emojipedia's traffic, and they are exploring strategies to mitigate this effect [31][32] Question: Deferred revenue recognition - Management clarified that deferred revenue is recognized over 30 months, and maintaining a steady subscriber pool will help level up revenue recognition [35] Question: SG&A expenses outlook - Management suggested that SG&A may decline slightly going forward as spending on user acquisition and consulting for new projects is expected to decrease [37]