Financial Performance - Active subscriptions reached a record 984K, up 47% year-over-year; subscription revenue grew 21% year-over-year[1] - Fourth quarter revenue decreased 1.5% to $7.5 million; fiscal year revenue decreased 2.3% to $29.4 million[8] - GAAP net loss for Q4 was ($0.6) million, and for the fiscal year was ($2.4) million, compared to ($0.0) million and ($9.2) million in the prior year respectively[8] - Free cash flow for Q4 was $0.5 million, and for the fiscal year was $2.9 million[8] - Total revenue for FY23 was $27.2 million, with a projected increase to $30.1 million in FY24[19] - Non-GAAP Net Income for FY23 was $1.8 million, with a Non-GAAP EPS of $0.13[19][21] - Operating income showed a loss of $11.8 million for FY23, highlighting areas for operational improvement[19] - Net loss for the year ended July 31, 2025, was $2,392,000, compared to a net loss of $9,171,000 in 2024, indicating a significant improvement[31] - The company reported a loss from operations of $3,232,000 for the year ended July 31, 2025, compared to a loss of $11,805,000 in 2024[31] - GAAP Net Income for Q224 was $(9.2) million, while Non-GAAP Net Income for the same quarter was $0.5 million, indicating a significant improvement in performance[37] User Engagement and Growth - Monthly Active Users (MAU) reached 28.5 million, showing a growth trend in user engagement[19][20] - ARPMAU increased 16.9% year-over-year, reflecting ongoing demand for premium and personalized content[12] - Average Revenue Per Monthly Active User (ARPMAU) for Zedge Premium was $0.093, indicating effective monetization strategies[19][25] - Management anticipates continued growth in advertising revenue driven by increased user engagement[20][24] Cash Flow and Liquidity - Free Cash Flow (FCF) for FY23 was $4.7 million, with expectations for continued improvement in FY24[19] - Cash and cash equivalents at the end of the period were $18,609,000, down from $19,998,000 in the previous year[33] - The company ended fiscal 2025 with approximately $19 million in cash and no debt, positioning itself for future growth[4] - Free Cash Flow for FY23 was $3.2 million, with projections of $5.9 million for FY24 and $3.4 million for FY25, showing a positive trend in cash generation[37] - Cash Flow from Operations for Q324 was $2.3 million, demonstrating strong operational efficiency during that period[37] Strategic Initiatives and Product Development - New product initiatives include the launch of Tapedeck and Syncat, with plans to introduce six new product concepts in fiscal 2026[15] - The company plans to expand its product offerings, including generative AI tools and enhanced marketplace features[23] - The company plans to continue its market expansion efforts, focusing on new product development and technology advancements[36] Restructuring and Operational Challenges - The company incurred restructuring charges of $1,605,000 in 2025, compared to no such charges in 2024[31] - The company incurred restructuring charges of $12.0 million in Q2 2024, contributing to the overall losses reported[36] - Restructuring activities are expected to continue, with related expenses anticipated to impact future earnings[36] - The overall financial performance indicates a challenging environment, with a focus on cost management and strategic investments moving forward[36] Shareholder Information - The company repurchased 640,000 shares during Q4 and 1.3 million shares in the fiscal year[1] - The weighted-average number of shares used in the calculation of loss per share was 13,736,000 for the year ended July 31, 2025, compared to 14,092,000 in 2024[31] - Weighted average shares used to compute Non-GAAP diluted EPS were 14.1 million in Q224, reflecting a stable share count[37] Asset and Liability Management - Total assets decreased to $35,654,000 in 2025 from $38,195,000 in 2024, reflecting a decline of 6.4%[28] - Total liabilities increased to $9,753,000 in 2025, up from $7,299,000 in 2024, representing a rise of 33.6%[28] - Stockholders' equity decreased to $25,901,000 in 2025 from $30,896,000 in 2024, a decline of 16.1%[28]

Core Insights - Zedge, Inc. reported a record of 984,000 active subscriptions, representing a 47% increase year-over-year [1] - Subscription revenue grew by 21% year-over-year [1] - Average Revenue Per Monthly Active User (ARPMAU) increased by 17% year-over-year [1] - The company repurchased 640,000 shares during Q4 and a total of 1.3 million shares in the fiscal year [1] - Zedge introduced its first dividend post year-end [1] - CEO Jonathan Reich highlighted solid operating performance, healthy underlying metrics, and positive cash flow at the end of the fiscal year [1]

Core Insights - Zedge Inc. has launched a new music app called Tapedeck, aimed at providing musicians with better control and fairer compensation for their work [1][3] - The initiative is part of Zedge's creator-first model, which has been in place since 2017 and has paid millions to creators globally [1][3] - Tim Quirk, Zedge's SVP of Product, is the concept creator of Tapedeck and has a notable background in the digital music industry [2][3] Company Overview - Zedge Inc. operates digital marketplaces and competitive games that allow users to express themselves through content [3] - The company has a history of focusing on fair artist compensation, referencing past standards in the industry [3] Product Details - Tapedeck is designed to enhance the relationship between artists and their fans, promoting a model where superfans are willing to pay more to support their favorite artists [2][3]

Core Insights - Zedge's Dataseeds.AI is experiencing growing demand for its B2B offering, which provides scalable, rights-cleared image datasets for AI training, catering to leading AI companies [1][9] - The platform leverages a global creator community to fulfill bespoke customer requests, enhancing its ability to deliver custom image datasets at scale [2][4] Product Features - Dataseeds.AI utilizes a catalog of approximately 30 million rights-cleared images, curated through the GuruShots platform, which engages thousands of photographers worldwide [3][9] - The platform's enhanced search technology allows for the discovery of imagery that meets specific customer requirements, including ancillary content that may not be immediately obvious [5][6] Customer Engagement - When niche visual requests arise, Dataseeds.AI can quickly launch targeted GuruShots challenges to source bespoke content, ensuring rapid turnaround and full rights clearance [4][6] - The solution is designed to be flexible and scalable, making it suitable for organizations needing diverse and contextually rich visual content delivered quickly and cost-effectively [6][9]

Core Points - Zedge, Inc. will report its financial and operational results for the Fourth Quarter and End of Fiscal Year 2025 on October 28, 2025 [1][2] - The earnings release will be filed on Form 8-K and made available on Zedge's investor relations website at approximately 6:30 AM Eastern [2] - Management will host an earnings conference call at 11 AM Eastern to discuss the results, outlook, and strategy, followed by a Q&A session with investors [2] Company Overview - Zedge empowers millions of consumers and creators monthly through interconnected platforms that promote creativity, self-expression, and e-commerce [3] - The company's ecosystem includes the Zedge Marketplace, which offers mobile phone wallpapers, video wallpapers, ringtones, notification sounds, and a generative AI image maker called pAInt [3] - Other offerings include GuruShots, a skill-based photography game, and Emojipedia, the leading source for emoji-related information [3]

Core Viewpoint - Zedge, Inc. has announced the initiation of a quarterly cash dividend program, reflecting confidence in its long-term growth prospects and strong financial position [1] Financial Performance - The company maintains a strong cash position and a debt-free balance sheet, which supports ongoing free cash flow generation [1] - The initiation of the dividend program is part of Zedge's capital return initiatives aimed at enhancing shareholder value [1] Management Commentary - CEO Jonathan Reich emphasized that the quarterly dividend reflects the company's confidence in its ability to generate free cash flow and its strong balance sheet [1]

Group 1 - Zedge, Inc. will present at the LD Micro Main Event XIX on October 20, 2025, with CEO Jonathan Reich as the speaker [1] - The event will take place at the Hotel del Coronado in San Diego, starting at 1:30 PM Eastern / 10:30 AM Pacific [2] - Zedge empowers millions of consumers and creators monthly through its interconnected platforms, including the Zedge Marketplace, GuruShots, Emojipedia, and DataSeeds.AI [2] Group 2 - Zedge Marketplace offers a freemium model for mobile phone wallpapers, video wallpapers, ringtones, and notification sounds [2] - GuruShots is described as "The World's Greatest Photography Game," focusing on skill-based photo challenges [2] - DataSeeds.AI provides datasets for AI model training, utilizing Zedge's consumer games and marketplaces [2]

Core Insights - The article highlights Zedge's new AI-driven product development strategy through the launch of the SynCat app, which was developed in a matter of weeks by a small team using AI and vibe coding [1] - Zedge has established a dedicated Product Innovation Team to leverage AI for rapid ideation, validation, and deployment of new product concepts, significantly reducing time and costs compared to traditional development methods [1] - CEO Jonathan Reich emphasizes that Zedge is entering a new phase where AI will increasingly drive the company's operations and product offerings [1] Company Developments - Zedge is positioning itself as a leader in digital marketplaces and interactive games, focusing on content creation, self-expression, and community engagement [1] - The formation of the Product Innovation Team indicates a strategic shift towards integrating AI more deeply into the company's product development processes [1] Industry Trends - The move towards AI-driven product development reflects a broader trend in the industry where companies are increasingly adopting AI technologies to enhance efficiency and innovation [1] - The rapid development capabilities showcased by Zedge may set a precedent for other companies in the digital marketplace and gaming sectors to follow suit [1]

Core Insights - Zedge, Inc. has launched a new music app called Tapedeck aimed at providing musicians with greater control and fairer compensation for their work [1] - Since 2017, Zedge has facilitated creators in earning a living through its Zedge Premium marketplace, which has paid out millions of dollars annually [1] Company Overview - Zedge, Inc. is recognized as a leader in digital marketplaces and interactive games, focusing on content creation, self-expression, and community engagement [1] - The company operates on the NYSE AMERICAN under the ticker symbol ZDGE [1] Product Launch - The introduction of Tapedeck represents a significant innovation in the music app space, targeting the needs of musicians [1] - The app is designed to enhance the financial and creative autonomy of artists [1]

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].