From Buybacks to Dividends: Zedge (ZDGE) Deepens Shareholder Focus

Core Viewpoint - Zedge, Inc. has initiated a quarterly cash dividend, reflecting a commitment to enhancing shareholder value while maintaining growth initiatives [2][3]. Group 1: Dividend Announcement - The Board of Directors approved a quarterly cash dividend, marking a new phase in the company's capital return strategy [2]. - The dividend is set at $0.016 per share, resulting in a dividend yield of 2.01% as of January 29 [3]. Group 2: Shareholder Returns and Growth - The introduction of dividends indicates management's confidence in Zedge's long-term growth, consistent free cash flow, and strong balance sheet [3]. - Zedge has previously returned capital through share repurchases, having bought back approximately $4 million of Class B shares from a $5 million authorization [3]. Group 3: Investment in Innovation - Management emphasized that shareholder returns will not hinder growth, as the company continues to invest in product development and innovation [4]. - Recent product launches, such as Tapedeck and SynCat, demonstrate Zedge's focus on innovation [4]. - A Product Innovation Team has been established to enhance the speed of bringing new products to market, focusing on AI, vibe coding, and automation [5]. Group 4: Financial Flexibility - Zedge's financial flexibility allows it to reward shareholders while simultaneously funding initiatives that support future growth [5].