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 ...

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]