Zedge Inc. Reports First‑Quarter Fiscal 2026 Results
Zedge Inc. (NYSE: ZDGE) released its financial results for the quarter ended October 31, 2025 on December 12, 2025. The company posted a modest revenue increase and a significant surge in active subscriptions.
Financial Highlights
| Metric | Quarter to Oct 31 2025 | YoY Change | Notes |
|---|---|---|---|
| Revenue | $7.6 million | +5.8 % | Revenue returned to growth after a prior decline. |
| GAAP Net Income | $0.8 million | — | |
| GAAP EPS | $0.06 | — | |
| Non‑GAAP EPS | $0.07 | — | Adjusted earnings exclude one‑time items. |
| Adjusted EBITDA | $1.2 million | — | Reflects core operating performance. |
| Active Subscriptions | 1.1 million | +54 % | Record high for the company. |
| Subscription Revenue | — | +29 % | |
| ARPMAU (Average Revenue per Paying Monthly Active User) | — | +29 % | Indicates higher monetization. |
| Shares Repurchased | 240,000 | — | |
| Dividend | First quarterly dividend paid | — |
Operational Context
Zedge’s platform offers free ringtones, wallpapers, icons, and notification sounds. The company’s user base grew substantially, with active subscribers rising to a record 1.1 million. Subscription revenue and ARPMAU also grew at 29 % year‑over‑year, demonstrating improved monetization.
The company maintained a disciplined capital allocation policy, repurchasing 240,000 shares during the quarter and declaring its first quarterly dividend. This action reflects confidence in the business’s cash‑flow profile.
Market Reaction
Following the earnings announcement, the stock traded within a range that mirrored its 52‑week high of $4.89 and low of $1.728. The company’s price‑to‑earnings ratio remains negative at –25.88, a consequence of the modest earnings per share relative to its market capitalization of approximately $36 million.
Summary
Zedge Inc. delivered a modest revenue increase and a substantial rise in active subscriptions during the first quarter of fiscal 2026. The company’s earnings, both GAAP and Non‑GAAP, exceeded expectations, and it returned cash to shareholders through a share repurchase program and dividend payment. The results indicate a recovering subscription model and a focus on core revenue streams within the interactive media and services sector.
