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Zedge
(NYSE MKT:ZDGE)
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Rating:67Neutral
Price Target:
$3.00
▲(23.46% Upside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by solid financial fundamentals (low leverage and consistent positive free cash flow) and a constructive earnings-call trajectory showing meaningful profitability and cash-flow improvement. These positives are tempered by weak technical conditions (price below key moving averages with negative MACD and low RSI/Stoch) and valuation limitations from a negative P/E despite a supportive dividend yield.
Positive Factors
Debt-Free Balance Sheet and Cash Generation
A debt-free balance sheet combined with recurring positive free cash flow gives Zedge substantial financial flexibility. The company can fund product development and DataSeeds investment internally, preserve resilience during weaker periods, and maintain shareholder distributions without relying heavily on external financing.
Negative Factors
Declining Monthly Active Users
A sustained decline in monthly active users can weaken the scale advantages of Zedge’s consumer platform and reduce the audience available for advertising, subscriptions and marketplace monetization. Reversing this trend may require additional product investment and disciplined acquisition spending.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-Free Balance Sheet and Cash Generation
A debt-free balance sheet combined with recurring positive free cash flow gives Zedge substantial financial flexibility. The company can fund product development and DataSeeds investment internally, preserve resilience during weaker periods, and maintain shareholder distributions without relying heavily on external financing.
Read all positive factors
Zedge (ZDGE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.25M
Dividend Yield2.74%
Average Volume (3M)50.34K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth7.58%
EPS Growth93.70%
CountryUS
Employees86
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.02
Shares Outstanding15,160,303
10 Day Avg. Volume37,898
30 Day Avg. Volume50,345
Financial Highlights & Ratios
PEG Ratio3.11
Price to Book (P/B)1.60
Price to Sales (P/S)1.21
P/FCF Ratio9.10
Enterprise Value/Market Cap0.46
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit0.66
Enterprise Value/Ebitda56.91
Forecast
1Y Price Target
$4.00Price Target Upside64.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.18
Revenue Forecast (FY)$31.50M
Zedge Business Overview & Revenue Model
Company Description
Zedge, Inc. runs a digital content and publishing service that reaches users across the globe. This platform allows individuals to customize their mobile devices with a range of options, such as unique ringtones, personalized home screen app icons...
Zedge Earnings Call Summary
Earnings Call Date:Oct 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Dec 16, 2026
Earnings Call Sentiment Positive
The call was predominantly positive, with significant improvements in revenue, subscriptions, profitability, adjusted EBITDA and free cash flow, a debt-free balance sheet, new financing and substantial commercial traction for DataSeeds. The main challenges were the 17% decline in monthly active users, continued Emojipedia and traditional GuruShots revenue pressure, higher compensation-related SG&A and the expectation that DataSeeds revenue will remain uneven while the business scales.Positive Updates
Fiscal 2026 Revenue and Profitability Improvement
Fiscal 2026 total revenue increased 7.6% to $31.6 million. GAAP operating loss narrowed to $0.6 million from $3.2 million, GAAP net loss narrowed to $0.1 million from $2.4 million, non-GAAP net income increased to $3.1 million from $0.7 million, and adjusted EBITDA increased 134.2% to $4.1 million from $1.8 million.
Negative Updates
Monthly Active Users Declined
Fourth-quarter monthly active users declined 17% year-over-year. Management said reversing the MAU downward trend remains a priority and is pursuing product enhancements, feature development and expanded paid user-acquisition channels to stabilize the user base.
Read all updates
Q4-2026 Updates
Positive
Negative
Fiscal 2026 Revenue and Profitability Improvement
Fiscal 2026 total revenue increased 7.6% to $31.6 million. GAAP operating loss narrowed to $0.6 million from $3.2 million, GAAP net loss narrowed to $0.1 million from $2.4 million, non-GAAP net income increased to $3.1 million from $0.7 million, and adjusted EBITDA increased 134.2% to $4.1 million from $1.8 million.
Read all positive updates
Company Guidance
For fiscal 2027, revenue will likely remain uneven because assignments vary in size and timing, while Zedge expects a more measured rate of marketplace growth; priorities are to expand technical and production capabilities, deepen customer relationships, broaden and grow the pipeline, and add the people and processes needed to manage larger, more complex engagements. Zedge intends to keep a cushion of, give or take, $20 million of cash on the balance sheet, is not going to consume that $7.5 million all upfront, and expects to use the investment over the course of multiple quarters; it also expects to continue its quarterly dividend, expects clarity on 2 consumer products still under investment over the course of the next 3 months or so, and expects much more clarity about Tapedeck in the first half of 2027.Zedge Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | Jul 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Oct 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 31.63M | 29.40M | 30.09M | 27.24M | 26.55M |
| Gross Profit | 29.40M | 26.41M | 25.78M | 21.73M | 22.94M |
| EBITDA | 440.00K | -1.57M | -8.91M | -3.29M | 13.57M |
| Net Income | -131.00K | -2.39M | -9.17M | -6.10M | 9.71M |
Balance Sheet | |||||
| Total Assets | 33.92M | 35.65M | 38.20M | 46.83M | 54.63M |
| Cash, Cash Equivalents and Short-Term Investments | 20.34M | 18.61M | 20.00M | 18.13M | 17.09M |
| Total Debt | 0.00 | 197.00K | 203.00K | 2.33M | 195.00K |
| Total Liabilities | 9.90M | 9.75M | 7.30M | 7.97M | 10.44M |
| Stockholders Equity | 24.02M | 25.90M | 30.90M | 38.86M | 44.19M |
Cash Flow | |||||
| Free Cash Flow | 4.21M | 3.34M | 4.66M | 1.70M | 10.88M |
| Operating Cash Flow | 4.55M | 3.42M | 5.85M | 3.16M | 11.49M |
| Investing Cash Flow | -344.00K | -549.00K | -1.19M | -2.42M | -18.95M |
| Financing Cash Flow | -2.61M | -4.37M | -2.64M | 387.00K | -223.00K |
Zedge Technical Analysis
Negative
2.43
Price Trends
2.92
Negative
2.99
Negative
3.04
Negative
Market Momentum
-0.08
Positive
36.26
Neutral
22.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZDGE, the sentiment is Negative. The current price of 2.43 is below the 20-day moving average (MA) of 2.83, below the 50-day MA of 2.92, and below the 200-day MA of 3.04, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 36.26 is Neutral, neither overbought nor oversold. The STOCH value of 22.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZDGE.
Zedge Risk Analysis
Zedge disclosed 66 risk factors in its most recent earnings report. Zedge reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zedge Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $940.14M | 8.43 | 12.80% | ― | 8.00% | 991.05% | |
67 Neutral | $41.25M | -143.72 | -0.53% | 2.74% | 7.58% | 93.70% | |
67 Neutral | $11.85B | 59.77 | 6.50% | ― | 16.64% | -87.65% | |
61 Neutral | $10.08B | -32.29 | -14.61% | ― | 12.65% | 42.94% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | $162.94M | -0.78 | -39.81% | 31.29% | -10.81% | -409.24% | |
40 Underperform | $11.82M | -0.05 | -29.19% | ― | 3.29% | -35.93% |
* Communication Services Sector Average
ZDGE
Zedge
2.63
0.04
1.51%
SSTK
Shutterstock
4.41
-19.08
-81.23%
SNAP
Snap
5.96
-1.78
-23.00%
PINS
Pinterest
20.92
-11.89
-36.24%
GETY
Getty Images Holdings
0.03
-2.03
-98.64%
TBLA
Taboola.com
3.48
<0.01
0.29%
Zedge Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Zedge Accelerates DataSeeds B2B AI Strategy and Funding
Positive
Oct 21, 2026
In October 2026, Zedge detailed its strategic shift toward building DataSeeds into a primary B2B AI data business, leveraging its cash-generative consumer platforms, creator communities and mobile operating capabilities to supply purpose-built mul...
Business Operations and StrategyExecutive/Board Changes
Zedge Restructures Leadership, Appoints Reich as President
Neutral
Oct 19, 2026
Zedge, Inc. reported that Jonathan Reich ceased serving as Chief Executive Officer effective September 30, 2026, and began his role as President and Chief Operating Officer on October 1, 2026. The leadership change reflects a restructuring of seni...
Business Operations and StrategyExecutive/Board Changes
Zedge Appoints Morris Berger as New Chief Executive
Positive
Oct 9, 2026
Zedge, Inc. has appointed Morris Berger as Chief Executive Officer, a move first approved by the Board of Directors in August 2026 and effective October 1, 2026. Berger’s leadership began on October 1, 2026, signaling a new phase for the com...
Private Placements and Financing
Zedge Announces Private Placement of Class B Shares
Positive
Sep 10, 2026
On September 8 and 10, 2026, Zedge entered into a Securities Purchase Agreement with Vice Chairman Howard Jonas, director Elliot Gibber and another existing stockholder for a private placement of 2,616,447 Class B shares and warrants to buy 2,354,...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
Zedge Accelerates DataSeeds.AI with New CEO, Funding
Positive
Aug 31, 2026
On August 31, 2026, Zedge announced a strategic acceleration of its DataSeeds.AI business, backed by an approximately $7.5 million insider-led direct investment and a leadership transition that brings Morris Berger in as chief executive officer ef...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.