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Zedge (ZDGE) AI Stock Analysis
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Zedge
(NYSE MKT:ZDGE)
The score is driven primarily by solid financial durability (low leverage and positive free cash flow) and a constructive earnings-call outlook showing meaningful operating improvement and funding to scale DataSeeds. These positives are tempered by weak technicals (below major moving averages with negative MACD) and valuation limits from negative earnings despite a supportive dividend yield.
Zedge (ZDGE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $35.14M
- Dividend Yield
- 3.08%
- Average Volume (3M)
- 76.13K
- Price to Earnings (P/E)
- -127.9
- Beta (1Y)
- 0.49
- Revenue Growth
- 7.58%
- EPS Growth
- 93.70%
- Country
- US
- Employees
- 86
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Internet Content & Information
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, d...
Zedge Earnings Call Summary
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.
Q4-2026 Updates
Positive Updates
Negative 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
Strong balance sheet (minimal debt trending to essentially zero) and consistently positive free cash flow support durability. The main offset is a multi-year stretch of losses (2023–2025) with only a near break-even result in 2026, keeping profitability quality mid-range despite high gross profit.
Income Statement
58NeutralBalance Sheet
86Very PositiveCash Flow
72Positive| Breakdown | TTM | Jul 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Oct 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.63M | 31.63M | 29.40M | 30.09M | 27.24M | 26.55M |
| Gross Profit | 28.68M | 29.40M | 26.41M | 25.78M | 21.73M | 22.94M |
| EBITDA | 331.00K | 440.00K | -1.57M | -8.91M | -3.29M | 13.57M |
| Net Income | -131.00K | -131.00K | -2.39M | -9.17M | -6.10M | 9.71M |
Balance Sheet | ||||||
| Total Assets | 33.92M | 33.92M | 35.65M | 38.20M | 46.83M | 54.63M |
| Cash, Cash Equivalents and Short-Term Investments | 20.34M | 20.34M | 18.61M | 20.00M | 18.13M | 17.09M |
| Total Debt | 0 | 279.00K | 197.00K | 203.00K | 2.33M | 195.00K |
| Total Liabilities | 9.90M | 9.90M | 9.75M | 7.30M | 7.97M | 10.44M |
| Stockholders Equity | 24.02M | 24.02M | 25.90M | 30.90M | 38.86M | 44.19M |
Cash Flow | ||||||
| Free Cash Flow | 4.25M | 4.21M | 3.34M | 4.66M | 1.70M | 10.88M |
| Operating Cash Flow | 4.55M | 4.55M | 3.42M | 5.85M | 3.16M | 11.49M |
| Investing Cash Flow | -344.00K | -344.00K | -549.00K | -1.19M | -2.42M | -18.95M |
| Financing Cash Flow | -2.61M | -2.61M | -4.37M | -2.64M | 387.00K | -223.00K |
Zedge Technical Analysis
Price Trends
Market Momentum
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 2.34 is below the 20-day moving average (MA) of 2.77, below the 50-day MA of 2.91, and below the 200-day MA of 3.03, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 25.69 is Positive, neither overbought nor oversold. The STOCH value of 12.20 is Positive, 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.
Latest Risks Added
0 New RisksZedge Peers Comparison
Overall Rating
TBLA69Neutral
SNAP67Neutral- ZDGE65Neutral
PINS64Neutral
SSTK45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TBLA | 69Neutral | $936.09M | 8.39 | 12.80% | ― | 8.00% | 991.05% |
| SNAP | 67Neutral | $9.03B | -28.93 | -14.61% | ― | 12.65% | 42.94% |
| ZDGE | 65Neutral | $36.32M | -127.87 | -0.53% | 3.08% | 7.58% | 93.70% |
| PINS | 64Neutral | $10.95B | 77.46 | 5.25% | ― | 15.38% | -91.36% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| SSTK | 45Neutral | $152.96M | -0.73 | -39.81% | 33.33% | -10.81% | -409.24% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| ZDGE | Zedge Inc | 2.34 | -0.12 | -4.99% | |
| SSTK | Shutterstock | 4.14 | -17.06 | -80.47% | |
| SNAP | Snap Inc | 5.34 | -2.48 | -31.71% | |
| PINS | 19.36 | -14.34 | -42.55% | ||
| TBLA | Taboola.Com Ltd. | 3.46 | -0.04 | -1.00% |
Zedge Corporate Events
Zedge Declares Quarterly Dividend, Signaling Ongoing Confidence
PositiveOn October 29, 2026, Zedge, Inc. announced that its Board of Directors had declared a quarterly cash dividend of $0.02 per share of class B common stock on October 26, 2026. The dividend, representing an annualized rate of $0.08 per share, is schedul...
Zedge Accelerates DataSeeds B2B AI Strategy and Funding
PositiveIn 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 multim...
Zedge Restructures Leadership, Appoints Reich as President
NeutralZedge, 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 senior...
Zedge Appoints Morris Berger as New Chief Executive
PositiveZedge, 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 compan...
Zedge Announces Private Placement of Class B Shares
PositiveOn 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 2,354,803...
Zedge Accelerates DataSeeds.AI with New CEO, Funding
PositiveOn 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 effec...
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.
Date of analysis: Oct 30, 2026