Zedge, Inc. Earnings Recaps
Q3 2026
Jun 13, 2026
Zedge’s shares jumped 33.3% following the quarter, driven by stronger-than-expected subscription growth and resilient monetization despite user declines and advertising headwinds.
Key takeaways
- Subscription revenue grew 32% year over year, with active subscriptions rising 41% to nearly 1.3 million.
- Average revenue per monthly active user reached a record $0.12 despite a decline in overall monthly active users, indicating improved monetization quality.
- iOS revenue within the Zedge Marketplace increased 35% year over year, reflecting growth among higher-value users.
- Advertising revenue declined 4%, primarily due to structural changes impacting Emojipedia, though Marketplace ad revenue remained flat excluding a prior-year one-time integration bonus.
- Free cash flow improved 55% year over year to $1.2 million, supporting a 25% dividend increase and opportunistic share repurchases, with no debt on the balance sheet.