Zedge, Inc. Earnings Recaps
Q4 2026
Oct 30, 2026
Zedge shares fell 7.2% after earnings, with the clearest concern being a 17% year-over-year decline in Marketplace monthly active users and management’s warning that DataSeeds revenue will likely remain uneven in fiscal 2027. Marketplace monetization improved, but management also expects more measured growth as it calibrates user-acquisition spending to returns.
Key takeaways
- Fiscal 2026 consolidated revenue increased approximately 8%; subscription revenue grew nearly 30%, with profitability and free cash flow also improving.
- In Q4, Marketplace revenue per monthly active user rose more than 30% year over year to $0.121, and active subscriptions increased 35% to approximately 1.3 million—but MAUs fell 17%.
- Management says reversing the MAU decline is a priority and expects to align paid acquisition more closely with advertising returns, potentially slowing Marketplace growth.
- DataSeeds secured repeat orders, its first six-figure engagement and work in model evaluation, but remains early-stage; management cautioned that fiscal 2027 revenue will likely be uneven.
- Emojipedia revenue continued to decline, weighing on consolidated growth, though the business generates high margins and is being managed for cash generation.
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.