Zedge, Inc. Q4 2026 Earnings Recap

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.