Zedge, Inc. filed a Current Report on Form 8-K on October 21, 2026, disclosing a capital raise to support its DataSeeds business unit. The company announced that an insider-led investment totaling approximately $7.7 million has been completed. This capital injection is intended to accelerate the development of DataSeeds, which Zedge is positioning as its primary growth initiative.
The financing was led by Howard Jonas, the Vice-Chairman of Zedge, who contributed $6.5 million to the round. Additionally, Board Member Elliot Gibber and another current stockholder participated in the investment.
Zedge reported financial metrics for the year-to-date period through the third quarter of fiscal 2026. Total revenue for this period was $23.9 million, an increase of 9% compared to the same period in the prior year. The company reported GAAP net income of $0.6 million and free cash flow of $3.6 million for the year-to-date period, representing a 147% increase year-over-year.
As of the third quarter of fiscal 2026, Zedge reported $27.4 million in cash and no debt. The company noted that its quarterly dividend is expected to continue, though a share buyback program has been suspended.
The filing includes an investor presentation detailing the DataSeeds business. Zedge stated that it has secured a first six-figure order and is beginning to see repeat demand from enterprise AI customers. The company also highlighted a commercial model-evaluation engagement with Bria.AI.
