Zedge Reports Fiscal 2026 Results with Record Revenue and Free Cash Flow

Zedge, Inc. (NYSE American: ZDGE) reported its financial results for the fourth quarter and full fiscal year ended July 31, 2026, in an 8-K filing dated October 26, 2026. The company reported record revenue and significant improvements in profitability and cash flow for the fiscal year.

For the fourth quarter of fiscal 2026, total revenue increased 4.0% year-over-year to $7.8 million. Subscription revenue, a key growth driver, rose 25.6% to $1.8 million. The company achieved GAAP operating income of $0.3 million, a significant improvement compared to a loss of $0.7 million in the prior year. GAAP net income was $0.4 million, or $0.03 per diluted share, compared to a net loss of $0.6 million, or ($0.04) per share, in the prior year.

Full-year fiscal 2026 results showed total revenue of $31.6 million, representing a 7.6% increase from the prior year. Subscription revenue grew 29.5% to $6.6 million. The company reported a GAAP operating loss of $0.6 million, narrowing from a loss of $3.2 million in fiscal 2025. GAAP net loss narrowed to $0.1 million, or ($0.02) per share, compared to a loss of $2.4 million, or ($0.17) per share, in the prior year.

Non-GAAP financial metrics also improved substantially. Non-GAAP net income was $3.1 million, or $0.24 per diluted share, compared to $0.7 million, or $0.05 per share, in fiscal 2025. Free cash flow increased 46.6% to $4.2 million, and adjusted EBITDA increased 134.2% to $4.1 million.

Zedge’s user metrics also showed growth. Average revenue per monthly active user (ARPMAU) increased 30.5% to $0.121, and active subscriptions grew 35.3% to approximately 1.3 million. The company returned $2.7 million to stockholders through share repurchases and dividends during the fiscal year.

On the business development front, Zedge highlighted the progress of its DataSeeds.AI unit, which provides data services for AI developers. The company noted its first six-figure order and a $7.7 million insider investment led by Howard Jonas in September to accelerate the business. Additionally, Morris Berger was hired as Chief Executive Officer earlier in October.