ZDGE earnings analysis
What we found in ZDGE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Zedge, Inc. reported Q3 fiscal 2026 results with revenue of $7.99 million, reflecting a 3% increase year-over-year, and EPS of $0.07, surpassing expectations by 40%. Strong growth in subscription revenue, which rose by 31.9%, contrasts with a decline in advertising revenue, highlighting management's dual focus on monetization and user engagement despite underlying challenges.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Beats Expectations
- Actual revenue reached $7.99 million, beating estimates of $7.008 million by 14%.
- Strong EPS Growth
- Reported EPS of $0.07, compared to $0.05 expected, representing a 40% surprise.
- Significant Subscription Revenue Growth
- Subscription revenue soared by 31.9% year-over-year, driving overall revenue trends.
- Improved Operational Profit
- Income from operations increased to $1.07 million from $0.16 million, up 571.3% year-over-year.
- Control of SG&A Costs
- Selling, general and administrative expenses decreased by 1.7% year-over-year, reflecting cost efficiencies.
- Cash Flow Position Strengthened
- Operating cash flows were $2.90 million for the nine months, up from $2.75 million a year ago.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Declining Advertising Revenue
- Advertising revenue fell 4.0% to $5.36 million, impacted by higher competition and a 53% decline in Emojipedia's revenue.
- Decreased Active Users
- Monthly Active Users (MAU) for Zedge App decreased 11.3% to 19.6 million compared to last year.
- GuruShots Performance Challenges
- GuruShots revenue fell 12.4% year-over-year due to a 37.7% drop in Monthly Active Payers.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.07
- Segment
- Zedge Marketplace Advertising
- Segment
- Zedge Marketplace Paid Subscription
- Segment
- GuruShots Digital Goods and Services
What they said about what is next.
Projected revenue for Q4 is $7.5M-$8M; EPS guidance is $0.05-$0.07.
The filing reads better than the one before it.
What came before.
- 10-Q · March 16, 2026
- Zedge reported quarterly revenue of $8,254,000, up 18.3% year-over-year, driven by strength in advertising and subscriptions. Despite top-line growth and positive operating cash flow, the company recorded a non-cash…
- 10-Q · December 12, 2025
- Zedge reported revenue of $7.61 million for the three months ended October 31, 2025, up $416,000 (5.8%) versus the prior-year quarter, and delivered operating income of $914,000 vs an operating loss of $457,000 a year…
- 10-K · October 29, 2024
- Zedge positions itself as a freemium digital-content marketplace + gamified creator ecosystem, highlighting a 26.1 million MAU base and near 674 million lifetime installs while pursuing revenue diversification…
- 10-Q · March 15, 2024
- Zedge reported quarterly revenue of $7,771,000 (up from $6,983,000 a year ago) but swung to a net loss of $9,230,000 (vs. net income $1,606,000 prior year), driven largely by an $11,958,000 intangible-asset impairment…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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