Zedge FY2026: Revenue Up 7.6% to $31.6M, Net Loss Narrows to $0.1M After $3.7M Emojipedia Writedown
ZDGE sits 19% above its 52-week low of $2.21.
Summary
Zedge grew FY2026 revenue 7.6% to $31.6M and cut its net loss to $0.1M, helped by a $3.7M non-cash Emojipedia impairment; the company also disclosed a completed $7.68M insider-led private placement to fund its DataSeeds AI-data push and a CEO change effective October 1, 2026.
Key Events · Earnings and Guidance · ZDGE
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FY2026 Revenue Up 7.6%
Revenue rose to $31.6M from $29.4M, driven by a 29.6% jump in subscription revenue to $6.6M and 4.1% advertising growth to $21.2M.
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$3.7M Emojipedia Impairment
Google's September 2025 SERP change and AI platforms answering emoji queries directly cut Emojipedia revenue 49.4%; the company wrote down the asset group to $1.2M fair value, a non-cash charge.
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User Base Still Shrinking
Zedge App MAU fell 16.8% to 19.3M and subscription billings slipped to $7.2M from $7.4M, even as ARPMAU rose 30.5% to $0.1207.
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$7.68M Insider-Led Placement Closed
In September 2026 Zedge issued 2,616,447 Class B shares at a $2.93 average and 2,354,803 warrants at a $3.22 average strike for $7.68M gross, led by Vice Chairman Howard Jonas, to fund DataSeeds.
Analysis · ZDGE · Technology
The headline number is a $0.1M net loss, but the real story is a $3.7M non-cash Emojipedia impairment that masks modest underlying profitability. Revenue grew 7.6% to $31.6M, yet the core Zedge Marketplace held operating income roughly flat at $2.3M, and the user base is shrinking: Zedge App MAU fell 16.8% to 19.3M, and subscription billings actually declined slightly to $7.2M even as recognized subscription revenue rose 29.6%. The writedown itself was triggered by Google's September 2025 search change and AI platforms answering emoji queries directly. Strip it out and the business is modestly profitable but not growing much. The bigger story is the pivot: a $7.68M September 2026 raise from insiders led by Vice Chairman Howard Jonas (2.6M shares at $2.93 plus 2.35M warrants at a $3.22 strike) will fund DataSeeds, its AI training-data business, and Morris Berger was installed as CEO on October 1, 2026. That capital is dilutive, and the warrants only become exercisable after stockholder approval and a six-month wait, so the overhang is real but deferred. With $20.3M of cash and $4.6M of operating cash flow, Zedge is not in distress — the question is whether DataSeeds can scale before the consumer apps erode further.
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In the 30 days to Oct 28, 2026, 30.7% of the 1698 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, ZDGE was trading at $2.63 on NYSE in the Technology sector, with a market capitalization of approximately $41.3M. The 52-week trading range was $2.21 to $4.70. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.