Start here if you're new
what it is
Zedge sells phone wallpapers, ringtones, and paid digital content through a mobile app.
how it gets paid
Last year Zedge made $29M in revenue.
why growth slowed
Revenue fell 2.3% last year. The main number was $16M in quarterly revenue because it was 92% above last year.
what just happened
Latest quarter revenue hit $16M, while EPS stayed at -$0.12.
At a glance
C++ balance sheet — some cracks in the foundation
20/100 earnings predictability — expect surprises
2.4% dividend yield — cash in your pocket every quarter
22.0% return on capital — every dollar works hard here
-$0.17 fy2025 eps est
xvary composite: 31/100 — weak
What they do
Zedge sells phone wallpapers, ringtones, and paid digital content through a mobile app.
707 million installs and 106 employees is a strange ratio. Your users already know where the app lives, so the store gets repeat visits instead of fresh downloads. 1.1 million active subscribers add recurring bills, which is steadier than one-off ad clicks.
How they make money
$29M
annual revenue · revenue declined -2.3% last year
total revenue
$29M
2.3%
The products that matter
creator marketplace
Zedge Marketplace
Q2 revenue +21%
this was the clearest bright spot last quarter. marketplace revenue rose 21% from a year ago, which is the kind of number you need when the rest of the model still looks unfinished.
growth driver
paid subscriptions
Zedge Premium
deferred revenue $6M
gross transaction value grew 16% last quarter, and deferred revenue hit $6M, up 39% from a year ago. Deferred revenue means cash tied to service still to be delivered. In plain English: some users already paid for future access.
recurring revenue watch
in-app ad inventory
Advertising
$22.5M segment
ads and marketplace revenue make up $22.5M, or 77.6% of total revenue. That's the catch: if user engagement slips, the biggest revenue bucket feels it first.
scale matters
Key numbers
$29M
annual revenue
This is the whole company in one number. It is tiny next to 707 million installs.
1.1M
subscribers
This is the recurring base. It matters because repeat bills are easier to model than random app clicks.
707M
installs
This is the deadpan part. The app is everywhere, but the money is not.
11.0%
operating margin
The core business still loses 11 cents on every dollar of sales.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for ZDGE right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Latest quarter revenue hit $16M, while EPS stayed at -$0.12.
Revenue was up 92% vs. prior year, but the company still posted a loss. That is a growth story with the brakes on.
$16.0M
revenue
-$0.12
eps
92.0%
revenue growth
the number that mattered
The main number was $16M in quarterly revenue because it was 92% above last year.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
your #1 risk is monthly active users shrinking faster than monetization improves. Zedge already showed that better marketplace and subscription numbers can coexist with weaker audience trends. if the user base keeps slipping, the turnaround math gets harder fast.
high
monthly active user contraction
management discussed MAU contraction alongside Q2 results. with Marketplace & Ads making up 77.6% of revenue, fewer users can pressure the core model quickly.
revenue exposure: most of the $22.5M Marketplace & Ads segment depends on audience scale.
high
revenue growth without profit conversion
a -6.9% EBIT margin on $29M of revenue says the business model still isn't producing enough profit. the company just posted 18.3% quarterly revenue growth, yet the margin debate is still open.
if operating margin stays negative, more growth simply buys a larger version of the same problem.
med
dividend drain during a loss-making stretch
the 2.4% dividend costs about $840k annually. for a stable profit machine, that would be routine. here, it is capital being sent out while analysts still expect a loss.
cash paid to shareholders is cash not used for product work, audience retention, or balance sheet protection.
med
thin market support in a $35M company
small caps rerate quickly in both directions. they also spend long stretches ignored while execution drifts. thin coverage is not just a valuation quirk. it's a liquidity and confidence issue.
a $35M market cap leaves little room for execution misses before the stock loses sponsorship.
with a -6.9% EBIT margin on $29M of revenue, Zedge does not need a dramatic collapse to disappoint you. it just needs user erosion and weak monetization to keep showing up together.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
monthly active users
38 million monthly users is the headline asset. if that number keeps slipping, ad and marketplace momentum gets harder to trust.
trend
deferred revenue growth
deferred revenue is $6M, up 39% from a year ago. that's one of the few numbers pointing toward a healthier recurring-revenue base.
risk
operating margin
a -6.9% EBIT margin is the real problem to solve. revenue growth matters only if this number stops living below zero.
calendar
next earnings report
watch the next quarter for the same package you need now: MAUs that stabilize, deferred revenue that keeps rising, and earnings that stop lagging the top line.
Analyst rankings
earnings predictability
20 / 100
in human-speak, analysts don't trust the earnings trend to show up the same way twice.
balance sheet grade
C++
below average balance sheet grade. you are not looking at a company with endless room to experiment.
source: institutional data
Institutional activity
institutional ownership data for ZDGE is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$3
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive