Zedge, Inc (ZDGE) AI Stock Analysis

Zedge, Inc. specializes in creating digital marketplaces and immersive gaming experiences centered around personal expression. At its core, the company provides the Zedge Ringtones and Wallpapers app, a freemium platform featuring customizable mobile phone wallpapers, dynamic video wallpapers, ringtones, and notification sounds. In addition, Zedge operates GuruShots, an interactive platform where amateur photographers participate in skill-based photo challenges, showcase their work, and earn recognition through votes, badges, and awards. Founded in 2008 and based in New York, the company focuses on mobile personalization and creative user engagement.

Zedge expanded revenue at a 5-year CAGR of 25.4% from FY2020 through FY2025. Annual revenue grew from $19.6M in FY2021 to $30.1M in FY2024, before declining 2.3% to $29.4M in FY2025. Gross margins remained high across this span, finishing at 89.8% in FY2025. The company posted annual net losses in each of the past three fiscal years, including -$2.4M in FY2025 following a net loss of -$9.2M in FY2024. For the latest quarter ended April 30, 2026, quarterly revenue rose 3.0% year-over-year, while quarterly earnings increased 600.0%. Trailing twelve-month revenue reached $31.3M with an operating margin of 13.4% and diluted EPS of -$0.08.

As of April 30, 2026, Zedge held $19.7M in cash and short-term investments against total debt of $194,000, yielding a net cash position of $19.5M. Its balance sheet shows a current ratio of 3.21 and a debt-to-equity ratio of 0.01 on $24.6M in shareholders' equity. In FY2025, operating cash flow stood at $3.4M and free cash flow reached $3.3M. The company spent $83,000 on capital expenditures and directed $4.4M to share buybacks, reducing its share count by 11.7% over 5 years.

At $2.78 per share, Zedge carries a market capitalization of $43.6M and an enterprise value of $20.1M. The stock trades at an EV/EBITDA multiple of 5.9x, which is lower than the 10.0x median of its US-listed Communication Services peers. Its price-to-sales ratio is 1.4x compared to the peer median of 0.8x. Over the past year, Zedge shares fell 10.2%, underperforming the 16.8% return of the S&P 500 (SPY). Over a 5-year period, the stock declined 78.6% while the S&P 500 gained 83.0%.

Zedge provides an annualized forward dividend of $0.08 per share, which corresponds to a dividend yield of 2.88%. The company reports a payout ratio of 36.0% and has paid dividends for 2 consecutive years. Its last ex-dividend date occurred on June 22, 2026.

Wall Street coverage tracked on Zedge consists of 1 Buy rating and zero Hold or Sell ratings. The sole analyst price target is $6.00, representing an upside of 115.8% compared to the last close of $2.78. For the fiscal year ending July 31, 2026, consensus estimates project EPS of $0.31 and revenue of $31.2M. Over the last 4 quarters, the company beat EPS estimates 2 times. The next earnings date is scheduled for October 26, 2026.

This page is an AI-written research summary of Zedge, Inc (ZDGE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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