Zedge-B | 8-K: FY2025 Revenue Beats Estimate at USD 29.4 M

Revenue: As of FY2025, the actual value is USD 29.4 M, beating the estimate of USD 28.63 M.

EPS: As of FY2025, the actual value is USD -0.17.

EBIT: As of FY2025, the actual value is USD -3.232 M.

Segment Revenue

• Total Revenue: Decreased by 1.5% to $7.5 million in Q4 2025 compared to Q4 2024, and decreased by 2.3% to $29.4 million for the fiscal year 2025 compared to 2024.
• Advertising Revenue: Remained relatively flat at $5.2 million in Q4 2025, with a slight decrease of 3.4% to $20.3 million for the fiscal year 2025.
• Digital Goods and Services Revenue: Decreased by 39.2% to $0.5 million in Q4 2025, and by 37.1% to $2.2 million for the fiscal year 2025.
• Subscription Revenue: Increased by 21.0% to $1.4 million in Q4 2025, and by 17.1% to $5.1 million for the fiscal year 2025.

Operational Metrics

• GAAP Operating Loss: Increased to - $0.7 million in Q4 2025 from - $0.1 million in Q4 2024, and improved to - $3.2 million for the fiscal year 2025 from - $11.8 million in 2024.
• GAAP Net Loss: Increased to - $0.6 million in Q4 2025 from - $0.0 million in Q4 2024, and improved to - $2.4 million for the fiscal year 2025 from - $9.2 million in 2024.
• Non-GAAP Net Income: Decreased to $0.1 million in Q4 2025 from $0.3 million in Q4 2024, and decreased to $0.7 million for the fiscal year 2025 from $1.8 million in 2024.
• Operating Margin: Decreased to -9.6% in Q4 2025 from -0.9% in Q4 2024, and improved to -11.0% for the fiscal year 2025 from -39.2% in 2024.

Cash Flow

• Free Cash Flow: Remained stable at $0.5 million in Q4 2025, and decreased to $2.9 million for the fiscal year 2025 from $4.7 million in 2024.
• Cash Flow from Operations: Remained stable at $0.7 million in Q4 2025, and decreased to $3.4 million for the fiscal year 2025 from $5.9 million in 2024.

Unique Metrics

• Active Subscriptions: Reached 984,000, up 47% year-over-year.
• ARPMAU: Increased by 16.9% in Q4 2025.
• Zedge Premium GTV: Increased by 7.3% to $0.64 million in Q4 2025, and by 21.8% to $2.6 million for the fiscal year 2025.

Outlook / Guidance

• Zedge, Inc. plans to focus on innovation in fiscal 2026, with a new Product Innovation Team aimed at rapidly testing and developing new product concepts using AI and automation. The company intends to launch six new product concepts or ‘alphas’ in fiscal 2026, each evaluated against specific KPIs. Additionally, Zedge aims to expand its premium product portfolio and B2B data licensing market, while maintaining a balanced capital allocation strategy to ensure liquidity and flexibility.