Record quarterly results across total revenue, advertising and subscription revenue, active subscriptions1, ARPMAU1, Zedge Premium GTV1
Revenue increased 18% year over year to $8.3 million
Subscription revenue increased 33%, and active subscriptions grew 49% to nearly 1.2 million
ARPMAU increased 48% to a quarterly record of $0.115; Zedge Premium GTV increased 16%
NEW YORK CITY, NY / ACCESS Newswire / March 12, 2026 / Zedge, Inc. (NYSE AMERICAN:ZDGE), $ZDGE, a leader in digital marketplaces and interactive games that provide content, enable creativity, empower self-expression and facilitate community, today announced results for its second quarter fiscal 2026, ended January 31, 2026.
Jonathan Reich, Zedge's CEO, commented:
"We delivered a strong second quarter, highlighted by record monetization performance in the Zedge Marketplace. Revenue increased 18% year over year, driven by seasonal strength combined with strong advertising and subscription optimization. Subscription revenue increased 33%, active subscriptions reached a record 1.2 million, ARPMAU increased 48% to a record $0.115 and Zedge Premium GTV also reached a new quarterly high. These results reflect continued improvement in the quality of our revenue and our ability to monetize our audience more effectively, even as overall MAU1 trended lower.
"Innovation remains a central focus across the organization. Within our current portfolio, we are excited by the prospects for DataSeeds as the demand for high-quality AI training data is substantial and not likely to slow down any time soon. DataSeeds continues to generate interest from both new and existing customers, including repeat customers placing larger orders. While revenue remains early-stage and lumpy given the limited number of deals, the pipeline is expanding, and we are investing thoughtfully to support that growth.
"For Tapedeck, we are currently focusing on expanding the music catalog. Separately, our Innovation Team recently launched two new alpha products as part of our commitment to introduce up to six alphas this fiscal year, placing us halfway toward that goal. Our framework is disciplined - launch quickly, measure performance against clear thresholds and invest behind the opportunities that demonstrate traction This approach increases our shots on goal while maintaining thoughtful capital allocation.
"Financially, free cash flow2 increased 31% year over year to $0.8 million. Cash and cash equivalents increased sequentially to $19.1 million. We continue to operate with no debt, and we are now paying a quarterly dividend, reflecting confidence in our cash generation while continuing to invest in innovation."
Second Quarter Highlights (fiscal 2026 versus fiscal 2025)
Revenue increased 18.3% to $8.3 million;
GAAP operating loss of ($2.9) million, compared to a loss of ($2.2) million
GAAP net loss and diluted loss per share (EPS) of ($2.3) million and ($0.18), compared to a net loss of ($1.7) million and ($0.12) per share;
Non-GAAP net income2 and diluted EPS2 of $0.8 million and $0.06, compared to a non-GAAP net loss and EPS of ($0.2) million and ($0.01);
Free cash flow of $0.8 million, compared to $0.6 million;
Adjusted EBITDA2 of $1.1 million, compared to ($0.1) million;
ARPMAU increased 47.6%;
Zedge Premium GTV increased 15.7%;
Active subscriptions increased 48.5% to 1.2 million;
Cash and cash equivalents were $19.1 million at quarter's end;
Paid a quarterly dividend of $0.016 per share.
Second Quarter Select Financial Metrics: FY26 versus FY25*
(in M except for EPS) | | Q2 '26 | | | Q2 '25 | | | Change | | | 1H'26 | | | 1H'25 | | | Change | |
Total Revenue | | $ | 8.3 | | | $ | 7.0 | | | | 18.3 | % | | $ | 15.9 | | | $ | 14.2 | | | | 11.9 | % |
Advertising Revenue | | $ | 5.6 | | | $ | 4.7 | | | | 18.3 | % | | $ | 10.7 | | | $ | 9.6 | | | | 12.1 | % |
Digital Goods and Services Revenue | | $ | 0.5 | | | $ | 0.6 | | | | -11.5 | % | | $ | 1.0 | | | $ | 1.3 | | | | -19.6 | % |
Subscription Revenue | | $ | 1.6 | | | $ | 1.2 | | | | 32.5 | % | | $ | 3.2 | | | $ | 2.4 | | | | 30.6 | % |
Other Revenue | | $ | 0.5 | | | $ | 0.4 | | | | 19.6 | % | | $ | 1.0 | | | $ | 0.9 | | | | 5.0 | % |
GAAP Operating Income (Loss) | | $ | (2.9 | ) | | $ | (2.2 | ) | | | -30.3 | % | | $ | (2.0 | ) | | $ | (2.7 | ) | | | 26.1 | % |
Operating Margin | | | -35.0 | % | | | -31.8 | % | | | | | | | -12.5 | % | | | -18.9 | % | | | | |
GAAP Net Income (Loss) | | $ | (2.3 | ) | | $ | (1.7 | ) | | | -36.3 | % | | $ | (1.5 | ) | | $ | (2.0 | ) | | | 25.7 | % |
GAAP Diluted EPS (Loss per share) | | $ | (0.18 | ) | | $ | (0.12 | ) | | | -50.0 | % | | $ | (0.12 | ) | | $ | (0.14 | ) | | | 14.3 | % |
Non-GAAP Net Income (loss) | | $ | 0.8 | | | $ | (0.2 | ) | | | 476.6 | % | | $ | 1.7 | | | $ | (0.3 | ) | | | 744.7 | % |
Non- GAAP Diluted EPS (loss per share) | | $ | 0.06 | | | $ | (0.01 | ) | | | 503.7 | % | | $ | 0.13 | | | $ | -0.02 | | | | 782.5 | % |
Cash Flow from Operations | | $ | 0.9 | | | $ | 0.7 | | | | 21.2 | % | | $ | 1.7 | | | $ | 1.9 | | | | -10.4 | % |
Free Cash Flow | | $ | 0.8 | | | $ | 0.6 | | | | 31.2 | % | | $ | 1.4 | | | $ | 1.6 | | | | -11.5 | % |
Adjusted EBITDA | | $ | 1.1 | | | $ | (0.1 | ) | | | 1580.7 | % | | $ | 2.3 | | | $ | 0.2 | | | | 1009.1 | % |
Shares Repurchased | | | 0.01 | | | | 0.24 | | | | -95.7 | % | | | 0.25 | | | | 0.46 | | | | -46.4 | % |
nm = not measurable/meaningful
*numbers/percentages are based off of actuals versus the rounded numbers in the table
Select Zedge Marketplace Metrics: FY26 versus FY25*
(in MM except for ARPMAU and where noted) | | Q2 '26 | | | Q2 '25 | | | Change | |
MAU | | | 20.4 | | | | 24.7 | | | | -17.4 | % |
Well-Developed Markets | | | 4.8 | | | | 5.6 | | | | -14.3 | % |
Emerging Markets | | | 15.6 | | | | 19.1 | | | | -18.3 | % |
Active Subscriptions (in 000s) | | | 1,175 | | | | 791 | | | | 48.5 | % |
ARPMAU | | $ | 0.115 | | | $ | 0.078 | | | | 47.6 | % |
Zedge Premium - Gross Transaction Value (GTV) | | $ | 0.79 | | | $ | 0.68 | | | | 15.7 | % |
*numbers/percentages are based off of actuals versus the rounded numbers in the table
1 We use the following supplemental business metrics in this release because we believe they are useful in evaluating Zedge's operational performance.
Monthly active users, or MAU, captures the number of unique users that used our Zedge App during the previous 30 days of the relevant period, is useful for evaluating consumer engagement with our App, which correlates to advertising revenue as more users drive more ad impressions for sale. It also allows readers and potential advertisers to evaluate the size of our user base.
Zedge Premium Gross Transaction Value, or GTV, is the total dollar amount of transactions conducted through Zedge Premium. As Zedge Premium is an internal focus for growth, we believe this metric will help investors evaluate our progress in growing this part of our business.
Average Revenue Per Monthly Active User for our Zedge Marketplace, or ARPMAU, is useful in evaluating how well we monetize our user base.
An Active Subscription is a subscription that has commenced and not been canceled, including paused subscriptions and subscriptions in free trials, grace periods, or account hold. This is important because it is a source of recurring revenue.
2 Throughout this release, Non-GAAP Net Income, Non-GAAP EPS, Free Cash Flow (FCF) and Adjusted EBITDA are non-GAAP financial measures intended to provide useful information that supplement Zedge's results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial measures at the end of this release for an explanation of Zedge's formulations of Non-GAAP Net Income, Non-GAAP EPS, Free Cash Flow and Adjusted EBITDA and reconciliations to the most directly comparable GAAP measures.
Trended Financial Information*
(in M except for EPS, ARPMAU, Paid Subscriptions) | | Q125 | | | Q225 | | | Q325 | | | Q425 | | | Q126 | | | Q226 | | | FY24 | | | FY25 | | | YTD FY26 | |
Total Revenue | | $ | 7.2 | | | $ | 7.0 | | | $ | 7.8 | | | $ | 7.5 | | | $ | 7.6 | | | $ | 8.3 | | | $ | 30.1 | | | $ | 29.4 | | | $ | 15.9 | |
Advertising Revenue | | $ | 4.9 | | | $ | 4.7 | | | $ | 5.6 | | | $ | 5.2 | | | $ | 5.2 | | | $ | 5.6 | | | $ | 21.0 | | | $ | 20.3 | | | $ | 10.7 | |
Digital Goods and Services Revenue | | $ | 0.6 | | | $ | 0.6 | | | $ | 0.5 | | | $ | 0.5 | | | $ | 0.5 | | | $ | 0.5 | | | $ | 3.5 | | | $ | 2.2 | | | $ | 1.0 | |
Subscription Revenue | | $ | 1.2 | | | $ | 1.2 | | | $ | 1.3 | | | $ | 1.4 | | | $ | 1.5 | | | $ | 1.6 | | | $ | 4.3 | | | $ | 5.1 | | | $ | 3.2 | |
Other Revenue | | $ | 0.5 | | | $ | 0.4 | | | $ | 0.4 | | | $ | 0.4 | | | $ | 0.5 | | | $ | 0.5 | | | $ | 1.2 | | | $ | 1.8 | | | $ | 1.0 | |
GAAP Operating Income (Loss) | | $ | (0.5 | ) | | $ | (2.2 | ) | | $ | 0.2 | | | $ | (0.7 | ) | | $ | 0.9 | | | $ | (2.9 | ) | | $ | (11.8 | ) | | $ | (3.2 | ) | | $ | (2.0 | ) |
GAAP Net Income (Loss) | | $ | (0.3 | ) | | $ | (1.7 | ) | | $ | 0.2 | | | $ | (0.6 | ) | | $ | 0.8 | | | $ | (2.3 | ) | | $ | (9.2 | ) | | $ | (2.4 | ) | | $ | (1.5 | ) |
GAAP Diluted EPS (Loss per share) | | $ | (0.02 | ) | | $ | (0.12 | ) | | $ | 0.01 | | | $ | (0.04 | ) | | $ | 0.06 | | | $ | (0.18 | ) | | $ | (0.65 | ) | | $ | (0.17 | ) | | $ | (0.12 | ) |
Non GAAP Net Income (Loss) | | $ | (0.0 | ) | | $ | (0.2 | ) | | $ | 0.9 | | | $ | 0.1 | | | $ | 0.9 | | | $ | 0.8 | | | $ | 1.8 | | | $ | 0.7 | | | $ | 1.7 | |
Non-GAAP Diluted EPS (Loss per share) | | $ | (0.00 | ) | | $ | (0.01 | ) | | $ | 0.06 | | | $ | 0.00 | | | $ | 0.07 | | | $ | 0.06 | | | $ | 0.13 | | | $ | 0.05 | | | $ | 0.12 | |
Cash Flow from Operations | | $ | 1.2 | | | $ | 0.7 | | | $ | 0.9 | | | $ | 0.7 | | | $ | 0.8 | | | $ | 0.9 | | | $ | 5.9 | | | $ | 3.4 | | | $ | 1.7 | |
Free Cash Flow | | $ | 1.0 | | | $ | 0.6 | | | $ | 0.8 | | | $ | 0.5 | | | $ | 0.6 | | | $ | 0.8 | | | $ | 4.7 | | | $ | 2.9 | | | $ | 1.4 | |
Adjusted EBITDA | | $ | 0.3 | | | $ | (0.1 | ) | | $ | 1.2 | | | $ | 0.3 | | | $ | 1.2 | | | $ | 1.1 | | | $ | 4.7 | | | $ | 1.8 | | | $ | 2.3 | |
MAU | | | 25.0 | | | | 24.7 | | | | 22.1 | | | | 23.2 | | | | 22.2 | | | | 20.4 | | | nm | | | nm | | | nm | |
Well-developed Markets | | | 5.5 | | | | 5.6 | | | | 5.2 | | | | 5.4 | | | | 4.9 | | | | 4.8 | | | nm | | | nm | | | nm | |
Emerging Markets | | | 19.5 | | | | 19.1 | | | | 16.9 | | | | 17.8 | | | | 17.3 | | | | 15.6 | | | nm | | | nm | | | nm | |
Active Subscriptions (in 000s) | | | 698 | | | | 791 | | | | 896 | | | | 984 | | | | 1,075 | | | | 1,175 | | | nm | | | nm | | | nm | |
ARPMAU | | $ | 0.077 | | | $ | 0.078 | | | $ | 0.099 | | | $ | 0.093 | | | $ | 0.099 | | | $ | 0.115 | | | nm | | | nm | | | nm | |
Zedge Premium - GTV | | $ | 0.68 | | | $ | 0.68 | | | $ | 0.61 | | | $ | 0.64 | | | $ | 0.66 | | | $ | 0.79 | | | $ | 2.15 | | | $ | 2.62 | | | $ | 1.44 | |
Shares Repurchased | | | 0.22 | | | | 0.24 | | | | 0.22 | | | | 0.64 | | | | 0.24 | | | | 0.01 | | | | 0.21 | | | | 1.32 | | | | 0.25 | |
nm = not measurable/meaningful
*numbers may not add due to rounding
Earnings Announcement and Supplemental Information
Management will host an earnings conference call today at 4:30 pm Eastern to discuss its earnings results, outlook, and strategy, followed by a Q&A session with investors.
Live Call-in Info:
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 238586
Webcast URL: https://www.webcaster5.com/Webcast/Page/2205/53597
Replay:
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 53597
About Zedge
Zedge empowers tens of millions of consumers and creators each month with its suite of interconnected platforms that enable creativity, self-expression and e-commerce and foster community through fun competitions. Zedge's ecosystem of product offerings includes the Zedge Marketplace, a freemium marketplace offering mobile phone wallpapers, video wallpapers, ringtones, notification sounds, and pAInt, a generative AI image and audio maker; GuruShots, "The World's Greatest Photography Game," a skill-based photo challenge game; and Emojipedia, the #1 trusted source for ‘all things emoji.'
For more information, visit: investor.zedge.net
Follow us on X: @Zedge
Follow us on LinkedIn
Forward-Looking Statements
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate," "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.
Contact:
Brian Siegel, IRC, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
brian@haydenir.com
ir@zedge.net
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value data)
| | January 31, | | | July 31, | |
| | 2026 | | | 2025 | |
| | (Unaudited) | | | | |
Assets | | | | | | |
Current assets: | | | | | | |
Cash and cash equivalents | | $ | 19,106 | | | $ | 18,609 | |
Trade accounts receivable | | | 3,765 | | | | 3,164 | |
Prepaid expenses and other current assets | | | 1,062 | | | | 671 | |
Total Current assets | | | 23,933 | | | | 22,444 | |
Property and equipment, net | | | 1,238 | | | | 1,290 | |
Intangible assets, net | | | 1,128 | | | | 4,922 | |
Goodwill | | | 2,069 | | | | 1,931 | |
Deferred tax assets, net | | | 4,982 | | | | 4,823 | |
Other assets | | | 473 | | | | 244 | |
Total assets | | $ | 33,823 | | | $ | 35,654 | |
Liabilities and stockholders' equity | | | | | | | | |
Current liabilities: | | | | | | | | |
Trade accounts payable | | $ | 1,437 | | | $ | 1,471 | |
Accrued expenses and other current liabilities | | | 2,305 | | | | 2,867 | |
Deferred revenues | | | 3,994 | | | | 3,425 | |
Total Current liabilities | | | 7,736 | | | | 7,763 | |
Deferred revenues--non-current | | | 2,041 | | | | 1,937 | |
Other liabilities | | | 180 | | | | 53 | |
Total liabilities | | | 9,957 | | | | 9,753 | |
Commitments and contingencies (Note 9) | | | | | | | | |
Stockholders' equity: | | | | | | | | |
Preferred stock, $.01 par value; authorized shares-2,400; no shares issued and outstanding | | | - | | | | - | |
Class A common stock, $.01 par value; authorized shares-2,600; 525 shares issued and outstanding at January 31, 2026 and July 31, 2025 | | | 5 | | | | 5 | |
Class B common stock, $.01 par value; authorized shares-40,000; 15,189 shares issued and 12,554 outstanding at January 31, 2026 and 15,073 shares issued and 12,692 shares outstanding at July 31, 2025 | | | 152 | | | | 151 | |
Additional paid-in capital | | | 49,774 | | | | 49,768 | |
Accumulated other comprehensive loss | | | (1,174 | ) | | | (1,509 | ) |
Accumulated deficit | | | (17,006 | ) | | | (15,505 | ) |
Treasury stock, 2,635 shares at January 31, 2026 and 2,381 shares at July 31, 2025, at cost | | | (7,885 | ) | | | (7,009 | ) |
Total stockholders' equity | | | 23,866 | | | | 25,901 | |
Total liabilities and stockholders' equity | | $ | 33,823 | | | $ | 35,654 | |
ZEDGE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per share data)
(unaudited)
| | Three Months Ended | | | Six Months Ended | |
| | January 31, | | | January 31, | |
| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
Revenues | | $ | 8,254 | | | $ | 6,979 | | | $ | 15,864 | | | $ | 14,173 | |
Costs and expenses: | | | | | | | | | | | | | | | | |
Direct cost of revenues (excluding amortization of capitalized software and technology development costs which is included below) | | | 561 | | | | 447 | | | | 1,116 | | | | 908 | |
Selling, general and administrative | | | 6,683 | | | | 7,126 | | | | 12,599 | | | | 13,935 | |
Depreciation and amortization | | | 187 | | | | 317 | | | | 403 | | | | 698 | |
Impairment of intangible assets | | | 3,570 | | | | - | | | | 3,570 | | | | - | |
Restructuring charges | | | - | | | | 481 | | | | - | | | | 481 | |
Impairment of capitalized software and technology development costs | | | 145 | | | | 827 | | | | 145 | | | | 827 | |
Loss from operations | | | (2,892 | ) | | | (2,219 | ) | | | (1,969 | ) | | | (2,676 | ) |
Interest and other income, net | | | 124 | | | | 171 | | | | 268 | | | | 352 | |
Net loss resulting from foreign exchange transactions | | | (138 | ) | | | (86 | ) | | | (184 | ) | | | (100 | ) |
Loss before income taxes | | | (2,906 | ) | | | (2,134 | ) | | | (1,885 | ) | | | (2,424 | ) |
Income taxes benefit | | | (617 | ) | | | (455 | ) | | | (384 | ) | | | (406 | ) |
Net loss | | $ | (2,289 | ) | | $ | (1,679 | ) | | $ | (1,501 | ) | | $ | (2,018 | ) |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | |
Changes in foreign currency translation adjustment | | | 236 | | | | (132 | ) | | | 335 | | | | (161 | ) |
Total other comprehensive income (loss) | | | 236 | | | | (132 | ) | | | 335 | | | | (161 | ) |
Total comprehensive loss | | $ | (2,053 | ) | | $ | (1,811 | ) | | $ | (1,166 | ) | | $ | (2,179 | ) |
Income loss per share attributable to Zedge, Inc. common stockholders: | | | | | | | | | | | | | | | | |
Basic and diluted | | $ | (0.18 | ) | | $ | (0.12 | ) | | $ | (0.12 | ) | | $ | (0.15 | ) |
Weighted-average number of shares used in calculation of income (loss) per share: | | | | | | | | | | | | | | | | |
Basic and diluted | | | 12,950 | | | | 13,882 | | | | 12,988 | | | | 13,872 | |
ZEDGE, INC.
CONDENSEDCONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| | Six Months Ended | |
| | January 31, | |
| | 2026 | | | 2025 | |
| | | | | | |
Operating activities | | | | | | |
Net loss | | $ | (1,501 | ) | | $ | (2,018 | ) |
Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | |
Depreciation | | | 28 | | | | 30 | |
Amortization of intangible assets | | | 224 | | | | 224 | |
Amortization of capitalized software and technology development costs | | | 151 | | | | 444 | |
Stock-based compensation | | | 379 | | | | 982 | |
Impairment charge of capitalized software and technology development costs | | | 145 | | | | 827 | |
Impairment charge of intangible assets | | | 3,570 | | | | - | |
Deferred income taxes | | | (159 | ) | | | (184 | ) |
Change in assets and liabilities: | | | | | | | | |
Trade accounts receivable | | | (601 | ) | | | 416 | |
Prepaid expenses and other current assets | | | (391 | ) | | | (360 | ) |
Other assets | | | (18 | ) | | | (39 | ) |
Trade accounts payable and accrued expenses | | | (817 | ) | | | 322 | |
Deferred revenues | | | 673 | | | | 1,234 | |
Net cash provided by operating activities | | | 1,683 | | | | 1,878 | |
Investing activities | | | | | | | | |
Capitalized software and technology development costs | | | (237 | ) | | | (236 | ) |
Purchase of property and equipment | | | (20 | ) | | | (30 | ) |
Net cash used in investing activities | | | (257 | ) | | | (266 | ) |
Financing activities | | | | | | | | |
Purchase of treasury stock in connection with share buyback program and stock awards vesting | | | (876 | ) | | | (1,494 | ) |
Payment of cash dividends | | | (208 | ) | | | - | |
Proceeds from exercise of stock options | | | 45 | | | | - | |
Net cash used in financing activities | | | (1,039 | ) | | | (1,494 | ) |
Effect of exchange rate changes on cash and cash equivalents | | | 110 | | | | (62 | ) |
Net increase in cash and cash equivalents | | | 497 | | | | 56 | |
Cash and cash equivalents at beginning of period | | | 18,609 | | | | 19,998 | |
Cash and cash equivalents at end of period | | $ | 19,106 | | | $ | 20,054 | |
| | | | | | | | |
Supplemental cash flow information: | | | | | | | | |
Cash paid for income taxes | | $ | 114 | | | $ | 130 | |
| | | | | | | | |
Non-cash operating and financing activities: | | | | | | | | |
ROU assets obtained in exchange for lease liabilities | | $ | 286 | | | $ | 111 | |
Dividend payable included in accrued expenses and other current liabilities (1) | | $ | 209 | | | $ | - | |
(1) Dividend payable was paid on February 10, 2026.
Use of Non-GAAP Measures
Adjusted EBITDA, defined as earnings (loss) before interest, taxes, depreciation and amortization, stock compensation expense, transaction-related expenses and other non-recurring expenses, Free Cash Flow, a common metric used by investors for valuation, and non-GAAP net income (loss) and EPS (or loss per share) (which adjust out stock compensation expense, transaction-related expenses and other non-recurring expenses from GAAP net income (loss) and EPS (loss per share)), represent measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures we present. Our management also believes these measures are useful in evaluating our core operating results. However, these are not measures of financial performance under GAAP and should not be considered an alternative to net income or operating income/margin as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity. Numbers in the following reconciliation tables may not add due to rounding.
Reconciliation of Adjusted EBITDA to Net Income (Loss) | | Q125 | | | Q225 | | | Q325 | | | Q425 | | | Q126 | | | Q226 | | | FY24 | | | FY25 | | | YTD FY26 | |
Net Income (Loss) | | $ | (0.3 | ) | | $ | (1.7 | ) | | $ | 0.2 | | | $ | (0.6 | ) | | $ | 0.8 | | | $ | (2.3 | ) | | $ | (9.2 | ) | | $ | (2.4 | ) | | $ | (1.5 | ) |
Excluding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and other income (expense), net | | $ | (0.2 | ) | | $ | (0.2 | ) | | $ | (0.2 | ) | | $ | (0.2 | ) | | $ | (0.2 | ) | | $ | (0.1 | ) | | $ | (0.6 | ) | | $ | (0.7 | ) | | $ | (0.3 | ) |
Income tax expense (benefit) | | $ | 0.0 | | | $ | (0.5 | ) | | $ | 0.1 | | | $ | (0.0 | ) | | $ | 0.2 | | | $ | (0.6 | ) | | $ | (2.2 | ) | | $ | (0.3 | ) | | $ | (0.4 | ) |
Depreciation and amortization | | $ | 0.4 | | | $ | 0.3 | | | $ | 0.2 | | | $ | 0.2 | | | $ | 0.2 | | | $ | 0.2 | | | $ | 2.5 | | | $ | 1.1 | | | $ | 0.4 | |
EBITDA | | $ | (0.1 | ) | | $ | (2.0 | ) | | $ | 0.3 | | | $ | (0.5 | ) | | $ | 1.1 | | | $ | (2.8 | ) | | $ | (9.5 | ) | | $ | (2.2 | ) | | $ | (1.8 | ) |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Asset impairments and restructuring charges | | $ | 0.0 | | | $ | 1.3 | | | $ | 0.6 | | | $ | 0.6 | | | $ | 0.0 | | | $ | 3.7 | | | $ | 12.0 | | | $ | 2.5 | | | $ | 3.7 | |
Stock-based compensation | | $ | 0.4 | | | $ | 0.6 | | | $ | 0.3 | | | $ | 0.1 | | | $ | 0.1 | | | $ | 0.3 | | | $ | 2.1 | | | $ | 1.4 | | | $ | 0.4 | |
Expenses related to restructuring activities and business combination | | $ | 0.0 | | | $ | 0.0 | | | $ | 0.0 | | | $ | 0.1 | | | $ | 0.0 | | | $ | 0.0 | | | $ | 0.2 | | | $ | 0.1 | | | $ | 0.0 | |
Adjusted EBITDA | | $ | 0.3 | | | $ | (0.1 | ) | | $ | 1.2 | | | $ | 0.3 | | | $ | 1.2 | | | $ | 1.1 | | | $ | 4.7 | | | $ | 1.8 | | | $ | 2.3 | |
*numbers may not add due to rounding
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income | | Q125 | | | Q225 | | | Q325 | | | Q425 | | | Q126 | | | Q226 | | | FY24 | | | FY25 | | | YTD FY26 | |
GAAP Net Income (Loss) | | $ | (0.3 | ) | | $ | (1.7 | ) | | $ | 0.2 | | | $ | (0.6 | ) | | $ | 0.8 | | | $ | (2.3 | ) | | $ | (9.2 | ) | | $ | (2.4 | ) | | $ | (1.5 | ) |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Asset impairments and restructuring charges | | $ | 0.0 | | | $ | 1.3 | | | $ | 0.6 | | | $ | 0.6 | | | $ | 0.0 | | | $ | 3.7 | | | $ | 12.0 | | | $ | 2.5 | | | $ | 3.7 | |
Stock-based compensation | | $ | 0.4 | | | $ | 0.6 | | | $ | 0.3 | | | $ | 0.1 | | | $ | 0.1 | | | $ | 0.3 | | | $ | 2.1 | | | $ | 1.4 | | | $ | 0.4 | |
Expenses related to restructuring activities and business combination | | $ | 0.0 | | | $ | 0.0 | | | $ | 0.0 | | | $ | 0.1 | | | $ | 0.0 | | | $ | 0.0 | | | $ | 0.2 | | | $ | 0.1 | | | $ | 0.0 | |
Income tax effect on non-GAAP items | | $ | (0.1 | ) | | $ | (0.4 | ) | | $ | (0.2 | ) | | $ | (0.2 | ) | | $ | (0.0 | ) | | $ | (0.9 | ) | | $ | (3.3 | ) | | $ | (0.9 | ) | | $ | (0.9 | ) |
Non-GAAP Net Income (Loss) | | $ | (0.0 | ) | | $ | (0.2 | ) | | $ | 0.9 | | | $ | 0.1 | | | $ | 0.9 | | | $ | 0.8 | | | $ | 1.8 | | | $ | 0.7 | | | $ | 1.7 | |
Non-GAAP basic EPS (loss per share) | | $ | (0.00 | ) | | $ | (0.01 | ) | | $ | 0.06 | | | $ | 0.00 | | | $ | 0.07 | | | $ | 0.06 | | | $ | 0.13 | | | $ | 0.05 | | | $ | 0.13 | |
Non-GAAP diluted EPS (loss per share) | | $ | (0.00 | ) | | $ | (0.01 | ) | | $ | 0.06 | | | $ | 0.00 | | | $ | 0.07 | | | $ | 0.06 | | | $ | 0.13 | | | $ | 0.05 | | | $ | 0.12 | |
Weighted average shares used to compute Non-GAAP basic earnings per share | | | 14.1 | | | | 13.9 | | | | 13.7 | | | | 13.4 | | | | 13.0 | | | | 13.0 | | | | 14.1 | | | | 13.7 | | | | 13.0 | |
Weighted average shares used to compute Non-GAAP diluted earnings per share | | | 14.1 | | | | 13.9 | | | | 13.9 | | | | 13.4 | | | | 13.3 | | | | 13.0 | | | | 14.1 | | | | 13.7 | | | | 13.3 | |
*numbers may not add due to rounding
Free Cash Flow Calculation | | Q125 | | | Q225 | | | Q325 | | | Q425 | | | Q126 | | | Q2260 | | | FY24 | | | FY25 | | | YTD FY26 | |
Cash Flow from Operations | | $ | 1.2 | | | $ | 0.7 | | | $ | 0.9 | | | $ | 0.7 | | | $ | 0.8 | | | $ | 0.9 | | | $ | 5.9 | | | $ | 3.4 | | | $ | 1.7 | |
Capital Expenditures | | $ | 0.2 | | | $ | 0.1 | | | $ | 0.1 | | | $ | 0.2 | | | $ | 0.2 | | | $ | 0.1 | | | $ | 1.2 | | | $ | 0.5 | | | $ | 0.3 | |
Free Cash Flow | | $ | 1.0 | | | $ | 0.6 | | | $ | 0.8 | | | $ | 0.5 | | | $ | 0.6 | | | $ | 0.8 | | | $ | 4.7 | | | $ | 2.9 | | | $ | 1.4 | |
SOURCE: Zedge, Inc.
View the original press release on ACCESS Newswire
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