# EDGAR Filing Document

**Accession Number:** 0001667313
**File Stem:** 0001213900-25-053848
**Filing Date:** 2025-6
**Character Count:** 37311
**Document Hash:** 428118bdbb4ad16fbff621a140e3ccfd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-053848.hdr.sgml**: 20250612

**ACCESSION NUMBER**: 0001213900-25-053848

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250612

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250612

**DATE AS OF CHANGE**: 20250612

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Zedge, Inc.
- **CENTRAL INDEX KEY:** 0001667313
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 263199071
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0731

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37782
- **FILM NUMBER:** 251042889

**BUSINESS ADDRESS:**
- **STREET 1:** 1178 BROADWAY
- **STREET 2:** SUITE 1450, 3RD FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10001
- **BUSINESS PHONE:** 330-577-3424

**MAIL ADDRESS:**
- **STREET 1:** 1178 BROADWAY
- **STREET 2:** SUITE 1450, 3RD FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10001

?xml version='1.0' encoding='ASCII'?

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): June 12, 2025**

**Zedge, Inc.**

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Delaware** | **1-37782** | **26-3199071** |
| **(State or other jurisdiction**<br> **of incorporation)** | **(Commission File Number)** | **(IRS Employer**<br> **Identification No.)** |

---

---

| | |
|:---|:---|
| **1178 Broadway** **, Ste. 1450 (3<sup>rd</sup> Floor)**<br> **New York, NY** | **10001** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code: (330) 577-3424**

**Not Applicable**

**(Former name or former address, if changed since last report.)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Class B common stock, par value $0.01 per share | ZDGE | NYSE American |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 2.02. Results of Operations and Financial Condition**

On June 12, 2025, Zedge, Inc. (the "Registrant") issued a press release announcing its results of operations for its fiscal quarter ended April 30, 2025. A copy of the press release issued by the Registrant concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

The Registrant is furnishing the information contained in this Report, including Exhibit 99.1, pursuant to Item 2.02 of Form 8-K promulgated by the Securities and Exchange Commission (the "SEC"). This information shall not be deemed to be "filed" with the SEC or incorporated by reference into any other filing with the SEC unless otherwise expressly stated in such filing. In addition, this Report and the press release contain statements intended as "forward-looking statements" that are subject to the cautionary statements about forward-looking statements set forth in the press release.

**Item 9.01** **Financial Statements and Exhibits.**

(d) Exhibits.

---

| | |
|:---|:---|
| **Exhibit No.** | **Document** |
| 99.1 | [Earnings Release, dated June 12, 2025, reporting the results of operations for Zedge, Inc.'s fiscal quarter ended April 30, 2025.](ea024556001ex99-1_zedge.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| **ZEDGE, INC.** | **ZEDGE, INC.** |
| By: | */s/ Jonathan Reich* |
| Name: | Jonathan Reich |
| Title: | Chief Executive Officer |

---

Dated: June 12, 2025

**<u>EXHIBIT INDEX</u>**

---

| | |
|:---|:---|
| **Exhibit No.** | **Document** |
| 99.1 | [Earnings Release, dated June 12, 2025, reporting the results of operations for Zedge, Inc.'s fiscal quarter ended April 30, 2025.](ea024556001ex99-1_zedge.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

## Exhibit 99.1

**Exhibit 99.1**

![](ex99-1_001.jpg)

**<u>Zedge Announces Third Quarter Fiscal 2025 Results</u>**

***Active subscribers<sup>1</sup> increased 37% to a record of nearly 900,000; subscription revenue increased 13%***

***Cash flow from operations of $0.9 million; Free cash flow<sup>2</sup> of $0.8 million after ~$1.0 million of payments mainly related to the global restructuring and the tail end of the GuruShots retention bonus***

*Revenue returned to growth despite the TikTok ban in the U.S. at the start of the quarter*

*Launched DataSeeds.AI, a new content marketplace initiative for AI training sets, creating B2B revenue opportunities*

**New York, NY – June 12, 2025:** 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 third quarter fiscal 2025, ended April 30, 2025.

**Jonathan Reich, Zedge's CEO, commented:**

*"Our **core business demonstrated strong momentum**, driving a return to revenue growth in Q3 and highlighting its resilience despite the impact on the ad market resulting from TikTok's temporary U.S. ban and tariff-related uncertainty that caused macroeconomic volatility.* 

 

*"We generated $0.8 million in free cash flow, **despite approximately $1.0 million of** certain payments - primarily severance related to our restructuring and the first portion of the final installment of the retention bonus stemming from the 2022 GuruShots acquisition. On a sequential basis our cash and cash equivalents balance at the end of the quarter increased to $20.4 million, even after repurchasing approximately 220,000 shares in Q3 for roughly $536,000.*

*"On the bottom line, we saw **meaningful year-over-year and quarter-over-quarter improvements in GAAP and non-GAAP net income and EPS** **<sup>2</sup>, and adjusted EBITDA<sup>2</sup>**, as the cost savings from our global restructuring began to take hold. This performance was especially notable, as our headline results were partially masked by expected revenue declines at GuruShots. However, the business's bottom-line losses were meaningfully reduced due to streamlining the organization as part of the global restructuring, coupled with lower customer acquisition spend.*

*"Our underlying business metrics were robust as well. Active subscribers reached an all-time high of nearly 900,000, representing a 37% increase from last year, while subscription revenue increased by 13%. The discrepancy between these two numbers is attributed to a mix shift driven by an increase in lifetime subscriptions, where revenue is amortized over 30 months while the related app store fees are recognized upfront. This results in an attractive recurring revenue stream with a 100% gross margin during the tail period. In fact, our deferred revenue, which is primarily tied to subscriptions, increased by 83% year-over-year and 13% sequentially, standing at nearly $5 million at quarter's end. I'm also encouraged by Zedge Premium's revenue growth, which more than doubled, fueled by availing it to web users and continued user demand for pAInt, our Gen AI creation suite and Parallax 3D Wallpapers."*

**<u>Fourth Quarter Fiscal 2025 Outlook</u>**

**Reich continued:**

*"**We're seeing continued momentum in our core business through the first month of Q4**, supported by strong user engagement. On the operational front, we're starting to reap the financial benefits of our global restructuring efforts. **Year-over-year improvements in cost structure and free cash flow should become more visible in Q4**, even taking into account traditional seasonality and continued expected softness at GuruShots, providing a stronger foundation as we scale new growth initiatives.*

*"We also announced a **major strategic milestone** last week - the launch of **DataSeeds.AI***, *a content marketplace for AI training sets critical to the success of foundational models. This initiative capitalizes on Zedge's massive creator community – at both Gurushots and Zedge Marketplace - and our content catalog of tens of millions of images, creating a new potential revenue stream for us. We've already **signed our first AI dataset partnership** with a **leading AI company** and plan to evaluate opportunities that would expand the DataSeeds.AI marketplace beyond images. DataSeeds.AI is not only attractive to the market due to its ability to promptly supply bespoke content at scale but also because it has reset the bar for AI training benchmarks with the DataSeeds.AI Sample Dataset compared to legacy solutions like AWS Rekognition.*

*"Another exciting development is the upcoming rollout of our **audio AI generator** within **Zedge Premium**. As one of the first consumer platforms to introduce this functionality, we're tapping into a powerful new dimension of personalization. By enabling users to create ringtones and notification sounds from simple prompts, we're expanding our leadership in mobile content and unlocking a new category of user expression that complements our existing image-based offerings and has the potential to contribute to our Dataseeds.AI offering.*

*"For **Emojipedia**, we're gearing up for **World Emoji Day** in July, with plans to introduce an exciting new feature to the Emoji Sandbox ahead of the event that will deepen user interaction and further elevate our brand's profile. We also remain on track for modernizing and upgrading the emojipedia.org website in the months to come.*

*"We're actively ideating about the direction for **GuruShots 2.0**, including onboarding, voting mechanic and progression. Related to this is how we create a synergistic relationship with DataSeeds.AI – incentivizing players to create content that can be used for AI training. We are being deliberate in our planning in order to deliver the best comprehensive outcome for all relevant parties.*

*"We're energized by the innovation happening across the company and remain focused on disciplined execution, platform synergy and creating long-term value for users, creators and shareholders alike."*

**<u>Third Quarter Highlights</u>** (fiscal 2025 versus fiscal 2024)

● Revenue increased 1.3% to $7.8 million;

● GAAP operating income improved to $0.2 million, compared to an operating loss of ($0.1) million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 2025 operating income included restructuring charges of ($0.6)
million;

● GAAP net income and income per share (EPS) increased 63.7% and 70.8%, respectively, to $0.2 million and $0.01 compared to $0.1 million and $0.01;

● Non-GAAP net income and EPS increased 81.5% and 89.4%, respectively, to $0.9 million and $0.06 compared to $0.5 million and $0.03;

● Free Cash Flow of $0.8 million;

● Adjusted EBITDA increased 46.0% to $1.2 million compared to $0.9 million;

● Zedge Premium's GTV, increased 3.8% to $0.6 million;

● Repurchased 219,087 shares of Class B Common Stock, leaving $3.8 million of the $5 million authorization available at the end of the quarter.

**Third Quarter Select Financial Metrics: FY25 versus FY24\***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in $M except for EPS)* | **Q3 '25** | **Q3 '24** | **Change** | **FY 25<br> YTD** | **FY 24 <br> YTD** | **Change** |
| **Total Revenue** | $**7.8** | $**7.7** | **1.3%** | $**21.9** | $**22.5** | **-2.6%** |
| &nbsp;&nbsp;&nbsp;*Advertising Revenue* | $*5.6* | $*5.5* | 2.2% | $*15.1* | $*15.9* | -4.6% |
| &nbsp;&nbsp;&nbsp;*Digital Goods and Services Revenue* | $*0.5* | $*0.9* | -45.3% | $*1.7* | $*2.7* | -36.5% |
| &nbsp;&nbsp;&nbsp;*Subscription Revenue* | $*1.3* | $*1.1* | 13.4% | $*3.7* | $*3.2* | 15.7% |
| &nbsp;&nbsp;&nbsp;*Other Revenue* | $*0.4* | $*0.2* | 109.2% | $*1.4* | $*0.7* | 91.2% |
| **GAAP Operating Income (Loss)** | $**0.2** | $**(0.1)** | **nm** | $**(2.5)** | $**(11.7)** | **78.6%** |
| &nbsp;&nbsp;&nbsp;*Operating Margin* | *2.1 %* | *-1.7 %* |  | *-11.5 %* | *-52.2 %* |  |
| **GAAP Net Income (Loss)** | $**0.2** | $**0.1** | **63.7%** | $**(1.8)** | $**(9.1)** | **79.9%** |
| **GAAP Diluted EPS (Loss per share)** | $**0.01** | $**0.01** | **70.8%** | $**(0.13)** | $**(0.65)** | **80.0%** |
| **Non-GAAP Net Income** | $**0.9** | $**0.5** | **81.5%** | $**0.6** | $**1.5** | **-57.8%** |
| **Non- GAAP Diluted EPS** | $**0.06** | $**0.03** | **89.4%** | $**0.05** | $**0.10** | **-56.7%** |
| **Cash Flow from Operations** | $**0.9** | $**2.3** | **-62.9%** | $**2.7** | $**5.2** | **-46.7%** |
| **Free Cash Flow** | $**0.8** | $**2.1** | **-64.2%** | $**2.4** | $**4.1** | **-42.6%** |
| **Adjusted EBITDA** | $**1.2** | $**0.9** | **46.0%** | $**1.5** | $**3.9** | **-63.0%** |
| **Shares Repurchased** | **0.22** | **0.06** | **266.7%** | **0.68** | **0.06** | **1033.3%** |

---

nm = not measurable/meaningful

\* numbers/percentages are based off of actuals versus the rounded numbers in the table

**Select Zedge Marketplace Metrics: FY25 versus FY24\***

---

| | | | |
|:---|:---|:---|:---|
| *(in MM except for ARPMAU and where noted)* | **Q3 '25** | **Q3 '24** | **Change** |
| **Total Installs - Cumulative** | **706.9** | **660.9** | **7.0%** |
| **MAU** | **22.1** | **27.7** | **-20.3%** |
| &nbsp;&nbsp;&nbsp;*Well-Developed Markets* | *5.2* | *6.0* | *-13.4 %* |
| &nbsp;&nbsp;&nbsp;*Emerging Markets* | *16.9* | *21.7* | *-22.2 %* |
| **Active Subscriptions (in 000s)** | **896** | **654** | **37.0%** |
| **ARPMAU** | $**0.099** | $**0.074** | **32.7%** |
| **Zedge Premium - Gross Transaction Value (GTV)** | $**0.61** | $**0.59** | **3.8%** |

---

\* numbers/percentages are based off of actuals versus the rounded numbers in the table

**Trended Financial Information\***

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in $M except for EPS, ARPMAU, Paid Subscriptions)* | **Q123** | **Q223** | **Q323** | **Q423** | **Q124** | **Q224** | **Q324** | **Q424** | **Q125** | **Q225** | **Q325** | **FY23** | **FY24** | **YTD FY25** |
| **Total Revenue** | $**6.9** | $**7.0** | $**6.7** | $**6.6** | $**7.1** | $**7.8** | $**7.7** | $**7.6** | $**7.2** | $**7.0** | $**7.8** | $**27.2** | $**30.1** | $**21.9** |
| &nbsp;&nbsp;&nbsp;&nbsp;*Advertising Revenue* | $*4.5* | $*4.6* | $*4.6* | $*4.6* | $*4.9* | $*5.5* | $*5.5* | $*5.2* | $*4.9* | $*4.7* | $*5.6* | $*18.3* | $*21.0* | $*15.1* |
| &nbsp;&nbsp;&nbsp;&nbsp;*Digital Goods and Services Revenue* | $*1.3* | $*1.2* | $*1.1* | $*1.0* | $*0.9* | $*0.9* | $*0.9* | $*0.7* | $*0.6* | $*0.6* | $*0.5* | $*4.6* | $*3.5* | $*1.7* |
| &nbsp;&nbsp;&nbsp;&nbsp;*Subscription Revenue* | $*0.9* | $*0.9* | $*0.8* | $*0.9* | $*1.0* | $*1.1* | $*1.1* | $*1.2* | $*1.2* | $*1.2* | $*1.3* | $*3.5* | $*4.3* | $*3.7* |
| &nbsp;&nbsp;&nbsp;&nbsp;*Other Revenue* | $*0.2* | $*0.2* | $*0.2* | $*0.2* | $*0.2* | $*0.3* | $*0.2* | $*0.5* | $*0.5* | $*0.4* | $*0.4* | $*0.8* | $*1.2* | $*1.4* |
| **GAAP Operating Income (Loss)** | $**(0.2)** | $**1.5** | $**(8.4)** | $**0.2** | $**0.3** | $**(11.9)** | $**(0.1)** | $**(0.1)** | $**(0.5)** | $**(2.2)** | $**0.2** | $**(6.9)** | $**(11.8)** | $**(2.5)** |
| **GAAP Net Income (Loss)** | $**(0.2)** | $**1.6** | $**(7.7)** | $**0.2** | $**(0.0)** | $**(9.2)** | $**0.1** | $**(0.0)** | $**(0.3)** | $**(1.7)** | $**0.2** | $**(6.1)** | $**(9.2)** | $**(1.8)** |
| **GAAP Diluted EPS (Loss per share)** | $**(0.01)** | $**0.11** | $**(0.55)** | $**0.01** | $**0.00** | $**(0.66)** | $**0.01** | $**0.00** | $**(0.02)** | $**(0.12)** | $**0.01** | $**(0.44)** | $**(0.65)** | $**(0.13)** |
| **Non GAAP Net Income (Loss)** | $**0.2** | $**0.8** | $**0.3** | $**0.6** | $**0.5** | $**0.5** | $**0.5** | $**0.3** | $**(0.0)** | $**(0.2)** | $**0.9** | $**1.9** | $**1.8** | $**0.6** |
| **Non-GAAP Diluted EPS (Loss per share)** | $**0.01** | $**0.06** | $**0.02** | $**0.04** | $**0.04** | $**0.04** | $**0.03** | $**0.02** | $**(0.00)** | $**(0.01)** | $**0.06** | $**0.13** | $**0.13** | $**0.05** |
| **Cash Flow from Operations** | $**1.1** | $**0.0** | $**1.6** | $**0.4** | $**1.3** | $**1.6** | $**2.3** | $**0.7** | $**1.2** | $**0.7** | $**0.9** | $**3.2** | $**5.9** | $**2.7** |
| **Free Cash Flow** | $**0.7** | $**(0.3)** | $**1.2** | $**0.1** | $**0.8** | $**1.2** | $**2.1** | $**0.5** | $**1.0** | $**0.6** | $**0.8** | $**1.7** | $**4.7** | $**2.4** |
| **Adjusted EBITDA** | $**1.0** | $**1.4** | $**1.7** | $**1.6** | $**1.5** | $**1.5** | $**0.9** | $**0.8** | $**0.3** | $**(0.1)** | $**1.2** | $**5.7** | $**4.7** | $**1.5** |
| **MAU** | **31.9** | **32.2** | **32.0** | **30.9** | **28.5** | **28.7** | **27.7** | **26.1** | **25.0** | **24.7** | **22.1** | **nm** | **nm** | **nm** |
| &nbsp;&nbsp;&nbsp;&nbsp;*Well-developed Markets* | *7.1* | *7.4* | *7.2* | *6.8* | *6.2* | *6.2* | *6.0* | *5.5* | *5.5* | *5.6* | *5.2* | *nm* | *nm* | *nm* |
| &nbsp;&nbsp;&nbsp;&nbsp;*Emerging Markets* | *24.8* | *24.8* | *24.8* | *24.1* | *22.3* | *22.5* | *21.7* | *20.6* | *19.5* | *19.1* | *16.9* | *nm* | *nm* | *nm* |
| **Active Subscriptions (in 000s)** | **674** | **654** | **631** | **647** | **648** | **648** | **654** | **669** | **698** | **791** | **896** | **nm** | **nm** | **nm** |
| **ARPMAU** | $**0.054** | $**0.052** | $**0.053** | $**0.055** | $**0.063** | $**0.072** | $**0.074** | $**0.079** | $**0.077** | $**0.078** | $**0.099** | **nm** | **nm** | **nm** |
| **Zedge Premium – GTV** | $**0.31** | $**0.44** | $**0.41** | $**0.38** | $**0.42** | $**0.54** | $**0.59** | $**0.60** | $**0.68** | $**0.68** | $**0.61** | $**1.54** | $**2.15** | $**1.98** |
| **Shares Repurchased** |  |  |  |  | **0.00** | **0.00** | **0.06** | **0.15** | **0.22** | **0.24** | **0.22** | **0.75** | **0.21** | **0.68** |

---

nm = not measurable/meaningful

\* numbers may not add due to rounding

*<sup>1</sup>* *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 App, 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.* 

● *Total Installs – Cumulative measures the number of times the Zedge App has been downloaded since inception.* 

 

*<sup>2</sup>* *Throughout this release, Non-GAAP Net Income, Non-GAAP EPS, Free Cash Flow (FCF), FCF Yield and Adjusted EBITDA/Margin 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.*

**<u>Earnings Announcement and Supplemental Information</u>**

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.

**<u>Live Call-in Info:</u>**

Toll Free: 888-506-0062

International: 973-528-0011

Participant Access Code: 253956

Webcast URL: https://www.webcaster4.com/Webcast/Page/2205/52502

**<u>Replay:</u>**

Toll Free: 877-481-4010

International: 919-882-2331

Replay Passcode: 52502

**<u>About Zedge</u>**

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 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

**<u>Forward-Looking Statements</u>**

*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

ir@zedge.net

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(in thousands, except par value data)**

---

| | | |
|:---|:---|:---|
|  | **April 30,**<br>**2025** | **July 31,**<br>**2024** |
|  | **(Unaudited)** |  |
| **Assets** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $20433 | $19998 |
| &nbsp;&nbsp;&nbsp;Trade accounts receivable | 3319 | 3406 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 946 | 593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current assets** | 24698 | 23997 |
| Property and equipment, net | 1277 | 2306 |
| Intangible assets, net | 5034 | 5369 |
| Goodwill | 1917 | 1824 |
| Deferred tax assets, net | 4528 | 4344 |
| Other assets | 377 | 355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $37831 | $38195 |
| **Liabilities and stockholders' equity** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Trade accounts payable | $1388 | $1113 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 2832 | 2969 |
| &nbsp;&nbsp;&nbsp;Deferred revenues | 3070 | 2168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current liabilities** | 7290 | 6250 |
| &nbsp;&nbsp;&nbsp;Deferred revenues--non-current | 1826 | 931 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 87 | 118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 9203 | 7299 |
| **Commitments and contingencies (Note 9)** |  |  |
| **Stockholders' equity:** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $.01 par value; authorized shares—2,400; no shares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Class A common stock, $.01 par value; authorized shares—2,600; 525 shares issued and outstanding at April 30, 2025 and July 31, 2024 | 5 | 5 |
| &nbsp;&nbsp;&nbsp;Class B common stock, $.01 par value; authorized shares—40,000; 14,969 shares issued and 13,228 shares outstanding at April 30, 2025, and 14,866 shares issued and 13,815 outstanding at July 31, 2024 | 150 | 149 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 49570 | 48263 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (1545) | (1832) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (14946) | (13113) |
| &nbsp;&nbsp;&nbsp;Treasury stock, 1,741 shares at April 30, 2025 and 1,051 shares at July 31, 2024, at cost | (4606) | (2576) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' equity** | 28628 | 30896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $37831 | $38195 |

---

**ZEDGE, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

***(in thousands, except per share data)***

***(Unaudited)***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **April 30,** | **April 30,** | **April 30,** | **April 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenues | $7757 | $7658 | $21930 | $22510 |
| Costs and expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Direct cost of revenues (excluding amortization of capitalized software and technology development costs which is included below) | 452 | 455 | 1360 | 1399 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 6343 | 6752 | 20278 | 18773 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 225 | 583 | 924 | 2120 |
| &nbsp;&nbsp;&nbsp;Impairment of intangible assets |  |  |  | 11958 |
| &nbsp;&nbsp;&nbsp;Restructuring charges | 577 |  | 1058 |  |
| &nbsp;&nbsp;&nbsp;Impairment of capitalized software and technology development costs | - | - | 827 | - |
| Income (loss) from operations | 160 | (132) | (2517) | (11740) |
| &nbsp;&nbsp;&nbsp;Interest and other income, net | 154 | 188 | 507 | 434 |
| &nbsp;&nbsp;&nbsp;Net loss resulting from foreign exchange transactions | (41) | (80) | (141) | (223) |
| Income (loss) before income taxes | 273 | (24) | (2151) | (11529) |
| Income taxes expense (benefit) | 88 | (137) | (318) | (2397) |
| Net income (loss) | $185 | $113 | $(1833) | $(9132) |
| Other comprehensive income (loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Changes in foreign currency translation adjustment | 448 | (224) | 287 | (341) |
| Total other comprehensive income (loss) | 448 | (224) | 287 | (341) |
| Total comprehensive income (loss) | $633 | $(111) | $(1546) | $(9473) |
| Income (loss) per share attributable to Zedge, Inc. common stockholders: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $0.01 | $0.01 | $(0.13) | $(0.65) |
| &nbsp;&nbsp;&nbsp;Diluted | $0.01 | $0.01 | $(0.13) | $(0.65) |
| Weighted-average number of shares used in calculation of income (loss) per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 13720 | 14191 | 13835 | 14077 |
| &nbsp;&nbsp;&nbsp;Diluted | 13940 | 14542 | 13835 | 14077 |

---

**ZEDGE, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

***(in thousands)***

***(Unaudited)***

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **April 30,** | **April 30,** |
|  | **2025** | **2024** |
| **Operating activities** |  |  |
| Net loss | $(1833) | $(9132) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation | 48 | 42 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 335 | 1270 |
| &nbsp;&nbsp;&nbsp;Amortization of capitalized software and technology development costs | 541 | 808 |
| &nbsp;&nbsp;&nbsp;Amortization of deferred financing costs |  | 15 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 1308 | 1673 |
| &nbsp;&nbsp;&nbsp;Impairment charge of capitalized software and technology development costs | 827 |  |
| &nbsp;&nbsp;&nbsp;Impairment charge of intangible assets |  | 11958 |
| &nbsp;&nbsp;&nbsp;Impairment of investment in privately-held company |  | 50 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | (184) | (2650) |
| Change in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Trade accounts receivable | 87 | (442) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (353) | 195 |
| &nbsp;&nbsp;&nbsp;Other assets | (54) | 34 |
| &nbsp;&nbsp;&nbsp;Trade accounts payable and accrued expenses | 229 | 1073 |
| &nbsp;&nbsp;&nbsp;Deferred revenues | 1797 | 261 |
| Net cash provided by operating activities | 2748 | 5155 |
| **Investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Capitalized software and technology development costs | (329) | (993) |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (49) | (35) |
| Net cash used in investing activities | (378) | (1028) |
| **Financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Prepayment of term loan |  | (2000) |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options |  | 3 |
| &nbsp;&nbsp;&nbsp;Purchase of treasury stock in connection with share buyback program and stock awards vesting | (2030) | (165) |
| Net cash used in financing activities | (2030) | (2162) |
| Effect of exchange rate changes on cash and cash equivalents | 95 | (165) |
| Net increase in cash and cash equivalents | 435 | 1800 |
| Cash and cash equivalents at beginning of period | 19998 | 18125 |
| Cash and cash equivalents at end of period | $20433 | $19925 |
| **SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION** |  |  |
| Cash payments made for income taxes | $194 | $80 |
| Cash payments made for interest expenses | $- | $66 |

---

**<u>Use of Non-GAAP Measures</u>**

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, and non-GAAP net income and EPS (which adjust out stock compensation expense, transaction-related expenses and other non-recurring expenses from GAAP net income and EPS), 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)** | **Q123** | **Q223** | **Q323** | **Q423** | **Q124** | **Q224** | **Q324** | **Q424** | **Q125** | **Q225** | **Q325** | **FY23** | **FY24** | **YTD FY25** |
| **Net Income (Loss)** | $**(0.2)** | $**1.6** | $**(7.7)** | $**0.2** | $**(0.0)** | $**(9.2)** | $**0.1** | $**(0.0)** | $**(0.3)** | $**(1.7)** | $**0.2** | $**(6.1)** | $**(9.2)** | $**(1.8)** |
| Excluding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and other income (expense), net | $(0.0) | $(0.1) | $(0.1) | $(0.1) | $(0.1) | $(0.2) | $(0.2) | $(0.2) | $(0.2) | $(0.2) | $(0.2) | $(0.3) | $(0.6) | $(0.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes expense (benefit) | $(0.1) | $0.1 | $(0.7) | $0.2 | $0.2 | $(2.5) | $(0.1) | $0.2 | $0.0 | $(0.5) | $0.1 | $(0.5) | $(2.2) | $(0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | $0.8 | $0.8 | $0.9 | $0.8 | $0.8 | $0.8 | $0.6 | $0.3 | $0.4 | $0.3 | $0.2 | $3.3 | $2.5 | $0.9 |
| **EBITDA** | $**0.5** | $**2.4** | $**(7.6)** | $**1.0** | $**0.9** | $**(11.1)** | $**0.4** | $**0.3** | $**(0.1)** | $**(2.0)** | $**0.3** | $**(3.6)** | $**(9.5)** | $**(1.7)** |
| **Adjustments:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset impairments and restructuring charges | $(0.2) | $(1.8) | $8.7 | $0.0 | $0.0 | $12.0 | $0.0 | $0.0 | $0.0 | $1.3 | $0.6 | $6.8 | $12.0 | $1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | $0.6 | $0.8 | $0.6 | $0.6 | $0.5 | $0.7 | $0.5 | $0.5 | $0.4 | $0.6 | $0.3 | $2.5 | $2.1 | $1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction costs related to business combination | $0.0 | $0.0 | $0.0 | $0.0 | $0.2 | $0.0 | $0.0 | $0.0 | $0.0 | $0.0 | $0.0 | $0.0 | $0.2 | $0.0 |
| **Adjusted EBITDA** | $**1.0** | $**1.4** | $**1.7** | $**1.6** | $**1.5** | $**1.5** | $**0.9** | $**0.8** | $**0.3** | $**(0.1)** | $**1.2** | $**5.7** | $**4.7** | $**1.5** |

---

\* numbers may not add due to rounding

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income** | **Q123** | **Q223** | **Q323** | **Q423** | **Q124** | **Q224** | **Q324** | **Q424** | **Q125** | **Q225** | **Q325** | **FY23** | **FY24** | **YTD FY25** |
| **GAAP Net Income (Loss)** | $**(0.2)** | $**1.6** | $**(7.7)** | $**0.2** | $**(0.0)** | $**(9.2)** | $**0.1** | $**(0.0)** | $**(0.3)** | $**(1.7)** | $**0.2** | $**(6.1)** | $**(9.2)** | $**(1.8)** |
| **Adjustments:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset impairments and restructuring charges | $(0.2) | $(1.8) | $8.7 | $0.0 | $0.0 | $12.0 | $0.0 | $0.0 | $0.0 | $1.3 | $0.6 | $6.8 | $12.0 | $1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | $0.6 | $0.8 | $0.6 | $0.6 | $0.5 | $0.7 | $0.5 | $0.5 | $0.4 | $0.6 | $0.3 | $2.5 | $2.1 | $1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction costs related to business combination | $0.0 | $0.0 | $0.0 | $0.0 | $0.2 | $0.0 | $0.0 | $0.0 | $0.0 | $0.0 | $0.0 | $0.0 | $0.2 | $0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax effect on non-GAAP items | $(0.1) | $0.2 | $(1.3) | $(0.1) | $(0.2) | $(2.9) | $(0.1) | $(0.1) | $(0.1) | $(0.4) | $(0.2) | $(1.3) | $(3.3) | $(0.7) |
| **Non-GAAP Net Income (Loss)** | $**0.2** | $**0.8** | $**0.3** | $**0.6** | $**0.5** | $**0.5** | $**0.5** | $**0.3** | $**(0.0)** | $**(0.2)** | $**0.9** | $**1.9** | $**1.8** | $**0.6** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Non-GAAP basic EPS (loss per share)** | $**0.01** | $**0.06** | $**0.02** | $**0.04** | $**0.04** | $**0.04** | $**0.03** | $**0.02** | $**(0.00)** | $**(0.01)** | $**0.06** | $**0.13** | $**0.13** | $**0.05** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Non-GAAP diluted EPS (loss per share)** | $**0.01** | $**0.06** | $**0.02** | $**0.04** | $**0.04** | $**0.04** | $**0.03** | $**0.02** | $**(0.00)** | $**(0.01)** | $**0.06** | $**0.13** | $**0.13** | $**0.05** |
| Weighted average shares used to compute Non-GAAP basic earnings per share | 14.3 | 14.1 | 14.0 | 13.9 | 14.0 | 14.1 | 14.2 | 14.1 | 14.1 | 13.9 | 13.7 | 14.1 | 14.1 | 13.8 |
| Weighted average shares used to compute Non-GAAP diluted earnings per share | 14.3 | 14.3 | 14.0 | 13.9 | 14.0 | 14.1 | 14.5 | 14.5 | 14.1 | 13.9 | 13.9 | 14.1 | 14.1 | 13.8 |

---

\* numbers may not add due to rounding

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Free Cash Flow Calculation** | **Q123** | **Q223** | **Q323** | **Q423** | **Q124** | **Q224** | **Q324** | **Q424** | **Q125** | **Q225** | **Q325** | **FY23** | **FY24** | **YTD FY25** |
| **Cash Flow from Operations** | $**1.1** | $**0.0** | $**1.6** | $**0.4** | $**1.3** | $**1.6** | $**2.3** | $**0.7** | $**1.2** | $**0.7** | $**0.9** | $**3.2** | $**5.9** | $**2.7** |
| **Capital Expenditures** | $**0.3** | $**0.4** | $**0.4** | $**0.3** | $**0.4** | $**0.4** | $**0.2** | $**0.2** | $**0.2** | $**0.1** | $**0.1** | $**1.5** | $**1.2** | $**0.4** |
| **Free Cash Flow** | $**0.7** | $**(0.3)** | $**1.2** | $**0.1** | $**0.8** | $**1.2** | $**2.1** | $**0.5** | $**1.0** | $**0.6** | $**0.8** | $**1.7** | $**4.7** | $**2.4** |

---