# EDGAR Filing Document

**Accession Number:** 0001667313
**File Stem:** 0001213900-26-026946
**Filing Date:** 2026-3
**Character Count:** 32633
**Document Hash:** 9cf087937ab1f6ad3bb72ba5293d6f10
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-026946.hdr.sgml**: 20260312

**ACCESSION NUMBER**: 0001213900-26-026946

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260312

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

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260312

**DATE AS OF CHANGE**: 20260312

**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:** 26747778

**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): March 12, 2026**

**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<br> 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 March 12, 2026, Zedge, Inc. (the "Registrant") issued a press release announcing its results of operations for its fiscal quarter ended January 31, 2026. 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 March 12, 2026, reporting the results of operations for Zedge, Inc.'s fiscal quarter ended January 31, 2026.](ea028138401ex99-1.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: March 12, 2026

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

---

| | |
|:---|:---|
| **Exhibit No.** | **Document** |
| 99.1 | [Earnings Release, dated March 12, 2026, reporting the results of operations for Zedge, Inc.'s fiscal quarter ended January 31, 2026.](ea028138401ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

## Exhibit 99.1

**Exhibit 99.1**

![](ea028138401_ex99-1img1.jpg)

**Zedge Reports Second Quarter Fiscal 2026 Results**

*Record quarterly results across total revenue, advertising and subscription revenue, active subscriptions<sup>1</sup>, ARPMAU<sup>1</sup>, Zedge Premium GTV<sup>1</sup>*

*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, NY – 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 MAU*<sup>1</sup>* 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 flow*<sup>2</sup>* 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o GAAP
 operating loss included a ($3.7) million asset impairment charge related to Emojipedia in
 the second quarter of fiscal 2026 and ($1.3) million in restructuring charges in the prior
 year's quarter;

● 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 income *<sup>2</sup>* and diluted EPS *<sup>2</sup>* 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 EBITDA *<sup>2</sup>* 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\*** | **Second Quarter Select Financial Metrics: FY26 versus FY25\*** | **Second Quarter Select Financial Metrics: FY26 versus FY25\*** | **Second Quarter Select Financial Metrics: FY26 versus FY25\*** | **Second Quarter Select Financial Metrics: FY26 versus FY25\*** | **Second Quarter Select Financial Metrics: FY26 versus FY25\*** | **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%** |
| &nbsp;&nbsp;&nbsp;*Advertising Revenue* | $*5.6* | $*4.7* | *18.3 %* | $*10.7* | $*9.6* | *12.1 %* |
| &nbsp;&nbsp;&nbsp;*Digital Goods and Services Revenue* | $*0.5* | $*0.6* | *-11.5 %* | $*1.0* | $*1.3* | *-19.6 %* |
| &nbsp;&nbsp;&nbsp;*Subscription Revenue* | $*1.6* | $*1.2* | *32.5 %* | $*3.2* | $*2.4* | *30.6 %* |
| &nbsp;&nbsp;&nbsp;*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%** |
| &nbsp;&nbsp;&nbsp;*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\*** | **Select Zedge Marketplace Metrics: FY26 versus FY25\*** | **Select Zedge Marketplace Metrics: FY26 versus FY25\*** | **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%** |
| &nbsp;&nbsp;&nbsp;*Well-Developed Markets* | *4.8* | *5.6* | *-14.3 %* |
| &nbsp;&nbsp;&nbsp;*Emerging Markets* | *15.6* | *19.1* | *-18.3 %* |
| **Active Subscriptions (in 000s)** | **1175** | **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

*<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 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.* 

*<sup>2</sup>* *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\*** | **Trended Financial Information\*** | **Trended Financial Information\*** | **Trended Financial Information\*** | **Trended Financial Information\*** | **Trended Financial Information\*** | **Trended Financial Information\*** | **Trended Financial Information\*** | **Trended Financial Information\*** | **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** |
| &nbsp;&nbsp;&nbsp;*Advertising Revenue* | $*4.9* | $*4.7* | $*5.6* | $*5.2* | $*5.2* | $*5.6* | $*21.0* | $*20.3* | $*10.7* |
| &nbsp;&nbsp;&nbsp;*Digital Goods and Services Revenue* | $*0.6* | $*0.6* | $*0.5* | $*0.5* | $*0.5* | $*0.5* | $*3.5* | $*2.2* | $*1.0* |
| &nbsp;&nbsp;&nbsp;*Subscription Revenue* | $*1.2* | $*1.2* | $*1.3* | $*1.4* | $*1.5* | $*1.6* | $*4.3* | $*5.1* | $*3.2* |
| &nbsp;&nbsp;&nbsp;*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** |
| &nbsp;&nbsp;&nbsp;*Well-developed Markets* | *5.5* | *5.6* | *5.2* | *5.4* | *4.9* | *4.8* | *nm* | *nm* | *nm* |
| &nbsp;&nbsp;&nbsp;*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** | **1075** | **1175** | **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

**<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: 238586

Webcast URL: https://www.webcaster5.com/Webcast/Page/2205/53597

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

Toll Free: 877-481-4010

International: 919-882-2331

Replay Passcode: 53597

**<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 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

**<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

brian@haydenir.com

ir@zedge.net

**CONDENSED CONSOLIDATED BALANCE SHEETS**

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

---

| | | |
|:---|:---|:---|
|  | **January 31,**<br>**2026** | **July 31,**<br>**2025** |
|  | **(Unaudited)** | |
| **Assets** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $19106 | $18609 |
| &nbsp;&nbsp;&nbsp;Trade accounts receivable | 3765 | 3164 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 1062 | 671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current assets** | 23933 | 22444 |
| Property and equipment, net | 1238 | 1290 |
| Intangible assets, net | 1128 | 4922 |
| Goodwill | 2069 | 1931 |
| Deferred tax assets, net | 4982 | 4823 |
| Other assets | 473 | 244 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $33823 | $35654 |
| **Liabilities and stockholders' equity** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Trade accounts payable | $1437 | $1471 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 2305 | 2867 |
| &nbsp;&nbsp;&nbsp;Deferred revenues | 3994 | 3425 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current liabilities** | 7736 | 7763 |
| &nbsp;&nbsp;&nbsp;Deferred revenues--non-current | 2041 | 1937 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 180 | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 9957 | 9753 |
| **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 January 31, 2026 and July 31, 2025 | 5 | 5 |
| &nbsp;&nbsp;&nbsp;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 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 49774 | 49768 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (1174) | (1509) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (17006) | (15505) |
| &nbsp;&nbsp;&nbsp;Treasury stock, 2,635 shares at January 31, 2026 and 2,381 shares at July 31, 2025, at cost | (7885) | (7009) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' equity** | 23866 | 25901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $33823 | $35654 |

---

**ZEDGE, INC.**

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

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

***(unaudited)***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **January 31,** | **January 31,** | **January 31,** | **January 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| Revenues | $8254 | $6979 | $15864 | $14173 |
| Costs and expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Direct cost of revenues (excluding amortization of capitalized software and technology development costs which is included below) | 561 | 447 | 1116 | 908 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 6683 | 7126 | 12599 | 13935 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 187 | 317 | 403 | 698 |
| &nbsp;&nbsp;&nbsp;Impairment of intangible assets | 3570 |  | 3570 |  |
| &nbsp;&nbsp;&nbsp;Restructuring charges |  | 481 |  | 481 |
| &nbsp;&nbsp;&nbsp;Impairment of capitalized software and technology development costs | 145 | 827 | 145 | 827 |
| Loss from operations | (2892) | (2219) | (1969) | (2676) |
| &nbsp;&nbsp;&nbsp;Interest and other income, net | 124 | 171 | 268 | 352 |
| &nbsp;&nbsp;&nbsp;Net loss resulting from foreign exchange transactions | (138) | (86) | (184) | (100) |
| Loss before income taxes | (2906) | (2134) | (1885) | (2424) |
| Income taxes benefit | (617) | (455) | (384) | (406) |
| Net loss | $(2289) | $(1679) | $(1501) | $(2018) |
| Other comprehensive income (loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Changes in foreign currency translation adjustment | 236 | (132) | 335 | (161) |
| Total other comprehensive income (loss) | 236 | (132) | 335 | (161) |
| Total comprehensive loss | $(2053) | $(1811) | $(1166) | $(2179) |
| Income loss per share attributable to Zedge, Inc. common stockholders: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | $(0.18) | $(0.12) | $(0.12) | $(0.15) |
| Weighted-average number of shares used in calculation of income (loss) per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | 12950 | 13882 | 12988 | 13872 |

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**ZEDGE, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

***(in thousands)***

***(unaudited)***

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **January 31,** | **January 31,** |
|  | **2026** | **2025** |
| **Operating activities** |  |  |
| Net loss | $(1501) | $(2018) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation | 28 | 30 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 224 | 224 |
| &nbsp;&nbsp;&nbsp;Amortization of capitalized software and technology development costs | 151 | 444 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 379 | 982 |
| &nbsp;&nbsp;&nbsp;Impairment charge of capitalized software and technology development costs | 145 | 827 |
| &nbsp;&nbsp;&nbsp;Impairment charge of intangible assets | 3570 |  |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | (159) | (184) |
| Change in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Trade accounts receivable | (601) | 416 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (391) | (360) |
| &nbsp;&nbsp;&nbsp;Other assets | (18) | (39) |
| &nbsp;&nbsp;&nbsp;Trade accounts payable and accrued expenses | (817) | 322 |
| &nbsp;&nbsp;&nbsp;Deferred revenues | 673 | 1234 |
| Net cash provided by operating activities | 1683 | 1878 |
| **Investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Capitalized software and technology development costs | (237) | (236) |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (20) | (30) |
| Net cash used in investing activities | (257) | (266) |
| **Financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of treasury stock in connection with share buyback program and stock awards vesting | (876) | (1494) |
| &nbsp;&nbsp;&nbsp;Payment of cash dividends | (208) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options | 45 | - |
| Net cash used in financing activities | (1039) | (1494) |
| 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 | 18609 | 19998 |
| Cash and cash equivalents at end of period | $19106 | $20054 |
| **Supplemental cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for income taxes | $114 | $130 |
| &nbsp;&nbsp;&nbsp;**Non-cash operating and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ROU assets obtained in exchange for lease liabilities | $286 | $111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend payable included in accrued expenses and other current liabilities <sup>(1)</sup> | $209 | $- |

---

(1) Dividend payable was
paid on February 10, 2026.

**<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, 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 pershare)), 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: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest and other income (expense), net | $(0.2) | $(0.2) | $(0.2) | $(0.2) | $(0.2) | $(0.1) | $(0.6) | $(0.7) | $(0.3) |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) | $0.0 | $(0.5) | $0.1 | $(0.0) | $0.2 | $(0.6) | $(2.2) | $(0.3) | $(0.4) |
| &nbsp;&nbsp;&nbsp;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:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Asset impairments and restructuring charges | $0.0 | $1.3 | $0.6 | $0.6 | $0.0 | $3.7 | $12.0 | $2.5 | $3.7 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | $0.4 | $0.6 | $0.3 | $0.1 | $0.1 | $0.3 | $2.1 | $1.4 | $0.4 |
| &nbsp;&nbsp;&nbsp;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:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Asset impairments and restructuring charges | $0.0 | $1.3 | $0.6 | $0.6 | $0.0 | $3.7 | $12.0 | $2.5 | $3.7 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | $0.4 | $0.6 | $0.3 | $0.1 | $0.1 | $0.3 | $2.1 | $1.4 | $0.4 |
| &nbsp;&nbsp;&nbsp;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 |
| &nbsp;&nbsp;&nbsp;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** |
| &nbsp;&nbsp;&nbsp;**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** |
| &nbsp;&nbsp;&nbsp;**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** | **Q226** | **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** |

---