Key Highlights

  • Zedge (NYSEAMERICAN:ZDGE) reported fiscal fourth quarter non-GAAP earnings of USD 0.04 per share on October 26, 2026, in line with published consensus, as revenue rose 4.0% to USD 7.8 million.
  • Fiscal 2026 revenue rose 7.6% to USD 31.6 million, and the full year GAAP net loss narrowed to USD 0.1 million from USD 2.4 million a year earlier.
  • In September, Howard Jonas led a USD 7.7 million insider investment to accelerate DataSeeds.AI, and Morris Berger joined as chief executive earlier in October 2026.
  • Active subscriptions grew 35.3% to about 1.33 million, while monthly active users in the quarter fell 16.8% to 19.3 million, and cash was USD 20.3 million.

What Zedge Reported

Zedge reported results for the fourth quarter and fiscal year ended July 31, 2026 on October 26, 2026. Fourth quarter GAAP net income was USD 0.4 million, or USD 0.03 per share, against a loss of USD 0.6 million a year earlier, and non-GAAP earnings were USD 0.04 per share, matching published consensus. Adjusted EBITDA rose 75.6% to USD 0.5 million, and for the full year it rose 134.2% to USD 4.1 million. Subscription revenue grew 25.6% to USD 1.8 million in the quarter. President Jonathan Reich called fiscal 2026 a strong recovery year driven by monetization improvements and subscription gains. Published market data showed a market value near USD 43.29 million for Zedge (NYSEAMERICAN:ZDGE). The full year GAAP result was a net loss of USD 0.1 million, an improvement of USD 2.3 million, simple arithmetic on two published figures.

DataSeeds.AI and the Insider Investment

DataSeeds.AI sells licensed image and other data to artificial intelligence developers, and Zedge says it became a commercial business with repeat orders, a first six-figure order and growing order sizes. In September, Howard Jonas led a USD 7.7 million insider investment to accelerate its growth, and the share repurchase program was suspended in the first quarter of fiscal 2027 because of that capital raise. Chief executive Morris Berger, hired earlier in October, said the unit has the ingredients to become a meaningful growth business and could expand into model evaluation and physical AI datasets. Zedge paid a quarterly dividend of USD 0.02 per share, later raised 25%, and repurchased 686,477 shares in fiscal 2026.

Risks and What to Watch

Zedge's core marketplace is losing audience, with monthly active users down 16.8% to 19.3 million, even as paying subscriptions grow, so advertising revenue depends on a shrinking base. DataSeeds.AI revenue is lumpy and depends on a few technology customers. Management gave no numerical fiscal 2027 outlook. The company holds USD 20.3 million of cash, up from USD 18.6 million. Investors can watch the first quarter of fiscal 2027, DataSeeds.AI order size and repeat business, the subscriber trend and whether the new chief executive sets targets for Zedge (NYSEAMERICAN:ZDGE). The USD 7.7 million raise adds cash but also share count, which dilutes existing holders unless the investment earns an adequate return.

Where Things Stand

The quarter matched expectations, with non-GAAP earnings of USD 0.04 per share, so the real catalyst is DataSeeds.AI and the USD 7.7 million insider investment led by Howard Jonas, which signals confidence from a major holder. The risk is a shrinking user base and lumpy AI data orders. For Zedge (NYSEAMERICAN:ZDGE) the evidence is mixed, and the next quarter will show whether orders repeat and whether subscription growth offsets the decline in monthly users. The next quarter should show whether orders repeat.