The accelerating subscription revenue growth (32%) and expanding deferred revenue ($6.2M, +25.7%) signal improving revenue quality and visibility. The DataSeeds.AI six-figure order milestone, while early-stage, opens a new B2B growth vector. Monitor the advertising revenue trajectory in coming quarters to see if the Emojipedia drag stabilizes. The increased buyback authorization ($2.2M remaining) and dividend hike provide downside support.
Price Chart
Executive Summary
Zedge reported Q3 FY2026 results with GAAP net income of $0.9M ($0.07 diluted EPS), a significant improvement from $0.2M a year ago, driven by subscription revenue growth of 32% and a 55% increase in free cash flow to $1.2M. The company also fulfilled its first six-figure DataSeeds.AI order and increased its quarterly dividend by 25%, while total revenue growth slowed to 3% as advertising revenue declined 4% due to Emojipedia headwinds.
Key Financial Metrics
Key Facts
- GAAP net income of $0.9M vs $0.2M in prior year quarter
- GAAP diluted EPS of $0.07 vs $0.01 a year ago
- Revenue increased 3.0% to $8.0M
- Subscription revenue grew 31.9% to $1.7M
- Active subscriptions increased 40.6% to nearly 1.3 million
- Free cash flow increased 54.9% to $1.2M
- Cash and cash equivalents of $19.7M with no debt
- Quarterly dividend increased 25% to $0.02 per share
- Board added $2M to share repurchase authorization, total capacity ~$2.2M
- Advertising revenue declined 4.0% to $5.4M, attributed to Emojipedia
- DataSeeds.AI fulfilled first six-figure order
- Deferred revenue of $6.2M, up 25.7% year over year
Financial Impact
GAAP net income improved $0.7M year-over-year; free cash flow increased $0.4M to $1.2M
Risk Factors
- Advertising revenue declining 4% YoY, driven by Emojipedia headwinds from Google search changes
- MAU declining 11.3% to 19.6M, continuing a multi-quarter trend
- DataSeeds.AI revenue remains lumpy and early-stage
- Total revenue growth slowing to 3% from 18% in the prior quarter
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001213900-26-067834 |
| Document: ea0294481-8k_zedge.htm | 0001213900-26-067834 |
| Document: 0001213900-26-067834-index-headers.html | 0001213900-26-067834 |
| Document: 0001213900-26-067834-index.html | 0001213900-26-067834 |
| Document: 0001213900-26-067834.txt | 0001213900-26-067834 |
| 8-K Data (Synthetic) | 0001213900-26-067834 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 8-K | $2.81 | awaiting T+20 | — | $2.76 (−1.78%) |
Oct 21, 2026 5d ago | 8-K | $2.78 | awaiting T+20 | — | $2.76 (−0.72%) |
Oct 19, 2026 7d ago | 8-K | $2.79 | awaiting T+20 | — | $2.76 (−1.08%) |
Oct 9, 2026 17d ago | 3 | $2.93 | awaiting T+20 | — | $2.76 (−5.80%) |
Oct 9, 2026 17d ago | 8-K | $2.93 | awaiting T+20 | — | $2.76 (−5.80%) |
Oct 2, 2026 24d ago | SC 13D | $3.00 | awaiting T+20 | — | $2.76 (−8.00%) |
Aug 31, 2026 8w ago | 8-K | $3.04 $2.95 | ▼ −2.96% | ▼ −2.77% | $2.76 (−9.21%) |
Jun 17, 2026 18w ago | 8-K | $3.03 $2.97 | ▼ −1.98% | ▼ −3.30% | $2.76 (−8.91%) |
Jun 11, 2026 19w ago | 8-K | $4.16 $3.10 | ▼ −25.48% | ▼ −27.26% | $2.76 (−33.65%) |
US Market Status
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