Q1 2026 Zedge Inc Earnings Call Transcript
Key Points
- Zedge Inc (ZDGE) reported a return to mid-single-digit revenue growth, with total revenue for the first quarter reaching $7.6 million, up 5.8% from last year.
- Active subscriptions reached a record 1.1 million, up more than 50% year-over-year, demonstrating strong growth in the subscription segment.
- Average revenue per monthly active user increased by 29.2%, indicating improved monetization efficiency.
- The DataSeeds initiative is gaining traction, with a significant increase in order size from existing customers, showcasing potential for future growth.
- Zedge Inc (ZDGE) maintained a strong cash position with $18.5 million in cash and cash equivalents and no debt, reflecting financial stability.
- Emojipedia and GuruShots experienced anticipated declines, which offset some of the growth in other areas.
- Cost of revenue increased to 7.3% from 6.4% last year, due to reductions in partner discounts and new licensing fees.
- Free cash flow was negatively impacted by restructuring-related compensation tax payments and timing of receivables and payables.
- The DataSeeds revenue is still insignificant and grouped under physical goods and services, indicating it is not yet a major revenue driver.
- GuruShots is still incurring losses and has not reached a breakeven point, impacting overall profitability.
Good day, and welcome to Zedge's earnings conference call for the first fiscal quarter of 2026. (Operator Instructions) I'll now turn the call over to Mr. Brian Siegel. Sir, the floor is yours.
Thank you, operator. During today's call, Jonathan Reich, Zedge's Chief Executive Officer; and Yi Tsai, Zedge's Chief Financial Officer, will discuss Zedge's financial and operational results that were reported today.
Any forward-looking statements made during this conference call during the prepared remarks or in the question-and-answer session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results in the future to differ materially from those discussed on today's call. These risks and uncertainties include, but are not limited to, specific risks and uncertainties disclosed in Zedge's periodic SEC filings.
Zedge assumes no obligation to update any forward-looking statements or to update the factors that may cause actual results to differ materially from
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