Zedge (ZDGE) Operating Income: $2.66 Mil (TTM As of Apr. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ZDGE Zedge Inc ZDGE
74 GF Score
Price $2.98
GF Value $3.06
Valuation Fairly Valued
View Full Analysis

What is Zedge Operating Income?

Zedge ZDGE -0.33% 74 Operating Income is $2.66 Mil as of Apr. 2026. GuruFocus rates ZDGE with a GF Score™ of 74/100 and a GF Value™ of $3.06 (Fairly Valued).

Zedge's Operating Income for the three months ended in Apr. 2026 was $1.07 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was $2.66 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Zedge's Operating Income for the three months ended in Apr. 2026 was $1.07 Mil. Zedge's Revenue for the three months ended in Apr. 2026 was $7.99 Mil. Therefore, Zedge's Operating Margin % for the quarter that ended in Apr. 2026 was 13.44%.

Zedge's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Zedge's annualized ROC % for the quarter that ended in Apr. 2026 was 22.80%. Zedge's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 348.98%.


Zedge  (AMEX:ZDGE) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Zedge's annualized ROC % for the quarter that ended in Apr. 2026 is calculated as:

ROC % (Q: Apr. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2026 ) + Invested Capital (Q: Apr. 2026 ))/ count )
=4.296 * ( 1 - 21.72% )/( (14.657 + 14.845)/ 2 )
=3.3629088/14.751
=22.80 %

where

Note: The Operating Income data used here is four times the quarterly (Apr. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Zedge's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2026  Q: Apr. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=4.296/( ( (1.238 + max(-3.744, 0)) + (1.224 + max(-2.694, 0)) )/ 2 )
=4.296/( ( 1.238 + 1.224 )/ 2 )
=4.296/1.231
=348.98 %

where Working Capital is:

Working Capital(Q: Jan. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3.765 + 0 + 0) - (2.969 + 3.994 + 0.546)
=-3.744

Working Capital(Q: Apr. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3.908 + 0 + 0.799) - (2.655 + 4.159 + 0.587)
=-2.694

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Zedge's Operating Margin % for the quarter that ended in Apr. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Apr. 2026 )/Revenue (Q: Apr. 2026 )
=1.074/7.992
=13.44 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Zedge Operating Income Related Terms


Zedge Operating Income Historical Data

* Premium members only.

The historical data trend for Zedge's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Zedge Operating Income Chart

Zedge Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.80 7.88 -0.13 0.15 -0.78

Zedge Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.74 -0.15 0.91 0.82 1.07
ZDGE
74GF Score
Zedge Inc ZDGE
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zedge Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.66 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $2.66 Mil mean?
Zedge (ZDGE) has a Operating Income of $2.66 Mil as of Apr. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Zedge and its competitors.
Is Zedge's Operating Income too high?
Zedge's current Operating Income is $2.66 Mil. Overall, Zedge has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zedge's Operating Income compare to SJ and AREN?
Zedge's Operating Income of $2.66 Mil can be compared against companies in the Interactive Media industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for an Interactive Media company?
A good Operating Income depends on the Interactive Media industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Zedge and its competitors. Zedge's current Operating Income is $2.66 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zedge stock overvalued right now?
Based on GuruFocus' analysis, Zedge (ZDGE) is currently considered Fairly Valued. The stock's GF Value™ is $3.06, compared to a current price of $2.98 — trading 2.6% below its estimated fair value. The current Operating Income is $2.66 Mil. Zedge's overall GF Score™ is 74/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Zedge (ZDGE), the current Operating Income is $2.66 Mil as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Zedge (ZDGE) Overvalued in 2026?

Based on GuruFocus' analysis, Zedge stock appears to be undervalued. The current stock price of $2.98 is trading 2.6% below its estimated GF Value™ of $3.06. GuruFocus considers Zedge to be Fairly Valued.

Key valuation signals for ZDGE:

  • Operating Income: $2.66 Mil
  • GF Value™: $3.06 vs. price of $2.98 (2.6% below fair value)
  • GF Score™: 74/100

No single metric tells the full story. See the ZDGE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zedge Business Description

Other Exchanges 34Z:Germany
Address 1178 Broadway, 3rd Floor, Suite 1450, New York, NY, USA, 10001
Zedge Inc builds digital marketplaces and competitive games centered on content that people use for self-expression. Its products include the Zedge App, a freemium digital content marketplace offering mobile wallpapers, video wallpapers, ringtones, and notification sounds, along with pAInt, a generative AI wallpaper and ringtone maker, GuruShots, a skill-based photo challenge game, and Emojipedia, a trusted source for emoji information. The Zedge App is available on Google Play and the App Store. The company operates two segments: Zedge Marketplace and GuruShots, with the majority of revenue generated from the Zedge Marketplace.
74GF Score

Get the complete analysis for ZDGE

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.98
Price
$3.06
GF Value