Zedge (ZDGE) Q4 and Fiscal 2026 Earnings Call: DataSeeds Growth Strategy
Source Tradingkey
Key Takeaways
- Fourth-quarter revenue increased 4% year over year to $7.8 million. Subscription revenue rose 25.6% to $1.8 million, while advertising revenue declined 1.9% to $5.1 million.
- Fiscal 2026 revenue grew 7.6% to $31.6 million. Adjusted EBITDA increased 134.2% to $4.1 million, and free cash flow rose 46.6% to $4.2 million.
- Zedge Marketplace active subscriptions increased 35.3% to approximately 1.3 million. Average revenue per monthly active user rose 30.5% to $0.121, offsetting the revenue impact of a 17% decline in monthly active users.
- DataSeeds secured repeat orders, its first six-figure engagement and its first commercial model-evaluation project. Management identified specialized multimodal data, model evaluation and robotics data as key growth areas.
- Zedge ended fiscal 2026 with $20.3 million in cash and no debt. An insider-led financing completed after year-end raised approximately $7.7 million, bringing pro forma cash to around $28 million.
- Management expects DataSeeds revenue to remain uneven in fiscal 2027 because project size and timing can vary significantly. Investment will focus on sales, marketing, engineering and production capabilities.
Key Financial Results
| Metric | Q4 Fiscal 2026 | Year-over-year comparison | Fiscal 2026 | Full-year comparison |
|---|---|---|---|---|
| Total revenue | $7.8 million | Up 4% | $31.6 million | Up 7.6% |
| Advertising revenue | $5.1 million | Down 1.9% | $21.2 million | — |
| Subscription revenue | $1.8 million | Up 25.6% | $6.6 million | Up 29.5% |
| Digital goods and services revenue | $0.4 million | Down approximately 2% | $2.0 million | $2.2 million in fiscal 2025 |
| GAAP operating income (loss) | $0.3 million | Loss of $0.7 million in Q4 2025 | $(0.6) million | Loss of $3.2 million in fiscal 2025 |
| GAAP net income (loss) | $0.4 million | Loss of $0.6 million in Q4 2025 | $(0.1) million | Loss of $2.4 million in fiscal 2025 |
| GAAP diluted EPS | $0.03 | $(0.04) in Q4 2025 | $(0.02) | $(0.17) in fiscal 2025 |
| Non-GAAP net income | $0.5 million | $0.1 million in Q4 2025 | $3.1 million | $0.7 million in fiscal 2025 |
| Adjusted EBITDA | $0.5 million | Up 75.6% | $4.1 million | Up 134.2% |
| Operating cash flow | $1.7 million | $0.7 million in Q4 2025 | $4.6 million | $3.4 million in fiscal 2025 |
| Free cash flow | $1.6 million | $0.5 million in Q4 2025 | $4.2 million | Up 46.6% |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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