Zedge (ZDGE) investor relations material

Financial performance and capital allocation

• Profitable with $24 million enterprise value, $20 million cash, no debt, and $3 million trailing 12-month free cash flow.

• Dividend initiated at 3% yield and active stock repurchase program totaling $8 million, with an additional $2 million approved.

• Non-GAAP net income grew by $2.6 million and adjusted EBITDA more than doubled from H1 2025 to H1 2026.

• EBITDA positive for five consecutive quarters, consistently generating free cash flow.

Core business and user base strategy

• Focus on mobile app publishing with a creator community of over 20 million monthly active users.

• Shifted user acquisition to higher-value tier 1 markets, resulting in record ARPU of $0.12.

• Surpassed 700 million app installs, maintaining top ranking in mobile personalization.

• Monetization through advertising, subscriptions (up 32%), and in-app purchases, with gross margins above 90%.

• Creator economy saw 17% GTV growth, leveraging premium artists and community for content.

Innovation, AI, and DataSeeds initiative

• Launched DataSeeds, a B2B platform using the creator community for managed crowd content creation for AI models.

• DataSeeds delivers multimodal, ethically sourced datasets (audio, video, imagery) tailored to customer specs.

• Unique approach includes mission-focused apps/websites for onboarding, documentation, gamification, and micropayments.

• Customers are leading AI model builders, not hyperscalers, with complex, high-value briefs and tight deadlines.

• Competes with both VC-backed and established data providers, focusing on ethical sourcing and profitability.