Zedge (ZDGE) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $8.3 million, up 18.3% year-over-year, driven by advertising optimization, record subscriptions, and Zedge Premium GTV, partially offset by GuruShots decline and a $3.7 million Emojipedia impairment.

• Subscription revenue rose 33%, with active subscriptions up 49% to nearly 1.2 million.

• ARPMAU reached a record $0.115, up 47.6% year-over-year; Zedge Premium GTV increased 15.7%.

• Innovation efforts include DataSeeds.AI, new alpha product launches, and Tapedeck expansion, with early customer traction.

• Net loss widened to $2.9 million GAAP (vs. $2.2 million loss last year), mainly due to the $3.7 million Emojipedia impairment.

Financial highlights

• Total revenue for Q2 was $8.3 million, up 18.3% year-over-year; six-month revenue was $15.9 million, up 11.9%.

• Zedge Marketplace revenue grew over 21% year-over-year; advertising revenue up 18.3%; subscription revenue up 33%.

• Non-GAAP net income was $0.8 million, reversing a $(0.2) million loss year-over-year.

• Adjusted EBITDA improved to $1.1 million from $(0.1) million last year.

• Ended the quarter with $19.1 million in cash and no debt.

Outlook and guidance

• Management expects cash and cash equivalents plus operating cash flow to be sufficient for at least the next twelve months.

• DataSeeds.AI expected to increase revenue contribution in the second half of fiscal 2026; pipeline expanding.

• Q3 will not benefit from last year's one-time $450,000 ad partner integration bonus.

• Priorities include strengthening monetization, building DataSeeds, and expanding the innovation pipeline.