Zedge’s fourth quarter revenue beat estimates as active subscriptions surged 35% in fiscal 2026

Zedge reported fourth quarter revenue of $7.8 million, exceeding the $7.25 million consensus, while non-GAAP EPS of $0.04 met expectations. Performance was driven by robust subscription growth and a 31% increase in Average Revenue Per Monthly Active User (ARPMAU) to $0.121, which helped offset a 17% decline in total monthly active users (MAU) and a revenue drag from the Emojipedia segment.

Key Highlights

• Subscription revenue increased 25.6% year-over-year to $1.8 million, while active subscriptions grew to 1.33 million.
• Full-year free cash flow surged 47% to $4.2 million, enabling the company to return $2.7 million to shareholders through dividends and buybacks.
• DataSeeds.AI transitioned to a commercial B2B entity, securing its first six-figure order and attracting a $7.7 million insider investment to accelerate growth.