# Zedge (ZDGE.US)

Canonical: https://gigainvestors.com/s/ZDGE

Analysis as of: 2026-10-16T07:33:20.938Z. Financial observations: FY2015–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $2.74 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 7

- Operating margin variation: 7.35×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.11×

- FY2017: -0.07×

- FY2018: -0.12×

- FY2019: -0.33×

- FY2020: -0.04×

- FY2021: 0.40×

- FY2022: 0.45×

- FY2023: -0.25×

- FY2024: -0.39×

- FY2025: -0.11×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -22.4%

- ROIC, second-lowest year: -73.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.0%

- ROIC including acquisitions, ten-year median: -4.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 45.4%

- FY2017: -15.3%

- FY2018: -24.7%

- FY2019: -73.9%

- FY2020: -20.2%

- FY2021: >100%

- FY2022: 60.0%

- FY2023: -25.8%

- FY2024: -98.2%

- FY2025: -46.4%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 16.88×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $5.0M

- Net income, five-year total: $297K

- Return on incremental invested capital: -108.6%

- Working capital / revenue, annual change: -0.8 pp

- Working capital / revenue, change between three-year averages: -3.6 pp

- Working capital / revenue, final three-year average: 0.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.15×

- FY2022: 1.09×

- FY2023: 0.85×

- FY2024: 0.89×

- FY2025: 0.74×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -15.3% vs -46.4%

- Per-share earnings: 0.11 to -0.43 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.4%

- Ordinary dilution, 5-year annual growth: 4.3%

- Market cap gain: $36M

- Cumulative retained earnings: -$5.2M

- Diluted shares, 10-year annual growth: 4.4%

- Diluted shares, 5-year annual growth: 4.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$0.54

- Per-share value, starting three-year median: $0.11

- Per-share value, ending three-year median: -$0.43

- Buybacks concentrated in cheaper years (correlation): -0.46

- Average buyback yield: 2.2%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: $22M

- Cumulative net income, 10 years: -$4.8M

- ROIC, first three-year median: -15.3%

- ROIC, last three-year median: -46.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.11

- FY2017: -$0.06

- FY2018: -$0.16

- FY2019: -$0.33

- FY2020: -$0.05

- FY2021: $0.59

- FY2022: $0.65

- FY2023: -$0.43

- FY2024: -$0.65

- FY2025: -$0.17

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -16.3%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 42.2%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.26×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.9%

- FY2017: -4.1%

- FY2018: -16.2%

- FY2019: -38.0%

- FY2020: -22.3%

- FY2021: -5.0%

- FY2022: -3.3%

- FY2023: -19.8%

- FY2024: -39.3%

- FY2025: -16.3%

## Holders

- [Thomas Graham Kahn](https://gigainvestors.com/KB): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 76% since Oct 2021 · sales -2.3%

Story as of 2026-10-16T09:59:55.253Z; price observation 2026-10-15.

- 2025-06-12: Zedge signals momentum with 37% subscriber growth and launches DataSeeds.AI for new B2B revenue ([seekingalpha.com](https://seekingalpha.com/news/4457814-zedge-signals-momentum-with-37-percent-subscriber-growth-and-launches-dataseeds-ai-for-new?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales -2.3%; source https://www.sec.gov/Archives/edgar/data/1667313/000121390025103098/ea0262035-10k_zedge.htm; observed 2025-10-28.

- FY2016: $11M 

- FY2017: $10M 

- FY2018: $11M 

- FY2019: $8.8M 

- FY2020: $9.5M 

- FY2021: $20M 

- FY2022: $27M 

- FY2023: $27M 

- FY2024: $30M 

- FY2025: $29M 

### Gross margin · FY2024

gross margin 6.9%; source https://www.sec.gov/Archives/edgar/data/1667313/000121390025103098/ea0262035-10k_zedge.htm; observed 2025-10-28.

- FY2016: 88.3% 

- FY2017: 84.4% 

- FY2018: 86.0% 

- FY2019: 84.4% 

- FY2022: 93.8% 

- FY2023: 91.8% 

- FY2024: 6.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are USD 29.4 million.

- Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001667313.json#0001213900-25-103098 (filed 2025-10-28); FY2025: revenue 29398000; grossProfit -117602000; margin = grossProfit / revenue.

### Why customers stay

It lost 22.4% on its capital.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/ZDGE (filed 2025-10-28); FY2023: grossProfit / revenue = 91.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-28); FY2024: grossProfit / revenue = 6.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1667313/000121390025103098/ea0262035-10k_zedge.htm (filed 2025-10-28); FY2025: grossProfit / revenue = -400%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-28); 10-year return on capital observations [[2016,0.45371337327485595],[2017,-0.15311293984108967],[2018,-0.24698194945848376],[2019,-0.7392965964343599],[2020,-0.2017553865652725],[2021,1.3037593984962406],[2022,0.6001320146756732],[2023,-0.25845909865555766],[2024,-0.9824028231328347],[2025,-0.463811080835604]]; median -0.22436866801187813. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years; bought back USD 4.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-28); FY2016: growth capex 0; upkeep 0; owner earnings 1676000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-28); FY2020: growth capex 0; upkeep 0; owner earnings 1630000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-28); FY2021: growth capex 0; upkeep 0; owner earnings 9478000. Growth capex / owner earnings = 0.

- Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001667313.json#0001213900-23-081544 (filed 2025-10-28); FY2022: growth capex 0; upkeep 45000; cash acquisitions 17422000; owner earnings 10627000. Growth capex plus acquisitions / owner earnings = 1.6394090524136633.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-28); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001667313.json#0001213900-25-103098 (filed 2025-10-28); FY2025: cash repurchases 4433000 USD.

### What the price says

The price is 1.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-28); Closing price 2.74 USD; reporting-to-trading FX 1; FY2025 annual sales per share 2.140215492137449; price multiple 1.2802449146200423. FY2025 cash earnings/share -0.12922248107163659. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $2.92 per share

- 2016-11: $3.61 per share

- 2016-12: $3.13 per share

- 2017-01: $3.31 per share

- 2017-02: $3.47 per share

- 2017-03: $3.07 per share

- 2017-04: $3.07 per share

- 2017-05: $2.97 per share

- 2017-06: $2.21 per share

- 2017-07: $2.07 per share

- 2017-08: $1.80 per share

- 2017-09: $1.92 per share

- 2017-10: $2.92 per share

- 2017-11: $2.94 per share

- 2017-12: $2.75 per share

- 2018-01: $3.04 per share

- 2018-02: $3.30 per share

- 2018-03: $3.20 per share

- 2018-04: $4.23 per share

- 2018-05: $3.90 per share

- 2018-06: $3.76 per share

- 2018-07: $2.97 per share

- 2018-08: $2.93 per share

- 2018-09: $1.99 per share

- 2018-10: $1.94 per share

- 2018-11: $3.55 per share

- 2018-12: $2.45 per share

- 2019-01: $2.06 per share

- 2019-02: $2.02 per share

- 2019-03: $1.78 per share

- 2019-04: $2.09 per share

- 2019-05: $2.16 per share

- 2019-06: $1.65 per share

- 2019-07: $1.61 per share

- 2019-08: $1.60 per share

- 2019-09: $1.67 per share

- 2019-10: $1.76 per share

- 2019-11: $1.74 per share

- 2019-12: $1.54 per share

- 2020-01: $1.70 per share

- 2020-02: $1.45 per share

- 2020-03: $0.88 per share

- 2020-04: $1.12 per share

- 2020-05: $1.11 per share

- 2020-06: $1.48 per share

- 2020-07: $1.39 per share

- 2020-08: $1.40 per share

- 2020-09: $1.46 per share

- 2020-10: $3.41 per share

- 2020-11: $3.95 per share

- 2020-12: $6.04 per share

- 2021-01: $7.27 per share

- 2021-02: $10.04 per share

- 2021-03: $12.10 per share

- 2021-04: $13.30 per share

- 2021-05: $12.40 per share

- 2021-06: $18.41 per share

- 2021-07: $15.36 per share

- 2021-08: $15.64 per share

- 2021-09: $13.36 per share

- 2021-10: $11.53 per share

- 2021-11: $9.16 per share

- 2021-12: $8.50 per share

- 2022-01: $7.56 per share

- 2022-02: $6.98 per share

- 2022-03: $6.09 per share

- 2022-04: $5.14 per share

- 2022-05: $5.32 per share

- 2022-06: $2.88 per share

- 2022-07: $2.76 per share

- 2022-08: $2.83 per share

- 2022-09: $2.36 per share

- 2022-10: $2.12 per share

- 2022-11: $2.39 per share

- 2022-12: $1.76 per share

- 2023-01: $2.20 per share

- 2023-02: $2.75 per share

- 2023-03: $1.95 per share

- 2023-04: $1.98 per share

- 2023-05: $2.30 per share

- 2023-06: $2.24 per share

- 2023-07: $2.10 per share

- 2023-08: $2.20 per share

- 2023-09: $2.19 per share

- 2023-10: $1.92 per share

- 2023-11: $1.76 per share

- 2023-12: $2.35 per share

- 2024-01: $3.26 per share

- 2024-02: $3.98 per share

- 2024-03: $2.77 per share

- 2024-04: $2.40 per share

- 2024-05: $2.74 per share

- 2024-06: $3.05 per share

- 2024-07: $3.62 per share

- 2024-08: $3.58 per share

- 2024-09: $3.70 per share

- 2024-10: $3.08 per share

- 2024-11: $2.68 per share

- 2024-12: $2.69 per share

- 2025-01: $2.71 per share

- 2025-02: $2.44 per share

- 2025-03: $2.33 per share

- 2025-04: $2.42 per share

- 2025-05: $2.36 per share

- 2025-06: $4.01 per share

- 2025-07: $4.02 per share

- 2025-08: $3.04 per share

- 2025-09: $2.91 per share

- 2025-10: $2.52 per share

- 2025-11: $2.31 per share

- 2025-12: $3.28 per share

- 2026-01: $3.11 per share

- 2026-02: $3.29 per share

- 2026-03: $2.93 per share

- 2026-04: $3.33 per share

- 2026-05: $2.97 per share

- 2026-06: $3.10 per share

- 2026-07: $2.95 per share

- 2026-08: $3.04 per share

- 2026-09: $2.88 per share

- 2026-10: $2.74 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1667313/000121390025103098/ea0262035-10k_zedge.htm); period 2025-07-31, filed 2025-10-28.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.