One-glance verdict
Undervalued
$7.50 our estimate vs market $3.00
Wall Street consensus: $6.00 (-20.0% lower than our fair-value estimate)
60% below our estimate, below the bear case
Fundamentals snapshot
Zedge, Inc.
ZDGE · ASE · Communication Services · Internet Content & Information
Current price
$3.00
52-week range
$2.21 - $4.70
Market cap
$39.21M
Balance sheet
Healthy
0.24x Concerning
Net cash $19.34M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 6.6% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 18.1% (peer median: 25.2%).
- Risk Return on equity was -4.3% last year — the company lost money on shareholders' equity.
What this company does
Zedge, Inc.
Zedge offers smartphone apps for personalizing your phone with wallpapers and ringtones, as well as a photography game, making money mostly from ads and in-app purchases. The company's business model depends on attracting a very large base of free users to generate advertising revenue (money paid by other companies to show their ads). Zedge's growth relies on keeping these users engaged and converting some of them into paying customers for premium content.
How the company got here
Zedge was founded in Norway in 2003 and started as a platform for people to personalize their mobile devices. It became a publicly traded company in the U.S. in 2016. Over the years, it has grown by adding more content and features, like a marketplace for artists to sell their work. To expand its offerings, Zedge acquired Emojipedia, the go-to source for all things emoji, in 2021, and then a photography game called GuruShots in 2022.
What it actually does
Zedge provides a variety of apps and websites that let you personalize your phone and express yourself digitally. Think of it as a giant digital marketplace for things like phone wallpapers, ringtones, and notification sounds. It also owns a popular photography game and the main online encyclopedia for emojis. The company makes money through a mix of advertising, paid subscriptions for premium features, and a virtual currency system where users can buy digital goods.
Zedge Marketplace
This is the company's main product, a mobile app where you can find a huge collection of wallpapers, video wallpapers, ringtones, and other sounds to customize your phone. Much of the content is free, which attracts millions of users. This segment makes money primarily from advertising shown to free users, but also offers paid subscriptions to remove ads and unlock premium content. Artists and creators can also sell their unique content directly to users in a special section called the Zedge Premium Marketplace, from which Zedge takes a share.
GuruShots
This is a skill-based photography game where amateur photographers can enter contests and compete against each other with their photos. It's designed to be a fun and competitive community for people who love photography. This part of the business makes money through in-app purchases, where players can buy virtual items to get an advantage in the game's challenges. While a smaller part of the company's revenue, Zedge is working on connecting GuruShots photographers to its main marketplace to sell their pictures.
Emojipedia
Zedge owns the leading website for everything you want to know about emojis. If you've ever searched for the meaning of an emoji or what it looks like on different phones, you've likely used Emojipedia. This segment primarily generates revenue (money a company receives from its business activities) through advertising on its website. It serves as a valuable source of information and attracts a large audience, which supports the company's advertising business.
What management is betting on now
Zedge is heavily focused on integrating Artificial Intelligence (AI) into its products, especially with its 'pAInt' feature that lets users create their own unique wallpapers by simply typing a description. They are also working on creating better connections between their different apps, for example by making it easy for photographers from GuruShots to sell their photos on the Zedge Marketplace. Another key priority is growing the number of paying subscribers for its main app to create a more predictable stream of revenue. Recently, the company has been focused on reducing costs and streamlining its operations to improve profitability (the ability of a business to make a profit).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$683.00K
FY2025 Q1
$1.16M
FY2025 Q2
$689.00K
FY2025 Q3
$851.00K
FY2025 Q4
$640.00K
FY2026 Q1
$808.00K
FY2026 Q2
$855.00K
FY2026 Q3
$1.22M
Revenue
$7.99M
Net income
$926.00K
Diluted EPS
0.07
Operating cash flow
$1.22M
Free cash flow
$1.22M
Fetching…
Sources
Revenue
$8.25M
Net income
$-2.29M
Diluted EPS
-0.18
Operating cash flow
$858.00K
Free cash flow
$855.00K
Fetching…
Sources
Revenue
$7.61M
Net income
$788.00K
Diluted EPS
0.06
Operating cash flow
$825.00K
Free cash flow
$808.00K
Fetching…
Sources
Revenue
$7.47M
Net income
$-559.00K
Diluted EPS
-0.04
Operating cash flow
$674.00K
Free cash flow
$640.00K
Fetching…
Sources
Revenue
$7.76M
Net income
$185.00K
Diluted EPS
0.01
Operating cash flow
$870.00K
Free cash flow
$851.00K
Fetching…
Sources
Revenue
$6.98M
Net income
$-1.68M
Diluted EPS
-0.12
Operating cash flow
$708.00K
Free cash flow
$689.00K
Fetching…
Sources
Revenue
$7.19M
Net income
$-339.00K
Diluted EPS
-0.02
Operating cash flow
$1.17M
Free cash flow
$1.16M
Fetching…
Sources
Revenue
$7.58M
Net income
$-39.00K
Diluted EPS
0.00
Operating cash flow
$695.00K
Free cash flow
$683.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $7.50 vs current price $3.00
Wall Street consensus is the average analyst price target: $6.00 (-20.0% lower than our fair-value estimate).
Our most-likely fair value is $7.50 a share — about 149.9% above today's price of $3.00, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $19.3M - more cash than debt. Interest coverage 0.2x.
Net debt
$-19.34M
Interest coverage
0.24x
Zedge, Inc.'s profit covers its interest bill about 0.2 times over. which is stronger than every peer shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ZDGE
BASELINE
Zedge, Inc.
Total debt $347.00K Interest coverage 0.24x This is the baseline the peer rows are being compared against.
Total debt $4.71M Interest coverage -14.80x -100% vs ZDGE This peer has almost no interest-payment cushion compared with ZDGE.
Total debt $36.32M Interest coverage -9.11x -100% vs ZDGE This peer has almost no interest-payment cushion compared with ZDGE.
Total debt $0.00 Interest coverage -1.55x -100% vs ZDGE This peer has almost no interest-payment cushion compared with ZDGE.
Total debt $14.42M Interest coverage -3.98x -100% vs ZDGE This peer has almost no interest-payment cushion compared with ZDGE.
What you should know
The case for and against ZDGE
3 Rewards
2 Risks
Rewards
-
Revenue grew 6.6% last year.
-
Free cash flow was positive in 3/10 years.
-
Dividend yield is 2.7% with 2-year payout history.
Risks
-
Insider ownership is only 18.1% (peer median: 25.2%).
-
Return on equity was -4.3% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
11.11x
P/B
1.59x
P/S
1.25x
EV/EBITDA
6.34x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
93.2%
Operating margin
13.4%
Net margin
-3.6%
ROE
-4.3%
ROA
4.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
3.21x
Quick ratio
3.11x
Total debt
$347.00K
Total cash
$19.69M
Growth
How the business has been compounding
Revenue TTM
$31.32M
Revenue 5Y CAGR
10.7%
EPS TTM
-0.08
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$3.58M
Free CF TTM
$4.66M
FCF margin
14.9%
Dividend
Shareholder payout
Yield
2.7%
Payout ratio
0.0%
Last ex-div date
2026-06-22