📊 ZDGE Key Takeaways
Is Zedge, Inc. (ZDGE) a Good Investment?
Zedge demonstrates exceptional revenue growth of 4314% YoY with positive free cash flow of $2.9M (12.1% margin), indicating strong operational execution and effective working capital management despite near-term unprofitability. The company maintains fortress-like financial health with $19.7M cash reserves, minimal debt leverage (0.08x D/E), and improving unit economics as losses narrow, positioning it for accelerated path to profitability. Primary concerns center on revenue growth sustainability and working capital efficiency, but fundamentals support a high-growth software platform in early scaling phase.
Zedge, Inc. Key Strengths (ZDGE)
- Explosive 4314% YoY revenue growth demonstrates strong product-market demand and rapid scaling
- Positive free cash flow generation of $2.9M (12.1% FCF margin) despite GAAP unprofitability indicates operational efficiency and strong unit economics
- Fortress balance sheet with $19.7M cash (57% of total assets), 0.08x debt-to-equity ratio, and $2M long-term debt provides substantial financial flexibility
- Improving profitability trajectory with EPS loss shrinking 73.8% YoY and net margin losses narrowing
- Excellent current ratio of 3.21x and minimal capital requirements ($26K CapEx) ensure liquidity cushion for growth investments
ZDGE Stock Risks: Zedge, Inc. Investment Risks
- Company remains unprofitable at operating and net income levels; timeline and mechanism for profitability achievement unclear
- 4314% revenue growth rate is mathematically unsustainable and subject to significant normalization in future periods
- Quick ratio of 0.37x despite $19.7M cash position suggests potential working capital management concerns or receivables/inventory buildup
- Revenue quality and composition unknown (organic vs. acquisition-driven); customer concentration and churn rates not disclosed
- Only 1 Form 4 insider filing in 90 days provides minimal visibility into management capital allocation confidence
Key Metrics to Watch
- Revenue growth deceleration rate and ability to sustain high-double or triple-digit growth beyond current fiscal year
- Operating margin expansion trajectory toward breakeven and path to 15-20% sustainable operating margins
- Free cash flow consistency and sustainability; operating cash flow stability relative to accrual-based net income
- Accounts receivable days sales outstanding and inventory turnover improvements to normalize quick ratio
Zedge, Inc. (ZDGE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.21x current ratio provides a solid financial cushion.
ZDGE Profit Margin, ROE & Profitability Analysis
ZDGE vs Technology Sector: How Zedge, Inc. Compares
How Zedge, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Zedge, Inc. Stock Overvalued? ZDGE Valuation Analysis 2026
Based on fundamental analysis, Zedge, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Zedge, Inc. Balance Sheet: ZDGE Debt, Cash & Liquidity
ZDGE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Zedge, Inc.'s revenue has grown significantly by 54% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.65 indicates the company is currently unprofitable.
ZDGE Revenue Growth, EPS Growth & YoY Performance
ZDGE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $7.8M | $185.0K | $0.01 |
| Q2 2026 | $7.0M | -$339.0K | $-0.12 |
| Q1 2026 | $7.2M | -$339.0K | $-0.02 |
| Q3 2025 | $7.7M | -$15.0K | $0.01 |
| Q2 2025 | $7.0M | -$15.0K | $-0.12 |
| Q1 2025 | $7.1M | -$15.0K | $0.00 |
| Q3 2024 | $6.7M | -$15.0K | $0.01 |
| Q2 2024 | $7.0M | -$15.0K | $0.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Zedge, Inc. Dividends, Buybacks & Capital Allocation
ZDGE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Zedge, Inc. (CIK: 0001667313)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ZDGE
What is the AI rating for ZDGE?
Zedge, Inc. (ZDGE) has an AI grade of A with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ZDGE's key strengths?
Claude: Explosive 4314% YoY revenue growth demonstrates strong product-market demand and rapid scaling. Positive free cash flow generation of $2.9M (12.1% FCF margin) despite GAAP unprofitability indicates operational efficiency and strong unit economics.
What are the risks of investing in ZDGE?
Claude: Company remains unprofitable at operating and net income levels; timeline and mechanism for profitability achievement unclear. 4314% revenue growth rate is mathematically unsustainable and subject to significant normalization in future periods.
What is ZDGE's revenue and growth?
Zedge, Inc. reported revenue of $23.9M.
Does ZDGE pay dividends?
Zedge, Inc. pays dividends, with $0.7M distributed to shareholders in the trailing twelve months.
Where can I find ZDGE SEC filings?
Official SEC filings for Zedge, Inc. (CIK: 0001667313) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ZDGE's EPS?
Zedge, Inc. has a diluted EPS of $-0.04.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ZDGE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Zedge, Inc. has a A grade with 68% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ZDGE stock overvalued or undervalued?
Valuation metrics for ZDGE: ROE of -2.3% (sector avg: 22%), net margin of -2.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is ZDGE's AI grade for 2026?
Our dual AI analysis gives Zedge, Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ZDGE's free cash flow?
Zedge, Inc.'s operating cash flow is $2.9M, with capital expenditures of $26.0K. FCF margin is 12.1%.
How does ZDGE compare to other Technology stocks?
Vs Technology sector averages: Net margin -2.4% (avg: 18%), ROE -2.3% (avg: 22%), current ratio 3.21 (avg: 2.5).