Zedge Reports Revenue Increase and Reduced Net Losses for Three and Nine Months Ended April 30, 2025

Zedge, Inc. reported its financial results for the three and nine months ended April 30, 2025, revealing a slight increase in revenue but a significant reduction in net losses compared to the previous fiscal period. The company generated revenues of $7.76 million for the three months, a 1.3% increase from $7.66 million in the same period last year. For the nine months, revenues totaled $21.93 million, down 2.6% from $22.51 million. The net loss for the quarter was $185,000, an improvement from a loss of $113,000 in the prior year, while the nine-month net loss narrowed to $1.83 million from $9.13 million.

The financial performance reflects several strategic developments, including a restructuring initiative implemented in January 2025, which aimed to reduce headcount and streamline operations. This restructuring resulted in a 22% reduction in the global workforce and incurred restructuring charges of $577,000 for the quarter and $1.1 million for the nine months. The company also reported a significant impairment charge of $11.9 million in the previous fiscal year, which impacted year-over-year comparisons.

Operationally, Zedge's Zedge App, which offers mobile personalization content, had approximately 707 million installations since inception, with 22.1 million monthly active users (MAU) as of April 30, 2025. This represents a 20.2% decrease in MAU compared to the same period last year. However, the average revenue per monthly active user (ARPMAU) increased by 32.7% to $0.0985, driven by higher advertising rates and subscription revenue growth. The company reported approximately 896,000 active subscribers, a 37% increase from the previous year.

In terms of geographic expansion, Zedge continues to focus on its international markets, with a significant portion of its user base located in emerging markets. The company has also made strides in enhancing its product offerings, including the introduction of generative AI features in its Zedge App and a revamped onboarding experience for its GuruShots platform, which aims to attract and retain users more effectively.

Looking ahead, Zedge anticipates that its cash and cash equivalents, totaling $20.4 million as of April 30, 2025, along with cash flow from operations, will be sufficient to meet its anticipated cash requirements for the next twelve months. The company remains focused on executing its strategic initiatives, including the ongoing development of GuruShots and the Zedge App, while navigating the challenges posed by current economic conditions and geopolitical factors.