Zedge Inc. Reports Q3 Fiscal 2025 Results: Revenue Growth Resumes, GAAP Net Income Up 63.7%, and EPS Rises 70.8% to $0.01

Reuters
13 Jun
Zedge Inc. Reports Q3 Fiscal 2025 Results: Revenue Growth Resumes, GAAP Net Income Up 63.7%, and EPS Rises 70.8% to $0.01

Zedge Inc. has reported its third-quarter fiscal 2025 results, showcasing a notable return to revenue growth despite challenges in the advertising market due to macroeconomic volatility. The company achieved a GAAP operating income of $0.2 million, improving from an operating loss of $0.1 million in the previous year, although this year's figures included restructuring charges amounting to $0.6 million. GAAP net income increased by 63.7% to $0.2 million, while Non-GAAP net income rose by 81.5% to $0.9 million. Earnings per share $(EPS)$ saw significant growth, with GAAP EPS increasing by 70.8% and Non-GAAP EPS by 89.4%. Free cash flow was reported at $0.8 million. Additionally, Adjusted EBITDA increased by 46% to $1.2 million compared to $0.9 million in the prior year. Zedge's CEO, Jonathan Reich, highlighted the strong momentum in the company's core business, attributing the revenue growth to its resilience amidst external economic pressures. The company also reported an increase in Zedge Premium's Gross Transaction Value (GTV) by 3.8% to $0.6 million. Furthermore, Zedge repurchased 219,087 shares of Class B Common Stock, with $3.8 million remaining from the $5 million authorization by the end of the quarter. The company's cash and cash equivalents increased to $20.4 million at the end of the quarter, despite significant payments related to severance and bonuses from the previous acquisition of GuruShots.

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