ZDGE Zedge, Inc.

Overview and Growth

Zedge, Inc. generated $29.40M of revenue in fiscal 2025, with net loss of $2.39M and an operating cash inflow of $3.42M. At $29.40M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line contracted 2.3% from $30.09M in fiscal 2024; this top-line contraction left the company with a smaller revenue base. The company reported diluted EPS of -$0.17, adding a shareholder-level measure to the absolute income figures considered below. At period end, total assets were $35.65M, framing the scale of the company’s operating and financing commitments. Asset turnover was 0.82x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Direct costs exceeded revenue, producing a gross loss of $117.60M before operating expenses. Relative to revenue, the gross deficit measured 400.0% before operating expenses. The company recorded an operating loss of $3.23M after the reported operating expense base. The operating loss equaled 11.0% of revenue, showing the scale of the operating deficit relative to sales. The company ended the period with a net loss of $2.39M, extending the operating result through all remaining items. The net loss equaled 8.1% of revenue, showing the bottom-line deficit relative to the company’s sales base. The company reported negative EBITDA of $2.08M, adding a pre-interest, tax, depreciation, and amortization view of the operating shortfall. Before income taxes, the company recorded a loss of $2.72M, bridging the operating result to the final net loss. Pretax margin was -9.2%, reflecting a pre-tax loss equal to 9.2% of revenue. The company recognized an income-tax benefit of $325.00K, increasing after-tax earnings relative to the pretax result. The loss-to-equity relationship was 9.2%, placing the bottom-line deficit against shareholder capital. The loss-to-assets relationship was 6.7%, placing the bottom-line deficit against the company’s resource base. The net loss narrowed to $2.39M from $9.17M in fiscal 2024.

Liquidity and Capital Structure

Total assets were $35.65M, supported by $9.75M of liabilities and $25.90M of shareholder equity. The near-term balance sheet paired $22.44M of current assets with $7.76M of current liabilities at the reporting date. The current ratio was 2.89x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $18.61M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 239.7%, excluding receivables and other current assets. The equity-to-assets relationship was 72.6%, placing book capital against the total resource base. The liabilities-to-assets relationship was 27.4%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 52.2%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 6.7% lower than fiscal 2024 assets of $38.20M, measuring the company’s own balance-sheet change. Against $30.90M of equity in fiscal 2024, the current book-equity balance moved 16.2% and ended lower. The reported cash balance changed 6.9% from $20.00M in fiscal 2024, ending lower year over year.

Cash Flow and Earnings Quality

The company reported $3.42M of operating cash flow, a cash inflow that shows the cash generated by operations. The cash-flow statement records $83.00K of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 2.4% of operating cash flow, quantifying the share of cash from operations directed to investment. Free cash flow came to $3.34M, leaving a positive amount after capital expenditures. Free cash flow represented 11.4% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 9.4% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Jul 31, 2025. Analysis generated Sep 24, 2026.