• Etsy for digital phone personalization.
• Pinterest for downloadable phone aesthetics.

• Ringtones: Digital audio files available for users to set as call alerts on their mobile devices.
• Home screen app icons: Customizable graphical representations for applications displayed on a mobile device's home screen.
• Wallpapers: Digital images used as background displays for mobile device screens.
• Widgets: Small, interactive application components that can be added to a mobile device's home screen for quick information or functionality.
• Notification sounds: Short audio clips used to alert users to various notifications from applications on their mobile devices.

Major Customers of Zedge (ZDGE)

Zedge, Inc. sells primarily to individuals (consumers) who wish to personalize their mobile devices. Based on the company's operations, its customer categories can be described as follows:

• Mobile Device Personalization Enthusiasts: These are individuals who actively seek to customize their smartphones and tablets. They frequently update their device's aesthetic and auditory elements, such as wallpapers, ringtones, app icons, and notification sounds, to reflect their personal style, mood, or current trends.
• Content Seekers for Specific Interests: This category includes users who look for specific types of content related to their hobbies, interests, or affiliations. Examples include fans searching for themed wallpapers (e.g., sports teams, movies, games), specific genres of music for ringtones, or unique notification sounds.
• Functional Customizers: Users who utilize Zedge to enhance the functionality or clarity of their mobile experience. This might involve setting distinct ringtones for specific contacts, unique notification sounds for particular applications, or wallpapers that improve screen usability. They value the variety Zedge offers to meet specific practical needs.

• Apple Inc. (AAPL)
• Alphabet Inc. (GOOGL)

Jonathan Reich, Chief Executive Officer & President

Jonathan Reich was appointed CEO of Zedge in August 2020, having previously served as President since 2011, CFO from 2016 to 2020, and COO from 2011 to 2020. Before joining Zedge, he was President of Fabrix Systems, Inc. from 2007 to 2014, a company that was later acquired by Ericsson for $100 million. From 1999 to 2007, he held various positions at Net2Phone, Inc., ultimately serving as CEO of Net2Phone Global Services, and was involved when Net2Phone went public in 1999. He began his career on Wall Street and later joined the telecommunications start-up IDT, which went public in 1996. He holds a B.S. and M.S. in Operations Research from Columbia University's School of Engineering and Applied Science.

Yi Tsai, Chief Financial Officer & Treasurer

Yi Tsai has served as Zedge's Chief Financial Officer and Treasurer since August 5, 2020, and was the company's Controller from August 2017 to August 2020. Prior to Zedge, he was the Chief Financial Officer of Peerless Systems Corporation, a NASDAQ-listed company, from November 2012 until its sale to a financial buyer in February 2015. He started his accounting career with Deloitte in Taiwan and has held positions with various financial institutions and multinational corporations in New York City. Mr. Tsai is a CPA and earned a B.S. in Accounting from National Taipei University and an MBA in Finance from Case Western Reserve University's Weatherhead School of Management.

Tim Quirk, SVP, Product

Tim Quirk joined Zedge in 2017 following the acquisition of his company, Freeform Development, a marketplace for musicians. Before Freeform, he was Google's Head of Global Content Programming for Google Play and led the music content and operations team for Rhapsody. He is also recognized as the singer and lyricist for the punk-pop band Too Much Joy.

Michael C. Jonas, Executive Chairman

Michael C. Jonas has served as Zedge's Executive Chairman since October 2017 and as Chairman of the Board since November 2016. He also held the role of Interim Chief Executive Officer from August 2019 to November 2019. He is the controlling stockholder of Zedge. His previous experience includes serving as Executive Vice President of Genie Energy and CEO of Genie Oil Development. He also held various positions at IDT Corporation from 2005 to 2011.

Howard S. Jonas, Vice-Chairman of the Board

Howard S. Jonas has been the Vice-Chairman of Zedge's Board of Directors since November 2016. He founded IDT Corporation in 1990 and has served as its Chairman of the Board since its inception, also holding the CEO position during several periods. He is also the founder and President of Jonas Media Group. The Jonas family has a history of successful exits in the technology, media, and telecommunications (TMT) space, including the sale of IDT Entertainment to Starz for $500 million and Straight Path Communications to Verizon for $3.2 billion. Zedge itself was spun off from IDT Corp in June 2016, with the Jonas family retaining significant holdings.

Key Risks to Zedge (ZDGE)

1. Platform Dependency and Potential Devaluation of Core Offerings: Zedge's business heavily relies on third-party mobile operating systems and app stores, primarily Apple's iOS and Google's Android. Changes in these platforms' policies, algorithms, or native functionalities that enhance device personalization could directly devalue Zedge's core offerings of wallpapers, ringtones, and app icons. This creates a significant vulnerability as Zedge's ability to reach and monetize its user base is largely dependent on these external platforms.
2. Declining Monthly Active Users (MAU) and Advertising Revenue Vulnerability: While Zedge has demonstrated growth in average revenue per monthly active user (ARPMAU) and subscription revenue, the company has experienced a decline in its overall Monthly Active Users (MAU). This trend indicates challenges in user acquisition and retention, which could impact future growth. Furthermore, a substantial portion of Zedge's revenue still comes from advertising, making it susceptible to fluctuations in the digital advertising market, changes in search engine algorithms (as seen with Emojipedia traffic being affected by Google SERP changes), and potential customer concentration where one customer can represent a significant percentage of total revenue.
3. Ongoing Profitability Challenges and Underperforming Segments: Despite recent efforts to improve profitability through restructuring and cost-cutting, Zedge has historically faced and continues to contend with profitability challenges. The company has reported GAAP net losses, partly due to non-cash impairment charges related to certain assets like Emojipedia. Additionally, the GuruShots game segment has consistently underperformed, continuing to incur operational losses and acting as a drag on overall financial performance. While new initiatives like DataSeeds.AI show promise, their revenue generation is currently described as "lumpy."

The continuous integration and enhancement of mobile operating system personalization features by Apple (iOS) and Google (Android) directly threatens Zedge's core offerings. These OS updates increasingly provide native options for wallpapers, widgets, and app icon theming (e.g., Android's Material You dynamic theming and iOS's expanded Lock Screen customization), reducing the need for third-party applications like Zedge.

Here are the expected drivers of future revenue growth for Zedge (ZDGE) over the next 2-3 years:

1. Continued Growth in Subscription Revenue: Zedge has demonstrated strong performance in its subscription offerings, with Zedge Plus subscription revenue increasing significantly year-over-year. The active subscriber base has consistently grown, reaching approximately 1.2 million subscribers in Q2 fiscal year 2026, representing a 49% increase from the prior year. The company continues to optimize its subscription plans, contributing to this growth in recurring revenue.
2. Product Innovation and AI Integration: Zedge is actively investing in product innovation, with plans to introduce at least six new "Alpha" products in fiscal year 2026. This includes the global rollout of "pAInt," its generative AI wallpaper maker, and new features aimed at enhancing user engagement, such as alarm functionalities to encourage daily usage. This focus on AI-driven content creation and new features is expected to attract and retain users, thereby driving revenue.
3. Expansion and Scaling of New Platforms and B2B Offerings: The company is focused on expanding its "tapedeck" platform to Android, web, and international markets. Additionally, Zedge is scaling its B2B marketplace, DataSeeds.AI, and anticipates an increased contribution from this segment in fiscal year 2026, having already secured its first significant agreement. These expansions into new platforms and business models are projected to diversify and grow its revenue streams.
4. Enhanced Monetization within the Core Zedge Marketplace: The Zedge Marketplace continues to be a key revenue contributor, showing mid-single-digit growth in Q4 fiscal year 2025 and strong growth in Q2 fiscal year 2026. This growth is coupled with an increase in advertising revenue, which was up 18.3% in Q2 fiscal year 2026. Improvements in Average Revenue Per Monthly Active User (ARPMAU) also indicate a shift towards higher-value users and improved monetization efficiency within its existing user base.

Share Repurchases

• Zedge completed a $3.0 million share repurchase program on August 28, 2024, buying back 1.2 million shares of its Class B common stock.
• The company approved a new $5.0 million share repurchase program on September 16, 2024.
• As of January 31, 2026, Zedge had repurchased approximately $4 million of Class B shares as part of its $5 million authorization.

Share Issuance

• As of October 28, 2024, Zedge had 524,775 shares of Class A common stock and 13,618,761 shares of Class B common stock outstanding.
• The number of shares outstanding decreased by -4.60% in one year, primarily due to share repurchases.

Outbound Investments

• In April 2022, Zedge acquired GuruShots, a skill-based photo challenge game.
• In August 2021, Zedge acquired Emojipedia, a trusted source for emoji information.

Capital Expenditures

• In Q1 2026, Zedge invested $17K in capital expenditures.
• Over the last 12 months, capital expenditures amounted to -$89,000.
• The primary focus of capital expenditures is on capitalized software and technology development costs for internal-use software related to the Zedge Marketplace.