Zedge, Inc.
For the period ended Apr 30, 2025. Filed Jun 13, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 30, 2025 · Filed Jun 13, 2025
ZDGE$2.24-2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-01-31; filed 2025-03-14.
0001213900-25-024149
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-04-30; filed 2025-06-13.
0001213900-25-054298
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 119 previous paragraphs and 122 current paragraphs.
57 unchanged; 48 reworded; 17 added; 10 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 20 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
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Current report
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Current report
Nine months Ended April 30, 2025 Compared to Nine months Ended April 30, 2024
Current report
For the nine months ended April 30, 2025, digital goods and services revenue declined 36.5% compared to the same period in the prior year primarily due to the decreases in both MAP and ARPMAP.
Current report
SG&A expense decreased 6.1% in the three months ended April 30, 2025 compared to the same period in the prior year primarily due to lower compensation expenses resulting primarily from the corporate restructuring implemented in January 2025. As a percentage of revenue, SG&A expense in the three months ended April 30, 2025 was 81.8% compared to 88.2% for the same period in the prior year.
Current report
Stock-based compensation expenses decreased 11.7% in the three months ended April 30, 2025 compared to the same period in the prior year. The decrease was primarily attributable to lower aggregate fair value related to the DSUs granted in November 2024 compared to that of the DSUs granted in September 2021 which were being recognized on a graded vesting basis over the requisite service periods. Additionally, our stock-based compensation expense related to the portion of retention bonus to be paid in our Class B common stock in connection with the GuruShots acquisition have been fully recognized as of April 1, 2025, which contributed in part to the year over year decrease.
Current report
Stock-based compensation expenses decreased 21.8% in the nine months ended April 30, 2025 compared to the same period in the prior year. The decrease was primarily attributable to lower aggregate fair value related to the DSUs granted in November 2024 compared to that of the DSUs granted in September 2021 which were being recognized on a graded vesting basis over the requisite service periods. Additionally, our stock-based compensation expense related to the portion of retention bonus to be paid in our Class B common stock in connection with the GuruShots acquisition have been fully recognized as of April 1, 2025, which contributed in part to the year over year decrease.
Current report
In the three months ended April 30, 2025, interest and other income, net decreased by $34,000 compared to the same period in the prior year, primarily due to lower interest yield we received on our cash in the current year period.
Current report
Following closure of our Norwegian office, we do not anticipate further USD to NOK hedging activities.
Current report
Income taxes expense (benefit)
Current report
In the three months ended April 30, 2025, income taxes expense was $88,000 compared to an income tax benefit of $137,000 for the same period in the prior year, resulting primarily from the $273,000 pre-tax income in the current year period compared to the pre-tax loss of $24,000 in the prior period.
Current report
For the three months ended April 30, 2025, our income from operations related to the Zedge Marketplace increased 5.6% to $1.3 million from $1.2 million for the same period in the prior year, primarily due to higher revenue coupled with lower personnel related expenses offset by the increase in user acquisition costs, restructuring charges and other expenses.
Current report
For the three months ended April 30, 2025, our loss from operations related to GuruShots decreased 16.9% to $1.1 million from $1.3 million for the same period in the prior year, primarily due to lower revenue more than offset by lower personnel expenses, lower users acquisition costs and lower platform fees.
Current report
Nine months Ended April 30, 2025 Compared to Nine months Ended April 30, 2024
Current report
Net cash provided by operating activities was $2.7 million for the nine months ended April 30, 2025, primarily consisting of a $1.8 million net loss, adjusted for certain non-cash items, which included a $0.6 million impairment charge (net of tax effect) of capitalized software and technology development costs, $0.9 million of amortization, depreciation, and write-offs, $1.3 million of stock-based compensation expense, and a net increase in operating assets and liabilities of $1.7 million, primarily from the deferred revenue associated with the lifetime subscriptions sold during the period.
Current report
Net cash provided by operating activities was $5.2 million for the nine months ended April 30, 2024, primarily consisting of $9.1 million of net loss, adjusted for certain non-cash items, which included a $9.3 million impairment charge (net of tax effect) of intangible assets, $2.2 million of amortization, depreciation, and write-offs, $1.7 million of stock-based compensation expense, and a net increase in operating assets and liabilities of $1.1 million.
Current report
On November 15, 2023, the Company voluntarily prepaid the entire principal amount of $2 million in accordance with the terms of the Amended Loan Agreement without incurring any prepayment penalty.
Removed paragraphs (10)
Previous report
Six Months Ended January 31, 2025 Compared to Six Months Ended January 31, 2024
Previous report
For the six months ended January 31, 2025, digital goods and services revenue declined 32.4% compared to the same period in the prior year primarily due to the 25.9% decrease in GuruShots’ MAP coupled with 15.4% decrease in ARPMAP in Q1 of our fiscal 2025 and the 22.2% decrease in GuruShots’ MAP coupled with 21.0% decrease in ARPMAP in Q2 of our fiscal 2025.
Previous report
Stock-based compensation expenses decreased 17.5% in the six months ended January 31, 2025 compared to the same period in the prior year. The decrease was primarily attributable to the lower compensation expense related to the DSUs granted in September 2021 with both service and market conditions which were recognized based on the graded vesting method.
Previous report
Benefit from Income taxes
Previous report
Excluding the restructuring and other related charges of $0.9 million in the current period and impairment loss of $11.9 million in the prior period, loss from operation related to GuruShots would have been $1.4 million in the three months ended January 31, 2025 compared to $1.7 million for the same period in the prior year. The $0.3 million decrease in loss from operations can be attributed to lower SG&A and lower depreciation and amortization, the combination thereof more than offset the decline in revenue in the three months ended January 31, 2025 compared to the same period in the prior year.
Previous report
Six months Ended January 31, 2025 Compared to Six Months Ended January 31, 2024
Previous report
For the six months ended January 31, 2025, our loss from operations related to GuruShots decreased to $3.7 million from $14.9 million for the same period in the prior year, primarily due to the $11.9 million impairment loss of intangible assets recorded in the prior period. Additionally, we recorded $0.9 million restructuring and other related charges in the current period which contributed in part to the increase in the loss from operation related to GuruShots.
Previous report
Excluding the restructuring and other related charges of $0.9 million in the current period and impairment loss of $11.9 million in the prior period, loss from operation related to GuruShots would have been $2.8 million in the six months ended January 31, 2025 compared to $3.0 million for the same period in the prior year. The $0.2 million decrease in loss from operations can be attributed to lower SG&A and lower depreciation and amortization, the combination thereof more than offset the decline in revenue in the six months ended January 31, 2025 compared to the same period in the prior year.
Previous report
Changes in Trade Accounts Receivable
Previous report
Gross trade accounts receivable decreased $0.4 million to $3.0 million at January 31, 2025 from $3.4 million at July 31, 2024, primarily due to lower revenue in the preceding two months ended January 31, 2025 when compared to the same period ended July 31, 2024.
Reworded paragraphs (48)
Previous wording
Our Zedge app (which is named “Zedge Wallpapers” in the App Store) offers a wide array of mobile personalization content including wallpapers, video wallpapers, ringtones, and notification sounds, and is available both in Google Play and the App Store. As of January 31, 2025, our Zedge App had been installed nearly 696 million times since inception and, over the past two fiscal years, has had between 24.7 million and 32.0 million monthly active users (“MAU”), ending with 24.7 million MAU as of January 31, 2025. MAU is a key performance indicator (“KPI”) for our Zedge app that captures the number of unique users that used our Zedge App during the final 30 days of the relevant period. Our platform allows creators to upload content to our marketplace and avail it to our users either for free or, via ‘Zedge Premium,’ the section of our marketplace where we offer premium content for purchase. In turn, our users utilize the content to personalize their phones and express their individuality.
Current wording
Our Zedge app (which is named “Zedge Wallpapers” in the App Store) offers a wide array of mobile personalization content including wallpapers, video wallpapers, ringtones, and notification sounds, and is available both in Google Play and the App Store. As of April 30, 2025, our Zedge App had been installed nearly 707 million times since inception and, over the past eight fiscal quarters, has had between 22.1 million and 30.1 million monthly active users (“MAU”), ending with 22.1 million MAU as of April 30, 2025. MAU is a key performance indicator (“KPI”) for our Zedge app that captures the number of unique users that used our Zedge App during the final 30 days of the relevant period. Our platform allows creators to upload content to our marketplace and avail it to our users either for free or, via ‘Zedge Premium,’ the section of our marketplace where we offer premium content for purchase. In turn, our users utilize the content to personalize their phones and express their individuality.
Previous wording
The Zedge Marketplace’s monetization stack consists of advertising revenue generated when users view advertisements when using the Zedge App (and the related functionality under the zedge.net website), the in-app sale of Zedge Credits, our virtual currency, that is used to purchase Zedge Premium content, and a paid-subscription offering that provides an ad-free experience to users that purchase a monthly, annual or lifetime subscription. In April 2023, we introduced a subscription tier in the iOS version of the app. As of January 31, 2025, we had approximately 791,000 active subscribers.
Current wording
The Zedge Marketplace’s monetization stack consists of advertising revenue generated when users view advertisements when using the Zedge App (and the related functionality under the zedge.net website), the in-app sale of Zedge Credits, our virtual currency, that is used to purchase Zedge Premium content, and a paid-subscription offering that provides an ad-free experience to users that purchase a monthly, annual or lifetime subscription. In April 2023, we introduced a subscription tier in the iOS version of the app. As of April 30, 2025, we had approximately 896,000 active subscribers.
Previous wording
GuruShots utilizes a ‘Free-to-Play’ business model and generates revenue through in-app purchases of virtual currency. Players can use this currency to unlock competitions or gain an edge by purchasing resources and participating in additional gameplay. Over the past nine years, the monthly average paying player spend has increased in excess of 6.1% annually to more than $40.5 per player.
Current wording
GuruShots utilizes a ‘Free-to-Play’ business model and generates revenue through in-app purchases of virtual currency. Players can use this currency to unlock competitions or gain an edge by purchasing resources and participating in additional gameplay. Over the past nine years, the monthly average paying player spend has increased in excess of 6.2% annually to more than $40.9 per player.
Previous wording
Since the acquisition, GuruShots has faced challenges in growth and profitability and its revenue has declined. As such the Company is cutting costs through the restructuring discussed earlier and materially scaling back on paid user acquisition, or PUA, in order to approach breakeven. In parallel, we are developing a plan, that we refer to as GuruShots 2.0, to revamp GuruShots’ offering in order to put it on a growth trajectory and unlock the potential value in this asset. Our strategy focuses on attracting new users and converting them into recurring, paying players. To date, we introduced a fun and comprehensive onboarding experience to draw new users into the gameplay with ease and migrated to a coin-based in-game economy to enable more possibilities to reward and monetize players. We also launched Missions, a set of tasks that players need to complete in exchange for earning rewards, and Duels, a fast-paced, real-time player-versus-player game mechanic that adds an exciting competitive layer to GuruShots.
Current wording
Since the acquisition, GuruShots has faced challenges in growth and profitability and its revenue has declined. As such the Company is cutting costs as part of the restructuring implemented in January 2025 and materially scaling back on paid user acquisition, or PUA, in order to approach breakeven. In parallel, we are developing a plan, that we refer to as GuruShots 2.0, to revamp GuruShots’ offering in order to put it on a growth trajectory and unlock the potential value in this asset. Our strategy focuses on attracting new users and converting them into recurring, paying players. To date, we introduced a fun and comprehensive onboarding experience to draw new users into the gameplay with ease and migrated to a coin-based in-game economy to enable more possibilities to reward and monetize players. We also launched Missions, a set of tasks that players need to complete in exchange for earning rewards, and Duels, a fast-paced, real-time player-versus-player game mechanic that adds an exciting competitive layer to GuruShots.
Previous wording
Historically, we marketed GuruShots to prospective players, primarily via PUA channels. We utilize a host of creative formats including static and video ads in order to promote the game. As a part of the restructuring plan discussed earlier, we have materially reduced PUA for GuruShots and do not expect to ramp up until we finalize the GuruShots 2.0 plan.
Current wording
Historically, we marketed GuruShots to prospective players, primarily via PUA channels. We utilize a host of creative formats including static and video ads in order to promote the game. As a part of the restructuring plan mentioned above, we have materially reduced PUA for GuruShots and do not expect to ramp up until we finalize the GuruShots 2.0 plan.
Previous wording
We own and operate Emojipedia, the world’s leading authority dedicated to providing up-to-date and well-researched emoji definitions, information, and news, as well as World Emoji Day and the annual World Emoji Awards. In January 2025, Emojipedia received approximately 33.7 million monthly page views and has approximately 10.0 million monthly active users as of January 31, 2025 of which approximately 48.8% are located in well-developed markets. It is the top resource for all things emoji, offering insights into data and cultural trends. As a member of the Unicode Consortium, the standards body responsible for approving new emojis, Emojipedia works alongside major emoji creators including Apple, Google, Meta, and X, formerly known as Twitter.
Current wording
We own and operate Emojipedia, the world’s leading authority dedicated to providing up-to-date and well-researched emoji definitions, information, and news, as well as World Emoji Day and the annual World Emoji Awards. In April 2025, Emojipedia received approximately 46.3 million monthly page views and has approximately 10.9 million monthly active users as of April 30, 2025 of which approximately 49.7% are located in well-developed markets. It is the top resource for all things emoji, offering insights into data and cultural trends. As a member of the Unicode Consortium, the standards body responsible for approving new emojis, Emojipedia works alongside major emoji creators including Apple, Google, Meta, and X, formerly known as Twitter.
Previous wording
MAU decreased 14.2% in the three months ended January 31, 2025 when compared to the same period a year ago. As of January 31, 2025, users in emerging markets represented about 77.3% of our MAU, as compared to 78.1% from the same period a year ago.
Current wording
MAU decreased 20.2% in the three months ended April 30, 2025 when compared to the same period a year ago. As of April 30, 2025, users in emerging markets represented about 76.5% of our MAU, as compared to 78.3% from the same period a year ago.
Previous wording
ARPMAU for the three months ended January 31, 2025 increased 8.7% when compared to the same period a year ago, primarily due to the increase in price per advertising impression from the same period a year ago, which was driven by increased competition for our ad inventory as well as strong year-over-year subscription revenue growth. Subscription revenue and subscription billings for the three months ended January 31, 2025 increased 13.3% and 26.7%, respectively, when compared to the same period a year ago, as discussed below.
Current wording
ARPMAU for the three months ended April 30, 2025 increased 32.7% when compared to the same period a year ago, primarily due to the increase in price per advertising impression from the same period a year ago, which was driven by increased competition for our ad inventory as well as strong year-over-year subscription revenue growth. Subscription revenue and subscription billings for the three months ended April 30, 2025 increased 13.4% and 22.9%, respectively, when compared to the same period a year ago, as discussed below.
Previous wording
MAP decreased 22.2% in the three months ended January 31, 2025 when compared to the same period a year ago, primarily attributable to Apple’s App Tracking Transparence (“ATT”) framework which impedes our ability to invest in paid user acquisition (“PUA”) campaigns profitably in terms of return on ad spend or (“ROAS”). As such, we continued to scale back our PUA spend for GuruShots while testing new campaigns and creatives in order to unearth attractive ROAS scaling opportunities. As part of the restructuring implemented in January 2025, we expect to materially decrease PUA at least through the end of fiscal 2025.
Current wording
MAP decreased 33.8% in the three months ended April 30, 2025 when compared to the same period a year ago, primarily attributable to Apple’s App Tracking Transparence (“ATT”) framework which impedes our ability to invest in paid user acquisition (“PUA”) campaigns profitably in terms of return on ad spend or (“ROAS”). As such, we continued to scale back our PUA spend for GuruShots while testing new campaigns and creatives in order to unearth attractive ROAS scaling opportunities. As part of the restructuring implemented in January 2025, we expect to materially decrease PUA at least through the end of fiscal 2025.
Previous wording
ARPMAP decreased 21.0% to $39.8 in the three months ended January 31, 2025 from $50.4 in the same period a year ago. The following table shows our MAP and ARPMAP for the three months ended January 31, 2025 and 2024:
Current wording
ARPMAP decreased 17.1% to $44.1 in the three months ended April 30, 2025 from $53.2 in the same period a year ago. The following table shows our MAP and ARPMAP for the three months ended April 30, 2025 and 2024:
Previous wording
Comparison of Our Results of Operations for the Three and Six Months Ended January 31, 2025 and 2024
Current wording
Comparison of Our Results of Operations for the Three and Nine months Ended April 30, 2025 and 2024
Previous wording
The following table sets forth the composition of our revenues for the three and six months ended January 31, 2025 and 2024 (in thousands):
Current wording
The following table sets forth the composition of our revenues for the three and nine months ended April 30, 2025 and 2024 (in thousands):
Previous wording
The following table summarizes our subscription revenue for the three and six months ended January 31, 2025 and 2024:
Current wording
The following table summarizes our subscription revenue for the three and nine months ended April 30, 2025 and 2024:
Previous wording
The following table summarizes Zedge Premium gross and net revenue for the three and six months ended January 31, 2025 and 2024:
Current wording
The following table summarizes Zedge Premium gross and net revenue for the three and nine months ended April 30, 2025 and 2024:
Previous wording
For the three months ended January 31, 2025, our advertising revenue decreased 14.3% compared to the same period in the prior year primarily due to a 14.2% decrease in MAU partially offset by an increase in price per advertising impression paid by the advertisers on our platform when compared to the same period a year ago, which was driven by increased competition for our ad inventory.
Current wording
For the three months ended April 30, 2025, our advertising revenue increased 2.2% compared to the same period in the prior year primarily due to the increase in price per advertising impression paid by the advertisers on our platform when compared to the same period a year ago, which was driven by increased competition for our ad inventory.
Previous wording
For the three months ended January 31, 2025, our subscription revenue increased 13.3%, and our subscription billings increased 26.7% compared to the same period in the prior year primarily due to the introduction of our iOS subscription offering in April 2023 and the lifetime subscription product for Android users we rolled out in August 2023.
Current wording
For the three months ended April 30, 2025, our subscription revenue increased 13.4%, and our subscription billings increased 22.9% compared to the same period in the prior year primarily due to the introduction of our iOS subscription offering in April 2023 and the lifetime subscription product for Android users we rolled out in August 2023.
Previous wording
For the six months ended January 31, 2025, our other revenue increased 83.7% compared to the same period in the prior year primarily due to the increase in Zedge Premium net revenue. For the six months ended January 31, 2025, Zedge Premium net revenue increased 92.1% compared to the same period in the prior year primarily attributable to additional revenue from certain AI generative features we rolled out in our Zedge App in fiscal 2024.
Current wording
For the three months ended April 30, 2025, our other revenue increased 109.2% compared to the same period in the prior year primarily due to the increase in Zedge Premium net revenue. For the three months ended April 30, 2025, Zedge Premium net revenue increased 112.9% compared to the same period in the prior year primarily attributable to additional revenue from certain AI generative features we rolled out in our Zedge App in fiscal 2024 and the effect of the write-down of advanced royalties paid to certain content creators or owners in the prior period.
Previous wording
For the three months ended January 31, 2025, digital goods and services revenue declined 33.0% compared to the same period in the prior year primarily due to the 22.2% decrease in GuruShots’ MAP coupled with 21.0% decrease in ARPMAP for the corresponding periods.
Current wording
For the three months ended April 30, 2025, digital goods and services revenue declined 45.3% compared to the same period in the prior year primarily due to the 33.8% decrease in GuruShots’ MAP coupled with 17.1% decrease in ARPMAP for the corresponding periods.
Previous wording
For the six months ended January 31, 2025, our advertising revenue decreased 8.1% compared to the same period in the prior year primarily due to a 12.3% and 14.2% decrease in MAU in our Q1 and Q2 of our fiscal 2025, respectively, partially offset by an increase in price per advertising impression paid by the advertisers on our platform when compared to the same periods a year ago, which was driven by increased competition for our ad inventory.
Current wording
For the nine months ended April 30, 2025, our advertising revenue decreased 4.6% compared to the same period in the prior year primarily due to lower ad inventory resulting mainly from the decline in MAU partially offset by an increase in price per advertising impression paid by the advertisers on our platform when compared to the same periods a year ago, which was driven by increased competition for our ad inventory.
Previous wording
For the six months ended January 31, 2025, our subscription revenue increased 17.0%, and our subscription billings increased 39.4% compared to the same period in the prior year primarily due to the introduction of our iOS subscription offering in April 2023 and the lifetime subscription product for Android users we rolled out in August 2023.
Current wording
For the nine months ended April 30, 2025, our subscription revenue increased 15.7%, and our subscription billings increased 33.4% compared to the same period in the prior year primarily due to the introduction of our iOS subscription offering in April 2023 and the lifetime subscription product for Android users we rolled out in August 2023.
Previous wording
For the three months ended January 31, 2025, our other revenue increased 53.2% compared to the same period in the prior year primarily due to the increase in Zedge Premium net revenue. For the three months ended January 31, 2025, Zedge Premium net revenue increased 55.6% compared to the same period in the prior year primarily attributable to additional revenue from certain AI generative features we rolled out in our Zedge App in fiscal 2024.
Current wording
For the nine months ended April 30, 2025, our other revenue increased 91.1% compared to the same period in the prior year primarily due to the increase in Zedge Premium net revenue. For the nine months ended April 30, 2025, Zedge Premium net revenue increased 98.2% compared to the same period in the prior year primarily attributable to additional revenue from certain AI generative features we rolled out in our Zedge App in fiscal 2024.
Previous wording
Direct cost of revenues decreased 2.4% in the three months ended January 31, 2025 compared to the same period in the prior year primarily due to continuing optimizing of our backend infrastructure. As a percentage of revenue, direct cost of revenues in the three months ended January 31, 2025 increased to 6.4% from 5.9% for the same period in the prior year primarily due to lower revenue in the current year period.
Current wording
Direct cost of revenues decreased 0.7% in the three months ended April 30, 2025 compared to the same period in the prior year primarily due to continued optimization of our backend infrastructure. As a percentage of revenue, direct cost of revenues in the three months ended April 30, 2025 decreased to 5.8% from 5.9% for the same period in the prior year.
Previous wording
Direct cost of revenues decreased 3.8% in the six months ended January 31, 2025 compared to the same period in the prior year primarily due to continuing optimizing of our backend infrastructure. As a percentage of revenue, direct cost of revenues in the six months ended January 31, 2025 was flat at 6.4% when compared to the same period in the prior year primarily due to the cost savings offset by lower revenue in the current year period.
Current wording
Direct cost of revenues decreased 2.8% in the nine months ended April 30, 2025 compared to the same period in the prior year primarily due to continued optimization of our backend infrastructure. As a percentage of revenue, direct cost of revenues in the nine months ended April 30, 2025 was flat at 6.2% when compared to the same period in the prior year primarily due to the cost savings offset by lower revenue in the current year period.
Previous wording
SG&A expense increased 9.2% in the three months ended January 31, 2025 compared to the same period in the prior year primarily due to higher PUA, higher compensation expenses (resulting primarily from lower capitalized software and technology development costs) and higher platform fee paid to Google and Apple offset by lower discretionary spends and lower stock-based compensation expense. In the three months ended January 31, 2025, we ramped up PUA for our Zedge App significantly but scaled back PUA spend for GuruShots as compared to the same period in the prior year. We expect to continue our investment in PUA for our Zedge App in the near term provided that the ROAS remains compelling while materially cutting back on PUA for GuruShots, at least through the end of the fiscal year. As a percentage of revenue, SG&A expense in the three months ended January 31, 2025 was 102.1% compared to 83.9% for the same period in the prior year.
Current wording
SG&A expense increased 8.0% in the nine months ended April 30, 2025 compared to the same period in the prior year primarily due to higher PUA, higher net compensation expenses (resulting primarily from lower capitalized software and technology development costs in the current year period) and higher platform fee paid to Google and Apple offset by lower discretionary spends and lower stock-based compensation expense. In the nine months ended April 30, 2025, we ramped up PUA for our Zedge App significantly but scaled back PUA spend for GuruShots as compared to the same period in the prior year. We expect to continue our investment in PUA for our Zedge App in the near term provided that the ROAS remains compelling while materially cutting back on PUA for GuruShots, at least through the end of the fiscal year. As a percentage of revenue, SG&A expense in the nine months ended April 30, 2025 was 92.5% compared to 83.4% for the same period in the prior year.
Previous wording
Global headcount as of January 31, 2025 totaled 106 (including 28 at GuruShots) compared to 99 (including 30 at GuruShots) as of January 31, 2025 with the majority of those employees based in Lithuania and Israel. In January 2025, we implemented a corporate restructuring and reduced our global headcount by approximately 22%. Details are more fully described in Note 14Restructuring and Other Related Chargesto the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Current wording
Global headcount as of April 30, 2025 totaled 96 (including 15 at GuruShots) compared to 100 (including 29 at GuruShots) as of April 30, 2024 with the majority of those employees based in Lithuania and Israel. In January 2025, we implemented a corporate restructuring and reduced our global headcount by approximately 22% which will reduce our headcount to about 80 at the end of our fiscal 2025. Details are more fully described in Note 14Restructuring and Other Related Charges to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Previous wording
The following table summarizes stock-based compensation expense included in SG&A expense for the three and six months ended January 31, 2025 and 2024:
Current wording
The following table summarizes stock-based compensation expense included in SG&A expense for the three and nine months ended April 30, 2025 and 2024:
Previous wording
Stock-based compensation expenses decreased 11.7% in the three months ended January 31, 2025 compared to the same period in the prior year. The decrease was primarily attributable to the lower compensation expense related to the DSUs granted in September 2021 with both service and market conditions which were recognized based on the graded vesting method. Certain stock options, DSUs and restricted stock grants are more fully described in Note 7Stock-Based Compensation to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Current wording
Certain stock options, DSUs and restricted stock grants are more fully described in Note 7Stock-Based Compensation to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Previous wording
Depreciation and amortization expenses decreased 58.4% in three months ended January 31, 2025 compared to the same period in the prior year primarily due to the $11.9 million impairment charge recorded in Q2 of fiscal 2024.
Current wording
Depreciation and amortization expenses decreased 61.4% in three months ended April 30, 2025 compared to the same period in the prior year primarily due to the $11.9 million impairment charge recorded in Q2 of fiscal 2024.
Previous wording
Depreciation and amortization expenses decreased 54.6% in six months ended January 31, 2025 compared to the same period in the prior year also due to the $11.9 million impairment charge recorded in Q2 of fiscal 2024.
Current wording
Depreciation and amortization expenses decreased 56.4% in nine months ended April 30, 2025 compared to the same period in the prior year also due to the $11.9 million impairment charge recorded in Q2 of fiscal 2024.
Previous wording
Impairment of intangible assets. For the three and six months ended January 31, 2024, we recorded an approximately $11.9 million impairment of intangible assets of our GuruShots reporting segment, as more fully described in Note 5Intangible Assets and Goodwill to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Current wording
Impairment of intangible assets. For the nine months ended April 30, 2024, we recorded an approximately $11.9 million impairment of intangible assets of our GuruShots reporting segment, as more fully described in Note 5Intangible Assets and Goodwill to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Previous wording
Restructuring charges. For the three and six months ended January 31, 2025, we recorded an approximately $0.5 million restructuring charges primarily consists of severance and employee benefits in connection with the global restructuring implemented in January 2025, as more fully described in Note 14Restructuring and Other Related Charges to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Current wording
Restructuring charges. For the three and nine months ended April 30, 2025, we recorded approximately $0.6 and $1.1 million, respectively, in restructuring charges primarily consisting of severance and employee benefits in connection with the global restructuring implemented in January 2025, as more fully described in Note 14Restructuring and Other Related Charges to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Previous wording
Impairment of capitalized software and technology development costs. For the three and six months ended January 31, 2025, we wrote off approximately $0.8 million of GuruShots’ capitalized software and technology development costs in connection with the global restructuring implemented in January 2025, as more fully described in Note 14Restructuring and Other Related Charges to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Current wording
Impairment of capitalized software and technology development costs. For the nine months ended April 30, 2025, we wrote off approximately $0.8 million of GuruShots’ capitalized software and technology development costs in connection with the global restructuring implemented in January 2025, as more fully described in Note 14Restructuring and Other Related Charges to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Previous wording
In the six months ended January 31, 2025, interest and other income, net increased by $106,000 compared to the same period in the prior year, which included a deduction of $65,000 in interest expense related to the $2 million term loan which was repaid in November 2023 and a $50,000 impairment charge related to our investment in a privately held company of which the carrying value was reduced to $0 as of October 30, 2023.
Current wording
In the nine months ended April 30, 2025, interest and other income, net increased by $73,000 compared to the same period in the prior year, primarily due to lower interest yield we received on our cash in the current year period, which was more than offset by $65,000 in interest expense related to the $2 million term loan which was repaid in November 2023 and the $50,000 impairment charge related to our investment in a privately held company of which the carrying value was reduced to $0 as of October 30, 2023.
Previous wording
Net (loss) gain resulting from foreign exchange transactions. Net (loss) gain resulting from foreign exchange transactions is comprised of gains and losses generated from movements in NOK and EUR relative to the U.S. Dollar, including gains or losses from our hedging activities.
Current wording
Net loss resulting from foreign exchange transactions. Net loss resulting from foreign exchange transactions is comprised of gains and losses generated from movements in NOK and EUR relative to the U.S. Dollar, including gains or losses from our hedging activities.
Previous wording
In the three months ended January 31, 2025, net loss resulting from foreign exchange transactions was $86,000 compared to a net gain of $76,000 for the same period in the prior year primarily due to unfavorable FX movement related to our NOK and EUR hedging activities in the current period.
Current wording
In the three months ended April 30, 2025, net loss resulting from foreign exchange transactions was $41,000 compared to a net loss of $80,000 for the same period in the prior year primarily due to unfavorable FX movement related to our NOK and EUR hedging activities in both current and prior periods.
Previous wording
In the six months ended January 31, 2025, net loss resulting from foreign exchange transactions decreased by $43,000 from $143,000 to $100,000 when compared to the same period in the prior year primarily due to favorable FX movement related to our NOK and EUR hedging activities in the current period.
Current wording
In the nine months ended April 30, 2025, net loss resulting from foreign exchange transactions decreased by $82,000 from $141,000 to $223,000 when compared to the same period in the prior year primarily due to unfavorable FX movement related to our NOK and EUR hedging activities in both current and prior periods.
Previous wording
We recognized Mark to Market (“MTM”) losses of $111,000 and $51,000 from NOK and EUR hedging activities, respectively, as of January 31, 2025 and July 31, 2024, as more fully described in Note 4,Derivative Instruments, to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Current wording
We recognized Mark to Market (“MTM”) gains of $65,000 and losses of $51,000 from NOK and EUR hedging activities, respectively, as of April 30, 2025 and July 31, 2024, as more fully described in Note 4,Derivative Instruments, to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Previous wording
In the three months ended January 31, 2025, income tax benefit decreased by $2.0 million compared to the same period in the prior year, resulting primarily from the $2.5 million increase in deferred tax assets related to the $11.9 million impairment loss on GuruShot’s intangible assets recorded in the prior period offset by $0.2 million increase in deferred tax assets related to the impairment charge of GuruShot’s capitalized software and technology development costs of $0.8 million recorded in the current period.
Current wording
In the nine months ended April 30, 2025, income tax benefit decreased by $2.1 million compared to the same period in the prior year, resulting primarily from the $2.5 million increase in deferred tax assets related to the $11.9 million impairment loss on GuruShot’s intangible assets recorded in the prior period offset by $0.2 million increase in deferred tax assets related to the impairment charge of GuruShot’s capitalized software and technology development costs of $0.8 million recorded in the current year period.
Previous wording
The following table presents the results for our Zedge Marketplace and GuruShots segment income (loss) from operations for the three and six months ended January 31, 2025 and 2024:
Current wording
The following table presents the results for our Zedge Marketplace and GuruShots segment income (loss) from operations for the three and nine months ended April 30, 2025 and 2024:
Previous wording
For the six months ended January 31, 2025, our income from operations related to the Zedge Marketplace decreased to $976,000 from $3.3 million for the same period in the prior year, primarily due to higher SG&A expenses incurred in the current period. Additionally, we recorded $0.4 million restructuring charges in the current period which contributed in part to the decrease in the segment income from operation related to the Zedge Marketplace.
Current wording
For the nine months ended April 30, 2025, our income from operations related to the Zedge Marketplace decreased 50.6% to $2.2 million from $4.5 million for the same period in the prior year, primarily due to higher users acquisition costs and higher other expenses incurred in the current year period. Additionally, we recorded $0.7 million restructuring charges in the current year period which contributed in part to the decrease in the segment income from operation related to the Zedge Marketplace.
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Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
SG&A expense increased 15.9% in the six months ended January 31, 2025 compared to the same period in the prior year primarily due to higher PUA, higher compensation expenses (resulting primarily from lower capitalized software and technology development costs) and higher platform fee paid to Google and Apple offset by lower discretionary spends and lower stock-based compensation expense. In the six months ended January 31, 2025, we ramped up PUA for our Zedge App significantly but scaled back PUA spend for GuruShots as compared to the same period in the prior year. We expect to continue our investment in PUA for our Zedge App in the near term provided that the ROAS remains compelling while materially cutting back on PUA for GuruShots, at least through the end of the fiscal year. As a percentage of revenue, SG&A expense in the six months ended January 31, 2025 was 98.3% compared to 80.9% for the same period in the prior year.
Previous report — wording carried elsewhere
In the three months ended January 31, 2025, interest and other income, net increased by $6,000 compared to the same period in the prior year, which included a deduction of $19,000 in interest expense related to the $2 million term loan which was repaid in November 2023.
Previous report — wording carried elsewhere
In the six months ended January 31, 2025, income tax benefit decreased by $1.9 million compared to the same period in the prior year, resulting primarily from the $2.5 million increase in deferred tax assets related to the $11.9 million impairment loss on GuruShot’s intangible assets recorded in the prior period offset by $0.2 million increase in deferred tax assets related to the impairment charge of GuruShot’s capitalized software and technology development costs of $0.8 million recorded in the current period.
Previous report — wording carried elsewhere
For the three months ended January 31, 2025, our income from operations related to the Zedge Marketplace decreased to $42,000 from $1.7 million for the same period in the prior year, primarily due to lower revenue coupled with higher SG&A expenses incurred in the current period. Additionally, we recorded $0.4 million in restructuring charges in the current year period which contributed in part to the decrease in the segment income from operation related to the Zedge Marketplace.