Zedge, Inc.
For the period ended Oct 31, 2025. Filed Dec 12, 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.
Oct 31, 2025 · Filed Dec 12, 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 2025-04-30; filed 2025-06-13.
0001213900-25-054298
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-10-31; filed 2025-12-12.
0001213900-25-121203
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 122 previous paragraphs and 109 current paragraphs.
42 unchanged; 43 reworded; 23 added; 37 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 20 previous and 27 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 (23)
Current report
AI Technology Trends
Current report
A key component of our growth strategy involves the adoption and utilization of AI, which introduces certain risks that may materially and adversely affect our business, financial condition, results of operations, and reputation. We incorporate AI into products such as pAInt and rely on AI for content moderation, personalization, and user engagement, but market demand for AI-driven offerings remains uncertain and may be outpaced by competitors. Compliance with evolving AI laws, such as the EU AI Act, may impose significant operational costs. Additionally, in late September 2025, Google released an update to its Search Engine Results Page (SERP) enabling users to copy emojis directly from search results rather than being directed to third-party sites such as Emojipedia, and AI platforms, including ChatGPT and Claude, now return emoji results in response to user queries. While it is too early to accurately quantify the impact of these changes on Emojipedia’s MAU, we believe they are likely to result in reduced traffic and adversely affect revenue. These uncertainties could significantly diminish the value of our services and materially and adversely affect our revenue, profitability, and prospects.
Current report
We are part of the ‘Creator Economy,’ which is estimated to be worth between $191 billion and $250 billion globally in 2025, with some forecasts placing the global market size as high as $848 billion by 20321,2,3. According to multiple reports, there are now over 207 million active content creators worldwide.4,5 Furthermore, between 45% and 47% of creators identify as working full-time in this space 6,7,8. Most creators earn modest incomes, and studies suggest that only a small portion, approximately 4%, of creators earn more than $100,000 per year 9,10,11. We view the Creator Economy as an opportunity for Zedge to expand our business, especially as we execute by connecting our gamers with our marketplace.
Current report
In fiscal 2025, we introduced DataSeeds.AI (“DataSeeds”). DataSeeds builds custom, fully rights-cleared image, video, and audio datasets for enterprise AI teams that need controlled inputs, bespoke content, and consistent metadata at scale. We draw on a large and long-standing creator ecosystem built through GuruShots and the Zedge Marketplace, complemented by an extensive global network of vetted professional photographers, videographers, and domain specialists. This unified sourcing model gives predictable, spec-driven control over subject matter, diversity parameters, environments, and capture conditions. It enables fast, high-volume delivery of custom datasets used to support frontier model training, robust computer vision performance, and grounded generative AI.
Current report
Historically, we marketed GuruShots to prospective players primarily via PUA channels including Google, Meta, TikTok and other platforms, utilizing a variety of advertising media, formats, such as static and video ads. As part of the GuruShots 2.0 development plan, we have significantly reduced PUA investment for GuruShots to improve Return-on-Ad-Spend (ROAS) and intend to continue managing PUA spend in the current timeframe.
Current report
As set forth above, we believe that the extensive library of photographs generated by GuruShots players through submissions to GuruShots’ competitions represents a valuable dataset for our DataSeeds offering. To date, we have secured rights to license a portion of this library for various applications, including AI training, and we continue to expand the licensable catalog by securing rights to additional photographs.
Current report
In late September 2025, Google released an update to its Search Engine Results Page (SERP) enabling users to copy emojis directly from search results rather than being directed to third-party sites such as Emojipedia. In addition, AI platforms, including ChatGPT and Claude, now return emoji results in response to user queries. While it is too early to accurately quantify the impact of these changes on Emojipedia’ s monthly active users (MAU), we believe they are likely to result in reduced traffic and adversely affect revenue. In light of these developments, we are evaluating potential mitigation strategies and will determine whether such measures warrant investment given the associated costs and expected benefits.
Current report
For the three months ended October 31, 2025, our total revenue increased by 5.8% compared to the same period in the prior year, primarily attributable to the increase in advertising and subscription revenue, partially offset by the 27.3% decline in GuruShots’ revenue during the corresponding periods.
Current report
SG&A decreased 13.0% for the three months ended October 31, 2025, compared to the same period in the prior year. The decrease was primarily driven by lower net personnel-related expenses, including stock-based compensation, resulting from the global restructuring initiative implemented in January 2025, which reduced our headcount by approximately 21%. SG&A also declined due to the expiration of the $8 million retention bonus program (evenly split between cash and stock) associated with the GuruShots acquisition, which concluded in April 2025.
Current report
For the three months ended October 31, 2025, we increased PUA spending for the Zedge App while reducing PUA spending for GuruShots relative to the prior-year period. Combined PUA spending decreased 5%, to $1.7 million in the three months ended October 31, 2025, from $1.8 million in the same period of the prior year. We expect to continue investing in PUA for the Zedge App in the near term, provided that return on ad spend (“ROAS”) remains attractive.
Current report
As a percentage of revenue, SG&A was 77.9% for the three months ended October 31, 2025, compared to 94.6% for the same period in the prior year.
Current report
Depreciation and amortization expense decreased by 43.3% for the three months ended October 31, 2025, compared to the corresponding period in the prior year. This decline was principally attributable to the $0.8 million impairment charge recognized in the second quarter of fiscal 2025 related to GuruShots’ capitalized software and technology development costs, which was incurred in connection with the global restructuring initiative.
Current report
As a result of the global restructuring initiative implemented in January 2025, which included the closure of the Company’s Norway operations, we no longer have exposure to USD/NOK foreign exchange risk. Accordingly, there were no outstanding NOK forward contracts as of July 31, 2025. We have also concluded that there is no current requirement to enter into USD/EUR forward contracts beyond August 2025. As a result, there were no outstanding EUR forward contracts and no MTM adjustment as of October 31, 2025.
Current report
Income tax expense
Current report
In the three months ended October 31, 2025, we generated pretax income of $1.0 million and recorded an income tax expense of $233,000, representing an effective tax rate of 22.8%. This rate exceeds our estimated effective tax rate for fiscal 2026 of 22.3%, primarily due to discrete tax items of $9,700 associated with the vesting DSUs during the current period.
Current report
In the three months ended October 31, 2024, we incurred a pretax loss of $290,000 and recorded an income tax expense of $49,000. The tax expense in this period primarily reflects discrete tax items of $115,000 related to the vesting of restricted stock and DSUs in the prior period, which more than offset an accrued tax benefit of $66,000 based on an estimated effective tax rate of 22.7%.
Current report
For the three months ended October 31, 2025, income from operations related to the Zedge Marketplace increased 66.4% to $1.6 million, compared to $0.9 million for the three months ended October 31, 2024. The increase was primarily attributable to higher revenue and lower SG&A during the current period.
Current report
For the three months ended October 31, 2025, loss from operations related to GuruShots decreased 54.0% to $0.6 million, compared to $1.4 million for the three months ended October 31, 2024. The decrease in operating loss was primarily driven by lower SG&A resulting from the global restructuring initiative implemented in January 2025, partially offset by lower revenue in the current period.
Current report
Net cash provided by operating activities was $0.8 million for the three months ended October 31, 2025. This amount primarily reflects net income of $1.0 million, adjusted for non-cash items including $0.2 million of amortization and depreciation and $0.1 million of stock-based compensation expense. These adjustments were partially offset by a $0.5 million net decrease resulting from changes in operating assets and liabilities, driven primarily by payroll tax payments related to severance and option gains for Norwegian employees impacted by our global restructuring initiative which has been completed as of July 31, 2025.
Current report
Changes in Trade Accounts Receivable
Current report
Gross trade accounts receivable increased $0.1 million to $3.3 million at October 31, 2025 from $3.2 million at July 31, 2025, primarily due to higher revenue in the preceding two months ended October 31, 2025 when compared to the same period ended July 31, 2025.
Current report
In the three months ended October 31, 2025 and 2024, we repurchased – under our Board-approved share repurchase program – 238,460 shares and 219,573 shares, respectively, of our Class B common stock for approximately $776,000 and $782,000, respectively.
Current report
On October 14, 2025, we declared a quarterly cash dividend of $0.016 per share, aggregating approximately $208,000. The dividend was included inAccrued expenses and other current liabilities as of October 31, 2025, and was paid on November 7, 2025, to stockholders of record as of October 24, 2025, as more fully described in Note 14,Shareholder Distributions and Earnings and Profits (E&P), to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Removed paragraphs (37)
Previous report
We are part of the ‘Creator Economy,’ which Goldman Sachs estimates is worth $250 billion globally.1 According to Linktree, over 200 million individuals identify as creators, people who use their influence, skill, and creativity to amass an audience and monetize it.2 Furthermore, Influencer Marketing Hub reports that out of 2,000 surveyed creators, 44.9% identify as full-time creators,3 and Exploding Topics reports that 10% of influencers earn more than $100,000 per year.4 We view the Creator Economy as an opportunity for Zedge to expand our business, especially as we execute by connecting our gamers with our marketplace.
Previous report
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 report
Beyond our commitment to growing both the Zedge App and GuruShots on a standalone basis, we believe that there are untapped opportunities that we can capitalize on to unlock additional value. Specifically, we plan to enable GuruShots players the ability to sell their content both in the Zedge Marketplace and elsewhere. In addition, we are benefitting from the experience that the GuruShots team possesses in gamifying the Zedge App. Longer term, we believe that there are complementary content verticals that lend themselves to gamification.
Previous report
We believe that Emojipedia provides growth potential to the Zedge App, and it was immediately accretive to earnings post acquisition in August 2021. In the past year, we have made many changes to Emojipedia including overhauling its backend, redesigning the Emojipedia website, and introducing new entertainment-focused features to the site. We will continue to enhance this offering and are exploring additional new features which use artificial intelligence, some of which will be released before the end of the calendar year.
Previous report
Please see Note 1 to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Previous report
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Previous report
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Previous report
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 report
Nine months Ended April 30, 2025 Compared to Nine months Ended April 30, 2024
Previous report
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 report
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 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.
Previous report
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 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.
Previous report
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 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.
Previous 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.
Previous report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
Following closure of our Norwegian office, we do not anticipate further USD to NOK hedging activities.
Previous report
Income taxes expense (benefit)
Previous 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.
Previous report
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 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.
Previous 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.
Previous report
Nine months Ended April 30, 2025 Compared to Nine months Ended April 30, 2024
Previous report
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.
Previous report
For the nine months ended April 30, 2025, our loss from operations related to GuruShots decreased 70.8% to $4.8 million from $16.3 million for the same period in the prior year, primarily due to lower revenue coupled with the $11.9 million impairment loss of intangible assets recorded in the prior period.
Previous 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.
Previous 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.
Previous report
In the nine months ended April 30, 2025, we repurchased - in connection with the share repurchase program – 683,506 shares of our Class B common stock for approximately $2.0 million compared to 60,206 shares for approximately $152,000 in the prior period.
Previous report
We do not anticipate paying dividends on our common stock until we achieve sustainable profitability and retain certain minimum cash reserves. The payment of dividends in any specific period will be at the sole discretion of our Board of Directors.
Reworded paragraphs (43)
Previous wording
The following information should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and the associated notes thereto of this Quarterly Report, and the audited consolidated financial statements and the notes thereto and our Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 (the “2024 Form 10-K”), as filed with the U.S. Securities and Exchange Commission (the “SEC”) on October 29, 2024.
Current wording
The following information should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and the associated notes thereto of this Quarterly Report, and the audited consolidated financial statements and the notes thereto and our Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended July 31, 2025 (the “2025 Form 10-K”), as filed with the U.S. Securities and Exchange Commission (the “SEC”).
Previous wording
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements that contain the words “believes,” “anticipates,” “expects,” “plans,” “intends,” and similar words and phrases. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from future results. Factors that may cause such differences include, but are not limited to: (1) economic, geopolitical and market conditions can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price; (2) delay or failure to realize the expected synergies and benefits of the GuruShots acquisition; (3) Russia’s invasion of Ukraine, and the international community’s response; and (4) recent attack by Hamas and other terrorist organizations from the Gaza Strip and Lebanon and Israel’s war against them. For further information regarding risks and uncertainties associated with our business, please refer to Item 1A to Part I “Risk Factors” in the 2024 Form 10-K. The forward-looking statements are made as of the date of this report and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should consult all of the information set forth in this report and the other information set forth from time to time in our reports filed with the SEC pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934, including the 2024 Form 10-K.
Current wording
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements that contain the words “believes,” “anticipates,” “expects,” “plans,” “intends,” and similar words and phrases. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from future results. Factors that may cause such differences include, but are not limited to: (1) economic, geopolitical and market conditions can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price; (2) our ability to keep pace with rapid technological changes in the Internet, mobile and AI industries and to adapt our products and services accordingly; (3) risks associated with our reliance on the adoption, integration and effective utilization of AI technologies, which is a key component of our growth strategy; (4) our ability to acquire a sufficient number of users that become purchasers, retain existing users, and generate profitable revenue from our apps; (5) our ability to successfully make acquisitions and/or successfully integrate acquisitions that we have made into Zedge without incurring unanticipated costs or without being subject to other integration issues that may disrupt our existing operations; and (6) the threat of continued hostilities against Israel from Iran, the Gaza Strip, Lebanon, and Syria. For further information regarding risks and uncertainties associated with our business, please refer to Item 1A to Part I “Risk Factors” in the 2025 Form 10-K. The forward-looking statements are made as of the date of this report and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should consult all of the information set forth in this report and the other information set forth from time to time in our reports filed with the SEC pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934, including the 2025 Form 10-K.
Previous wording
The majority of our users and employees are located outside of the United States exposing us to a range of economic factors and regulations including foreign exchange fluctuations. There is uncertainty surrounding macroeconomic factors in the U.S. and globally. We believe these macroeconomic conditions coupled with the global political climate and unrest, including the ongoing wars between Ukraine and Russia and Israel and Hamas, may negatively impact our performance.
Current wording
The majority of our users and employees are located outside of the United States exposing us to a range of economic factors and regulations including foreign exchange fluctuations. There is uncertainty surrounding macroeconomic factors in the U.S. and globally. We believe these macroeconomic conditions coupled with the global political climate and unrest, including the ongoing wars between Ukraine and Russia and Israel and Iran, the Gaza Strip, Lebanon, and Syria, may negatively impact our performance.
Previous wording
Given our operations in Israel, the impact of economic, political, geopolitical, and military conditions in the region directly affects us, including conflicts involving missile strikes, infiltrations, and terrorism. Notably, on October 7, 2023, Hamas launched attacks in southern Israel, resulting in casualties and military engagement. In addition, Hezbollah, another terrorist organization based in Lebanon has been indiscriminately shelling Israel since October 8, 2023, the Houthi rebels based in Yemen have also launched ballistic missiles and kamikaze drones at Israel and the Islamic Republic of Iran has on two occasions attacked Israel with a barrage of ballistic missiles. Although a temporary ceasefire is in place, it is unclear if it is sustainable. The extent and duration of this conflict remains uncertain. Israel’s response to Hamas’ unprecedented attack led to the mobilization of IDF reservists, affecting our workforce. Prior to this, changes in Israel’s judicial system had already raised concerns about the business environment, compounded by recent events, potentially impacting foreign investment, currency fluctuations, credit ratings, interest rates, and security markets. Furthermore, regional political unrest and threats from extremist groups, notably Iran, pose additional risks. Management and our Board of Directors are closely monitoring the situation in Israel to address potential business disruptions and implications.
Current wording
Given our operations in Israel, the impact of economic, political, geopolitical, and military conditions in the region directly affects us, including conflicts involving missile strikes, infiltrations, and terrorism. Notably, on October 7, 2023, Hamas, a designated terrorist organization, launched a savage terror attack in Israel, along with launching thousands of rockets into Israeli sovereign territory. The State of Israel declared war against Hamas resulting in the mobilization of more than 450,000 army reserve. In addition, Hezbollah, another designated terrorist organization, based in Lebanon, has been indiscriminately shelling Israeli territory. Since October 8, 2023, the Houthi rebels based in Yemen have also launched ballistic missiles and kamikaze drones at Israel. In June of 2025 Israel and Iran engaged in the ’12-Day War’ during which Israel launched strikes on Iranian nuclear and military facilities, assassinating key leaders and scientists, prompting Iranian retaliation with hundreds of missiles on Israeli cities; our office and schools were closed amid shelter-in-place orders, and the constant barrage of ballistic missiles launched from Iran and Yemen severely interrupted our operations. A U.S.-brokered ceasefire ended that direct clash on June 24, 2025, but tensions persist as Iran rebuilds its missile stocks and nuclear capabilities, raising fears of renewed confrontation. Compounding these threats, since the fall of the Assad regime in December 2024, Israel has conducted airstrikes and ground incursions in Syria to neutralize remaining Iranian-linked militias, secure the border, and protect the Druze minority amid sectarian clashes. Although ceasefires are in place—with the Gaza truce under the U.S.-backed 20-point plan holding broadly since October 10, 2025, following the release of all 20 remaining living Israeli hostages, and the Hezbollah agreement extended into 2025 amid Israeli withdrawals from southern Lebanon—these remain fragile amid violations. The extent and duration of these conflicts remain uncertain. Israel’s response to Hamas’ unprecedented attack, compounded by escalations with Hezbollah, the Houthis, Iran, and now intensified operations in Syria, has led to repeated IDF reservist mobilizations, affecting our workforce. Prior to this, changes in Israel’s judicial system had already raised concerns about the business environment, compounded by recent events, potentially impacting foreign investment, currency fluctuations, credit ratings, interest rates, and security markets. Furthermore, regional political unrest and threats from extremist groups, notably Iran and its proxies, pose additional risks. Management and our Board of Directors are closely monitoring the situation in Israel to address potential business disruptions and implications.
Previous wording
Zedge builds digital marketplaces and friendly competitive games around content that people use to express themselves. Our leading products include Zedge Ringtones and Wallpapers, which we refer to as our “Zedge App,” a freemium digital content marketplace offering mobile phone wallpapers, video wallpapers, ringtones, and notification sounds as well as pAInt, a generative AI wallpaper maker, GuruShots, a skill-based photo challenge game, and Emojipedia, the #1 trusted source for ‘all things emoji’. Our vision is to enable and connect creators who enjoy friendly competitions with a community of prospective consumers in order to drive commerce.
Current wording
Zedge builds digital marketplaces and friendly competitive games around content that people use to express themselves. Our leading products include Zedge Ringtones and Wallpapers, which we refer to as our “Zedge App,” a freemium digital content marketplace offering mobile phone wallpapers, video wallpapers, ringtones, and notification sounds as well as pAInt, a generative AI wallpaper and ringtone maker, GuruShots, a skill-based photo challenge game, and Emojipedia, the #1 trusted source for ‘all things emoji’, and DataSeeds.AI, a B2B offering which creates ethically sourced and fully rights-cleared custom image, video, and audio datasets that companies use to train their AI systems. Our vision is to enable and connect creators who enjoy friendly competitions with a community of prospective consumers in order to drive commerce.
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 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.
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. Over the past two years, our Zedge App has had between 22.1 million and 28.7 million monthly active users (“MAU”), ending with 22.2 million MAU as of October 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.
Previous wording
In fiscal 2023, we introduced pAInt, a generative AI wallpaper maker in the Zedge App. A generative AI wallpaper maker is an implementation of artificial intelligence software that can create images from text descriptions. To interface with a generative AI image maker, a user enters a text description of the image they want to create, and the software generates an image based on that description. In addition, we upgraded Zedge+, our paid subscription offering by bundling together an ad-free experience with value adds making the offering more compelling.
Current wording
In fiscal 2023, we introduced pAInt, a generative AI wallpaper maker in the Zedge App. A generative AI wallpaper maker is an implementation of artificial intelligence software that can create images from text descriptions. To interface with a generative AI image maker, a user enters a text description of the image they want to create, and the software generates an image based on that description. Today, pAInt is available for text-to-image, image-to-image, and text-to-audio creation. In addition, we upgraded Zedge+, our paid subscription offering by bundling together an ad-free experience with value adds making the offering more compelling.
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 April 30, 2025, we had approximately 896,000 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 or annual subscription. In April 2023, we introduced a subscription tier in the iOS version of the app. As of October 31, 2025, we had approximately 1.1 million active subscribers.
Previous wording
In April 2022, we acquired GuruShots Ltd, a recognized category leader focused on gamifying the photography vertical. GuruShots offers a platform spanning iOS, Android, and the web that provides a fun, educational and structured way for amateur photographers to compete in a wide variety of contests showcasing their photos while gaining recognition with votes, badges, and awards. We estimate that the total addressable market of amateur photographers using their smartphones to take and publicly share artistic photos is 30-40 million people per month and that the market is still in its infancy. Every month, GuruShots stages more than 300 competitions that result in players uploading in excess of 550,000 photographs and casting close to 3.0 billion “perceived votes,” which are calculated by multiplying the number of votes that each player casts by a weighting factor based on various factors related to that user.
Current wording
In April 2022, we acquired GuruShots Ltd (“GuruShots”) a gamified photography platform that engages a global community of photographers through daily challenges, real-time feedback, and a competitive, interactive experience. GuruShots offers a platform spanning iOS, Android, and the web that provides a fun, educational and structured way for amateur photographers to compete in a wide variety of contests showcasing their photos while gaining recognition with votes, badges, and awards. We estimate that the total addressable market of amateur photographers using their smartphones to take and publicly share artistic photos is 30-40 million people per month and that the market is still in its infancy. Every month, GuruShots stages more than 300 competitions that result in players uploading in excess of 513,000 photographs and casting close to 2.8 billion “perceived votes,” which are calculated by multiplying the number of votes that each player casts by a weighting factor based on various factors related to that user. To improve engagement, GuruShots has adopted a set of retention dynamics focused on individual, team and community dynamics that create a sense of belonging, inspiration, recognition, improvement, and competition.
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 6.2% annually to more than $40.9 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 6.1% annually to more than $40.5 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 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.
Current wording
Since the acquisition, GuruShots has faced challenges in growth and profitability, and its revenue has declined. We have cut costs at GuruShots, including as part of the restructuring implemented in January 2025, and have materially scaled back on paid user acquisition (PUA) for the unit. In parallel, we are developing a plan, referred to as GuruShots 2.0, to revamp GuruShots’ offering in order to put it on a growth trajectory and unlock the potential value of this asset. Our strategy focuses on attracting new users and converting them into recurring, paying players. To date, we have 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 opportunities to reward and monetize players
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 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.
Current wording
Emojipedia Pty Ltd (“Emojipedia”) is the world’s leading authority dedicated to providing up-to-date and well-researched emoji definitions, information, and news, 43.6 million monthly page views and has approximately 7.2 million monthly active users as of October 31, 2025 of which approximately 42.1% are located in well-developed markets. It is the top resource for all things emoji, offering insights into data and cultural trends. In the past year, we have implemented multiple changes to Emojipedia including an AI-powered emoji sticker generator tool as well as an extensive emoji sticker library.
Previous wording
Our unaudited condensed consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. Our significant accounting policies are described in Note 1 to the consolidated financial statements included in the 2024 Form 10-K. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses as well as the disclosure of contingent assets and liabilities. Critical accounting policies are those that require application of management’s most subjective or complex judgments, often as a result of matters that are inherently uncertain and may change in subsequent periods. Our critical accounting policies include those related to revenue recognition, intangible assets, goodwill, capitalized software and technology development costs, stock-based compensation and income taxes. Management bases its estimates and judgments on historical experience and other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. For additional discussion of our critical accounting policies, see our Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2024 Form 10-K.
Current wording
Our unaudited condensed consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. Our significant accounting policies are described in Note 1 to the consolidated financial statements included in the 2025 Form 10-K. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses as well as the disclosure of contingent assets and liabilities. Critical accounting policies are those that require application of management’s most subjective or complex judgments, often as a result of matters that are inherently uncertain and may change in subsequent periods. Our critical accounting policies include those related to revenue recognition, intangible assets-net, goodwill, capitalized software and technology development costs, stock-based compensation, restructuring charges and income taxes. Management bases its estimates and judgments on historical experience and other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. For additional discussion of our critical accounting policies, see our Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2025 Form 10-K.
Previous 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.
Current wording
MAU decreased 11.2% in the three months ended October 31, 2025 when compared to the same period a year ago. As of October 31, 2025, users in emerging markets represented about 77.9% of our MAU, as compared to 78.0% from the same period a year ago.
Previous 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.
Current wording
ARPMAU for the three months ended October 31, 2025 increased 29.2% 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 October 31, 2025 increased 28.6% and 6.1%, respectively, when compared to the same period a year ago, as discussed below.
Previous wording
The presentation of our results of operations related to our GuruShots segment includes disclosure of two key performance indicators as discussed below:
Current wording
The presentation of our results of operations related to our GuruShots segment includes disclosure of two key performance indicators – Monthly Active Payers (MAP) and Average Revenue Per Monthly Active Payer (ARPMAP) as discussed below:
Previous 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.
Current wording
MAP decreased 28.4% in the three months ended October 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. ARPMAP increased 4.4% to $45.2 in the three months ended October 31, 2025 from $43.3 in the three months ended October 31, 2024.
Previous 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:
Current wording
The following table shows our MAP and ARPMAP for the three months ended October 31, 2025 and 2024.
Previous wording
Comparison of Our Results of Operations for the Three and Nine months Ended April 30, 2025 and 2024
Current wording
Comparison of Our Results of Operations for the Three months ended October 31, 2025 and 2024
Previous 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):
Current wording
The following table sets forth the composition of our revenues for the three months ended October 31, 2025 and 2024:
Previous wording
The following table summarizes our subscription revenue for the three and nine months ended April 30, 2025 and 2024:
Current wording
The following table summarizes our subscription revenue for the three months ended October 31, 2025 and 2024:
Previous wording
The following table presents a reconciliation of subscription billings to the most directly comparable GAAP financial measures, for each of the periods indicated. We calculate subscription billings by adding the change in subscription deferred revenue between the start and end of the period to subscription revenue recognized in the same period. Subscription billings is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the growth of the subscription-based portion of our business, which is a critical part of our business plan.
Current wording
Our measure of subscription billings is a non-GAAP measure. The following table presents a reconciliation of subscription billings to the most directly comparable GAAP financial measures, for each of the periods indicated. We calculate subscription billings by adding the change in subscription deferred revenue between the start and end of the period to subscription revenue recognized in the same period. Subscription billings is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the growth of the subscription-based portion of our business, which is a critical part of our business plan.
Previous wording
The following table summarizes Zedge Premium gross and net revenue for the three and nine months ended April 30, 2025 and 2024:
Current wording
The following table summarizes Zedge Premium gross and net revenue for the three months ended October 31, 2025 and 2024:
Previous 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.
Current wording
For the three months ended October 31, 2025, our advertising revenue increased by 6.0% compared to the same period in the prior year, primarily due to higher average prices per advertising impression paid by advertisers on our platform, reflecting increased competition for our ad inventory. This growth was partially offset by an 11.3% decline in MAUs during the corresponding periods.
Previous 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.
Current wording
For the three months ended October 31, 2025, our subscription revenue increased 28.6%, and our subscription billings increased 6.1% compared to the same period in the prior year, primarily due to the lifetime subscription offering for Android and iOS users we rolled out in August 2023 and August 2024, respectively.
Previous 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.
Current wording
For the three months ended October 31, 2025, our other revenue declined 7.7% compared to the same period in the prior year, principally due to a reduction in Zedge Premium net revenue. Zedge Premium net revenue decreased 7.9% over the same period, primarily reflecting lower revenue contributions from certain AI-generative features and reduced royalty forfeiture.
Previous 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.
Current wording
For the three months ended October 31, 2025, digital goods and services revenue declined 27.3% compared to the same period in the prior year primarily due to the 28.4% decrease in GuruShots’ MAP, partially offset by the 4.4% increase in ARPMAP during the corresponding periods.
Previous 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.
Current wording
Direct cost of revenues increased 20.4% in the three months ended October 31, 2025 compared to the same period in the prior year primarily due to higher data center costs and additional costs related to certain new initiatives, including DataSeeds and other products under development. As a percentage of revenue, direct cost of revenues in the three months ended October 31, 2025 increase to 7.3% from 6.4% for the same period in the prior year.
Previous 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.
Current wording
Global headcount as of October 31, 2025 totaled 81 (including 14 at GuruShots) compared to 102 (including 28 at GuruShots) as of October 31, 2024 with the majority of our employees currently based in Lithuania and Israel.
Previous 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:
Current wording
The following table summarizes stock-based compensation expense included in the SG&A for the three months ended October 31, 2025 and 2024:
Previous 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.
Current wording
Stock-based compensation expense decreased 72.6**%** for the three months ended October 31, 2025, compared to the same period in the prior year. The decrease was primarily driven by the full amortization of $4 million in stock-based compensation associated with the restricted stock issued in connection with the GuruShots acquisition, which was amortized over a three-year period that concluded in March 2025. 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. Depreciation and amortization consist mainly of amortization of intangible assets in connection with the GuruShots and Emojipedia acquisitions and capitalized software and technology development costs of our internal developers on various projects that we invested in specific to the various platforms on which we operate our service.
Current wording
Depreciation and amortization. Depreciation and amortization expense consist mainly of amortization of intangible assets at GuruShots and Emojipedia and capitalized software and technology development costs of our internal developers on various projects that we invested in specific to the various platforms on which we operate our service.
Previous wording
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 wording
In the three months ended October 31, 2025, interest and other income, net decreased by 15.5% for the three months ended October 31, 2025, compared to the corresponding period in the prior year primarily due to lower cash and cash equivalent balance in the current period.
Previous 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.
Current wording
For the three months ended October 31, 2025, net loss from foreign exchange transactions increased by $32,000 compared to the same period in the prior year, primarily due to unfavorable foreign exchange rate movements.
Previous 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.
Current wording
We recognized mark-to-market (” MTM”) losses of $0 and $58,000 from NOK and EUR hedging activities for the three months ended October 31, 2025 and 2024, respectively, 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
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:
Current wording
The following table presents the results for our Zedge Marketplace and GuruShots segment income (loss) from operations for the three months ended October 31, 2025 and 2024:
Previous wording
At April 30, 2025, we had cash and cash equivalents of $20.4 million and working capital (current assets less current liabilities) of $17.5 million, compared to $20.0 million and $17.7 million, respectively, at July 31, 2024. We expect that our cash and cash equivalents on hand and our cash flow from operations will be sufficient to meet our anticipated cash requirements for the twelve-month period ending June 13, 2026. We maintain a revolving credit facility of $4 million, including a foreign exchange contract facility of up to $7.5 million with WAB, as discussed below under Financing Activities and in Note 10,Term Loan and Revolving Credit Facility, to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.
Current wording
At October 31, 2025, we had cash and cash equivalents of $18.5 million and working capital (current assets less current liabilities) of $14.6 million, compared to $18.6 million and $14.7 million, respectively, at July 31, 2025. We expect that our cash and cash equivalents on hand and our cash flow from operations will be sufficient to meet our anticipated cash requirements for the twelve-month period ending December 12, 2026. We maintain a revolving credit facility of $4 million, including a foreign exchange contract facility of up to $7.5 million with WAB, as discussed below under Financing Activities and in Note 10,Revolving Credit Facility, 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 tables present selected financial information for the nine months ended April 30, 2025 and 2024:
Current wording
The following tables present selected financial information for the three months ended October 31, 2025 and 2024:
Previous wording
Our cash flow from operations varies significantly from quarter to quarter and from year to year, depending on our operating results and the timing of operating cash receipts and payments, specifically trade accounts receivable and trade accounts payable.
Current wording
Our cash flow from operations can vary significantly from quarter to quarter and from year to year, depending on our operating results and the timing of operating cash receipts and payments, particularly those related to trade accounts receivable and trade accounts payable.
Previous wording
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 wording
Net cash provided by operating activities was $1.2 million for the three months ended October 31, 2024. This amount primarily reflects a net loss of $0.3 million, adjusted for non-cash items including $0.4 million of amortization and depreciation and $0.4 million of stock-based compensation expense, as well as a $0.7 million net increase resulting from changes in operating assets and liabilities. The increase was primarily attributable to deferred revenue associated with lifetime subscriptions sold during the period.
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Current report — wording carried from elsewhere
Please refer to Note 1 to the unaudited condensed consolidated financial statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q.