Zedge Inc (ZDGE)
AMEXCommunication ServicesInternet Content & InformationSnapshot 2026-09-09
$2.93-5.48%
Close 2026-09-09 · 1-day change
AMEXCommunication ServicesInternet Content & InformationSnapshot 2026-09-09
Intact: The reason to own it still holds.
Zedge shows steady revenue growth near 3% yearly. It guides $8 million revenue and $1.2 million free cash flow next quarter. The company pays a small dividend of $0.02 per share. Recent earnings beats and strong subscription growth support its recovery.
Growth is slow and the stock is down 27.6% from its high. Earnings estimates have been cut recently. The company remains loss-making with high risk. Market stress and sector headwinds may pressure results further.
The price is about fair at $3, matching our $2.97 fair value. Analysts expect near zero revenue growth. Our view is slightly more optimistic on growth but cautious on profitability.
Breaks if: EPS falls significantly below $0.07 next quarter
Breaks if: Free cash flow falls below $1.2 million next quarter
Breaks if: Revenue falls below $8 million next quarter
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
ZDGE represents a long-term thesis focused on growth, particularly in its DataSeeds.AI business and subscription revenue. The current state shows mixed signals, with recent performance being neutral and management priorities on track.
The market appears to have priced in a low level of fragility, indicating that expectations are somewhat justified. Valuation has decreased significantly, suggesting that the market may not be overly optimistic about future performance compared to its peers.
Management is likely to continue delivering on growth initiatives, as evidenced by increasing subscription metrics and free cash flow. However, there is a near-term risk of missing earnings due to the company's smaller size and the high miss rate in its industry.
The thesis hinges on the performance of sector bellwethers like GOOGL, GOOG, and META, which could influence ZDGE's trajectory. Additionally, any changes in guidance during the next earnings call could significantly impact market sentiment.
The most important moves since the prior daily snapshot.
Valuation fell by 17.1 points (from 48.5 to 31.4).
No, our read on the company is unchanged. The fundamentals remain steady, with robust earnings quality. The sector backdrop continues to act as a drag on performance. There are no new threats or supports that alter the current thesis.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Over the next 1 to 3 years, ZDGE's performance will depend on its ability to execute on growth initiatives and navigate sector challenges. Not investment advice.