Zedge Inc. Reports Q2 Fiscal 2025 Earnings

Zedge Inc ( (ZDGE) ) has released its Q2 earnings. Here is a breakdown of the information Zedge Inc presented to its investors.

Zedge Inc., a company known for its digital marketplaces and interactive games, has released its second quarter fiscal 2025 earnings report. The company, which empowers creativity and self-expression through its platforms, reported a 10% year-over-year revenue decline, primarily due to the uncertainty surrounding TikTok’s U.S. pre-ban status and its temporary removal from app stores.

Despite the revenue decline, Zedge saw a 22% increase in active subscribers and a 13% rise in subscription revenue. The company also reported a 9% increase in Average Revenue Per Monthly Active User (ARPMAU) and a 27% growth in Zedge Premium’s Gross Transaction Value (GTV). However, advertising revenue decreased by 14% due to reduced ad spend by TikTok, impacting the programmatic ad market.

In response to these challenges, Zedge announced restructuring activities, including a 22% reduction in its global workforce, which is expected to save approximately $4 million annually. The company also focused on optimizing its ad inventory and engagement-driven monetization strategies, resulting in $0.6 million in free cash flow and the repurchase of 245,000 shares of its stock.

Looking ahead, Zedge remains cautiously optimistic about the third quarter of fiscal 2025. The company anticipates a rebound in advertising due to TikTok’s reentry into the market and expects the impact of its restructuring efforts to improve profitability and free cash flow. Zedge is also planning to introduce new AI creation features to drive growth in fiscal 2026 and beyond.