Zedge

ZDGE

Internet Content & Information · Communication Services

Price

$2.91

+0.03 (+1.04%)

Market Cap

$38.0M

Exchange

New York Stock Exchange American

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Apr 30, 2026

How the score breaks down

Quality

Good

Growth

Mixed

Cash Flow

Weak

Stability

Exceptional

Valuation

Data not available

Dividends

Mixed

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Share count falling — buybacks

−2.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 14.0M (2021) → 13.7M (2025)

Winston Score History

The full picture

Zedge is a mobile app company that lets people customize their smartphones with free wallpapers, ringtones, and notification sounds. Its main app, also called Zedge, serves tens of millions of users worldwide who want to personalize their phones. The company also owns GuruShots, a competitive photography platform where users enter photo challenges and compete against each other.

Zedge makes money primarily through advertising shown to free users, as well as through a paid subscription called Zedge Premium that removes ads and unlocks extra content. It also earns revenue from in-app purchases on GuruShots. The company operates globally, with most of its user base in the United States and Europe, and its high gross margin reflects its low-cost, digital content model. The key growth challenge is growing subscription and premium revenue fast enough to offset the unpredictability of digital advertising spending, which can swing significantly with broader economic conditions.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.0% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+427.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$827,000/ year

2.8% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

20.6%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$20M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Zedge is growing revenue at 3% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

91.5%

Premium pricing power — 91.5% gross margin

Profit after running costs

Operating Margin

13.4%

Healthy — 13.4% operating margin

Return on the money invested

ROCE

10.8%

Below par — 10.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+6.1%

Slow sales growth (+6.1% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

9.6%

Modest free cash flow (9.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.01

Conservative — low debt load (0.01)

Covers its interest

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend

Dividend Yield

2.46%

Moderate income — 2.46% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

N/A

—

Data not available

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