Despite earnings volatility, the firm remains fundamentally cash-generative with FCF margins ranging between 7% and 27.6% over the last ten quarters, supporting ongoing capital returns including $469,000 in dividends paid in 2026Q3.
| Cash from Operations | 3.58M | 3.42M | 5.85M | 3.16M | 11.49M | 10.13M | 2.12M | 76K | 332K | -97K | 1.84M | 2.28M | 826K |
| Operating CF Margin % | - | 11.64% | 19.44% | 11.61% | 43.29% | 51.77% | 22.41% | 0.86% | 3.06% | -0.97% | 16.58% | 25.23% | 12.65% |
| Operating CF Growth % | 29.02% | -41.5% | 85.01% | -72.49% | 13.45% | 377.38% | 2692.11% | -77.11% | 442.27% | -105.27% | -19.35% | 176.51% | - |
| Net Income | -1.13M | -2.39M | -9.17M | -6.1M | 9.71M | 8.25M | -559K | -3.34M | -1.56M | -611K | 983K | 407K | -146K |
| Depreciation & Amortization | 554K | 1.15M | 2.45M | 3.27M | 1.97M | 1.26M | 1.57M | 1.43M | 1.03M | 643K | 605K | 624K | 578K |
| Stock-Based Compensation | 457K | 0 | 2.14M | 2.52M | 1.94M | 652K | 492K | 619K | 595K | 275K | 166K | 0 | 222K |
| Deferred Taxes | -513K | -479K | -2.5M | -981K | -384K | -477K | 0 | 0 | 172K | -28K | -26K | -16K | -70K |
| Other Non-Cash Items | 4.22M | 2.43M | 12.02M | 6.79M | -3.96M | -218K | 0 | 253K | 242K | 36K | 281K | 1.09M | -23K |
| Working Capital Changes | -6K | 2.71M | 905K | -2.33M | 2.22M | 664K | 621K | 1.12M | -147K | -412K | -167K | 181K | 265K |
| Change in Receivables | -589K | 242K | -523K | -472K | 371K | -1.14M | -274K | 644K | -65K | -45K | -46K | -334K | -144K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -743K | 378K | 722K | -711K | 436K | 830K | -118K | -311K | -171K | 400K | 39K | 743K | 252K |
| Cash from Investing | -475K | -549K | -1.19M | -2.42M | -18.95M | -5.48M | -759K | -1.74M | -1.7M | -1.51M | -1.01M | -899K | -814K |
| Capital Expenditures | -197K | -549K | -1.19M | -2.42M | -1.53M | -653K | -759K | -1.49M | -1.7M | -1.51M | -1.01M | -899K | -814K |
| CapEx % of Revenue | 0.63% | 1.87% | 3.97% | 8.89% | 5.76% | 3.34% | 8.01% | 16.9% | 15.71% | 15.01% | 9.05% | 9.93% | 12.47% |
| Acquisitions | 0 | 0 | 0 | 0 | -17.42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -278K | 0 | 0 | 0 | 0 | -4.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -4.02M | -4.37M | -2.64M | 387K | -223K | 15.1M | 2.17M | -42K | 232K | 166K | 3.01M | 9K | 0 |
| Debt Issued (Net) | 0 | 0 | -2M | 1.98M | 0 | -181K | 77K | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -3.34M | -4.37M | -643K | -1.59M | -223K | 15.28M | 2.09M | -42K | 232K | 166K | 9K | 9K | 0 |
| Dividends Paid | -885K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -2.66M | -4.43M | -646K | -1.6M | -232K | -26K | -29K | -47K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 208K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3M | 0 | 0 |
| Net Change in Cash | -741K | -1.39M | 1.87M | 1.04M | -7.82M | 19.8M | 3.5M | -1.8M | -1.17M | -1.4M | 3.81M | 1.41M | 19K |
| Free Cash Flow | 3.85M | 3.34M | 4.66M | 1.7M | 10.88M | 9.48M | 1.36M | -1.41M | -1.37M | -1.6M | 836K | 1.39M | 12K |
| FCF Margin % | 12.28% | 11.36% | 15.47% | 6.25% | 40.99% | 48.43% | 14.39% | -16.04% | -12.65% | -15.98% | 7.52% | 15.3% | 0.18% |
| FCF Growth % | 19.18% | -28.29% | 173.56% | -84.36% | 14.81% | 595.3% | 196.39% | -3.21% | 14.54% | -291.75% | -39.64% | 11441.67% | - |
| FCF per Share | 0.29 | 0.24 | 0.33 | 0.12 | 0.73 | 0.68 | 0.12 | -0.14 | -0.14 | -0.17 | 0.09 | 0.15 | 0.00 |
| FCF Conversion (FCF/Net Income) | -3.39x | -1.43x | -0.64x | -0.52x | 1.18x | 1.23x | -3.80x | -0.02x | -0.21x | 0.16x | 1.87x | 1.44x | -5.66x |
| Interest Paid | 0 | 0 | 66K | 118K | 0 | 3K | 3K | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -116K | 0 | 272K | 795K | 2.36M | 1K | 1K | 1K | 31K | 0 | 112K | 208K | 98K |
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As reported in recent financial filings, Zedge exhibits a significant disconnect between net income and operating cash flow, with the OCF/NI ratio fluctuating wildly from -17.82 in 2024Q4 to 4.70 in 2025Q3, suggesting that accounting earnings are currently an unreliable proxy for the firm's actual cash-generative capacity.
The frequent divergence between net income and operating cash flow appears driven by non-cash charges and working capital swings rather than core operational performance. Investors should monitor whether this volatility persists as the company attempts to transition its revenue mix toward more stable subscription-based models.
Based on quarterly cash flow statements, Zedge has maintained a positive free cash flow trajectory despite inconsistent net income, with FCF margins consistently hovering between 7% and 27.6% over the last ten quarters, indicating that the core business remains fundamentally cash-generative even during periods of accounting losses.
The ability to generate positive free cash flow while reporting net losses suggests that the company's high gross margins provide a sufficient buffer to absorb fixed-cost investments. This trend warrants further investigation into whether these FCF levels are sustainable or if they rely on aggressive cost-deferral strategies.
According to historical data, Zedge maintains a remarkably low capital intensity, with CapEx/Revenue ratios consistently below 5% and trending toward 0.1% in 2026Q3, which suggests that the firm's digital-first business model requires negligible ongoing investment to maintain its existing library of user-generated content and platform infrastructure.
The minimal requirement for maintenance CapEx allows the company to direct nearly all operating cash flow toward strategic initiatives or shareholder returns. This low-asset intensity appears to be a structural advantage that insulates the balance sheet from the need for external financing.
As indicated by recent cash flow statements, Zedge experiences significant quarterly volatility in working capital, with changes ranging from a $1.0 million inflow in 2025Q4 to an $871,000 outflow in 2026Q2, suggesting that timing differences in collections and payables create meaningful noise in short-term cash availability.
These fluctuations may indicate sensitivity to the timing of ad-network payouts or the settlement of marketplace transactions within the GuruShots ecosystem. Analysts should monitor these movements to determine if they represent structural inefficiencies or merely seasonal timing differences in the company's digital revenue cycle.
Based on reported figures, Zedge has utilized its cash reserves to fund both dividends and share repurchases, with $469,000 in dividends and $253,000 in buybacks recorded in 2026Q3, signaling management's commitment to returning capital to shareholders despite the ongoing pivot toward a more complex social-gaming business model.
The decision to return capital while simultaneously investing in new growth segments suggests a high degree of confidence in the core business's cash-flow stability. However, investors should monitor whether these distributions remain prudent if the integration of recent acquisitions continues to pressure operating margins.
Quick answers to the most common questions about buying ZDGE stock.
Zedge, Inc. (ZDGE) generated $3.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Zedge, Inc. (ZDGE) generated $3.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Zedge, Inc. (ZDGE) spent $0.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Zedge, Inc. (ZDGE) spent $4.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.