Zedge, Inc. (NYSE: ZDGE)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001667313
Market Cap 47.79 Mn
P/B 1.85
P/E -37.78
P/S 1.60
ROIC (Qtr) -5.54
Div Yield % 0.00
Rev 1y % (Qtr) 5.78
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Zedge, Inc. (ZDGE) operates in the digital content industry, providing a platform for users to express themselves through various forms of content. The company's main business activities involve building digital marketplaces and friendly competitive games centered around content creation and personalization. Zedge's operations span across multiple countries and regions, with a significant presence in the United States, Europe, and Asia. The company generates revenue primarily through its Zedge Marketplace, a digital content marketplace offering...

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Price action

Investment thesis

Bull case

  • Robust free cash flow of 2.50M exceeds capital expenditure of 577000 by 4.33x, indicating strong organic growth funding capability.
  • Tangible assets of 29.18M provide exceptional 5.09x coverage of deferred revenue 5.74M, showing strong service capability backing.
  • Tangible assets of 29.18M provide robust 4.57x coverage of other current liabilities 6.39M, indicating strong asset backing.
  • Cash reserves of 18.50M provide robust 2.36x coverage of current liabilities 7.84M, indicating strong short-term solvency.
  • Strong cash position of 18.50M provides 2.89x coverage of other current liabilities 6.39M, indicating excellent liquidity.

Bear case

  • Operating cash flow of 3.08M barely covers its investment activities of (577000), with a coverage ratio of -5.33, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 3.08M provides insufficient coverage of deferred revenue obligations of 5.74M, which is 0.54x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 3.08M shows concerning coverage of stock compensation expenses of 1.17M, with a 2.63 ratio indicating potential earnings quality issues.
  • Operating cash flow of 3.08M provides minimal -21.82x coverage of tax expenses of (141000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (1.41M) show weak coverage of depreciation charges of 984000, with a -1.43 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.81 1.10
EV to Cash from Ops. EV/CFO 9.48 -3.08
EV to Debt EV to Debt 0.00 28.98
EV to EBIT EV/EBIT -20.75 -26.54
EV to EBITDA EV/EBITDA -33.31 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF 11.67 -67.01
EV to Market Cap EV to Market Cap 0.61 0.90
EV to Revenue EV/Rev 0.98 61.25
Price to Book Value [P/B] P/B 1.85 1.56
Price to Earnings [P/E] P/E -37.78 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) 0.00 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 36.31 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -8.42 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 86.68 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 91.68 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 88.13 32.66
EBT Growth (1y) % EBT 1y % (Qtr) 88.13 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) 86.57 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) -48.50 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -1.73 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.83 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 2.36 1.54
Current Ratio Curr Ratio (Qtr) 2.86 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -0.39
Interest Cover Ratio Int Coverage (Qtr) 0.00 -202.56
Times Interest Earned Times Interest Earned (Qtr) 0.00 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1.40 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) -4.72 -4,786.62
EBT Margin % EBT Margin % (Qtr) -4.72 -5,002.12
Gross Margin % Gross Margin % (Qtr) 93.50 58.65
Net Profit Margin % Net Margin % (Qtr) -4.20 -5,003.08