Maxim Group Has Negative Estimate for Zedge FY2027 Earnings

Zedge, Inc. (NYSEAMERICAN:ZDGE) – Equities researchers at Maxim Group dropped their FY2027 earnings estimates for shares of Zedge in a note issued to investors on Tuesday, October 27th. Maxim Group analyst A. Klee now anticipates that the company will post earnings of $0.12 per share for the year, down from their prior estimate of $0.27. The consensus estimate for Zedge’s current full-year earnings is $0.27 per share. Maxim Group also issued estimates for Zedge’s Q4 2027 earnings at $0.00 EPS, Q1 2028 earnings at $0.01 EPS and FY2028 earnings at $0.14 EPS.

Zedge (NYSEAMERICAN:ZDGE) last announced its quarterly earnings data on Monday, October 26th. The company reported $0.04 EPS for the quarter, topping the consensus estimate of $0.02 by $0.02. Zedge had a negative net margin of 3.62% and a positive return on equity of 11.18%. The business had revenue of $7.77 million for the quarter, compared to analyst estimates of $7.20 million.

Zedge Stock Up 2.7%

Shares of ZDGE stock opened at $2.63 on Thursday. The firm has a market cap of $32.98 million, a P/E ratio of -131.43 and a beta of 1.20. The company has a 50 day moving average of $2.92 and a 200-day moving average of $3.06. Zedge has a 12-month low of $2.21 and a 12-month high of $4.70.

Hedge Funds Weigh In On Zedge

Institutional investors and hedge funds have recently bought and sold shares of the company. Kahn Brothers Group Inc. bought a new stake in shares of Zedge in the second quarter valued at $242,000. NewEdge Advisors LLC lifted its position in shares of Zedge by 2,923.0% during the 1st quarter. NewEdge Advisors LLC now owns 58,918 shares of the company’s stock valued at $173,000 after buying an additional 56,969 shares during the last quarter. Finally, Hillsdale Investment Management Inc. lifted its position in shares of Zedge by 1,982.8% during the 1st quarter. Hillsdale Investment Management Inc. now owns 50,653 shares of the company’s stock valued at $148,000 after buying an additional 48,221 shares during the last quarter. 29.37% of the stock is owned by institutional investors.

Zedge News Roundup

Here are the key news stories impacting Zedge this week:

• Positive Sentiment: Subscription growth and monetization were encouraging. Subscribers reached approximately 1.3 million, while average revenue per monthly user increased 30%, supporting the outlook for Zedge’s core digital-content business. Zedge: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: DataSeeds provides a potential new growth avenue. Management is developing DataSeeds to sell specialized training data to technology companies. Investors appear interested in the opportunity to diversify revenue, although the business remains in an investment and scaling phase. Zedge outlines plan to keep around $20M cash cushion
• Positive Sentiment: Liquidity remains a support factor. Zedge plans to maintain roughly a $20 million cash cushion while scaling DataSeeds, reducing near-term financing risk and giving the company flexibility to invest in the new business. Cash cushion and DataSeeds strategy
• Neutral Sentiment: The latest Q1 FY2027 8-K filing is the next key catalyst. The filing gives investors an updated view of the company’s digital transition and early fiscal-2027 performance, with the market likely focused on evidence that subscription momentum can offset investment in DataSeeds. Zedge Announces Q1 FY2027 Financial Results
• Negative Sentiment: Zedge missed fourth-quarter EPS expectations by $0.03. The earnings shortfall creates near-term concerns about profitability and execution, even as management highlighted subscription growth and DataSeeds traction. Zedge Misses Q4 EPS by 3c
• Negative Sentiment: Maxim Group lowered multiple future EPS estimates. Its Q1 2027 forecast was reduced to $0.02 from $0.07, while estimates for Q2 and Q3 2027 and later 2028 quarters were also cut. The revisions point to more cautious expectations for near-term earnings growth.

About Zedge

Zedge, Inc (NYSE American: ZDGE) operates a mobile-first digital content platform that enables users to discover, customize and share content for smartphones and other personal devices. Its principal consumer product is the Zedge app, which offers wallpapers, video wallpapers, ringtones, notification sounds, stickers and other personalization content.

The company provides both free and premium content, with offerings from independent creators as well as technology-assisted and user-generated content.