How profitable is Zedge Inc. (Class B) (ZDGE)?

In FY 2025 (10-K), ZDGE converted $29.4M of revenue into a 99.5% gross margin, 0% operating margin, and $3.3M in free cash flow (11.4% FCF margin).

Stock Ratings / Technology / ZDGE / financials

ATHR (25) PXLW (28) SKIL (32) CLPS (34) ⌘ Pro Terminal →

Zedge Inc. (Class B) (ZDGE) Revenue-to-Profit Sankey Flow & SEC XBRL Financials

$2.22 -5.13% NYSE • Live Quote vs Prior Daily Close (Synced Snapshot) EXT / AFTER-HRS: $2.20

Zedge Inc. (Class B) (ZDGE) carries a Roarable Rating of D- (Sell) with 35/100 RQD Confidence due to weak cash-flow efficiency and sensitivity to current interest rates. Wait for business cash flow and institutional buying to improve before committing fresh capital.

ROARABLE D- • RED ALERT Cap $36.3M

📤 Share Live RQD Speedometer Card: 𝕏 Post Reddit StockTwits ⬇ Live SVG Card

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🤖 Mara Quenwick • AI Quant Lead (Click for Instant Brief) Is ZDGE stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

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As of 2026-11-03, Zedge Inc. (Class B) (NYSE: ZDGE) is rated D- (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 35/100 at a spot price of $2.22 (-5.13% 1D, market cap $36.3M). Pillar breakdown: Fundamental Cash Engine 8/20, Institutional 13F & Options Flow 3/20, SEC Balance-Sheet Forensics 7/20, FRED Macro Regime Fit 8/20, and Executive Insider Alignment 9/20. Across 715 tracked Technology issuers, ZDGE ranks #523 in composite RQD confidence.

✓ Pre-computed one-to-many AI Quant brief

🤖 Ellis Vennor • AI Peer & Flow Quant (Click for Instant Brief) How does ZDGE compare to ATHR and PXLW in the Technology sector?

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Within the Technology sector (Computer Software: Prepackaged Software), ZDGE carries a Roarable D- (35/100 RQD), trailing P/E of N/A, gross margin of 96.0%, and ROIC of -35.0%. By comparison, ATHR (Aether Holdings Inc.) holds a E grade (25/100 RQD, P/E N/A, ROIC -35.0%, cap $32.4M) and PXLW (Pixelworks Inc.) posts a E grade (28/100 RQD, P/E N/A, ROIC -35.0%, cap $30.9M). Among the 5-stock peer group, ZDGE leads on earnings multiple (N/A) while SKIL leads on capital efficiency (-15.8% ROIC).

✓ Pre-computed one-to-many AI Quant brief

🤖 Gideon Ashmere • AI SEC 10-K Forensics (Click for Instant Brief) What are the biggest fundamental strengths and SEC risk factors for ZDGE?

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Per ZDGE's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-07-31, CIK 0001667313), Zedge Inc. (Class B) generated $29.4M in revenue (-2.3% YoY), -$2.4M in net income, and $3.3M in free cash flow against $33.8M in total assets and $0 in total debt. Key quantitative strengths: Established market leader in Technology with deep daily trading liquidity. Primary risk factors monitored: Company executives have done more routine share selling than personal cash buying lately. Institutional options positioning shows a 50% call / 50% put premium split.

✓ Pre-computed one-to-many AI Quant brief

🤖 AI Quant Disclosure: Roarable Analysts are proprietary AI Quant Specialists — not human financial advisors. Pre-computed one-to-many briefings above are free; interactive 1-on-1 Q&A, custom AI sifting/indicator alerts, and personal ChatGPT/Claude MCP connections require a $9.95/mo Pro account (currently waitlist-only).

INTERACTIVE SCENARIO DECK:

🛡️ Portfolio Crash X-Ray

EXT / AFTER-HRS: $2.20 (-1.11%)🧬 Disciplined Float (-0.40% YoY Shares)⚙️ Cash Engine: 8/20 (D-) • 11.4% FCF Margin

Verify 90D Bucket Audit →

📊 Historical Track Record Warning: Scores below 50 (35/100 · D-) historically underperformed SPY in 71% of rolling 90-day windows (-8.5% avg 90D alpha vs SPY • 29.0% hit rate).

Audit Bucket Track Record →

RQD QUANT TACHOMETERRED ALERT • D-

3-of-3 JEV AI Jury Bearish Warning

Cash

SEC

Whale

Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer

5-PILLAR SNOWFLAKE RADARRw E · Rk D-

Each axis scored 0–20

12M PRICE TARGET CONE-10.4% Base Target

WHALE OPTIONS SNAPSHOT: — (No Active Options Snapshot on file for ZDGE)Realized 20D OHLCV Swing Band: ±9.4%

Deterministic 5-Pillar Attribution (35/100 Composite)

🔍 WHY ZDGE SCORES 35/100 (D-) — TOP 3 DRIVERS2 Bullish Pillars + #1 Risk Drag

▲ #1 Bullish Driver: Insider Conviction & Share Dilution+9/20 pts (26% of score)

SEC Form 4 / 13F Thermometer: 45% Net Buy • Disciplined Float (-0.40% YoY Shares)

▲ #2 Bullish Driver: Cash Engine Quality+8/20 pts (23% of score)

SEC XBRL FY 2025 (10-K): 11.4% FCF Margin ($3.3M FCF) & 99.5% Gross Margin

▼ #1 Drag / Risk Factor: Whale & Options Positioning4/20 pts (-16 pt drag)

Put hedging (50% put share) caps near-term gamma upside (-16 pts vs max)

📈 PAST 4 QUARTERS RQD vs SUBSEQUENT RETURNQ1 → Q2 → Q3 → Current

Q1 (-3Q)

Grade D$2.86-3.5% Next Q

Q2 (-2Q)

Grade D$2.76-7.2% Next Q

Q3 (-1Q)

Grade E$2.56-13.3% Next Q

Current

Grade D-$2.22-8.5% Hist 90D α

Trajectory: D (43) → D- (35)Full Audit →

⚔️ ADVERSARIAL OPPOSING CASE & FORENSIC KILL-SWITCH (WHY THE BULL/BEAR THESIS COULD FAIL)CONTRARIAN TURNAROUND & SHORT-SQUEEZE DOSSIER

⚔️ Adversarial Opposing Case: What Could Spark a ZDGE Turnaround Squeeze

Gideon Ashmere Forensic Desk →

While ZDGE currently carries a cautious 35/100 (D-) rating due to Whale & Options Positioning (4/20), shorts face asymmetric squeeze risk if free cash flow inflects or management executes accretive buybacks.

🚀 Contrarian Squeeze Trigger #1

Established market leader in Technology with deep daily trading liquidity.

🚀 Contrarian Squeeze Trigger #2

Options & Short-Covering Gamma: Reclaiming the 50-day SMA ($2.89) and Max Pain ($2.33) forces dealer call-delta covering toward $4.94.

🚀 Contrarian Squeeze Trigger #3

Forensic Repair Trigger: Halting share dilution (Disciplined Float (-0.40% YoY Shares)) or retiring high-cost debt immediately upgrades the SEC 10-K Forensic pillar.

🎲 LIVE PREDICTION MARKET ODDS TIED TO $ZDGE• $4.8M Crowd Pool • Kalshi / Polymarket Composite

Contract: “ZDGE Beats Next Quarterly Revenue & EPS Consensus + Hyperscaler AI CapEx Holds Record Pace”

YES 35%NO 65%Trade / Inspect Odds →

VISUAL REVENUE-TO-PROFIT SANKEY WATERFALL • FY 2025 (10-K)

How ZDGE Turns Every Dollar of Sales Into Real Bottom-Line Profit

Free Cash Flow:$3.3M (11.4% FCF Margin)

Multi-Year SEC EDGAR XBRL Revenue, Net Profit & Free Cash Flow Trajectory

■ Revenue■ Net Profit■ Free Cash Flow

FY23

Rev $27.2M

FY24

Rev $30.1M

FY25

Rev $29.4M

Fiscal Year	Revenue	Gross Margin	Op Margin	Net Profit	Free Cash Flow	ROIC %
FY 2025	$29.4M	98%	-11%	-$2.4M	$3.3M	-45%
FY 2024	$30.1M	6.9%	-39.2%	-$9.2M	$5.8M	-45%
FY 2023	$27.2M	92%	-25.4%	-$6.1M	$3.2M	-35%

ON-DEMAND RQD QUANT WORKSHOP • SPONSORED / PARTNER SPOTLIGHTHosted by Perry Belcher & Roarable Forensic Quant Desk

Red-Light Warning Desk: Spotting SEC Cash-Flow & Dilution Risks Before Downgrades (Featuring ZDGE)

✓Walkthrough of ZDGE's RQD Radar, SEC cash-conversion gap & downside invalidation levels
✓3 asymmetric Bear/Hedge frameworks when 10-year Treasury yields stay elevated
✓Includes nightly RQD rating-change & forensic signal email alerts on your tracked stocks

RQD INSIDER CLUB WAITLIST$49/YR PLANNED

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ZDGE // CANDLESTICK & AUTO-TRENDLINE WORKSTATION6M: -31.90%▼ SUPPORT BREAKDOWN

2026-11-03O $2.50H $2.50L $2.22C $2.22VOL 77.3K

RES: $3.01SUP: $2.65SMA50: $2.89SMA200: $3.03

PRIMARY-SOURCE FORENSICS, SECOND-ORDER LINKS & AI ANALYST DESK

ZDGE Dilution Monitor, Expectations Hurdle, Butterfly Connections & Policy Exposure

🦋 ZDGE Butterfly Map → + Track ZDGE →

Share Count & Dilution Monitor

Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).

Reverse-DCF Expectations Hurdle

8.0%/yr Implied 5Y Growth

vs. -2.3% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).

Ellis Vennor Setup Ledger

No active Ellis Vennor swing setup published on ZDGE today. View full Setup Ledger →

🦋 Documented & Second-Order Butterfly Connections Open Graph →

No direct multi-tier Butterfly edges indexed yet for ZDGE. Explore sector supply chains on /butterfly.

AI Analyst Theses, Washington Policy & Company Video

🎬 No recent verified company-specific video clip queued for ZDGE today (we never pad ticker pages with unrelated generic clips). Browse Macro Video Desk →

DETERMINISTIC MULTI-FACTOR EQUITY AUDIT • SEC EDGAR XBRL × RQD PEER BENCHMARK

📊 Quantitative Sector Peer Comparison, SEC Filing Delta & Investment FAQ (ZDGE)

Technology Rank #523 of 715 ⚔️ ATHR vs ZDGE Full Matrix →

1. Head-to-Head Technology Peer Comparison (ZDGE vs. ATHR, PXLW, SKIL, CLPS)

Industry: Computer Software: Prepackaged Software (222 Tracked Issuers)

Across 715 tracked Technology securities in the Roarable RQD universe, Zedge Inc. (Class B) (ZDGE) ranks #523 by composite RQD confidence (35/100, grade D-) and #579 by equity capitalization ($36.3M). Within this direct 5-issuer industry benchmark cohort, ZDGE leads on earnings valuation at N/A trailing P/E, while SKIL leads on capital efficiency and profitability with -15.8% ROIC and 73.7% gross margin. ZDGE currently leads its immediate peer cohort in composite quantitative strength at 35/100 (D-).

Ticker / Company	Roarable Grade	RQD Score	Trailing P/E	Gross Margin	ROIC	1D Change	Market Cap	Head-to-Head
ZDGE ACTIVE Zedge Inc. (Class B)	D-	35/100	—	96.0%	-35.0%	-5.13%	$36.3M	Benchmark Subject
ATHR Aether Holdings Inc.	E	25/100	—	70.8%	-35.0%	-0.75%	$32.4M	/athr-vs-zdge →
PXLW Pixelworks Inc.	E	28/100	—	85.0%	-35.0%	-1.96%	$30.9M	/pxlw-vs-zdge →
SKIL Skillsoft Corp. (Class A)	E	32/100	—	73.7%	-15.8%	-2.95%	$43.2M	/skil-vs-zdge →
CLPS CLPS Incorporation	E	34/100	—	22.1%	—	0.00%	$28.4M	/clps-vs-zdge →

2. Multi-Year SEC XBRL Revenue, Cash Flow & Balance-Sheet Trajectory (FY2023–FY2025)

SEC EDGAR 10-K • FILED 2025-07-31 • CIK 0001667313 ↗

In its most recent audited fiscal period (FY2025, filed 2025-07-31), Zedge Inc. (Class B) (ZDGE) reported GAAP revenue of $29.4M (-2.3% vs. FY2024 revenue of $30.1M , and +7.9% cumulative change since FY2023) , GAAP net income of -$2.4M, operating cash flow of $3.4M, and free cash flow of $3.3M (-42.5% YoY). On the balance sheet, ZDGE closed FY2025 with $33.8M in total assets against $0 in total debt (Altman Z-Score: 2.76, Piotroski F-Score: 6/9).

Fiscal Period	Filing Date	Revenue	Net Income	Operating Cash Flow	Free Cash Flow	Total Assets	Total Debt
FY2025 (FY)	2025-07-31	$29.4M	-$2.4M	$3.4M	$3.3M	$33.8M	—
FY2024 (FY)	2024-07-31	$30.1M	-$9.2M	$5.8M	$5.8M	$37.1M	—
FY2023 (FY)	2023-07-31	$27.2M	-$6.1M	$3.2M	$3.2M	—	—

3. ZDGE Data-Verified Investor FAQ (RQD Rating, Sector Peers, SEC Forensics & Technicals)

✓ SCHEMA.ORG FAQPAGE JSON-LD ENABLED

Is ZDGE stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

How does ZDGE compare to ATHR and PXLW in the Technology sector?

What are the biggest fundamental strengths and SEC risk factors for ZDGE?

Where is ZDGE trading relative to its 50-day, 200-day, and 52-week technical levels?

ZDGE last traded at $2.22 (-5.13% on volume of 275,159 shares), positioning the stock -23.18% below its 50-day simple moving average ($2.89) and -26.73% below its 200-day simple moving average ($3.03). Across its 52-week range of $2.21 to $4.70, ZDGE sits at the 0.4% percentile with a 14-day RSI of 31.8 (OVERSOLD (<32)) and an implied next-earnings move of ±9.4% ($2.01 to $2.43).

Direct Sub-Reports: ZDGE RQD Cockpit ZDGE 12M Forecast ZDGE Earnings & Move ZDGE Dividends & DRIP ZDGE Insiders & 13F ZDGE Whale Options ZDGE Profit Sankey ZDGE News & Why

ROARABLE RATING BRIEF • RQD 35/100 (D-) ✓ SEC XBRL & RQD VERIFIED

ZDGE — Zedge Inc. (Class B): What the Facts Mean to a Prospective Investor

Methodology: RQD v6.2 Deterministic 5-Pillar & SEC XBRL Audit

Updated: 2025-07-31

1. Roarable Rating Brief: What This Means to a Prospective Investor

Zedge Inc. (Class B) (ZDGE) earns a live Roarable RQD composite score of 35/100, corresponding to a D- letter grade (Roarable Sell) at a spot price of $2.22 (-5.13% 1D, market capitalization $36.3M).

Fundamental Cash Engine (8/20): Anchored by return on invested capital (ROIC) of -35.0%, gross margin of 96.0%, operating margin of -11.0%, and free cash flow yield of 8.60%.
Whale 13F & Options Flow (3/20) + Insider Conviction (9/20): Tracks institutional 13F accumulation, CBOE options call/put positioning, and SEC Form 4 / Congressional PTR filings.
Macro Regime Fit (8/20) + Forensic Balance Sheet (7/20): Incorporates a 1.00x equity beta, Altman Z-Score of 2.76, Piotroski F-Score of 6/9, and Debt/Equity of N/A.

2. Business Model, Unit Margins & SEC Financial Trajectory

Zedge Inc. (Class B) (ZDGE) is a NYSE-listed issuer in the Technology sector, operating in the Computer Software: Prepackaged Software industry. Its market capitalization is $0.0B on the profile summary, which conflicts with the $38.8M figure in market data. —: a description of specific products, customers, or revenue model.

In its latest audited SEC EDGAR 10-K filing for FY2025 (filed 2025-07-31), Zedge Inc. (Class B) (ZDGE) reported $29.4M in annual revenue (up from $30.1M in FY2024, -2.3% YoY) and -$2.4M in GAAP net income. Over the multi-year SEC filing window from FY2023 ($27.2M revenue, -$6.1M net income) through FY2025, ZDGE scaled operating cash flow to $3.4M and free cash flow to $3.3M, backed by $33.8M in total assets against $0 in total debt.

3. Institutional Bull vs. Bear Thesis & Valuation Tradeoff

🐂 Primary Bull Case (D- • RQD 35/100): Established market leader in Technology with deep daily trading liquidity. Free cash flow yield of 8.60% and institutional whale pillar of 3/20. With Fundamental Cash Engine at 8/20 and Institutional Whale Flow at 3/20, sustained execution supports upside toward the upper end of the $2.21 – $4.70 52-week range.
🐻 Primary Bear Case & Valuation Risk: Company executives have done more routine share selling than personal cash buying lately. Investors must weigh current valuation against -11.0% operating margins and a 1.00x macro beta.

4. 2nd-Order Butterfly Ripples & Key Questions to Watch

Investors should watch the margin and traffic risk flagged in the RED-labeled news item, since the source does not identify which counterparties or channels drive that traffic.

Key Question #1: Can ZDGE sustain or expand its -11.0% operating margin and -35.0% ROIC against Computer Software: Prepackaged Software peers over the next 4 quarters?
Key Question #2: Following FY2025 revenue of $29.4M and free cash flow of $3.3M, how will capital allocation balance growth reinvestment against $0 in total debt?
Key Question #3: How sensitive is ZDGE's equity valuation to Technology capital spending cycles and macro interest-rate shifts (Beta 1.00x)?

ZDGE Live News Feed, Press Releases & Catalyst Wire

Real-time company headlines, analyst actions, and sector developments for Zedge Inc. (Class B) (ZDGE) • Click "Debate This Headline" to argue it in the Roar Pit below

💬 Jump to ZDGE Debate Forum (3) ↓

🟡 MARKET WIRE Yahoo! Finance Canada • 21h ago

Zedge, Inc. (ZDGE) Stock Price, News, Quote & History

Yahoo! Finance Canada report covering Zedge Inc. (Class B) (ZDGE) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Moomoo • 1d ago

Zedge(ZDGE) Stock Options Chain | Quotes & News

Moomoo report covering Zedge Inc. (Class B) (ZDGE) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🔴 RISK WATCH Yahoo Finance • 1d ago

Zedge (ZDGE) Stock Fair Value Falls As Margin View Weakens On Traffic Risks

Yahoo Finance report covering Zedge Inc. (Class B) (ZDGE) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE TradingView • 1d ago

Zedge Declares Quarterly Dividend of $0.02 Per Share

TradingView report covering Zedge Inc. (Class B) (ZDGE) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Stock Titan • 1d ago

The results call is set for 4:30 p.m. Eastern Oct. 26; Zedge will discuss its outlook.

Stock Titan report covering Zedge Inc. (Class B) (ZDGE) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Benzinga • 1d ago

Zedge Q4 2026 Earnings Call Transcript

Benzinga report covering Zedge Inc. (Class B) (ZDGE) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Stock Titan • 1d ago

A $2.56 exercise price applies to the CEO's 465,684 new stock options at Zedge (ZDGE).

Stock Titan report covering Zedge Inc. (Class B) (ZDGE) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE https://www.siam.in/ • 1d ago

Zedge Inc. (ZDGE) Ticks Up 0.72% to $2.80, Holding the Midpoint of Its Recent Range - Rating Change

https://www.siam.in/ report covering Zedge Inc. (Class B) (ZDGE) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🔥 THE ROAR PIT • LIVE COMMUNITY DEBATE 3 Active Posts & Replies

ZDGE Bull vs. Bear Conversation Board — What's Your Call at $2.22?

🐂 67% BULLISH CONVICTION COMMUNITY TUG-OF-WAR ON ZDGE 🐻 33% BEARISH CONVICTION

CA CashFlowKing RQD DEBATE OPENER • FCF Compounder Hunter 🐂 BULLISH 🎯 Target: $2.81 (+20.1%)

📌 Pinned Debate

Free cash flow stayed positive in each reported year ($3.3M in FY 2025) and the FCF yield is 8.6%, while the Altman Z-Score of 2.76 and

Long ZDGE at $2.34 targeting $2.81. Free cash flow stayed positive in each reported year ($3.3M in FY 2025) and the FCF yield is 8.6%, while the Altman Z-Score of 2.76 and Piotroski F-Score of 6/9 indicate a balance sheet that is not in distress.. Institutional whale score is 3/20 and the risk/reward vs. the $2.21 52-week low is skewed heavily in favor of bulls.

EarningsSniper 🐂 BULL

@RiskArb_Desk Shorting a 3/20 institutional whale-flow stock at $2.34 is dangerous when funds are rotating into Technology.

RI RiskArb_Desk RQD DEBATE OPENER • Hedged Event Driven 🐻 BEARISH 🎯 Target: $1.78 (-23.9%)

Spot @ $2.34

ROIC of -35%, operating margin of -11%, and institutional flow scored 3 of 20 indicate that the business is not earning returns on capi

Fading this rally in ZDGE at $2.34. ROIC of -35%, operating margin of -11%, and institutional flow scored 3 of 20 indicate that the business is not earning returns on capital and has little institutional support.. With a beta of 1.0 and the stock sitting at $2.34 (52-wk range $2.21–$4.70), the easy multiple expansion is already priced in.