Zedge FY2026 net loss narrows to $100K as revenue rises

FY2026 subscription revenue increased 29.5%, while Q4 active subscriptions rose 35.3% to 1.332 million.

Rhea-AI Filing Summary

Zedge, Inc. reported fiscal 2026 revenue of $31.6 million for the year ended July 31, 2026, up 7.6% from $29.4 million; subscription revenue was $6.6 million, up 29.5%. GAAP net loss narrowed to $0.1 million from $2.4 million, while non-GAAP net income was $3.1 million versus $0.7 million. Adjusted EBITDA was $4.1 million versus $1.8 million, and free cash flow rose 46.6% to $4.2 million. Q4 revenue was $7.8 million, up 4.0%, and GAAP net income was $0.4 million versus a $0.6 million loss.

Q4 Marketplace monthly active users declined 16.8% to 19.3 million; active subscriptions rose 35.3% to 1.332 million, and ARPMAU increased 30.5% to $0.121. DataSeeds.AI secured repeat orders from new and existing customers, including its first six-figure order, and an initial model-evaluation engagement. Howard Jonas led a $7.7 million insider investment in Zedge in September and is taking a more active role in DataSeeds. Zedge hired Morris Berger as CEO earlier this month. Its share repurchase was suspended in Q1 FY2027 in light of the September capital raise.

5 points · 0 major

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Positive

• Moderate pointFY2026 revenue rose 7.6% to $31.6 million.
• Moderate pointSubscription revenue increased 29.5% to $6.6 million.
• Moderate pointAdjusted EBITDA increased 134.2% to $4.1 million in FY2026.
• Moderate pointFree cash flow rose 46.6% to $4.2 million in FY2026.
• Moderate pointNon-GAAP net income reached $3.1 million, up 357.0%.

Negative

• Moderate pointFY2026 digital goods and services revenue fell 10.2% to $2.0 million.
• Moderate pointQ4 Marketplace MAU declined 16.8% to 19.3 million.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Total revenue: $31.6 million Subscription revenue: $6.6 million GAAP net loss: $0.1 million +5 more

8 metrics

Total revenue $31.6 million FY2026; up 7.6% from $29.4 million in FY2025

Subscription revenue $6.6 million FY2026; up 29.5% from FY2025

GAAP net loss $0.1 million FY2026; compared with a $2.4 million loss in FY2025

Non-GAAP net income $3.1 million FY2026; up 357.0% from $0.7 million in FY2025

Adjusted EBITDA $4.1 million FY2026; up 134.2% from FY2025

Free cash flow $4.2 million FY2026; up 46.6% from FY2025

Monthly active users 19.3 million Q4 FY2026; down 16.8% from Q4 FY2025

Active subscriptions 1.332 million Q4 FY2026; up 35.3% from Q4 FY2025

Key Terms

ARPMAU, Active Subscription, Adjusted EBITDA, Free Cash Flow, +1 more

5 terms

ARPMAU financial

"Average Revenue Per Monthly Active User for our Zedge Marketplace, or ARPMAU"

Average revenue per monthly active user (ARPMAU) measures how much money a company earns, on average, from each user who engages with its product at least once in a month. For investors, it shows how well a business turns user activity into revenue—like tracking how much each regular customer spends at a coffee shop—so rises or falls can signal improving monetization, pricing power, or customer engagement problems.

Active Subscription financial

"An Active Subscription is a subscription that has commenced and not been canceled"

Adjusted EBITDA financial

"Adjusted EBITDA, defined as earnings (loss) before interest, taxes, depreciation and amortization"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

Free Cash Flow financial

"Free Cash Flow, a common metric used by investors for valuation"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

Gross Transaction Value financial

"Zedge Premium Gross Transaction Value, or GTV"

Gross transaction value is the total dollar amount of all purchases or payments processed through a platform during a given period, measured before subtracting refunds, discounts, fees or cancellations. Investors watch it as a broad measure of a business’s sales volume and marketplace activity—like counting every ticket sold at a concert before refunds—to gauge growth and customer usage, while remembering it is not the same as actual revenue or profit.

Earnings Snapshot

Total revenue: Q4: $7.8 million; FY2026: $31.6 million

Fourth quarter and fiscal year ended July 31, 2026

Total revenue Q4: $7.8 million; FY2026: $31.6 million Q4: +4.0%; FY2026: +7.6%

Subscription revenue Q4: $1.8 million; FY2026: $6.6 million Q4: +25.6%; FY2026: +29.5%

GAAP net income (loss) Q4: $0.4 million; FY2026: $0.1 million loss Q4: from a $0.6 million loss; FY2026: from a $2.4 million loss

Adjusted EBITDA FY2026: $4.1 million +134.2% from FY2025

Free cash flow FY2026: $4.2 million +46.6% from FY2025

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were ZDGE's fiscal 2026 revenue and earnings?

Zedge reported $31.6 million in revenue, up 7.6% from fiscal 2025. GAAP net loss was $0.1 million, compared with a $2.4 million loss; non-GAAP net income was $3.1 million, compared with $0.7 million.

How many active subscriptions did ZDGE report in Q4 FY2026?

Active subscriptions increased 35.3% to 1.332 million in Q4 FY2026. ARPMAU increased 30.5% to $0.121.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 10/26/2026 - 04:11 PM EDT Accepted by SEC EDGAR 10/26/2026 - 04:11 PM EDT Learn about SEC filing dates

false 0001667313 0001667313 2026-10-26 2026-10-26 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 26, 2026

Zedge, Inc.

(Exact name of registrant as specified in its charter)

Delaware		1-37782		26-3199071
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

1178 Broadway, Ste. 1450 (3rd Floor) New York, NY		10001
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (330) 577-3424

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of each exchange on which registered
Class B common stock, par value $0.01 per share		ZDGE		NYSE American

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On October 26, 2026, Zedge, Inc. (the “Registrant”) issued a press release announcing its results of operations for its fiscal quarter ended July 31, 2026. A copy of the press release issued by the Registrant concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

The Registrant is furnishing the information contained in this Report, including Exhibit 99.1, pursuant to Item 2.02 of Form 8-K promulgated by the Securities and Exchange Commission (the “SEC”). This information shall not be deemed to be “filed” with the SEC or incorporated by reference into any other filing with the SEC unless otherwise expressly stated in such filing. In addition, this Report and the press release contain statements intended as “forward-looking statements” that are subject to the cautionary statements about forward-looking statements set forth in the press release.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Document
99.1		Earnings Release, dated October 26, 2026, reporting the results of operations for Zedge, Inc.’s fiscal quarter ended July 31, 2026.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

1

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ZEDGE, INC.
	By:	/s/ Jonathan Reich
	Name:	Jonathan Reich
	Title:	President and Chief Operating Officer

Dated: October 26, 2026

2

EXHIBIT INDEX

Exhibit No.		Document
99.1		Earnings Release, dated October 26, 2026, reporting the results of operations for Zedge, Inc.’s fiscal quarter ended July 31, 2026.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

3

Exhibit 99.1

Zedge Reports Fourth Quarter and Full-Year Fiscal 2026 Results

Subscription revenue increased 26% year-over-year in Q4 and 30% in fiscal 2026

ARPMAU¹ increased 31% to $0.121; active subscriptions¹ grew 35% to approximately 1.3 million

Full-year Free Cash Flow² increased 47% to $4.2 million

New York, NY – Oct. 26, 2026: Zedge, Inc. (NYSE AMERICAN: ZDGE), $ZDGE, a company that builds and operates creator communities serving 20 million monthly active users, today announced its financial results for the fourth quarter and fiscal year ended July 31, 2026.

Jonathan Reich, President and COO, commented:

“Fiscal year 2026 was a strong recovery year for Zedge. Our relentless focus on monetization improvement drove solid revenue gains, especially within our subscription offerings, where revenue grew nearly 30%. Overall revenue increased approximately 8%, despite a marked decline at Emojipedia that reduced our consolidated revenue growth by approximately 300 basis points. Combined with the benefits of our FY2025 restructuring, these improvements contributed to significant growth in non-GAAP EPS², adjusted EBITDA² and free cash flow. Our stronger cash generation enabled us to return approximately $2.7 million to stockholders through share repurchases³ and quarterly dividends, the latter of which we initiated during the year and subsequently increased by 25%, all while still adding cash to our balance sheet.

“From a product standpoint, the major story was establishing DataSeeds.AI as a commercial business, securing repeat orders from new and existing customers, including our first six-figure order, and putting the people and infrastructure in place to support larger and more complex projects. That progress excited Howard Jonas about the opportunity, so much so that he led a $7.7 million insider investment in Zedge in September to accelerate DataSeeds’ growth. In light of the investment, Howard is taking a more active role in helping us accelerate, scale and unlock this business’s potential. The Company also hired Morris Berger, who has a long and successful track record, as our CEO earlier this month.

Morris Berger, Chief Executive Officer, added:

“DataSeeds has the ingredients to become a meaningful growth business for Zedge. It combines established creator communities, content assets and experience operating consumer applications with purpose-built data collection technology and the DataSeeds Production Cloud. These capabilities allow us to produce rights-cleared, multimodal datasets tailored to complex customer requirements. The business has already established commercial traction through repeat orders, growing order sizes and the potential to expand into new products and services, evidenced by our initial model-evaluation engagement. We see room to build on that foundation across training data, model evaluation, annotation and data enrichment, and specialized datasets for physical AI and robotics.”

Fourth Quarter Highlights (fiscal 2026 versus fiscal 2025)

● Revenue increased 4.0% to $7.8 million;

o Subscription revenue increased 25.6% to $1.8 million;

● GAAP operating income of $0.3 million, compared to a ($0.7) million loss;

● GAAP net income and diluted EPS of $0.4 million and $0.03, compared to a net loss of ($0.6) million and a loss per share of ($0.04), respectively;

● Non-GAAP net income² and diluted Non-GAAP EPS of $0.5 million and $0.04, compared to $0.1 million and $0.00, respectively;

● Free cash flow increased 220.3% to $1.6 million, compared to $0.5 million;

● Adjusted EBITDA increased 75.6% to $0.5 million, compared to $0.3 million;

● ARPMAU increased 30.5% to $0.121;

● Zedge Premium GTV¹ increased 1.9%;

● Active subscriptions increased 35.3% to approximately 1.3 million;

● Deferred revenue increased 13.4% to $6.1 million;

● Cash and cash equivalents were $20.3 million as of July 31, 2026;

● Paid a quarterly dividend of $0.02 per share.

Full-Year Fiscal 2026 Highlights (versus fiscal 2025)

● Revenue increased 7.6% to $31.6 million;

o Subscription revenue increased 29.5% to $6.6 million;

● GAAP operating loss narrowed to ($0.6) million from ($3.2) million;

● GAAP net loss and diluted EPS narrowed to ($0.1) million and ($0.02) compared to ($2.4) million and ($0.17), respectively;

● Non-GAAP net income and diluted Non-GAAP EPS of $3.1 million and $0.24, compared to $0.7 million and $0.05, respectively;

● Free cash flow increased 46.6% to $4.2 million, compared to $2.9 million;

● Adjusted EBITDA increased 134.2% to $4.1 million, compared to $1.8 million;

● Repurchased 686,477 shares.

Fourth Quarter and Full-Year Select Financial Metrics: FY26 versus FY25*

($ in millions except per-share amounts)		Q4 FY26				Q4 FY25				Change				FY26				FY25				Change
Total Revenue		$	7.8			$	7.5				+4.0	%		$	31.6			$	29.4				+7.6	%
Advertising Revenue		$	5.1			$	5.2				-1.9	%		$	21.2			$	20.3				+4.1	%
Digital Goods and Services Revenue		$	0.4			$	0.5				-2.2	%		$	2.0			$	2.2				-10.2	%
Subscription Revenue		$	1.8			$	1.4				+25.6	%		$	6.6			$	5.1				+29.5	%
Other Revenue		$	0.5			$	0.4				+11.6	%		$	1.9			$	1.8				+6.5	%
GAAP Operating Income (Loss)		$	0.3			$	(0.7	)			nm			$	(0.6	)		$	(3.2	)			+80.0	%
Operating Margin			3.3	%			-9.6	%							-2.0	%			-11.0	%
GAAP Net Income (Loss)		$	0.4			$	(0.6	)			nm			$	(0.1	)		$	(2.4	)			94.5	%
GAAP Diluted EPS (Loss per share)		$	0.03			$	(0.04	)			nm			$	(0.02	)		$	(0.17	)			+88.2	%
Non-GAAP Net Income		$	0.5			$	0.1				nm			$	3.1			$	0.7				+357.0	%
Non- GAAP Diluted EPS		$	0.04			$	0.00				nm			$	0.24			$	0.05				+383.1	%
Cash Flow from Operations		$	1.7			$	0.7				+145.0	%		$	4.6			$	3.4				+33.1	%
Free Cash Flow		$	1.6			$	0.5				+220.3	%		$	4.2			$	2.9				+46.6	%
Adjusted EBITDA		$	0.5			$	0.3				+75.6	%		$	4.1			$	1.8				+134.2	%
Shares Repurchased			0.36				0.64				-44.2	%			0.69				1.32				-48.1	%

nm = not measurable/meaningful

* percentages are based off of actuals versus the rounded numbers in the table; FY2026 amounts are preliminary and subject to audit completion

2 

Select Zedge Marketplace Metrics: Q4 FY26 versus Q4 FY25*

(in MM except for ARPMAU and where noted)		Q4 FY26				Q4 FY25				Change
MAU			19.3				23.2				-16.8	%
Well-developed markets (millions)			4.2				5.4				-22.2	%
Emerging markets (millions)			15.1				17.8				-15.2	%
Active subscriptions (in 000s)			1,332				984				+35.3	%
ARPMAU		$	0.121			$	0.093				+30.5	%
Zedge Premium GTV		$	0.65			$	0.64				+1.9	%

* percentages are based off of actuals versus the rounded numbers in the table

Non-GAAP and Supplemental Metrics

1 We use the following supplemental business metrics in this release because we believe they are useful in evaluating Zedge’s operational performance (Please see our 10-K for full explanation of the supplemental business metrics):

Monthly active users, or MAU, captures the number of unique users that used our Zedge App during the final 30 days of the relevant period. It is useful for evaluating consumer engagement with our App, which correlates to advertising revenue as more users drive more ad impressions.

Zedge Premium Gross Transaction Value, or GTV, is the total dollar amount of transactions conducted through Zedge Premium. As Zedge Premium is an internal focus for growth, we believe this metric will help investors evaluate our progress in growing this part of our business.

Average Revenue Per Monthly Active User for our Zedge Marketplace, or ARPMAU, is useful in evaluating how well we monetize our user base.

An Active Subscription is a subscription that has commenced and not been canceled, including paused subscriptions and subscriptions in free trials, grace periods, or account hold. This is important because it is a source of recurring revenue.

2 Throughout this release, Non-GAAP Net Income, Non-GAAP EPS, Free Cash Flow (FCF) and Adjusted EBITDA are non-GAAP financial measures intended to provide useful information that supplements Zedge’s results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measures at the end of this release for an explanation of Zedge’s formulations of Non-GAAP Net Income, Non-GAAP EPS, Free Cash Flow and Adjusted EBITDA and reconciliations to the most directly comparable GAAP measures.

3 The share repurchase was suspended in Q1 FY27 in light of the September capital raise.

Earnings Announcement and Supplemental Information

Management will host an earnings conference call this afternoon, October 26 at 4:30 p.m. Eastern to discuss its earnings results, outlook, and strategy, followed by a Q&A session with investors.

Live Call-in Info:

Toll Free:	888-506-0062
International:	973-528-0011
Participant Access Code:	465347
Webcast URL: https://www.webcaster5.com/Webcast/Page/2205/54612

Replay:

Toll Free:	877-481-4010
International:	919-882-2331
Replay Passcode:	54612

3 

About Zedge

Zedge builds and operates creator communities that serve 20 million monthly active users across its platforms. Zedge Marketplace, its flagship platform, is a leading marketplace for mobile personalization content and a core profit and cash flow generator. DataSeeds.AI is Zedge’s B2B AI data business, providing managed, multimodal data creation and related services for AI developers and enterprises. DataSeeds draws on Zedge’s proprietary creator communities, including Zedge Marketplace contributors and the GuruShots photography community, as well as broader crowdsourcing and a network of production partners to deliver rights-cleared data built to customer specifications.

For more information, visit: investor.zedge.net

Follow us on X: @Zedge

Follow us on LinkedIn

Forward-Looking Statements

All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.

Contact:

Brian Siegel, IRC, MBA

Senior Managing Director

Hayden IR

(346) 396-8696

brian@haydenir.com

ir@zedge.net

4 

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value data)

(audited)

July 31,		2026				2025
Assets
Current assets:
Cash and cash equivalents		$	20,335			$	18,609
Trade accounts receivable			3,371				3,164
Prepaid expenses and other current assets			440				671
Total Current assets			24,146				22,444
Property and equipment, net			1,159				1,290
Intangible assets, net			1,002				4,922
Goodwill			2,093				1,931
Deferred tax assets, net			5,126				4,823
Other assets			393				244
Total assets		$	33,919			$	35,654
Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable		$	1,268			$	1,471
Accrued expenses and other current liabilities			2,425				2,867
Deferred revenues			4,201				3,425
Total Current liabilities			7,894				7,763
Deferred revenues--non-current			1,878				1,937
Other liabilities			126				53
Total liabilities			9,898				9,753
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $.01 par value; authorized shares—2,400; no shares issued and outstanding			-				-
Class A common stock, $.01 par value; authorized shares—2,600; 525 shares issued and outstanding at July 31, 2026 and 2025			5				5
Class B common stock, $.01 par value; authorized shares—40,000; and 15,472 shares issued, and 12,400 outstanding at July 31, 2026 and 15,073 shares issued and 12,692 shares outstanding at July 31, 2025.			155				151
Additional paid-in capital			49,913				49,768
Accumulated other comprehensive loss			(1,180	)			(1,509	)
Accumulated deficit			(15,636	)			(15,505	)
Treasury stock, 3,072 shares at July 31, 2026 and  2,381shares at July 31, 2025, at cost			(9,236	)			(7,009	)
Total stockholders’ equity			24,021				25,901
Total liabilities and stockholders’ equity		$	33,919			$	35,654

5 

ZEDGE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except per share data)

(audited)

		Three Months Ended								Years Ended
		July 31,								July 31,
		2026				2025				2026				2025
Revenues		$	7,770			$	7,468			$	31,626			$	29,398
Costs and expenses:
Direct cost of revenues (excluding amortization of capitalized software and technology development costs which is included below)			578				481				2,229				1,841
Selling, general and administrative			6,763				6,909				25,611				27,187
Depreciation and amortization			171				225				707				1,149
Impairment of intangible assets			-				-				3,570				-
Impairment of capitalized software and technology development costs			-				-				145				827
Restructuring charges			-				547				-				1,605
Loss on disposal of property and equipment			-				21				-				21
Income (loss) from operations			258				(715	)			(636	)			(3,232	)
Interest and other income, net			139				160				542				666
Net income (loss) resulting from foreign exchange transactions			39				(10	)			(172	)			(151	)
Income (loss) before income taxes			436				(565	)			(266	)			(2,717	)
Income tax benefit			(8	)			(6	)			(135	)			(325	)
Net income (loss)		$	444			$	(559	)		$	(131	)		$	(2,392	)
Other comprehensive income (loss):
Changes in foreign currency translation adjustment			(123	)			36				329				323
Total other comprehensive income (loss)			(123	)			36				329				323
Total comprehensive income (loss)		$	321			$	(523	)		$	198			$	(2,069	)
Income (loss) per share attributable to Zedge, Inc. common stockholders:
Basic		$	0.03			$	(0.04	)		$	(0.01	)		$	(0.17	)
Diluted		$	0.03			$	(0.04	)		$	(0.01	)		$	(0.17	)
Weighted-average number of shares used in calculation of loss per share:
Basic			12,995				13,441				12,993				13,736
Diluted			13,184				13,441				12,993				13,736

6 

ZEDGE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(audited)

Year ended July 31,		2026				2025
Operating activities
Net loss		$	(131	)		$	(2,392	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation			58				63
Amortization of intangible assets			349				447
Amortization of capitalized software and technology development costs			299				639
Loss on disposal of property and equipment			-				21
Stock-based compensation			530				1,445
Impairment charge of capitalized software and technology development costs			145				827
Impairment charge of ROU asset			-				140
Impairment charge of intangible assets			3,570				-
Deferred income taxes			(303	)			(479	)
Change in assets and liabilities:
Trade accounts receivable			(207	)			242
Prepaid expenses and other current assets			231				(78	)
Other assets			(75	)			(94	)
Trade accounts payable and accrued expenses			(628	)			378
Deferred revenues			717				2,263
Net cash provided by operating activities			4,555				3,422
Investing activities
Capitalized software and technology development costs			(317	)			(466	)
Purchase of property and equipment			(27	)			(83	)
Net cash used in investing activities			(344	)			(549	)
Financing activities
Purchase of treasury stock in connection with share buyback program and stock awards vesting			(1,913	)			(4,433	)
Payment of cash dividends			(940	)			-
Proceeds from exercise of stock options			245				62
Net cash used in financing activities			(2,608	)			(4,371	)
Effect of exchange rate changes on cash and cash equivalents			123				109
Net increase (decrease) in cash and cash equivalents			1,726				(1,389	)
Cash and cash equivalents at beginning of period			18,609				19,998
Cash and cash equivalents at end of period		$	20,335			$	18,609
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for income taxes		$	198			$	220
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
ROU assets obtained in exchange for lease liabilities		$	286			$	111
Exercise price of stock options settled through net share exercise		$	314			$	-

7 

Use of Non-GAAP Measures and Key Performance Indicators (KPI)

Adjusted EBITDA, defined as earnings (loss) before interest, taxes, depreciation and amortization, stock compensation expense, transaction-related expenses and other non-recurring expenses, Free Cash Flow, a common metric used by investors for valuation, and non-GAAP net income (loss) and EPS (or loss per share) (which adjust out stock compensation expense, transaction-related expenses and other non-recurring expenses from GAAP net income (loss) and EPS (loss per share)), represent measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures we present. Our management also believes these measures are useful in evaluating our core operating results. However, these are not measures of financial performance under GAAP and should not be considered an alternative to net income or operating income/margin as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity. Numbers in the following reconciliation tables may not add due to rounding.

Reconciliation of Adjusted EBITDA to Net Income (Loss)		Q125				Q225				Q325				Q425				Q126				Q226				Q326				Q426				FY24				FY25				FY26
Net Income (Loss)		$	(0.3	)		$	(1.7	)		$	0.2			$	(0.6	)		$	0.8			$	(2.3	)		$	0.9			$	0.4			$	(9.2	)		$	(2.4	)		$	(0.1	)
Excluding:
Interest and other income (expense), net		$	(0.2	)		$	(0.2	)		$	(0.2	)		$	(0.2	)		$	(0.2	)		$	(0.1	)		$	(0.1	)		$	(0.1	)		$	(0.6	)		$	(0.7	)		$	(0.6	)
Income tax expense (benefit)		$	0.0			$	(0.5	)		$	0.1			$	(0.0	)		$	0.2			$	(0.6	)		$	0.3			$	(0.0	)		$	(2.2	)		$	(0.3	)		$	(0.1	)
Depreciation and amortization		$	0.4			$	0.3			$	0.2			$	0.2			$	0.2			$	0.2			$	0.1			$	0.2			$	2.5			$	1.1			$	0.7
EBITDA		$	(0.1	)		$	(2.0	)		$	0.3			$	(0.5	)		$	1.1			$	(2.8	)		$	1.2			$	0.5			$	(9.5	)		$	(2.2	)		$	(0.1	)
Adjustments:
Asset impairments and restructuring charges		$	0.0			$	1.3			$	0.6			$	0.6			$	0.0			$	3.7			$	0.0			$	0.0			$	12.0			$	2.5			$	3.7
Stock-based compensation		$	0.4			$	0.6			$	0.3			$	0.1			$	0.1			$	0.3			$	0.1			$	0.1			$	2.1			$	1.4			$	0.5
Expenses related to restructuring activities and business combination		$	0.0			$	0.0			$	0.0			$	0.1			$	0.0			$	0.0			$	0.0			$	0.0			$	0.2			$	0.1			$	0.0
Adjusted EBITDA		$	0.3			$	(0.1	)		$	1.2			$	0.3			$	1.2			$	1.1			$	1.3			$	0.5			$	4.7			$	1.8			$	4.1

* numbers may not add due to rounding

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income		Q125				Q225				Q325				Q425				Q126				Q226				Q326				Q426				FY24				FY25				FY26
GAAP Net Income (Loss)		$	(0.3	)		$	(1.7	)		$	0.2			$	(0.6	)		$	0.8			$	(2.3	)		$	0.9			$	0.4			$	(9.2	)		$	(2.4	)		$	(0.1	)
Adjustments:
Asset impairments and restructuring charges		$	0.0			$	1.3			$	0.6			$	0.6			$	0.0			$	3.7			$	0.0			$	0.0			$	12.0			$	2.5			$	3.7
Stock-based compensation		$	0.4			$	0.6			$	0.3			$	0.1			$	0.1			$	0.3			$	0.1			$	0.1			$	2.1			$	1.4			$	0.5
Expenses related to restructuring activities and business combination		$	0.0			$	0.0			$	0.0			$	0.1			$	0.0			$	0.0			$	0.0			$	0.0			$	0.2			$	0.1			$	0.0
Income tax effect on non-GAAP items		$	(0.1	)		$	(0.4	)		$	(0.2	)		$	(0.2	)		$	(0.0	)		$	(0.9	)		$	(0.0	)		$	(0.0	)		$	(3.3	)		$	(0.9	)		$	(1.0	)
Non-GAAP Net Income (Loss)		$	(0.0	)		$	(0.2	)		$	0.9			$	0.1			$	0.9			$	0.8			$	1.0			$	0.5			$	1.8			$	0.7			$	3.1
Non-GAAP basic EPS (loss per share)		$	(0.00	)		$	(0.01	)		$	0.06			$	0.00			$	0.07			$	0.06			$	0.08			$	0.04			$	0.13			$	0.05			$	0.24
Non-GAAP diluted EPS (loss per share)		$	(0.00	)		$	(0.01	)		$	0.06			$	0.00			$	0.07			$	0.06			$	0.07			$	0.04			$	0.13			$	0.05			$	0.24
Weighted average shares used to compute Non-GAAP basic earnings per share			14.1				13.9				13.7				13.4				13.0				13.0				13.0				1 3.0				14.1				13.7				13.0
Weighted average shares used to compute Non-GAAP diluted earnings per share			14.1				13.9				13.9				13.4				13.3				13.0				13.3				13.2				14.1				13.7				13.0

* numbers may not add due to rounding

Free Cash Flow Calculation		Q125				Q225				Q325				Q425				Q126				Q226				Q326				Q426				FY24				FY25				FY26
Cash Flow from Operations		$	1.2			$	0.7			$	0.9			$	0.7			$	0.8			$	0.9			$	1.2			$	1.7			$	5.9			$	3.4			$	4.6
Capital Expenditures		$	0.2			$	0.1			$	0.1			$	0.2			$	0.2			$	0.1			$	0.0			$	0.0			$	1.2			$	0.5			$	0.3
Free Cash Flow		$	1.0			$	0.6			$	0.8			$	0.5			$	0.6			$	0.8			$	1.2			$	1.6			$	4.7			$	2.9			$	4.2

8 

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EARNINGS RELEASE, DATED OCTOBER 26, 2026, REPORTING THE RESULTS OF OPERATIONS FO 206.5 KB

Other Documents

• EX-101 XBRL SCHEMA FILE 2.9 KB
• EX-101 XBRL LABEL FILE 33.4 KB
• EX-101 XBRL PRESENTATION FILE 21.8 KB