Zedge (ZDGE) CEO cashless option exercise yields 49,390 net shares
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Zedge, Inc. CEO and President Jonathan Reich reported an option exercise and related share withholdings in the company’s Class B Common Stock. He exercised 181,616 employee stock options at $1.73 per share using a cashless exercise mechanism.
To cover the exercise price and tax obligations, 132,226 shares were delivered or withheld, leaving 49,390 new shares issued to him. After these transactions, Reich directly held 79,281 Class B shares and indirectly held 39,950 Class B shares through a 401(k) plan as of June 2, 2026.
Positive
- None.
Negative
- None.
Insights
CEO exercised expiring options via cashless exercise, with routine tax withholding and modest net share increase.
CEO Jonathan Reich exercised 181,616 employee stock options at an exercise price of $1.73 per share through a cashless mechanism. This converted an expiring derivative position into Class B Common Stock rather than representing an open-market purchase.
To fund the exercise price and cover the tax withholding obligation, 132,226 shares were delivered/withheld at a reference price of $3.01, resulting in 49,390 net shares issued. After these entries, he held 79,281 shares directly and 39,950 indirectly via a 401(k) plan as of June 2, 2026, indicating a routine compensation-related event rather than a directional market bet.
Insider Trade Summary
181,616 shares exercised/converted
Mixed
4 txns
Insider
REICH JONATHAN
Role
CEO & President
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Employee Stock Option (Right to Buy) | 181,616 | $0.00 | -- |
| Exercise | Class B Common Stock, par value $.01 per share | 181,616 | $1.73 | $314K |
| Tax Withholding | Class B Common Stock, par value $.01 per share | 132,226 | $3.01 | $398K |
| holding | Class B Common Stock, par value $.01 per share | -- | -- | -- |
Holdings After Transaction:
Employee Stock Option (Right to Buy) — 0 shares (Direct, null);
Class B Common Stock, par value $.01 per share — 211,507 shares (Direct, null);
Class B Common Stock, par value $.01 per share — 39,950 shares (Indirect, By 401(k) Plan)
Footnotes (1)
- Options with respect to 181,616 shares were exercised using a "cashless exercise" mechanism in accordance with the terms of the option instrument. Includes 181,616 shares covered by the options that were exercised using a "cashless exercise", 2,176 shares due to the Reporting Person's ownership of IDT's Class B Common Stock at the time of the Issuer's spin-off from IDT and 18,900 shares issued upon the vesting of DSUs. Represents options with respect to 104,384 shares which were utilized to pay the exercise price and 27,842 shares which were withheld by the Issuer to pay the tax withholding obligation that arose upon the Reporting Person's exercise of the option to purchase shares of Class B Common Stock described in Table II of this Form 4. 49,390 shares were issued to the Reporting Person. As of June 2, 2026.
Key Figures
Options exercised: 181,616 shares
Exercise price: $1.73/share
Shares used for exercise and taxes: 132,226 shares
+4 more
7 metrics
Options exercised
181,616 shares
Employee stock options exercised at $1.73 per share
Exercise price
$1.73/share
Exercise price for 181,616 employee stock options
Shares used for exercise and taxes
132,226 shares
Delivered/withheld to pay exercise price and tax obligation
Net new shares issued
49,390 shares
Shares issued to CEO after cashless exercise and tax withholding
Direct holdings after transaction
79,281 shares
Class B Common Stock held directly as of June 2, 2026
Indirect 401(k) holdings
39,950 shares
Class B Common Stock held via 401(k) plan as of June 2, 2026
Tax-withholding reference price
$3.01/share
Price used for 132,226-share tax-withholding disposition
Key Terms
cashless exercise, tax withholding obligation, Employee Stock Option (Right to Buy), Class B Common Stock, +1 more
5 terms
cashless exercise financial
"Options with respect to 181,616 shares were exercised using a "cashless exercise" mechanism"
A cashless exercise is a way for an option holder to convert stock options into actual shares without paying the purchase price in cash; instead they immediately give up a portion of the newly issued shares to cover the cost and any withholding taxes. Investors care because this process increases the number of shares available and can slightly dilute existing holdings, while also signaling how insiders or employees are realizing compensation without needing cash — similar to paying for a purchase by handing over part of what you just bought.
tax withholding obligation financial
"27,842 shares which were withheld by the Issuer to pay the tax withholding obligation that arose"
Employee Stock Option (Right to Buy) financial
"security_title": "Employee Stock Option (Right to Buy)""
Class B Common Stock financial
"Class B Common Stock, par value $.01 per share"
A class B common stock is one of multiple types of a company’s ordinary shares that carries specific rights—often different voting power or dividend priority—compared with other classes. For investors it matters because those differences affect how much influence you have over company decisions, the income you might receive, and how freely the shares trade; think of it like owning a car with different keys: some keys let you start the engine and open the trunk, others only unlock the door.
DSUs financial
"18,900 shares issued upon the vesting of DSUs."
DSUs, or Deferred Share Units, are a form of long-term pay where employees or directors receive a promise of company shares or cash at a later date instead of immediate salary. Think of them as an IOU for future stock that vests over time and converts into actual shares or cash, so they matter to investors because they can increase the number of outstanding shares (dilution) and reveal how management’s pay is tied to company performance.
FAQ
What insider transaction did Zedge (ZDGE) report for CEO Jonathan Reich?
Zedge reported that CEO Jonathan Reich exercised 181,616 employee stock options for Class B Common Stock using a cashless exercise. The filing reflects option conversion and related tax withholding rather than an open-market share purchase or sale.
How many Zedge (ZDGE) options did the CEO exercise and at what price?
Jonathan Reich exercised 181,616 employee stock options at an exercise price of $1.73 per share. These options were converted into Class B Common Stock through a cashless exercise mechanism described in the Form 4 footnotes.
Does the Zedge (ZDGE) Form 4 show an open-market sale by the CEO?
The Form 4 does not show an open-market sale. It records a cashless option exercise and a tax-withholding disposition coded “F,” meaning shares were delivered or withheld to cover exercise and tax costs, not sold voluntarily on the open market.
Were any employee stock options remaining for the Zedge (ZDGE) CEO after this exercise?
The filing shows the exercised option grant had 181,616 shares and a remaining derivative position of zero after exercise. This indicates that specific option award was fully exercised, with no further options from that grant outstanding following the transaction.