Maxim Group Has Negative Opinion of Zedge FY2027 Earnings

Zedge, Inc. (NYSEAMERICAN:ZDGE) – Stock analysts at Maxim Group dropped their FY2027 earnings estimates for shares of Zedge in a research note issued on Tuesday, October 27th. Maxim Group analyst A. Klee now expects that the company will post earnings of $0.12 per share for the year, down from their prior forecast 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 posted its earnings results on Monday, October 26th. The company reported $0.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.02. Zedge had a positive return on equity of 11.18% and a negative net margin of 3.62%. The firm had revenue of $7.77 million for the quarter, compared to the consensus estimate of $7.20 million.

Zedge Stock Performance

Shares of NYSEAMERICAN ZDGE opened at $2.63 on Thursday. The stock has a market cap of $32.98 million, a PE ratio of -131.43 and a beta of 1.20. Zedge has a fifty-two week low of $2.21 and a fifty-two week high of $4.70. The stock has a fifty day moving average of $2.92 and a 200-day moving average of $3.06.

Institutional Trading of Zedge

Institutional investors have recently added to or reduced their stakes in the stock. Kahn Brothers Group Inc. bought a new position in Zedge in the 2nd quarter worth about $242,000. NewEdge Advisors LLC grew its holdings in 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 in the last quarter. Finally, Hillsdale Investment Management Inc. increased its position in shares of Zedge by 1,982.8% during the first 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 period. Hedge funds and other institutional investors own 29.37% of the company’s stock.

Key Zedge News

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.

Zedge Company Profile

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.