8-K
Zedge, Inc. (ZDGE)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of theSecurities Exchange Act of 1934
Date of Report (Date of earliest event reported):December 12, 2025
Zedge, Inc.
(Exact name of registrant as specified in itscharter)
| 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 sincelast 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 FinancialCondition
On December 12, 2025, Zedge, Inc. (the “Registrant”) issued a press release announcing its results of operations for its fiscal quarter ended October 31, 2025. 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.
Item9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Document |
|---|---|
| 99.1 | Earnings Release, dated December 12, 2025, reporting the results of operations for Zedge, Inc.’s fiscal quarter ended October 31, 2025. |
| 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: | Chief Executive Officer |
Dated: December 12, 2025
2
EXHIBIT INDEX
| Exhibit No. | Document |
|---|---|
| 99.1 | Earnings Release, dated December 12, 2025, reporting the results of operations for Zedge, Inc.’s fiscal quarter ended October 31, 2025. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
3
Exhibit 99.1
Zedge Reports First Quarter Fiscal 2026 Results
Active subscriptions^1^ reached a record1.1 million, up 54% year-over-year; subscription revenue grew 29% year-over-year; ARPMAU^1^ grew 29% year-over-year
Revenue returned to growth at 6%, GAAP and Non-GAAPEPS^2^ of $0.06 and $0.07, respectively
Repurchased 240,000 shares and paid first quarterlydividend
New York, NY – December 12, 2025: Zedge, Inc. (NYSE AMERICAN: ZDGE), $ZDGE, a leader in digital marketplaces and interactive games that provide content, enable creativity, empower self-expression and facilitate community, today announced results for its first quarter fiscal 2026, ended October 31, 2025.
JonathanReich, Zedge’s CEO, commented:
“Zedge delivered a solid start to fiscal 2026 with a return to topline growth even as we continued to navigate the anticipated headwinds at Emojipedia and GuruShots. The Zedge Marketplace demonstrated resilience and efficiency amid a broader digital ecosystem that continues to shift. Improved ARPMAU stood out as a key achievement of the quarter, driven by sustained CPMs, a core ad pricing metric, optimization and stronger subscription gains. These serve as strong signals that our core engine remains healthy.
“I’m excited by the traction we’re experiencing with DataSeeds. While the number of closed deals is still small, the opportunity is huge. AI models’ success depends on their ability to secure a critical mass of high-quality training data that meets unique techincal specifications. That’s where DataSeeds Production Cloud, our network of creative experts built to fulfill bespoke content requests, is experiencing a surge in demand. In Q1, we received our second order from an existing customer, a leader in the AI space, with an increased dollar size of roughly 25X from the customer’s first order. Furthermore, our pipeline is ripe with many six-figure revenue opportunities. It is still early, but our value proposition - mainly access to and experience with a coveted community of creators that can generate rights-cleared, ethically sourced content, at scale, is in great demand. Moreover, it’s not only the content that is fueling interest, but also our ability to deliver many other aspects of a customer brief with consistency and accuracy including unique naming and metadata conventions and search capabilities that set us apart. We are proceeding deliberately, for the most part using existing resources to execute.
“Turning to our financial results, I want to address free cash flow^2^ because the offsets this quarter were meaningful, but fully anticipated. Free cash flow reflected the impact of the timing of restructuring-related compensation tax payments, which are now largely behind us, as well as some quarter-specific timing in receivables and payables. We also chose to reinvest part of our restructuring savings into high-potential initiatives, including DataSeeds, Tapedeck and our product innovation initiative. These items temporarily reduced our free cash flow generation, but they do not change our long-term free cash flow expectations.
“Looking forward, we entered the second quarter of fiscal 2026, which is typically seasonally stronger, with a leaner operating structure, a stronger business engine and a growing portfolio of innovation bets. We are executing from a position of confidence, discipline and momentum, and will invest prudently based on where opportunity knocks.”
First Quarter Highlights (fiscal 2026 versusfiscal 2025)
| ● | Revenue increased 5.8% to $7.6 million; | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| ● | GAAP operating income of $0.9 million, compared<br>to an operating loss ($0.5) million; | ||||||||
| --- | --- | ||||||||
| ● | GAAP net income and income per share (EPS) of<br>$0.8 million and $0.06, compared to a net loss of ($0.3) million and ($0.02) per share; | ||||||||
| --- | --- | ||||||||
| ● | Non-GAAP net income (loss) and EPS of $0.9 million<br>and $0.07, compared to break-even; | ||||||||
| --- | --- | ||||||||
| ● | Free cash flow*^2^* of $0.6 million;<br>Adjusted EBITDA*^2^* of $1.2 million; | ||||||||
| --- | --- | ||||||||
| ● | ARPMAU increased 29.2%; | ||||||||
| --- | --- | ||||||||
| ● | Zedge Premium’s GTV^1^ decreased<br>3.7% to $0.66 million; | ||||||||
| --- | --- | ||||||||
| ● | Repurchased approximately 240,000 shares of Class<br>B Common Stock. | ||||||||
| --- | --- | ||||||||
| First Quarter Select Financial Metrics: FY26 versus FY25* | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (in M except for EPS) | Q1 ‘26 | Q1 ‘25 | Change | ||||||
| Total Revenue | $ | 7.6 | $ | 7.2 | 5.8 | % | |||
| Advertising Revenue | $ | 5.2 | $ | 4.9 | 6.0 | % | |||
| Digital Goods and Services Revenue | $ | 0.5 | $ | 0.6 | -27.3 | % | |||
| Subscription Revenue | $ | 1.5 | $ | 1.2 | 28.6 | % | |||
| Other Revenue | $ | 0.5 | $ | 0.5 | -7.7 | % | |||
| GAAP Operating Income (Loss) | $ | 0.9 | $ | (0.5 | ) | nm | |||
| Operating Margin | 12.0 | % | -6.4 | % | |||||
| GAAP Net Income (Loss) | $ | 0.8 | $ | (0.3 | ) | nm | |||
| GAAP Diluted EPS (Loss per share) | $ | 0.06 | $ | (0.02 | ) | nm | |||
| Non-GAAP Net Income | $ | 0.9 | $ | (0.0 | ) | nm | |||
| Non- GAAP Diluted EPS | $ | 0.07 | $ | 0.00 | nm | ||||
| Cash Flow from Operations | $ | 0.8 | $ | 1.2 | -29.5 | % | |||
| Free Cash Flow | $ | 0.6 | $ | 1.0 | -36.8 | % | |||
| Adjusted EBITDA | $ | 1.2 | $ | 0.3 | 312.5 | % | |||
| Shares Repurchased | 0.24 | 0.22 | 8.6 | % | |||||
| nm = not measurable/meaningful | |||||||||
| --- | |||||||||
| * | numbers/percentages are based off of actuals versus the rounded<br> numbers in the table | ||||||||
| --- | --- |
2
^^
| Select Zedge Marketplace Metrics: FY26 versus FY25* | |||||||
|---|---|---|---|---|---|---|---|
| (in M except for ARPMAU and where noted) | Q1 ‘26 | Q1 ‘25 | Change | ||||
| MAU | 22.2 | 25.0 | -11.2 | % | |||
| Well-Developed Markets | 4.9 | 5.5 | -10.9 | % | |||
| Emerging Markets | 17.3 | 19.5 | -11.3 | % | |||
| Active Subscriptions (in 000s) | 1,075 | 698 | 54.1 | % | |||
| ARPMAU | $ | 0.099 | $ | 0.077 | 29.2 | % | |
| Zedge Premium - Gross Transaction Value (GTV) | $ | 0.66 | $ | 0.68 | -3.7 | % | |
| * | numbers/percentages are based off of actuals versus the rounded<br> numbers in the table | ||||||
| --- | --- |
^^
| ^1^ | We use the following supplemental business metrics in thisrelease because we believe they are useful in evaluating Zedge’s operational performance. |
|---|---|
| ● | Monthly active users, or MAU, captures thenumber of unique users that used our Zedge App during the previous 30 days of the relevant period, is useful for evaluating consumer engagementwith our App, which correlates to advertising revenue as more users drive more ad impressions for sale. It also allows readers and potentialadvertisers to evaluate the size of our user base. |
| --- | --- |
| ● | Zedge Premium Gross Transaction Value, orGTV, is the total dollar amount of transactions conducted through Zedge Premium. As Zedge Premium is an internal focus for growth, webelieve this metric will help investors evaluate our progress in growing this part of our business. |
| --- | --- |
| ● | Average Revenue Per Monthly Active User forour Zedge Marketplace, or ARPMAU, is useful in evaluating how well we monetize our user base. |
| --- | --- |
| ● | An Active Subscription is a subscription thathas 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-GAAPEPS, Free Cash Flow (FCF) and Adjusted EBITDA are non-GAAP financial measures intended to provide useful information that supplementZedge’s results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial measures at the end of this releasefor an explanation of Zedge’s formulations of Non-GAAP Net Income, Non-GAAP EPS, Free Cash Flow and Adjusted EBITDA and reconciliationsto the most directly comparable GAAP measures. |
| --- | --- |
3
| Trended Financial Information* | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in M except for EPS, ARPMAU, Active Subscriptions) | Q125 | Q225 | Q325 | Q425 | Q126 | FY24 | FY25 | YTD FY26 | |||||||||||||
| Total Revenue | $ | 7.2 | $ | 7.0 | $ | 7.8 | $ | 7.5 | $ | 7.6 | $ | 30.1 | $ | 29.4 | $ | 7.6 | |||||
| Advertising Revenue | $ | 4.9 | $ | 4.7 | $ | 5.6 | $ | 5.2 | $ | 5.2 | $ | 21.0 | $ | 20.3 | $ | 5.2 | |||||
| Digital Goods and Services Revenue | $ | 0.6 | $ | 0.6 | $ | 0.5 | $ | 0.5 | $ | 0.5 | $ | 3.5 | $ | 2.2 | $ | 0.5 | |||||
| Subscription Revenue | $ | 1.2 | $ | 1.2 | $ | 1.3 | $ | 1.4 | $ | 1.5 | $ | 4.3 | $ | 5.1 | $ | 1.5 | |||||
| Other Revenue | $ | 0.5 | $ | 0.4 | $ | 0.4 | $ | 0.4 | $ | 0.5 | $ | 1.2 | $ | 1.8 | $ | 0.5 | |||||
| GAAP Operating Income (Loss) | $ | (0.5 | ) | $ | (2.2 | ) | $ | 0.2 | $ | (0.7 | ) | $ | 0.9 | $ | (11.8 | ) | $ | (3.2 | ) | $ | 0.9 |
| GAAP Net Income (Loss) | $ | (0.3 | ) | $ | (1.7 | ) | $ | 0.2 | $ | (0.6 | ) | $ | 0.8 | $ | (9.2 | ) | $ | (2.4 | ) | $ | 0.8 |
| GAAP Diluted EPS (Loss per share) | $ | (0.02 | ) | $ | (0.12 | ) | $ | 0.01 | $ | (0.04 | ) | $ | 0.06 | $ | (0.65 | ) | $ | (0.17 | ) | $ | 0.06 |
| Non GAAP Net Income (Loss) | $ | (0.0 | ) | $ | (0.2 | ) | $ | 0.9 | $ | 0.1 | $ | 0.9 | $ | 1.8 | $ | 0.7 | $ | 0.9 | |||
| Non-GAAP Diluted EPS (Loss per share) | $ | (0.00 | ) | $ | (0.01 | ) | $ | 0.06 | $ | 0.00 | $ | 0.07 | $ | 0.13 | $ | 0.05 | $ | 0.07 | |||
| Cash Flow from Operations | $ | 1.2 | $ | 0.7 | $ | 0.9 | $ | 0.7 | $ | 0.8 | $ | 5.9 | $ | 3.4 | $ | 0.8 | |||||
| Free Cash Flow | $ | 1.0 | $ | 0.6 | $ | 0.8 | $ | 0.5 | $ | 0.6 | $ | 4.7 | $ | 2.9 | $ | 0.6 | |||||
| Adjusted EBITDA | $ | 0.3 | $ | (0.1 | ) | $ | 1.2 | $ | 0.3 | $ | 1.2 | $ | 4.7 | $ | 1.8 | $ | 1.2 | ||||
| MAU | 25.0 | 24.7 | 22.1 | 23.2 | 22.2 | nm | nm | nm | |||||||||||||
| Well-developed Markets | 5.5 | 5.6 | 5.2 | 5.4 | 4.9 | nm | nm | nm | |||||||||||||
| Emerging Markets | 19.5 | 19.1 | 16.9 | 17.8 | 17.3 | nm | nm | nm | |||||||||||||
| Active Subscriptions (in 000s) | 698 | 791 | 896 | 984 | 1,075 | nm | nm | nm | |||||||||||||
| ARPMAU | $ | 0.077 | $ | 0.078 | $ | 0.099 | $ | 0.093 | $ | 0.099 | nm | nm | nm | ||||||||
| Zedge Premium – GTV | $ | 0.68 | $ | 0.68 | $ | 0.61 | $ | 0.64 | $ | 0.66 | $ | 2.15 | $ | 2.62 | $ | 0.66 | |||||
| Shares Repurchased | 0.22 | 0.24 | 0.22 | 0.64 | 0.24 | 0.21 | 1.32 | 0.24 | |||||||||||||
| nm = not measurable/meaningful | |||||||||||||||||||||
| --- | |||||||||||||||||||||
| * | numbers<br> may not add due to rounding | ||||||||||||||||||||
| --- | --- |
Earnings Announcement and Supplemental Information
Management will host an earnings conference call today at 11:00 am 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: 866858
Webcast URL: https://www.webcaster5.com/Webcast/Page/2205/53246
Replay:
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 53246
4
About Zedge
Zedge empowers tens of millions of consumers and creators each month with its suite of interconnected platforms that enable creativity, self-expression and e-commerce and foster community through fun competitions. Zedge’s ecosystem of product offerings includes the Zedge Marketplace, a freemium marketplace offering mobile phone wallpapers, video wallpapers, ringtones, notification sounds, and pAInt, a generative AI image and audio maker; GuruShots, “The World’s Greatest Photography Game,” a skill-based photo challenge game; and Emojipedia, the #1 trusted source for ‘all things emoji.’
For more information, please visit: investor.zedge.net
Follow us on X: @Zedge
Follow us on LinkedIn
Forward-Looking Statements
All statements above that are not purely abouthistorical 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 statementswithin the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our currentjudgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statementsdue to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consultedalong 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
5
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par valuedata)
| July 31, | |||||
|---|---|---|---|---|---|
| 2025 | |||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | 18,496 | $ | 18,609 | ||
| Trade accounts receivable | 3,322 | 3,164 | |||
| Prepaid expenses and other current assets | 638 | 671 | |||
| Total Current assets | 22,456 | 22,444 | |||
| Property and equipment, net | 1,377 | 1,290 | |||
| Intangible assets, net | 4,810 | 4,922 | |||
| Goodwill | 1,973 | 1,931 | |||
| Deferred tax assets, net | 4,823 | 4,823 | |||
| Other assets | 520 | 244 | |||
| Total assets | 35,959 | $ | 35,654 | ||
| Liabilities and stockholders’ equity | |||||
| Current liabilities: | |||||
| Trade accounts payable | 1,451 | $ | 1,471 | ||
| Accrued expenses and other current liabilities | 2,656 | 2,867 | |||
| Deferred revenues | 3,735 | 3,425 | |||
| Total Current liabilities | 7,842 | 7,763 | |||
| Deferred revenues--non-current | 2,001 | 1,937 | |||
| Other liabilities | 221 | 53 | |||
| Total liabilities | 10,064 | 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 October 31, 2025 and July 31, 2025 | 5 | 5 | |||
| Class B common stock, .01 par value; authorized shares—40,000; 15,103 shares issued and 12,479 outstanding at October 31, 2025 and 15,073 shares issued and 12,692 shares outstanding at July 31, 2025 | 151 | 151 | |||
| Additional paid-in capital | 49,664 | 49,768 | |||
| Accumulated other comprehensive loss | (1,410 | ) | (1,509 | ) | |
| Accumulated deficit | (14,717 | ) | (15,505 | ) | |
| Treasury stock, and 2,624 shares at October 31, 2025 and<br> 2,381 shares at July 31, 2025, at cost | (7,798 | ) | (7,009 | ) | |
| Total stockholders’ equity | 25,895 | 25,901 | |||
| Total liabilities and stockholders’ equity | 35,959 | $ | 35,654 |
All values are in US Dollars.
6
ZEDGE, INC.
CONDENSED CONSOLIDATED STATEMENTSOF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except per sharedata)
(unaudited)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| October 31, | ||||||
| 2025 | 2024 | |||||
| Revenues | $ | 7,610 | $ | 7,194 | ||
| Costs and expenses: | ||||||
| Direct cost of revenues (excluding amortization of capitalized software and technology development costs which is included below) | 555 | 461 | ||||
| Selling, general and administrative | 5,925 | 6,809 | ||||
| Depreciation and amortization | 216 | 381 | ||||
| Income (loss) from operations | 914 | (457 | ) | |||
| Interest and other income, net | 153 | 181 | ||||
| Net loss resulting from foreign exchange transactions | (46 | ) | (14 | ) | ||
| Income (loss) before income taxes | 1,021 | (290 | ) | |||
| Income tax expense | 233 | 49 | ||||
| Net income (loss) | $ | 788 | $ | (339 | ) | |
| Other comprehensive income (loss): | ||||||
| Changes in foreign currency translation adjustment | 99 | (29 | ) | |||
| Total other comprehensive income (loss) | 99 | (29 | ) | |||
| Total comprehensive income (loss) | $ | 887 | $ | (368 | ) | |
| Income loss per share attributable to Zedge, Inc. common stockholders: | ||||||
| Basic | $ | 0.06 | $ | (0.02 | ) | |
| Diluted | $ | 0.06 | $ | (0.02 | ) | |
| Weighted-average number of shares used in calculation of income (loss) per share: | ||||||
| Basic | 13,026 | 14,086 | ||||
| Diluted | 13,331 | 14,086 |
7
ZEDGE, INC.
CONDENSED CONSOLIDATED STATEMENTSOF CASH FLOWS
(in thousands)
(unaudited)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| October 31, | ||||||
| 2025 | 2024 | |||||
| Operating activities | ||||||
| Net income (loss) | $ | 788 | $ | (339 | ) | |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
| Depreciation | 14 | 16 | ||||
| Amortization of intangible assets | 112 | 112 | ||||
| Amortization of capitalized software and technology development costs | 90 | 253 | ||||
| Stock-based compensation | 104 | 379 | ||||
| Deferred income taxes | - | - | ||||
| Change in assets and liabilities: | ||||||
| Trade accounts receivable | (158 | ) | 193 | |||
| Prepaid expenses and other current assets | 33 | (161 | ) | |||
| Other assets | (19 | ) | 2 | |||
| Trade accounts payable and accrued expenses | (513 | ) | 123 | |||
| Deferred revenues | 374 | 592 | ||||
| Net cash provided by operating activities | 825 | 1,170 | ||||
| Investing activities | ||||||
| Capitalized software and technology development costs | (168 | ) | (146 | ) | ||
| Purchase of property and equipment | (17 | ) | (11 | ) | ||
| Net cash used in investing activities | (185 | ) | (157 | ) | ||
| Financing activities | ||||||
| Purchase of treasury stock in connection with share buyback program and stock awards vesting | (789 | ) | (804 | ) | ||
| Net cash used in financing activities | (789 | ) | (804 | ) | ||
| Effect of exchange rate changes on cash and cash equivalents | 36 | (11 | ) | |||
| Net (decrease) increase in cash and cash equivalents | (113 | ) | 198 | |||
| Cash and cash equivalents at beginning of period | 18,609 | 19,998 | ||||
| Cash and cash equivalents at end of period | $ | 18,496 | $ | 20,196 | ||
| Supplemental cash flow information: | ||||||
| Cash paid for income taxes | $ | 36 | $ | 88 | ||
| Non-cash operating and financing activities: | ||||||
| ROU assets obtained in exchange for lease liabilities | $ | 286 | $ | 111 | ||
| Dividend payable included in accrued expenses and other current liabilities ^(1)^ | $ | 208 | $ | - | ||
| (1) | Dividend payable was paid on November 7, 2025. | |||||
| --- | --- |
8
Use of Non-GAAP Measures
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 and EPS (which adjust out stock compensation expense, transaction-related expenses and other non-recurring expenses from GAAP net income and EPS), 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 | FY24 | FY25 | YTD FY26 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Income (Loss) | $ | (0.3 | ) | $ | (1.7 | ) | $ | 0.2 | $ | (0.6 | ) | $ | 0.8 | $ | (9.2 | ) | $ | (2.4 | ) | $ | 0.8 | |||
| Excluding: | ||||||||||||||||||||||||
| Interest and other income (expense), net | $ | (0.2 | ) | $ | (0.2 | ) | $ | (0.2 | ) | $ | (0.2 | ) | $ | (0.2 | ) | $ | (0.6 | ) | $ | (0.7 | ) | $ | (0.2 | ) |
| Income tax expense (benefit) | $ | 0.0 | $ | (0.5 | ) | $ | 0.1 | $ | (0.0 | ) | $ | 0.2 | $ | (2.2 | ) | $ | (0.3 | ) | $ | 0.2 | ||||
| Depreciation and amortization | $ | 0.4 | $ | 0.3 | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 2.5 | $ | 1.1 | $ | 0.2 | ||||||||
| EBITDA | $ | (0.1 | ) | $ | (2.0 | ) | $ | 0.3 | $ | (0.5 | ) | $ | 1.1 | $ | (9.5 | ) | $ | (2.2 | ) | $ | 1.1 | |||
| Adjustments: | ||||||||||||||||||||||||
| Asset impairments and restructuring charges | $ | 0.0 | $ | 1.3 | $ | 0.6 | $ | 0.6 | $ | 0.0 | $ | 12.0 | $ | 2.5 | $ | 0.0 | ||||||||
| Stock-based compensation | $ | 0.4 | $ | 0.6 | $ | 0.3 | $ | 0.1 | $ | 0.1 | $ | 2.1 | $ | 1.4 | $ | 0.1 | ||||||||
| Expenses related to restructuring<br> activities and business combination | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.1 | $ | 0.0 | $ | 0.2 | $ | 0.1 | $ | 0.0 | ||||||||
| Adjusted EBITDA | $ | 0.3 | $ | (0.1 | ) | $ | 1.2 | $ | 0.3 | $ | 1.2 | $ | 4.7 | $ | 1.8 | $ | 1.2 | |||||||
| * | numbers may not add due to rounding | |||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||
| Reconciliation<br> of GAAP Net Income (Loss) to Non-GAAP Net Income | Q125 | Q225 | Q325 | Q425 | Q126 | FY24 | FY25 | YTD FY26 | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| GAAP Net Income (Loss) | $ | (0.3 | ) | $ | (1.7 | ) | $ | 0.2 | $ | (0.6 | ) | $ | 0.8 | $ | (9.2 | ) | $ | (2.4 | ) | $ | 0.8 | |||
| Adjustments: | ||||||||||||||||||||||||
| Asset impairments and restructuring charges | $ | 0.0 | $ | 1.3 | $ | 0.6 | $ | 0.6 | $ | 0.0 | $ | 12.0 | $ | 2.5 | $ | 0.0 | ||||||||
| Stock-based compensation | $ | 0.4 | $ | 0.6 | $ | 0.3 | $ | 0.1 | $ | 0.1 | $ | 2.1 | $ | 1.4 | $ | 0.1 | ||||||||
| Expenses related to restructuring activities and business combination | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.1 | $ | 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 | ) | $ | (3.3 | ) | $ | (0.9 | ) | $ | (0.0 | ) |
| Non-GAAP Net Income (Loss) | $ | (0.0 | ) | $ | (0.2 | ) | $ | 0.9 | $ | 0.1 | $ | 0.9 | $ | 1.8 | $ | 0.7 | $ | 0.9 | ||||||
| Non-GAAP basic EPS (loss per share) | $ | (0.00 | ) | $ | (0.01 | ) | $ | 0.06 | $ | 0.00 | $ | 0.07 | $ | 0.13 | $ | 0.05 | $ | 0.07 | ||||||
| Non-GAAP diluted EPS (loss per share) | $ | (0.00 | ) | $ | (0.01 | ) | $ | 0.06 | $ | 0.00 | $ | 0.07 | $ | 0.13 | $ | 0.05 | $ | 0.07 | ||||||
| Weighted average shares used to compute Non-GAAP basic earnings per share | 14.1 | 13.9 | 13.7 | 13.4 | 13.0 | 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 | 14.1 | 13.7 | 13.3 | ||||||||||||||||
| * | numbers may not add due to rounding | |||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||
| Free Cash Flow Calculation | Q125 | Q225 | Q325 | Q425 | Q126 | FY24 | FY25 | YTD<br><br> FY26 | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||
| Cash Flow from Operations | $ | 1.2 | $ | 0.7 | $ | 0.9 | $ | 0.7 | $ | 0.8 | $ | 5.9 | $ | 3.4 | $ | 0.8 | ||||||||
| Capital Expenditures | $ | 0.2 | $ | 0.1 | $ | 0.1 | $ | 0.2 | $ | 0.2 | $ | 1.2 | $ | 0.5 | $ | 0.2 | ||||||||
| Free Cash Flow | $ | 1.0 | $ | 0.6 | $ | 0.8 | $ | 0.5 | $ | 0.6 | $ | 4.7 | $ | 2.9 | $ | 0.6 |
9