Zedge Q2 Subscription Revenue Up 33%, Net Subscribers Rise 49%, Cash $19.1M
Zedge achieved record Q2 with 33% growth in Zed Plus subscription revenue and 49% more net active subscribers, while cost of revenue climbed to 6.8% from 6.4%. The company ended Q2 with $19.1 million cash, no debt, solid free cash flow, and initiated a dividend despite a $2.9 million operating loss.
1. Q2 Financial Highlights
Zedge achieved record Q2 performance with Zed Plus subscription revenue rising 33% year over year and net active users up 49%, driving average revenue per monthly active user to new highs. Cost of revenue increased to 6.8% from 6.4%, while GAAP operating loss widened to $2.9 million due to partner discount reductions and new licensing fees.
2. Liquidity and Capital Returns
The company ended the quarter with $19.1 million in cash and cash equivalents and carries no debt, generating solid free cash flow. Zedge initiated its first quarterly dividend and launched a share repurchase program to return capital to shareholders.
3. Innovation and Data Seeds Expansion
Zedge continues investing in innovation, launching two new modular alpha products and expanding its Data Seeds offering into multimodal datasets including video and audio. While Data Seeds revenue remains nascent this quarter, management highlighted attractive margins and customer repeatability upon successful proof of concept.