Zedge, Inc.

Zedge, Inc.

Core business and segments

• Zedge Marketplace: a marketplace for mobile personalization content (wallpapers, video wallpapers, ringtones, notification sounds) with a creation suite called pAInt for generative wallpaper tooling.
• GuruShots: a photo competition game where photographers of all skill levels participate, vote, and improve through gamified challenges; also used as a source of human judgment data and as a basis for enterprise offerings.
• DataSeeds.AI (DataSeeds): a B2B offering that provides rights-cleared multimodal datasets (images, video, audio, including egocentric video for robotics training) tailored to customer specifications; processes and delivers training data for AI models.
• Emojipedia: an emoji reference, information, and news site acquired in 2021.

DataSeeds was launched as a licensed, scalable enterprise data solution in 2025. In 2026 the company moved to accelerate DataSeeds growth with a new direct investment.

Strategy and business model

• The business model is a content and human-judgment flywheel: global consumer creator communities generate content and human judgments, and DataSeeds monetizes that output for enterprise customers for model training, evaluation, and related services.
• Revenue streams:
  • Advertising via Zedge Marketplace
  • In-app purchases, including Zedge Credits and other marketplace monetization
  • Subscriptions (ad-free experiences and other value adds) across Zedge and related platforms
  • GuruShots in-app purchases of virtual currency and gameplay resources
  • DataSeeds enterprise datasets and related services, often delivered as discrete projects with opportunities to convert to recurring relationships

Data production and sourcing

• Off-the-shelf catalog: rights-cleared catalog drawn from creator communities (approximately 50 million images rights-cleared for AI training).
• Managed crowd creation: direct recruitment of contributors for bespoke content to customer specifications.
• DataSeeds Production Cloud: a global network of professional production partners for made-to-order content.

Model evaluation and expansion

• In August 2026 the company began offering model evaluation and minigame services via GuruShots.
• Planned expansion includes annotation, labeling, synthetic data, and continuous learning pipelines, with a focus on physical AI and robotics.

Scale and key metrics (as of July 31, 2026)

• Monthly active users (MAU): ~19.3 million across Zedge Marketplace and GuruShots
• Subscribers: ~1.3 million active Zedge subscriptions
• Headcount: 82 employees
• Rights-cleared images: ~50 million images cleared for AI training

Revenue and profitability (selected)

• Net loss: $0.1 million in fiscal 2026; net loss of $2.4 million in fiscal 2025
• Impairment: $3.7 million impairment of Emojipedia recognized for the quarter ended January 31, 2026
• Revenue concentration:
  • Largest customer: ~34.2% of consolidated revenue in fiscal 2026
  • Two largest customers combined: ~40.9% of revenue
  • Advertising concentration: three main demand partners accounted for ~70.2% of advertising revenue in fiscal 2026 (principal partners include Google, Liftoff, and Digital Turbine)
• Advertising dependence: approximately 71% of revenues (excluding GuruShots and DataSeeds) originated from advertising sales

Growth financing and operating footprint

• In August 2026 the company agreed to issue Class B common stock and warrants in a direct investment totaling approximately $7.7 million to accelerate DataSeeds growth.
• Core teams and operations are in Israel and Lithuania, with offices in Vilnius and Tel Aviv. The Trondheim, Norway office lease expires March 2027 and alternatives are being explored.

Customer and market profile

• Global consumer base with activity spread across well-developed and emerging markets: ~25.9% of MAU in well-developed markets and ~74.1% in emerging markets.
• DataSeeds enterprise revenue is concentrated among a small number of enterprise customers.
• Platform distribution depends on major app stores (Google Play and Apple App Store) and other third-party platforms; advertising demand partners and programmatic networks play a significant role in monetization.

Intellectual property and brands

• Trademarks and copyrights are held for Zedge, Emojipedia, GuruShots, and related marks.
• Licenses and rights management infrastructure support content provenance, consent, and clearance for AI training data and other offerings.

Operational characteristics

• Rights-cleared content and consent infrastructure are core assets and differentiators for consumer products and DataSeeds.
• The company operates with a relatively lean employee base and uses a global crowd and production network for data collection and content creation.
• Corporate actions include a restructuring in January 2025 and a CEO transition effective October 1, 2026, with a focus on data-driven product development and enterprise growth.

Risks and context

• Revenue concentration among a few large customers and advertising partners is a key risk.
• DataSeeds growth depends on contributor participation, continued demand for real-world data, and competition from synthetic data providers.
• Regulatory, privacy, and AI governance requirements are evolving and affect data provenance, licensing, and platform operations.
• The majority of personnel and core operations are in Israel and Lithuania; geopolitical and regulatory developments in those regions could affect operations.

Summary

Zedge, Inc. operates consumer-facing platforms (Zedge Marketplace and GuruShots), a B2B AI training data business (DataSeeds), and Emojipedia. As of mid-2026 it reported about 19.3 million MAU, 1.3 million subscriptions, 82 employees, and a net loss of $0.1 million for fiscal 2026 (with a $3.7 million impairment for Emojipedia). Revenue is concentrated among a few customers and advertising partners, advertising accounted for roughly 71% of revenue excluding GuruShots and DataSeeds, and the company secured a $7.7 million direct investment in August 2026 to accelerate DataSeeds growth.