MeritValue

Zedge, Inc.

ZDGEdata completeness 88%11 fiscal years on file
The thesis, from the filings

Zedge, Inc. earns about 3% on invested capital, below its ~9% cost of capital, and has bought back 2% of its shares over 5 years — no moat visible in the numbers. The estimate methods put fair value between $4.57 and $4.83 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$19.6M1$26.5M2$27.2M3$30.1M4$29.4M4
Net income$8.25M5$9.71M6−$6.1M7−$9.17M8−$2.39M8
Operating cash flow$10.1M9$11.5M10$3.16M11$5.85M12$3.42M12
Capital expenditure—$45,00013$54,00014$47,00015$83,00015
Free cash flow (derived)—$11.4M10$3.11M11$5.8M12$3.34M12
Total debt——$1.99M16——
Cash & equivalents$24.9M17$17.1M18$18.1M19$20M20$18.6M20
Diluted shares14.0M14.9M14.1M14.1M13.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$18.86
your share of equity
Profit it earned you last year
−$1.74
Free cash flow it threw off
$2.43
Debt you’d be carrying
—

10 shares is a claim on $18.86 of net worth that earned you −$1.74 and generated $2.43 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
3% avg · 5y
FY21 101%FY22 36%FY23 -22%FY24 -78%FY25 -22%

It earned about 3% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
−2% shares · 5y

Share count is down 2% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $4.57 and $4.83 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$4.57
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$3.34M
DCF · Growth Exit 5Y
$4.83
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$3.34M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $4.83
The three cases
Bear0.0%$4.83
Base0.0%$4.83
Bull5.0%$5.67

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-07-31 · accession 0001213900-22-072153 (Revenues)
  2. 10-K · period ending 2022-07-31 · accession 0001213900-23-081544 (Revenues)
  3. 10-K · period ending 2023-07-31 · accession 0001213900-24-091735 (Revenues)
  4. 10-K · period ending 2024-07-31 · accession 0001213900-25-103098 (Revenues)
  5. 10-K · period ending 2021-07-31 · accession 0001213900-22-072153 (NetIncomeLoss)
  6. 10-K · period ending 2022-07-31 · accession 0001213900-23-081544 (NetIncomeLoss)
  7. 10-K · period ending 2023-07-31 · accession 0001213900-24-091735 (NetIncomeLoss)
  8. 10-K · period ending 2024-07-31 · accession 0001213900-25-103098 (NetIncomeLoss)
  9. 10-K · period ending 2021-07-31 · accession 0001213900-22-072153 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-07-31 · accession 0001213900-23-081544 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-07-31 · accession 0001213900-24-091735 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-07-31 · accession 0001213900-25-103098 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2022-07-31 · accession 0001213900-23-081544 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-07-31 · accession 0001213900-24-091735 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-07-31 · accession 0001213900-25-103098 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2023-07-31 · accession 0001213900-24-091735 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-07-31 · accession 0001213900-21-057733 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-07-31 · accession 0001213900-23-081544 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-07-31 · accession 0001213900-24-091735 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-07-31 · accession 0001213900-25-103098 (CashAndCashEquivalentsAtCarryingValue)