v3.26.1
Revenue
 9 Months Ended
Apr. 30, 2026
Revenue [Abstract]  
Revenue

Note 2—Revenue

 

Disaggregation of Revenue

 

The following table presents revenue disaggregated by segment and type (in thousands):

 

    Three Months Ended
April 30,		     Nine Months Ended
April 30,		  
    2026     2025     2026     2025  
Zedge Marketplace                        
Advertising revenue   $ 5,355     $ 5,579     $ 16,079     $ 15,151  
Paid subscription revenue     1,678       1,272       4,832       3,687  
Other revenues     451       431       1,425       1,357  
Total Zedge Marketplace revenue     7,484       7,282       22,336       20,195  
GuruShots                                
Digital goods and services     508       475       1,520       1,735  
Total revenue   $ 7,992     $ 7,757     $ 23,856     $ 21,930  

 

Contract Balances

 

Contract liabilities consist of deferred revenue, which are recorded for payments received in advance of the satisfaction of performance obligations. 

 

The Company records deferred revenues related to the unsatisfied performance obligations with respect to subscription revenue. The Company’s deferred revenue balance for paid subscriptions was approximately $5.8 million, related to approximately 1.3 million active subscribers, and approximately $5.1 million, related to approximately 1.0 million active subscribers, as of April 30, 2026 and July 31, 2025, respectively

 

The Company also records deferred revenues when users purchase or earn Zedge Credits. Unused Zedge Credits represent the value of the Company’s unsatisfied performance obligation to its users. Revenue is recognized when Zedge App users use Zedge Credits to acquire Zedge Premium content or upon expiration of the Zedge Credits which occurs following180 days of account inactivity (“Breakage”). As of April 30, 2026, and July 31, 2025, the Company’s deferred revenue balance related to Zedge Premium was approximately $322,000 and $248,000, respectively.

 

The amount of deferred revenue recognized in the nine months ended April 30, 2026 that was included in the deferred revenue balance at July 31, 2025 was $2.5 million.

 

Unsatisfied Performance Obligations

 

Substantially all of the Company’s unsatisfied performance obligations relate to contracts with an original expected length of 30 months or less.

 

Significant Judgments

 

The advertising networks and advertising exchanges to which the Company sells its inventory track and report the impressions and revenues to Zedge, and Zedge recognizes revenues based on these reports. The networks and exchanges base their payments off of those reports and Zedge independently compares the data to each of the client sites to validate the imported data and identify any differences. The number of impressions and revenues delivered by the advertising networks and advertising exchanges is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period.

 

For lifetime subscriptions, revenue is recognized over the estimated retention period during which the customer is expected to benefit from use of the Zedge app, which management has determined to be 30 months based on historical usage and retention patterns information available to us to date. This estimate represents a significant judgement and is reviewed periodically for changes in customer behavior or other relevant factors.