Restructuring, Impairments, and Related Charges

12 Months Ended

Jul. 31, 2026

Restructuring, Impairments, and Related Charges [Abstract]

Restructuring, Impairments, and Related Charges

Note 17—Restructuring, Impairments, and Related Charges

In January 2025, the Company implemented a corporate restructuring aimed to reduce headcount at GuruShots and other operating expenses, and ultimately resulting in the closure of our Norway operations. This restructuring allows us to consolidate our workforce in Lithuania and Israel, streamlining operations, driving efficiency and reducing expenses beyond compensation, and is designed to position the Company for sustainable growth and support its strategic objectives.

In connection with this initiative, the Company instituted moves expected to result in the reduction of its total global headcount by approximately 22% and recognized a restructuring charge of $1.6 million primarily consisting of employee termination benefit which is recorded in the Company’s consolidated statements of operations and comprehensive income (loss) for the fiscal year ended July 31, 2025.

The Company capitalizes certain costs related to software to be sold, leased, or marketed in accordance with ASC 985-20, Costs of Software to Be Sold, Leased, or Marketed related to GuruShots. The Company evaluates these long-lived assets for impairment whenever circumstances arise that indicate the carrying amount of an asset may not be recoverable. The Company’s strategic reassessment of GuruShots’ operations in connection with the restructuring initiative resulted in a $0.8 million impairment of capitalized software and technology development costs which is recorded in the Company’s consolidated statements of operations and comprehensive income (loss) for the fiscal year ended July 31, 2025.

The following table provides information about restructuring, impairments, and related charges for the Company’s two reportable segments (in thousands):

		Restructuring, Impairment, and Related Charges
		Termination Benefits⁽¹⁾				Facility Related Costs⁽²⁾				Impairments and Assets Disposal⁽³⁾				Total
Zedge Marketplace		$	1,074			$	140			$	21			$	1,235
GuruShots			391				-				827				1,218
Fiscal Year Ended July 31, 2025		$	1,465			$	140			$	848			$	2,453

1)	Primarily relates to the global restructuring initiated in January 2025 and consists of termination benefits related to workforce reduction actions across all reporting segments.

2)	Primarily represents impairment of ROU asset related to the closing of our Norway operations.

3)	Primarily represents impairment of capitalized software and technology development costs resulting from the strategy assessment related to the restructuring initiative implemented in GuruShots and the loss on disposal of property and equipment related to the closing of our Norway operations.

The following table shows a roll forward of restructuring reserves, primarily consists of employee termination benefits, that will result in cash spending. These amounts exclude asset impairment charges and other asset disposal activities (in thousands):

Restructuring and Related Charges by Segment		Balance at 7/31/24				Change in reserves⁽¹⁾				Cash payments				Other⁽²⁾				Balance at 7/31/25⁽³⁾
Zedge Marketplace		$	-			$	1,074			$	(1,108	)		$	34			$	-
GuruShots			-				391				(385	)			-				6
Total		$	-			$	1,465			$	(1,493	)		$	34			$	6

1)

Primarily consists of severance and employee termination costs. The impairment charges and other asset disposals associated with the restructuring implemented in January 2025 that have impacted our property, plant and equipment, intangible balances or other asset balances are not included in this table.

2)	Primarily comprised of foreign currency translation and other non-cash adjustments.

3)	Included in “Accrued expenses and other current liabilities” on the consolidated balance sheets.

As of July 31, 2025, the restructuring initiated in January 2025 has been substantially completed.