Revenue

3 Months Ended

Oct. 31, 2025

Revenue from Contract with Customer [Abstract]

Revenue

Note 2—Revenue

Disaggregation of Revenue

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

	Three Months Ended October 31,
	2025		2024
Zedge Marketplace
Advertising revenue	$	5,166	$	4,874
Paid subscription revenue		1,520		1,182
Other revenues		456		494
Total Zedge Marketplace revenue		7,142		6,550
GuruShots
Digital goods and services		468		644
Total revenue	$	7,610	$	7,194

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 $5.5 million related to approximately 1.1 million active subscribers, and approximately $5.1 million, related to approximately 1.0 million active subscribers, as of October 31, 2025 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 upon 180 days of account inactivity (“Breakage”). As of October 31, 2025, and July 31, 2025, the Company’s deferred revenue balance related to Zedge Premium was approximately $255,000 and $248,000, respectively.

The amount of deferred revenue recognized in the three months ended October 31, 2025 that was included in the deferred revenue balance at July 31, 2025 was $0.9 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.