Zedge shares rise 28.64% intraday after reporting Q1 results with strong subscription growth and AI data initiatives.

Zedge Inc. surged 28.64% intraday after reporting Q1 FY2026 results that exceeded estimates, with revenue rising 5.8% to $7.6 million and Non-GAAP EPS of $0.07 (versus $0.0204 expected). The company highlighted a 54% year-over-year increase in active subscriptions to 1.1 million, a 29% rise in subscription revenue, and improved ARPMAU. Management emphasized progress in DataSeeds, an AI training data initiative, including a 25X order increase from a key customer and a robust pipeline. The stock also benefited from a first-quarter dividend and $240,000 share repurchases, signaling capital return confidence. Strong earnings beats, subscription momentum, and strategic AI-related growth prospects drove the sharp intraday rally.