Zedge, Inc. Segments Disclosure

Note 15—Segment and Geographic Information

 

Segment Information

 

The Company determines its operating segments based on how its chief operating decision maker (“CODM”) manages the business, allocates resources, makes operating decisions and evaluates operating performance. The Company’s CODM was its Chief Executive Officer as of July 31, 2025.

 

The CODM evaluates the performance of each operating segment using segment income (loss) from operations. The Company defines segment income (loss) from operations as revenue less costs and expenses. Expenses include indirect costs that are allocated to operating segments based on a reasonable allocation methodology, which are generally related to sales and marketing activities and general and administrative overhead. Revenue and expenses exclude transactions between the Company’s operating segments.

 

The CODM uses segment income (loss) from operations to allocate resources during the annual budgeting and forecasting process. The CODM considers segment income (loss) from operations when making decisions on operating and capital resource allocation. Additionally, the CODM uses segment income (loss) from operations to evaluate operating strategy and assess segment performance by comparing the results of each segment.

There are two reportable segments, which are the Zedge Marketplace and GuruShots. The following table provides information about these two reportable segments (in thousands):

 

		Fiscal Year Ended July 31,
		2025				2024
Zedge Marketplace:
Revenues		$	27,213			$	26,616
Less:
Personnel related expenses			8,265				8,791
Users acquisition costs			7,284				5,576
Data center and SaaS costs			1,988				1,688
Restructuring and related charges			1,235				-
Other expenses 1			6,103				4,894
Zedge Marketplace segment income from operations			2,338				5,667
GuruShots:
Revenues		$	2,185			$	3,475
Less:
Personnel related expenses			3,117				3,579
Users acquisition costs			903				1,362
Platform fees			369				639
Data center and SaaS costs			943				1,035
Acquisition and restructuring related charges			1,218				11,959
Other expenses 2			1,205				2,373
GuruShots segment loss from operations			(5,570	)			(17,472	)
Total segment income (loss) from operations		$	(3,232	)		$	(11,805	)

 

1.

Other segment items for the Zedge Marketplace reportable segment include professional services costs, platform fee, depreciation and amortization, facilities costs, public company related expenses and other individually insignificant costs.

 

2.

Other segment items for the GuruShots reportable segment include professional services costs, depreciation and amortization, facilities costs, and other individually insignificant costs.

 

The CODM does not evaluate operating segments using asset information and, accordingly, the Company does not report asset information by segment.

 

Geographic Information

 

Net long-lived assets and total assets held outside of the United States, which are located primarily in Israel and Lithuania, were as follows (in thousands):

 

		United States				Foreign				Total
Long-lived assets, net:
July 31, 2025		$	6,120			$	335			$	6,455
July 31, 2024		$	6,570			$	1,460			$	8,030
Total assets:
July 31, 2025		$	30,504			$	5,150			$	35,654
July 31, 2024		$	32,412			$	5,783			$	38,195