Zedge, Inc.

Good day, ladies and gentlemen, and welcome to Zedge's Earnings Conference Call for the second fiscal quarter of 2026. During management's prepared remarks, all participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation by Zedges Management, there will be an opportunity to ask questions. To ask a question, please press star then one on your touchtone phone. To withdraw your question, please press star two. I will now turn the call over to Mr. Brian Siegel. Sir, the floor is yours.

Thank you, Operator. During today's call, Jonathan Wright, Zedge's Chief Executive Officer and Esai, Zedge's Chief Financial Officer, will discuss Zedge's financial and operational results that were reported today. Any forward-looking statements made during this conference call during the prepared marks or in the question and answer session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results in the future to differ materially from those discussed on today's calls. These risks and uncertainties include, but are not limited to, specific risks and uncertainties disclosed in ZEDGE's periodic SEC filings. ZEDGE assumes no obligation to update any forward-looking statements or to update the factors that may cause actual results to differ materially from those that they forecast. Please note that our earnings release is available on the Investor Relations page of the ZEDGE website, and it has also been filed on Form 8K of the SEC. Finally, on this call, we will use non-GAAP measures. Examples include non-GAAP EPS, non-GAAP net income, and adjusted EBITDA. Please see our earnings release for an explanation of our use of these non-GAAP measures. Now I would like to turn the call over to Jonathan.

Thank you, Brian, and good afternoon, everyone. Let me start with what stood out to me this quarter. The quality of our monetization continues to improve, and this is leading to record results. We achieved record levels of revenue and average revenue per monthly active user in our seasonally strongest quarter, driven by continued advertising optimization, record active subscription numbers, and record Zedge Premium GTV. What that tells me is that the investments we have made in optimizing our ad inventory and subscription offerings continue to pay off. Although mail contraction remains We are focused on acquiring higher value users and monetizing our audience more effectively. That makes the core marketplace more resilient and durable. Turning to innovation, starting with data seeds. It remains early and we are excited about this market and its incredible growth potential. The appetite for AI training data is virtually insatiable. and we are productizing offerings we believe can meet the needs of model builders, and doing so intelligently and cost effectively. This is in contrast to the many venture-funded startups in this market, many of which are overcapitalized and burning money like there is no tomorrow. Data is the fuel that powers AI models, and we do not believe this is a bubble. Our challenge is in making the right bets Continuing to grow our library of relevant content and executing well in a rapidly developing market, we're witnessing continued inbound interest and have started building an outbound pipeline. Some of our customers have returned, placing new larger orders after proving that we were able to meet their highly discerning needs with high quality outcomes. Enterprise customers tend to scale relationships over time based on consistent and reliable performance. Our operational focus is on building a high-quality outbound pipeline and on better qualifying inbound requests. Not every opportunity converts and not every deal is feasible. Being selective, focusing on those needs that we can meet, and executing well on the opportunities we pursue is critical to building long-term credibility in the enterprise market. In addition, we are building an off-the-shelf, or OTS, catalog to drive down cost and accelerate order delivery. Our production cloud is growing as well, with a set of vetted production teams that we can call on to create data sets as needed. Revenue remains lumpy at this stage, but engagement trends are encouraging. Our priority is building the infrastructure, supply depth, and operational rigor required to support larger, more consistent opportunities over time without getting too far ahead of ourselves and hurting profitability. Our innovation team is humming. We recently launched two more alpha products, bringing us halfway toward our goal of introducing up to six this fiscal year. As expected, not every initiative will make the cut, but we learn from each new launch. Our first release under the product innovation team framework did not deliver the KPIs we were shooting for, and we are ceasing development of this product. Our framework is simple, pre-qualify, develop rapidly, test quickly, measure objectively, and invest in the winners. Adopting this operating mentality is challenging and requires great discipline and the ability to avoid getting attached to a product because of personal affinities. Turning to Emojipedia, we continue to face structural headwinds tied to the evolving field of search, and we recorded a non-cash impairment this quarter to reflect the likely impact of these changes. The business remains profitable, and the cost structure, which had always been efficient, is aligned accordingly. Guru Shots appears to be stabilizing and is being operated conservatively following last year's restructuring as we evaluate longer-term options. From a capital allocation standpoint, we generated solid free cash flow even after investing in data seeds, tape deck, and other innovation priorities. Cash strengthened to $19.1 million with zero debt. Our free cash flow yield remains in the double digits. and we are now paying a quarterly dividend while continuing to invest in innovation and repurchasing shares when the market conditions are right. Stepping back, our priorities are straightforward. Strengthen monetization in the marketplace, build data seeds deliberately, and expand our innovation pipeline in a disciplined way. We believe that balance positions us well for the remainder of fiscal, With that, I'll turn it over to Yi.