Zelira Therapeutics (ZLD) AI Stock Analysis

• Market Cap: AU$5.95M
• Dividend Yield: N/A
• Average Volume (3M): 1.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: -99.31%
• EPS Growth: 90.20%
• Country: AU
• Employees: 8
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 11,897,155
• 10 Day Avg. Volume: 1,056
• 30 Day Avg. Volume: 1,924
• PEG Ratio: 0.02
• Price to Book (P/B): -1.13
• Price to Sales (P/S): 7702.11
• P/FCF Ratio: -1.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: AU$0.47 ▲(39.12% Upside)
• Action: Downgraded Date: 02/25/26
• Date: Action: Downgraded 02/25/26

The score is held down primarily by very weak financial performance (sharp revenue decline, ongoing losses, negative equity, and negative cash flows). Technical indicators also lean bearish (below key short-term averages and negative MACD), while valuation signals are constrained by a negative P/E and lack of dividend yield data.

Positive Factors

Targeted cannabinoid therapeutics

A focused business model targeting cannabinoid-based medicines gives Zelira a clear therapeutic niche and strategic clarity. Over the medium term this specialization can support differentiated product development, targeted regulatory strategy, and stronger commercial positioning in chronic pain and related markets if execution improves.

Integrated R&D-to-commercial capability

Holding R&D, clinical evaluation and regulated commercialisation capabilities reduces reliance on external partners and shortens product commercialization cycles. This vertical integration can preserve margin capture, improve development-to-market execution, and create durable operational advantages versus pure-play developers.

Slight improvement in free cash flow growth

Notwithstanding ongoing negatives, a slight improvement in free cash flow growth signals early operational traction or cost discipline. If sustained, improving FCF dynamics strengthen runway, reduce refinancing needs and support continued R&D or commercialization investments over the next several quarters.

Negative Factors

Severe revenue decline

A ~98% year-over-year revenue drop indicates loss of core sales or product market traction, which is a fundamental weakness. Such a collapse erodes scale economies, undermines margin recovery potential, and limits internal funding for clinical programs or commercial expansion absent a credible revenue-recovery plan.

Negative equity and balance-sheet instability

Negative shareholders' equity signals capital depletion and raises solvency concerns. This condition constrains borrowing capacity, increases the likelihood of dilutive financing, undermines partner confidence, and reduces strategic flexibility, all of which are durable headwinds to operational scaling and long-term viability.

Persistent cash burn

Ongoing negative operating and free cash flows create continual funding pressure. Persistent cash burn forces management to prioritize financing over product investment, risks dilution from capital raises, and impairs the firm's ability to sustain clinical programs or scale commercial operations without structural cash-flow improvement.

Zelira Therapeutics Business Overview & Revenue Model

Company Description

Zelira Therapeutics (ZLD) is a biopharmaceutical company focused on the development and commercialization of innovative cannabinoid-based therapeutics. Operating primarily in the healthcare sector, Zelira aims to address various health conditions, including chronic pain, sleep disorders, and other serious ailments. The company leverages its proprietary formulations and clinical research to create products that are designed to improve patient outcomes and quality of life.

How the Company Makes Money

Zelira Therapeutics generates revenue primarily through the sale of its proprietary cannabinoid-based products, which are marketed to both consumers and healthcare providers. The company also engages in partnerships and collaborations with other pharmaceutical companies and research institutions to develop new therapies and expand its product portfolio. Additionally, Zelira may receive funding through grants, licensing agreements, and joint ventures that support its research and development efforts. These strategic partnerships often include milestone payments and royalties, further contributing to the company's earnings.

Zelira Therapeutics Financial Statement Overview

Summary

Severe fundamental weakness: revenue fell sharply (-98.4% YoY), margins are negative (gross/net/EBIT), equity is negative (balance-sheet instability), and both operating and free cash flow are negative.

Income Statement

Zelira Therapeutics has experienced significant revenue decline, with a revenue growth rate of -98.4% in the most recent year. The company has negative gross profit, net profit, and EBIT margins, indicating substantial losses. These metrics reflect severe financial challenges and a lack of profitability.

Balance Sheet

The balance sheet shows negative stockholders' equity, which is concerning. The debt-to-equity ratio is negative due to negative equity, and the return on equity is positive but misleading due to negative equity. The equity ratio is also negative, indicating financial instability.

Cash Flow

The company has negative operating and free cash flows, with a slight improvement in free cash flow growth. However, the operating cash flow to net income ratio is negative, reflecting ongoing cash flow challenges. The free cash flow to net income ratio is 1.0, indicating that all net income is being used for free cash flow, but this is due to both being negative.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	656.00	94.95K	301.12K	1.54M	663.32K
Gross Profit	-802.95K	10.28K	-3.22M	-5.72M	-39.16K
EBITDA	-4.17M	-36.44M	-6.79M	-13.06M	-9.41M
Net Income	-3.63M	-36.57M	-5.57M	-11.95M	-8.55M
Balance Sheet
Total Assets	1.30M	5.18M	33.89M	37.70M	39.37M
Cash, Cash Equivalents and Short-Term Investments	5.66K	586.16K	146.21K	2.75M	4.97M
Total Debt	2.14M	5.95M	437.90K	500.91K	551.08K
Total Liabilities	5.59M	9.36M	2.18M	2.01M	1.54M
Stockholders Equity	-4.46M	-4.51M	31.80M	35.20M	37.83M
Cash Flow
Free Cash Flow	-4.91M	-4.39M	-7.25M	-9.43M	-8.62M
Operating Cash Flow	-4.91M	-4.39M	-7.25M	-9.43M	-8.62M
Investing Cash Flow	1.15M	919.74K	2.83M	-207.78K	1.38M
Financing Cash Flow	3.19M	3.92M	1.77M	7.10M	10.53M

Zelira Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.34
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ZLD, the sentiment is Neutral. The current price of 0.34 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.53, and below the 200-day MA of 0.43, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 38.51 is Neutral, neither overbought nor oversold. The STOCH value of 9.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ZLD.

Zelira Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IXC	48 Neutral	AU$9.39M	-3.15	-8.72%	―	―	71.10%
CMB	48 Neutral	AU$11.25M	-0.46	-166.70%	―	―	―
AVE	48 Neutral	AU$36.73M	-6.66	-143.71%	―	306.88%	―
NSB	40 Underperform	AU$31.93M	-5.38	-16.65%	―	―	-672.73%
ZLD	39 Underperform	AU$5.95M	-1.39	―	―	-99.31%	90.20%
1AD	37 Underperform	AU$12.75M	-0.48	-628.72%	―	―	31.87%

Zelira Therapeutics Corporate Events

Zelira Raises US$33m for HOPE® 1 SPV to Accelerate FDA Pathway

Zelira Therapeutics has secured definitive agreements for a transformative US$32.98 million capital raise into its HOPE® 1 special purpose vehicle (SPV), led by TGC Biotechnology Fund (ThirdGate Capital), valuing the SPV at roughly US$66 million post-money and Zelira’s fully diluted stake at about US$26.2 million, or 39.7%. The funding, alongside a A$1.07 million cash refund from Australia’s R&D Tax Incentive Scheme, will support an accelerated U.S. regulatory push for HOPE® 1, including an Investigational New Drug (IND) submission, initiation of a Phase 1 clinical trial—the first formal FDA-regulated dosing of HOPE® 1 in humans—and a planned Orphan Drug Designation filing, positioning the company to potentially unlock regulatory and commercial advantages in the autism treatment market while reinforcing its capital base and strategic relationship with institutional investors.

The most recent analyst rating on (AU:ZLD) stock is a Sell with a A$0.66 price target. To see the full list of analyst forecasts on Zelira Therapeutics stock, see the AU:ZLD Stock Forecast page.

Zelira Secures US$33m Strategic Investment to Advance HOPE® 1 Autism Therapy

Zelira Therapeutics has secured binding agreements with TGC Biotechnology Fund (ThirdGate Capital) for a US$32.98 million equity investment into its HOPE® 1 special purpose vehicle, valuing the SPV at about US$66 million and Zelira’s post-money stake at roughly US$26.19 million. The deal will leave ThirdGate holding 50% of the HOPE® 1 SPV on a fully diluted basis, with Zelira retaining 39.7%, and is expected to fully fund an accelerated U.S. development program via the FDA’s 505(b)(2) pathway for HOPE® 1 in Phelan-McDermid Syndrome co-morbid with autism, a rare, genetically defined subset of autism spectrum disorder that may qualify for orphan drug designation. The funding underscores investor confidence in HOPE® 1’s clinical and commercial potential, strengthens Zelira’s balance sheet exposure to a key asset, and positions the company to advance first-in-human trials in the United States, with potential long-term benefits from exclusivity and regulatory incentives if orphan status is granted.

The most recent analyst rating on (AU:ZLD) stock is a Sell with a A$0.33 price target. To see the full list of analyst forecasts on Zelira Therapeutics stock, see the AU:ZLD Stock Forecast page.