Zoo Digital Group PLC (GB:ZOO)
LSE:ZOO
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Zoo Digital
(LSE:ZOO)
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Rating:50Neutral
Price Target:
13.50 p
▲(35.00% Upside)
Action:ReiteratedDate:02/04/26
The score is held back primarily by weak financial performance—ongoing losses and deteriorated free cash flow/cash conversion—despite a relatively manageable balance sheet. Technicals are supportive with price strength above key moving averages, but the very high RSI suggests overbought risk. The earnings call points to improving margins and cost structure, yet revenue decline and a lower cash balance temper the outlook, while valuation is difficult to assess due to the negative P/E and no dividend data.
Positive Factors
High reported quality metric
A 99.9% quality metric covering over half of revenue indicates durable service reliability and strong client trust. High quality in localization reduces churn, supports long-term contracts with studios/streamers, and underpins pricing power and repeat business over multiple release cycles.
Negative Factors
Material revenue decline
A 19% revenue drop materially reduces scale and undermines operating leverage in a services business. Persistently lower volume weakens pricing negotiation, reduces margin absorption of fixed costs, and prolongs the timeline to restore profitability even after cost cuts.
Read all positive and negative factors
Positive Factors
Negative Factors
High reported quality metric
A 99.9% quality metric covering over half of revenue indicates durable service reliability and strong client trust. High quality in localization reduces churn, supports long-term contracts with studios/streamers, and underpins pricing power and repeat business over multiple release cycles.
Read all positive factors
Zoo Digital (ZOO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£13.27M
Dividend YieldN/A
Average Volume (3M)282.77K
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth-7.72%
EPS Growth54.13%
CountryUK
Employees515
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.01
Shares Outstanding98,318,230
10 Day Avg. Volume252,745
30 Day Avg. Volume282,773
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.45
Price to Sales (P/S)0.99
P/FCF Ratio-2.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.03
Revenue Forecast (FY)£42.30M
Zoo Digital Business Overview & Revenue Model
Company Description
ZOO Digital Group plc, through its subsidiaries, provides cloud-based localisation and digital distribution services in the United Kingdom and the United States. It operates through two segments, Media Production, and Software Solutions. The compa...
How the Company Makes Money
Zoo Digital primarily makes money by delivering media localization services to entertainment clients—most notably subtitling and dubbing/localized audio (and associated services such as translation, scripting/adaptation, casting/voice talent manag...
Zoo Digital Earnings Call Summary
Earnings Call Date:Nov 19, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 01, 2026
Earnings Call Sentiment Neutral
The earnings call presented a balanced outlook. While financial stabilization and operational improvements were highlighted, challenges such as revenue decline and ongoing issues in the dubbing segment were acknowledged. The company is optimistic about future growth opportunities, particularly with new services and AI integration.Positive Updates
Quality Excellence
Achieved a quality metric of 99.9% based on customer reports, covering 58.2% of revenue, indicating top-tier performance in the industry.
Negative Updates
Revenue Decline
Revenues decreased by 19% to $22.4 million, attributed to the prior year's backlog from Hollywood strikes.
Read all updates
Q2-2026 Updates
Positive
Negative
Quality Excellence
Achieved a quality metric of 99.9% based on customer reports, covering 58.2% of revenue, indicating top-tier performance in the industry.
Read all positive updates
Company Guidance
In the recent earnings call for ZOO Digital, the company provided several key metrics and insights into its performance and future outlook. The CEO, Stuart Green, highlighted the company's strong position with a 99.9% quality metric based on customer feedback, covering 58.2% of their revenue. The CFO, Robert Pursell, reported that the company's revenues decreased by 19% to $22.4 million, but gross profit remained stable at just over $10 million due to a successful cost rationalization program that reduced fixed costs by one-third. The EBITDA increased from $1.7 million to $2 million, and a new KPI, cash EBITDA, showed a $0.6 million profit, reflecting the company's ability to generate cash. Pursell noted that gross profit margins improved to 45%, the highest since 2018. The company has also implemented a "Fast Track" service, significantly reducing turnaround times for subtitling and dubbing, with subtitling now taking three hours instead of weeks and dubbing completed in 24 hours. ZOO Digital continues to leverage AI within its workflows to enhance efficiency and remains optimistic about growth, with increasing RFPs and a stable cash position of $3.3 million.Zoo Digital Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.81M | 49.57M | 40.63M | 90.26M | 70.40M | 39.52M |
| Gross Profit | 11.48M | 18.02M | 5.46M | 33.93M | 22.11M | 13.64M |
| EBITDA | 148.10K | -333.00K | -12.61M | 14.22M | 7.82M | 3.54M |
| Net Income | -6.79M | -7.98M | -21.93M | 8.23M | 2.63M | -3.16M |
Balance Sheet | ||||||
| Total Assets | 35.43M | 41.26M | 49.11M | 64.25M | 64.43M | 24.85M |
| Cash, Cash Equivalents and Short-Term Investments | 3.34M | 2.71M | 5.32M | 11.84M | 5.96M | 2.95M |
| Total Debt | 4.14M | 4.66M | 5.75M | 8.38M | 9.14M | 6.79M |
| Total Liabilities | 17.03M | 21.44M | 21.45M | 29.11M | 38.17M | 22.01M |
| Stockholders Equity | 18.40M | 19.82M | 27.65M | 35.13M | 26.26M | 2.84M |
Cash Flow | ||||||
| Free Cash Flow | 397.88K | -772.00K | -16.86M | 8.77M | -628.00K | 3.13M |
| Operating Cash Flow | 869.89K | 1.49M | -11.94M | 15.70M | 5.48M | 6.76M |
| Investing Cash Flow | -1.36M | -2.24M | -7.14M | -8.23M | -10.06M | -3.63M |
| Financing Cash Flow | -433.68K | -1.84M | 12.64M | -1.60M | 7.59M | -1.39M |
Zoo Digital Technical Analysis
Neutral
10.00
Price Trends
12.94
Positive
11.67
Positive
12.57
Positive
Market Momentum
0.02
Positive
47.57
Neutral
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ZOO, the sentiment is Neutral. The current price of 10 is below the 20-day moving average (MA) of 13.78, below the 50-day MA of 12.94, and below the 200-day MA of 12.57, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:ZOO.
Zoo Digital Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £81.40M | 54.18 | 2.93% | ― | -3.95% | 16.87% | |
69 Neutral | £49.52M | -76.52 | -0.75% | 7.26% | 8.00% | -253.45% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | £28.89M | -10.45 | -7.07% | ― | 1.73% | -68.87% | |
50 Neutral | £13.27M | -2.98 | -32.23% | ― | -7.72% | 54.13% | |
48 Neutral | £9.13M | -2.95 | -34.87% | ― | -9.19% | 4.69% | |
43 Neutral | £1.31M | -1.88 | -110.31% | ― | -38.77% | -1.67% |
* Technology Sector Average
GB:ZOO
Zoo Digital
13.50
2.75
25.58%
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Zoo Digital Corporate Events
Business Operations and Strategy
ZOO Digital boosts investor engagement with new quarterly newsletter
Positive
Feb 26, 2026
ZOO Digital Group, a tech-enabled localisation and digital media services provider to major Hollywood studios and global streaming platforms, offers end-to-end services including dubbing, subtitling, captioning and media processing. Leveraging pro...
Business Operations and StrategyExecutive/Board Changes
ZOO Digital Wins New Studio Mandates and Overhauls Board After Cost Cuts
Positive
Feb 2, 2026
ZOO Digital Group has reported a pick-up in commercial activity, winning new end-to-end localisation and media services mandates from two major studio customers following a competitive request-for-proposal process, signalling improving conditions ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.