Zoo Digital (ZOO) AI Stock Analysis

• Market Cap: £10.82M
• Dividend Yield: N/A
• Average Volume (3M): 282.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -7.72%
• EPS Growth: 54.13%
• Country: UK
• Employees: 515
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 98,318,230
• 10 Day Avg. Volume: 252,745
• 30 Day Avg. Volume: 282,773
• PEG Ratio: 0.02
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -15.44
• 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: £22.00
• Price Target Upside: 104.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: 9.50p ▼(-11.63% Downside)

Zoo Digital's overall stock score is primarily impacted by its weak financial performance and valuation. The company struggles with profitability and cash flow management, reflected in its negative P/E ratio and lack of dividend yield. Technical analysis indicates a bearish trend, further weighing on the stock's attractiveness. While the earnings call highlighted some operational improvements, these are not sufficient to offset the broader financial challenges.

Positive Factors

Business Model Innovation

The Fast Track service enhances Zoo Digital's competitive edge by significantly reducing turnaround times, potentially attracting more clients and increasing market share in the localization industry.

Operational Efficiency

The successful cost rationalization program improves Zoo Digital's operational efficiency and margin sustainability, positioning the company for better profitability despite revenue challenges.

Quality and Customer Satisfaction

Maintaining a high-quality metric strengthens Zoo Digital's reputation and customer loyalty, supporting long-term client retention and potential for new business through positive referrals.

Negative Factors

Revenue Decline

The significant revenue decline poses a challenge to Zoo Digital's growth trajectory, potentially impacting its ability to invest in new technologies and services.

Cash Flow Concerns

A declining cash balance highlights liquidity concerns, which may limit Zoo Digital's ability to fund operations and strategic initiatives without external financing.

Dubbing Revenue Challenges

Ongoing challenges in the dubbing segment could hinder Zoo Digital's revenue diversification efforts, affecting overall financial performance and growth potential.

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 company offers localisation services, including subtitling, scripting, dubbing, audio postproduction, and audio description; media services, such as content preparation, digital packaging/post-production, and metadata preparation; and asset health check services. It also provides various platforms, such as ZOOstudio, a secure platform that provides centralised system to manage localisation and media service operations; ZOOdubs, an end-to-end dubbing platform; ZOOsubs, a subtitling platform that enables talented translators to deliver perfect subtitles; ZOOscripts, a cloud-based scripting platform that provides centralized and accurate script reference for all localization workflows; and ZOOsign, a cloud-based dubbing contract management platform that manages dubbing contracts and assignment of rights. In addition, the company offers localization and media services to the media and entertainment industry. ZOO Digital Group plc was incorporated in 1999 and is headquartered in Sheffield, the United Kingdom.

How the Company Makes Money

Zoo Digital generates revenue through a multifaceted business model centered around its core services. Key revenue streams include fees for localization and subtitling services, which are charged based on the volume of content processed and the complexity of the work involved. Additionally, the company earns revenue from digital distribution services, where it partners with streaming platforms and distributors to deliver localized content. Significant partnerships with major studios and content providers enhance its market position, while ongoing investments in technology and automation drive efficiency and cost savings, further contributing to its earnings.

Zoo Digital Financial Statement Overview

Summary

Zoo Digital faces challenges in profitability and cash flow management, despite some improvements in revenue and gross profit margins. The balance sheet shows manageable leverage, but negative returns on equity indicate inefficiencies. The company needs to focus on improving operational efficiency and cash flow generation to enhance financial stability.

Income Statement

Zoo Digital has shown inconsistent revenue growth, with a recent increase of 5.96% after a significant decline in the previous year. The company struggles with profitability, evidenced by negative net profit and EBIT margins. While gross profit margin improved to 36.35%, the net profit margin remains negative at -16.10%, indicating ongoing challenges in cost management and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.24, suggesting manageable leverage. However, the return on equity is negative at -40.26%, reflecting poor profitability and potential inefficiencies in using shareholder funds. The equity ratio stands at 48.03%, indicating a solid equity base relative to total assets.

Cash Flow

Zoo Digital's cash flow situation is concerning, with a significant decline in free cash flow growth at -89.31%. The operating cash flow to net income ratio is low at 0.08, indicating challenges in converting earnings into cash. The negative free cash flow to net income ratio further highlights cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.78M	49.57M	40.63M	90.26M	70.40M	39.52M
Gross Profit	13.49M	18.02M	5.46M	33.93M	22.11M	13.64M
EBITDA	-5.15M	-333.00K	-12.61M	14.22M	7.82M	3.54M
Net Income	-14.31M	-7.98M	-21.93M	8.23M	2.63M	-3.16M
Balance Sheet
Total Assets	47.57M	41.26M	49.11M	64.25M	64.43M	24.85M
Cash, Cash Equivalents and Short-Term Investments	4.34M	2.71M	5.32M	11.84M	5.96M	2.95M
Total Debt	5.63M	4.66M	5.75M	8.38M	9.14M	6.79M
Total Liabilities	22.46M	21.44M	21.45M	29.11M	38.17M	22.01M
Stockholders Equity	25.11M	19.82M	27.65M	35.13M	26.26M	2.84M
Cash Flow
Free Cash Flow	-7.22M	-772.00K	-16.86M	8.77M	-628.00K	3.13M
Operating Cash Flow	-6.13M	1.49M	-11.94M	15.70M	5.48M	6.76M
Investing Cash Flow	-4.54M	-2.24M	-7.14M	-8.23M	-10.06M	-3.63M
Financing Cash Flow	-1.68M	-1.84M	12.64M	-1.60M	7.59M	-1.39M

Zoo Digital Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 10.75 is above the 20-day moving average (MA) of 10.30, below the 50-day MA of 10.97, and below the 200-day MA of 12.21, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 54.06 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NET	73 Outperform	£210.13M	51.43	9.59%	0.77%	22.80%	-32.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CLBS	60 Neutral	£56.06M	11.22	16.09%	2.29%	-7.07%	24.73%
SPA	53 Neutral	£55.86M	1,666.67	0.15%	―	5.35%	-97.78%
BIRD	49 Neutral	£11.91M	-4.26	-32.98%	―	-9.19%	4.69%
ZOO	41 Neutral	£10.82M	-1.72	-32.23%	―	-7.72%	54.13%

Zoo Digital Corporate Events

ZOO Digital Reports Interim Results with Improved Profitability Amid Revenue Decline

ZOO Digital Group PLC reported its interim results for the six months ended September 30, 2025, highlighting a decrease in revenues by 19% to $22.4 million compared to the previous year. Despite the revenue decline, the company achieved an 18% increase in adjusted EBITDA to $2.0 million and a reduction in operating loss to $1.2 million, thanks to a cost rationalization program and growth in media services. The company has fully implemented cost-saving initiatives, leading to improved gross margins and positive cash EBITDA. ZOO Digital has also integrated AI into its workflows, enhancing efficiency and quality, and launched a premium Fast Track service for rapid dubbing and subtitling. The company is optimistic about future growth, aiming to increase market share and return to revenue growth in FY27, as it continues to develop customer relationships and expand its international operations.

The most recent analyst rating on (GB:ZOO) stock is a Hold with a £11.00 price target. To see the full list of analyst forecasts on Zoo Digital stock, see the GB:ZOO Stock Forecast page.

ZOO Digital to Announce Interim Results and Host Investor Presentations

ZOO Digital Group plc announced it will release its unaudited interim results for the six months ending 30 September 2025 on 19 November 2025. The company will hold online presentations for both sell-side equity analysts and private investors on the same day, providing an opportunity for stakeholders to engage with the management team. This announcement highlights ZOO Digital’s commitment to transparency and investor engagement, potentially impacting its industry positioning by reinforcing trust and communication with its stakeholders.

The most recent analyst rating on (GB:ZOO) stock is a Hold with a £11.00 price target. To see the full list of analyst forecasts on Zoo Digital stock, see the GB:ZOO Stock Forecast page.

ZOO Digital Reschedules AI Webinar for Investors

ZOO Digital Group plc has announced a revised date for its AI webinar, now scheduled for 10 November 2025, aimed at investors and sell-side analysts. The event will cover the company’s AI strategy and findings from a recent white paper, featuring presentations from key executives. This initiative underscores ZOO Digital’s commitment to integrating AI into its operations, potentially enhancing its service offerings and maintaining its competitive edge in the fast-paced entertainment industry.

The most recent analyst rating on (GB:ZOO) stock is a Hold with a £12.50 price target. To see the full list of analyst forecasts on Zoo Digital stock, see the GB:ZOO Stock Forecast page.

ZOO Digital Unveils AI White Paper on Media Localisation

ZOO Digital Group plc has released the second edition of its AI white paper, ‘Beyond the AI Revolution: The Future of Media Localisation,’ which examines the impact of next-generation technologies on media localisation. The paper highlights the role of AI as an enhancement tool rather than a replacement, emphasizing the importance of human creativity in maintaining cultural authenticity. It also discusses the expanding use cases of AI in the industry, the ethical considerations involved, and the increasing demand for faster localisation solutions. ZOO Digital is positioned as a key player in this evolving market, leveraging its tech-first approach and production expertise to meet the growing needs of the entertainment industry.

The most recent analyst rating on (GB:ZOO) stock is a Hold with a £12.50 price target. To see the full list of analyst forecasts on Zoo Digital stock, see the GB:ZOO Stock Forecast page.

ZOO Digital’s AGM Results: All Resolutions Passed, Including Pre-emption Rights

ZOO Digital Group plc announced the results of its Annual General Meeting held on 25 September 2025, where all proposed resolutions were passed. Notably, resolution 9, concerning the disapplication of pre-emption rights, passed with 79.80% approval, prompting the Board to engage with dissenting shareholders to address their concerns. This resolution is considered routine and has been approved in previous meetings, indicating stability in the company’s governance practices.

The most recent analyst rating on (GB:ZOO) stock is a Buy with a £22.00 price target. To see the full list of analyst forecasts on Zoo Digital stock, see the GB:ZOO Stock Forecast page.

ZOO Digital Leverages AI and Cost-Saving Strategies Amid Industry Shifts

ZOO Digital Group plc announced during its AGM that it is well-positioned to capitalize on the evolving entertainment industry trends, particularly the increased demand for localization services and the use of AI to enhance speed and reduce costs. The company has implemented cost-saving measures and expects H1 FY26 revenues to be approximately $22 million, with a favorable revenue mix leading to improved profitability. The Group is also continuing to normalize its working capital position, indicating a sustainable platform for future growth.

The most recent analyst rating on (GB:ZOO) stock is a Hold with a £12.50 price target. To see the full list of analyst forecasts on Zoo Digital stock, see the GB:ZOO Stock Forecast page.

ZOO Digital Releases Annual Report and Announces AGM

ZOO Digital Group plc has released its annual report and accounts for the year ending March 31, 2025, and announced its upcoming Annual General Meeting (AGM) scheduled for September 25, 2025. The AGM will be held in London and streamed live for those unable to attend in person. The event will include a business review by the management team, providing insights into the company’s operations and market environment. This announcement reflects ZOO Digital’s commitment to transparency and stakeholder engagement, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (GB:ZOO) stock is a Buy with a £0.22 price target. To see the full list of analyst forecasts on Zoo Digital stock, see the GB:ZOO Stock Forecast page.