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: 20.12%
• EPS Growth: 64.40%
• Country: UK
• Employees: 515
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.04
• Shares Outstanding: 98,318,230
• 10 Day Avg. Volume: 252,745
• 30 Day Avg. Volume: 282,773
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 114.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: 11.00p ▲(7.32% Upside)

Zoo Digital's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. Technical analysis suggests a neutral to slightly bearish trend, while valuation metrics highlight concerns due to negative earnings and lack of dividends. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

The company shows strong revenue growth, suggesting increasing demand for its services and successful market penetration, which can enhance its competitive position.

Market Position

Strong partnerships enhance Zoo Digital's market position, providing a stable revenue stream and potential for growth through expanded service offerings.

Technology Investment

Investments in technology and automation improve operational efficiency, potentially reducing costs and enhancing service quality, which supports long-term profitability.

Negative Factors

Profitability Challenges

Persistent profitability challenges, as indicated by negative net profit margins, suggest ongoing issues in cost management, impacting long-term financial health.

Cash Flow Management

Declining free cash flow growth indicates difficulties in cash generation, which may limit the company's ability to invest in growth opportunities and manage debt.

Return on Equity

A negative return on equity reflects inefficiencies in using shareholder funds, which can deter investment and hinder long-term growth prospects.

Zoo Digital Business Overview & Revenue Model

Company Description

Zoo Digital (ZOO) is a technology-driven company specializing in digital media services for the entertainment industry. It operates primarily in the sectors of film, television, and video games, offering a range of services including localization, subtitling, and digital distribution. The company focuses on enhancing the accessibility and reach of content across global markets, leveraging its proprietary technology to streamline workflows and improve the quality of localized versions of media content.

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 significant challenges in profitability and cash flow management, with negative net profit margins and a concerning decline in free cash flow. Despite some revenue growth and a manageable debt-to-equity ratio, the negative return on equity and poor cash conversion highlight inefficiencies.

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: Negative
• Last Price: 10.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 10.25 is below the 20-day moving average (MA) of 10.89, below the 50-day MA of 11.65, and below the 200-day MA of 13.72, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 38.64 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%	0.71%	22.80%	-32.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPA	60 Neutral	£55.86M	1,666.67	0.15%	―	5.35%	-97.78%
CLBS	58 Neutral	£56.06M	11.22	16.09%	2.29%	-7.07%	24.73%
BIRD	49 Neutral	£11.91M	-4.26	-32.98%	―	-9.19%	4.69%
ZOO	46 Neutral	£10.82M	-1.72	-33.64%	―	20.12%	64.40%

Zoo Digital Corporate Events

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.

ZOO Digital Announces Directorate Change

ZOO Digital Group PLC announced a change in its board of directors with Phillip Blundell stepping down and Robert Pursell being appointed as a director and company secretary effective from August 13, 2025. This change is part of the company’s ongoing efforts to strengthen its leadership team, potentially impacting its strategic direction and operations in the fast-paced entertainment industry.

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.

Zoo Digital Reports Revenue Growth and Strategic Restructuring for FY25

Zoo Digital Group PLC has announced its financial results for the year ending March 31, 2025, highlighting a 22% increase in revenue to $49.6 million and a return to profitability in adjusted EBITDA. The company has restructured its operations to focus on profitability and cash generation in FY26, despite a challenging market environment due to industry disruptions. Zoo Digital has strengthened its position by becoming a Preferred Fulfilment Vendor for Amazon Prime Video and Netflix, and is leveraging AI and automation to enhance operational efficiency. The company is optimistic about capturing profitable revenue opportunities as the streaming market evolves.

The most recent analyst rating on (GB:ZOO) stock is a Buy with a £90.00 price target. To see the full list of analyst forecasts on Zoo Digital stock, see the GB:ZOO Stock Forecast page.