Zonetail (ZONE) AI Stock Analysis

• Market Cap: C$4.54M
• Dividend Yield: N/A
• Average Volume (3M): 33.83K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.48
• Revenue Growth: -20.69%
• EPS Growth: -43.75%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.00
• Shares Outstanding: 302,395,660
• 10 Day Avg. Volume: 16,650
• 30 Day Avg. Volume: 33,827
• PEG Ratio: 0.53
• Price to Book (P/B): -1.80
• Price to Sales (P/S): 69.23
• P/FCF Ratio: -4.68
• 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: 45 Neutral
• Price Target: C$0.02 ▲(0.00% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is held down primarily by very weak financial performance (shrinking revenue, negative gross profit, ongoing losses and cash burn, and a stressed balance sheet with negative equity). Technicals are a partial offset due to recent price strength above key moving averages, but an extremely overbought RSI increases pullback risk. Valuation provides limited support because the company is loss-making (negative P/E) and no dividend yield is available.

Positive Factors

Niche product offering

Zonetail’s platform targets hospitality and multi-unit residential properties, a sustained market need for digital guest/tenant engagement. A focused, vertical product can create sticky customer relationships, recurring contract opportunities and integration-led sales that support durable revenue streams if adoption expands.

Improving cash burn trend

Operating cash flow remains negative but the documented improvement versus 2021–2022 indicates progress in cash management and cost controls. A continued trend reduction in cash burn increases runway, lowers near-term financing pressure and supports executing on recovery initiatives over the next several months.

Smaller losses vs. prior years

Reported reductions in operating and net losses versus earlier periods suggest the company is making operational progress. Smaller losses indicate movement toward break-even and show potential for margin recovery if revenue stabilizes, reflecting improving unit economics or tightened operating discipline.

Negative Factors

Shrinking revenue

A persistent top-line contraction erodes scale and undermines the revenue base needed to leverage fixed costs. Declining sales make it harder to restore gross margins and profitability, increase churn risks with customers, and lengthen the timeline to sustainable cash generation absent clear new market traction.

Negative gross profit and margins

Negative gross profit signals the core product economics are not covering direct costs, a structural barrier to long-term profitability. Even with SG&A cuts, negative unit economics limit scalability and require either pricing/product changes or material revenue mix improvements to restore sustainable margins.

Stressed balance sheet and negative equity

Negative equity and a very small asset base constrain financing options and raise solvency concerns. The balance-sheet stress increases refinancing and dilution risk, limits ability to fund growth or absorb shocks, and reduces strategic flexibility for product investment or sales scaling over the medium term.

Zonetail Business Overview & Revenue Model

Company Description

Zonetail Inc. provides a mobile platform to hotels and condominiums Its mobile platforms connect the guests of a hotel and the residents of high-rise buildings to the amenities and services of their building through their mobile devices. The company is based in Toronto, Canada.

How the Company Makes Money

Zonetail makes money primarily through partnerships and service agreements with hotels, residential buildings, and local businesses. The company's revenue model includes subscription fees paid by property managers who use Zonetail's mobile platform to connect with their guests and residents. Additionally, Zonetail generates income from advertising by local businesses that wish to reach users of the app. These businesses pay for the opportunity to promote their services and offers directly through the app, providing targeted marketing opportunities to a captive audience. Significant partnerships with hospitality chains and property management companies contribute to Zonetail's earnings by expanding its user base and increasing app adoption.

Zonetail Financial Statement Overview

Summary

Financial quality is very weak: TTM revenue declined ~16.6%, gross profit is negative, and the company remains deeply unprofitable with large operating/net losses. Cash flow is also negative (TTM operating cash flow about -$0.47M) and free cash flow remains negative. The balance sheet adds significant risk due to negative shareholders’ equity (about -$1.44M) and a very small asset base, limiting resilience and financing flexibility.

Income Statement

Results remain deeply unprofitable. TTM (Trailing-Twelve-Months) revenue declined ~16.6% versus the prior period, and profitability is weak with negative gross profit and very large operating and net losses (TTM net margin roughly -21%). While losses are smaller than 2022–2021 levels (margins were far more negative then), the company still has not demonstrated a durable path to positive gross profit or earnings, and the recent top-line contraction is a clear setback.

Balance Sheet

The balance sheet is stressed by persistent negative shareholders’ equity (TTM equity about -$1.44M), which is a major solvency red flag and limits financial flexibility. Debt remains meaningful (TTM total debt about $0.55M) while the equity base is negative, making leverage metrics difficult to interpret in a reassuring way. Total assets are also small (TTM roughly $0.07M), suggesting limited balance-sheet cushion against ongoing losses.

Cash Flow

Cash generation is weak, with consistently negative operating cash flow and negative free cash flow across all periods shown. TTM (Trailing-Twelve-Months) operating cash flow is about -$0.47M, indicating continued cash burn, although the burn rate has improved versus 2021–2022. Free cash flow growth is still negative in TTM, highlighting that the business has not stabilized cash needs despite some improvement from prior years.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	29.24K	36.88K	39.26K	38.05K	40.89K	39.95K
Gross Profit	-180.54K	-533.30K	-762.29K	-875.76K	-680.06K	-500.51K
EBITDA	-461.42K	-785.53K	-606.28K	-1.76M	-1.83M	-1.06M
Net Income	-613.14K	-891.50K	-805.65K	-2.06M	-1.93M	-1.22M
Balance Sheet
Total Assets	69.81K	23.85K	156.57K	296.67K	1.25M	243.65K
Cash, Cash Equivalents and Short-Term Investments	4.30K	716.00	3.34K	176.88K	1.09M	149.49K
Total Debt	548.67K	566.04K	345.15K	567.53K	548.33K	741.06K
Total Liabilities	1.51M	1.45M	1.06M	1.15M	796.76K	1.13M
Stockholders Equity	-1.44M	-1.42M	-906.07K	-850.37K	454.50K	-886.29K
Cash Flow
Free Cash Flow	-465.98K	-546.04K	-1.01M	-1.53M	-1.98M	-1.04M
Operating Cash Flow	-465.98K	-546.04K	-1.01M	-1.53M	-1.98M	-1.04M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	418.51K	543.41K	838.09K	618.98K	2.92M	1.18M

Zonetail Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ZONE, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.08 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ZONE.

Zonetail Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHOP	69 Neutral	C$214.75B	129.20	9.84%	―	33.71%	28.57%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LSPD	56 Neutral	C$1.69B	-1.87	-37.01%	―	17.23%	-435.45%
ZONE	45 Neutral	C$4.54M	-6.52	―	―	-20.69%	-43.75%
MBO	45 Neutral	C$2.09M	―	―	―	155678.40%	-1772.63%
MYID	42 Neutral	C$4.57M	-8.14	-733.14%	―	14.65%	-304.76%
VSBY	41 Neutral	C$4.43M	-0.47	―	―	―	―

Zonetail Corporate Events

Zonetail Switches Auditor to Jones O’Connell in Cost-Driven Move

Zonetail Inc. has changed its auditor, appointing Jones O’Connell LLP as its new external auditor effective January 19, 2026, replacing MNP LLP primarily for cost-related reasons and with the appointment set to run until the next annual general meeting. The company reported no modified opinions in the former auditor’s reports for the past two financial years, indicated there were no reportable events associated with the transition, and confirmed that the change of auditor documentation has been reviewed by its audit committee and board and filed on SEDAR, suggesting a routine governance adjustment rather than a sign of financial or operational stress.

The most recent analyst rating on (TSE:ZONE) stock is a Sell with a C$0.01 price target. To see the full list of analyst forecasts on Zonetail stock, see the TSE:ZONE Stock Forecast page.

Zonetail Raises $437,500 in Final Tranche of Private Share Placement

Zonetail Inc. has closed the third and final tranche of its non-brokered private placement, raising an additional $40,000 and bringing total proceeds to $437,500, below the initially targeted $1,000,000. The company plans to allocate the new capital toward completing its rent reporting portal, advancing technology development projects, funding sales and marketing initiatives, covering salaries and supporting general working capital, with the financing expected to bolster its product roadmap and commercial efforts in the high-rise residential technology market, though all issued securities will be subject to a standard four-month-plus-one-day hold period.

The most recent analyst rating on (TSE:ZONE) stock is a Hold with a C$0.01 price target. To see the full list of analyst forecasts on Zonetail stock, see the TSE:ZONE Stock Forecast page.

Zonetail Closes Second Tranche of Private Placement, Extends Offering

Zonetail Inc. announced the closing of the second tranche of its non-brokered private placement, raising a total of $397,500 out of the targeted $1,000,000. The proceeds will be used to develop the company’s rent reporting portal, technology enhancements, and sales efforts, with a portion allocated to salaries and administration. The extension of the offering to December 24, 2025, indicates Zonetail’s ongoing efforts to secure additional funding to support its strategic initiatives.