Zhibao Technology Inc. Class A (ZBAO) AI Stock Analysis

• Market Cap: $34.93M
• Dividend Yield: N/A
• Average Volume (3M): 98.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 80.80%
• EPS Growth: N/A
• Country: US
• Employees: 164
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): -0.26
• Shares Outstanding: 16,452,020
• 10 Day Avg. Volume: 104,053
• 30 Day Avg. Volume: 98,658
• PEG Ratio: <0.01
• Price to Book (P/B): 9.65
• Price to Sales (P/S): 0.87
• P/FCF Ratio: -11.60
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 4.22
• Enterprise Value/Ebitda: -5.57
• 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: 46 Neutral
• Price Target: $1.00 ▲(3.09% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is held down primarily by weak financial performance—volatile profitability, a sharp recent revenue decline, a thin equity cushion, and persistently negative operating/free cash flow. Technicals are a partial offset with the stock trading above key moving averages, but a negative MACD limits confidence. Valuation remains pressured because the company is loss-making (negative P/E) and offers no dividend yield.

Positive Factors

Healthy gross margins

A roughly 40% gross margin in 2024 indicates the core insurance/brokerage economics retain pricing power or favorable underwriting economics. Durable gross margins provide a structural buffer against SG&A volatility and support eventual operating leverage if revenue stabilizes.

Multi-year revenue growth (pre-2025)

Sustained revenue expansion through 2024 demonstrates prior demand growth and distribution traction, signaling product-market fit. That historical growth gives the company a platform to rebuild scale if management addresses recent execution and stabilizes top-line drivers.

2026 equity incentive plan

The board-authorized equity incentive plan is a structural step to attract and retain talent and align management with shareholders. Improved incentives can strengthen long-term execution, reduce turnover, and support strategy delivery if awards are deployed prudently and tied to durable performance metrics.

Negative Factors

Chronic negative cash flow

Operating and free cash flow have been negative each reported year, with free cash flow worsening ~78% recently. Persistent cash burn undermines self-funding capability, increases refinancing and liquidity risk, and constrains capital allocation for growth or working capital over the medium term.

Deteriorated balance sheet

A steep reduction in assets and a thin equity base materially limit financial flexibility. Even with lower nominal debt, the shrunken capital cushion increases vulnerability to shocks, hampers ability to invest or expand, and raises the likelihood of dilutive capital raises to fund operations.

Volatile profitability and recent revenue decline

A -25.5% YoY revenue drop and a return to an ~$8.6M net loss after prior profits reflect inconsistent cost control and earnings volatility. Such swings reduce predictability for margins and cash flow, complicating strategic planning and investor confidence over the medium term.

Zhibao Technology Inc. Class A Business Overview & Revenue Model

Company Description

Zhibao Technology Inc., through its subsidiaries, provides digital insurance brokerage services in China. It also offers managing general underwriter services; healthcare; and offline insurance brokerage consulting services. The company was founded in 2015 and is based in Shanghai, China.

How the Company Makes Money

Zhibao Technology Inc. generates revenue through multiple streams, primarily by selling its software solutions and cloud services on a subscription basis. The company also earns income from licensing its proprietary technologies to third-party developers and enterprises. Additionally, ZBAO engages in consulting services, offering tailored solutions to optimize clients' technology infrastructures. Key partnerships with industry leaders in technology and telecommunications further enhance ZBAO's market presence, allowing for collaborative projects that broaden its customer base and drive revenue growth.

Zhibao Technology Inc. Class A Financial Statement Overview

Summary

Financials are weak-to-mixed: the latest period shows a sharp revenue decline (-25.5% YoY) and a return to sizable losses (~$8.6M). The balance sheet shows reduced debt but a much thinner equity base (~$3.4M) and sharply lower assets, limiting flexibility. Most concerning, operating cash flow and free cash flow are negative in every year provided, indicating poor cash conversion and elevated liquidity/funding risk.

Income Statement

Revenue expanded from 2021 to 2024, but the latest annual period (2025-06-30) shows a sharp revenue decline (-25.5% year over year) and a return to sizable losses (net loss of ~$8.6M vs. a ~$1.8M profit in 2024). Gross profit remains positive (about 40% gross margin in 2024), but operating results are volatile, with profits in 2022 and 2024 interrupted by losses in 2021, 2023, and 2025—suggesting inconsistent cost control and earnings quality.

Balance Sheet

The balance sheet strength appears to have deteriorated materially in the latest year: total assets fell sharply (from ~$208.8M in 2024 to ~$23.8M in 2025) and equity dropped to ~$3.4M. Leverage improved in 2025 on a pure debt level basis (debt down to ~$4.3M), but the reduced equity base limits financial flexibility. Prior years show leverage risk at times (including negative equity in 2021 and debt roughly in line with equity in 2023), indicating a history of balance-sheet instability.

Cash Flow

Cash generation is a key weakness: operating cash flow is negative in every year provided (ranging from about -$0.2M to -$3.8M), and free cash flow is also consistently negative. The latest year worsened meaningfully (free cash flow down ~78% year over year to about -$2.9M), indicating the business has not converted reported revenue (and occasional accounting profits) into cash, raising funding and liquidity risk.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	38.38M	25.27M	19.61M	16.15M	7.05M
Gross Profit	15.29M	10.29M	8.09M	7.04M	3.75M
EBITDA	-6.85M	3.15M	―	2.49M	-5.02M
Net Income	-8.59M	1.82M	-5.95M	2.13M	-5.73M
Balance Sheet
Total Assets	23.83M	208.79M	17.63M	14.33M	10.74M
Cash, Cash Equivalents and Short-Term Investments	2.03M	2.40M	1.36M	387.15K	635.65K
Total Debt	4.28M	30.28M	4.38M	4.68M	6.18M
Total Liabilities	20.38M	144.80M	13.30M	11.53M	11.10M
Stockholders Equity	3.45M	63.99M	4.33M	2.79M	-357.89K
Cash Flow
Free Cash Flow	-2.87M	-4.40M	-419.11K	-182.23K	-2.73M
Operating Cash Flow	-2.87M	-3.81M	-161.55K	-153.23K	-2.67M
Investing Cash Flow	-2.08M	-81.96K	2.01M	-494.74K	-938.80K
Financing Cash Flow	1.37M	4.25M	-654.86K	1.03M	3.03M

Zhibao Technology Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBAO, the sentiment is Positive. The current price of 0.97 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 0.89, and below the 200-day MA of 0.98, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.00 is Neutral, neither overbought nor oversold. The STOCH value of 86.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZBAO.

Zhibao Technology Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LGCL	53 Neutral	$4.94M	0.18	2.46%	―	―	―
ZBAO	46 Neutral	$34.93M	-3.87	―	―	80.80%	―
BOLD	45 Neutral	$25.30M	-0.50	-44.88%	―	―	-0.50%
FBLG	44 Neutral	$26.31M	-0.54	-1292.87%	―	―	18.47%

Zhibao Technology Inc. Class A Corporate Events

Zhibao Technology Launches 2026 Equity Incentive Plan Authorizing 4.8 Million Shares

On February 16, 2026, Zhibao Technology Inc.’s board adopted a new 2026 Equity Incentive Plan, effective the same day, with a ten-year term unless terminated earlier. The plan authorizes the issuance of up to 4,842,853 Class A ordinary shares through a broad range of equity and cash-based awards to eligible participants across Zhibao and its related entities.

The plan, formally reported in a Form 6-K dated February 17, 2026, centralizes significant discretion in the board and its delegates to select participants, determine award types, and set terms and conditions. This move is likely aimed at enhancing talent attraction, retention, and alignment of management and employee incentives with shareholder interests, while giving the board flexibility to adjust or terminate the plan over time within specified limits.

The most recent analyst rating on (ZBAO) stock is a Sell with a $0.75 price target. To see the full list of analyst forecasts on Zhibao Technology Inc. Class A stock, see the ZBAO Stock Forecast page.

Zhibao Technology Inc. Announces Executive Leadership Changes

On November 30, 2025, Zhibao Technology Inc. announced significant changes in its executive team. Xiao Luo resigned as Chief Operating Officer and was appointed as Chief Marketing Officer, effective December 1, 2025, without additional compensation beyond his existing agreement. Xiaowei Le was appointed as the new Chief Operating Officer, and Guangtong Ren was appointed as Chief Actuary, both effective December 1, 2025. These appointments reflect the company’s strategic focus on enhancing its operational and marketing capabilities, potentially impacting its market positioning and stakeholder relationships positively.

The most recent analyst rating on (ZBAO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Zhibao Technology Inc. Class A stock, see the ZBAO Stock Forecast page.