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

• Market Cap: $33.27M
• Dividend Yield: N/A
• Average Volume (3M): 98.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• 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: 1.03
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 3.86
• Enterprise Value/Ebitda: -5.09
• 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: 41 Neutral
• Price Target: $0.78 ▼(-19.79% Downside)

The score is held down primarily by weak financial performance—especially persistent negative operating/free cash flow, the latest year’s revenue decline, and a return to deep losses alongside a thin equity base. Technical indicators add downside pressure with the stock below key moving averages and negative MACD. Valuation provides little support because the company is loss-making (negative P/E) and no dividend yield is available.

Positive Factors

Gross Margin

A ~40% gross margin in 2024 indicates the company’s core insurance/brokerage activities generate robust direct economics. If management stabilizes revenue and reins in operating costs, these core margins provide structural potential to restore profitability and fund reinvestment.

Lower Reported Debt

Reported debt declining to roughly $4.3M reduced nominal interest and leverage in 2025. Structurally, a lower debt load eases near-term cash service requirements and gives management more flexibility to prioritize operational recovery or raise non-debt capital without heavy immediate debt servicing pressures.

Capital Markets Access

A $50M mixed securities shelf filing and related share-sale registrations demonstrate continued access to public financing. This financing optionality is a durable structural tool to address liquidity shortfalls, fund strategic initiatives, or refinance obligations if executed judiciously and with limited dilution.

Negative Factors

Chronic Cash Burn

Operating cash flow has been negative in every reported year and free cash flow worsened to about -$2.9M. Persistent cash burn structurally undermines the company’s ability to self-fund growth, forces reliance on dilutive equity or external funding, and elevates liquidity and solvency risk over time.

Weakened Balance Sheet

Total assets plunged materially and equity is only around $3.4M, leaving a thin capital cushion. Structurally weak equity limits borrowing capacity, reduces resilience to shocks, increases vulnerability to covenant breaches or creditor pressure, and constrains long-term strategic flexibility.

Revenue Decline & Return to Losses

A sharp 25.5% revenue decline and a return to a sizable net loss (~$8.6M) signal weakening demand or execution. Structurally, shrinking top line and volatile operating results erode scale economics, impair margin sustainability, and make it harder to achieve durable profitability without clear, sustained revenue recovery.

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 year shows a sharp revenue decline (-25.5% YoY) and a return to a sizable net loss (~$8.6M). The balance sheet has a thin equity cushion (~$3.4M) after a large asset drop, and operating/free cash flow are negative every year with further deterioration in the latest period—raising liquidity and 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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	48.82M	38.38M	25.27M	19.61M	16.15M	7.05M
Gross Profit	8.86M	15.29M	10.29M	8.09M	7.04M	3.75M
EBITDA	-6.72M	-6.85M	3.15M	―	2.49M	-5.02M
Net Income	-8.72M	-8.59M	1.82M	-5.95M	2.13M	-5.73M
Balance Sheet
Total Assets	23.83M	23.83M	208.79M	17.63M	14.33M	10.74M
Cash, Cash Equivalents and Short-Term Investments	2.03M	2.03M	2.40M	1.36M	387.15K	635.65K
Total Debt	4.28M	4.28M	30.28M	4.38M	4.68M	6.18M
Total Liabilities	20.38M	20.38M	144.80M	13.30M	11.53M	11.10M
Stockholders Equity	3.45M	3.45M	63.99M	4.33M	2.79M	-357.89K
Cash Flow
Free Cash Flow	-7.90M	-2.87M	-4.40M	-419.11K	-182.23K	-2.73M
Operating Cash Flow	2.44M	-2.87M	-3.81M	-161.55K	-153.23K	-2.67M
Investing Cash Flow	-2.38M	-2.08M	-81.96K	2.01M	-494.74K	-938.80K
Financing Cash Flow	3.00M	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: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.93, above the 50-day MA of 0.96, and below the 200-day MA of 1.01, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.34 is Neutral, neither overbought nor oversold. The STOCH value of 67.05 is Neutral, 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	$5.89M	0.04	2.46%	―	―	―
BOLD	45 Neutral	$25.97M	-0.42	-44.88%	―	―	-0.50%
FBLG	44 Neutral	$22.07M	-0.69	-1292.87%	―	―	18.47%
ZBAO	41 Neutral	$33.27M	-3.85	―	―	80.80%	―

Zhibao Technology Inc. Class A Corporate Events

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.

Zhibao Technology Inc. Appoints New Auditor Amid Strategic Changes

On November 22, 2025, Zhibao Technology Inc. announced the dismissal of Marcum Asia CPAs LLP as its independent registered public accounting firm, effective November 24, 2025. This decision, approved by the company’s Audit Committee, follows a period during which there were no disagreements or reportable events with Marcum Asia, except for previously disclosed material weaknesses in internal controls. Concurrently, Zhibao appointed HYYH CPA, LLC as its new independent auditor, effective the same date. This change in auditors is part of Zhibao’s strategic efforts to enhance its financial reporting and internal controls, potentially impacting its operational transparency and stakeholder confidence.

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.

Zhibao Technology Faces Nasdaq Compliance Challenge

On November 21, 2025, Zhibao Technology Inc. announced it received a deficiency notice from Nasdaq due to its failure to file the annual report for the fiscal year ended June 30, 2025. The company has 60 days to submit a compliance plan to Nasdaq, which could grant an extension until May 13, 2026, if accepted. The notice does not immediately affect the trading of Zhibao’s shares, but failure to comply could lead to delisting.

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.