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

• Market Cap: $25.39M
• Dividend Yield: N/A
• Average Volume (3M): 98.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• 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: 1.08
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 3.09
• Enterprise Value/Ebitda: -4.07
• 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: 47 Neutral
• Price Target: $0.77 ▼(-21.13% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held down primarily by weak financial performance—volatile earnings with a sharp latest-year revenue drop, a return to deep losses, thin equity, and consistently negative operating/free cash flow. Technicals provide some offset with improving near-term price trend and neutral-to-positive momentum, while valuation remains pressured due to losses (negative P/E) and no dividend support.

Positive Factors

Gross margin strength (2024)

A roughly 40% gross margin in 2024 indicates underlying product or underwriting economics that can cushion operating volatility. Durable gross profitability gives the company room to restore operating profits if sales stabilize and cost controls improve, supporting longer-term recovery.

2026 Equity Incentive Plan

A broad equity incentive plan institutionalizes long-term employee and management alignment, aiding recruitment and retention in a competitive market. Over months, better talent stability and aligned incentives can improve execution, product development and reduce turnover costs.

Lower reported debt (2025)

A meaningful reduction in nominal debt to about $4.3M reduces near-term fixed financing obligations and interest exposure. Structurally, lower gross debt improves optionality for refinancing or funding growth and reduces insolvency tail risks while management repairs operations.

Negative Factors

Sharp revenue decline & loss

A 25.5% revenue drop alongside a return to an $8.6M net loss shows core demand and profitability deterioration. Such declines undermine scale economics, make multi-quarter recovery harder, and limit ability to invest in product, sales, or distribution without external funding.

Consistent negative cash flow

Persistent negative operating and free cash flow, with latest FCF down ~78% to about -$2.9M, creates ongoing liquidity and funding risk. Over months this constrains capital allocation, forces dilutive financing or debt, and limits the company’s ability to execute strategic initiatives.

Eroded equity and asset base

A shrunken equity base (~$3.4M) and a dramatic drop in total assets signal balance-sheet fragility. Structurally, limited equity reduces borrowing capacity, weakens creditor confidence, and leaves little buffer for adverse results or investments needed to restore growth.

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

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Zhibao Technology Inc. Class A Financial Statement Overview

Summary

Financials are weak: the latest year shows a sharp revenue decline (-25.5% YoY) and a return to sizable net losses (~$8.6M). Balance-sheet flexibility looks limited with equity down to ~$3.4M, and cash generation is persistently negative (operating and free cash flow negative every year, with the latest free cash flow about -$2.9M).

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: Negative
• Last Price: 0.97
• 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 ZBAO, the sentiment is Negative. The current price of 0.97 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.90, and below the 200-day MA of 0.98, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.29 is Neutral, neither overbought nor oversold. The STOCH value of 1.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$4.75M	0.18	2.46%	―	―	―
ZBAO	47 Neutral	$25.39M	-3.87	―	―	80.80%	―
FBLG	44 Neutral	$17.75M	-0.54	-1292.87%	―	―	18.47%
BOLD	42 Neutral	$26.22M	-0.46	-49.73%	―	―	-0.50%

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.