ZenaTech, Inc. (ZENA) AI Stock Analysis

• Market Cap: $161.16M
• Dividend Yield: N/A
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.90
• Revenue Growth: 312.20%
• EPS Growth: N/A
• Country: US
• Employees: 17
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.24
• Shares Outstanding: 47,620,884
• 10 Day Avg. Volume: 1,454,574
• 30 Day Avg. Volume: 1,278,919
• PEG Ratio: -0.02
• Price to Book (P/B): 9.34
• Price to Sales (P/S): 103.78
• P/FCF Ratio: -18.01
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 16.58
• Enterprise Value/Gross Profit: 18.52
• Enterprise Value/Ebitda: -6.83
• 1Y Price Target: $7.00
• Price Target Upside: 107.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.17
• Revenue Forecast (FY): $23.63M

• Rating: 52 Neutral
• Price Target: $4.00 ▲(18.34% Upside)

The score is held back primarily by weak profitability and challenged cash flow despite strong revenue growth. Technicals are a key positive with a strong uptrend, though momentum looks stretched. Valuation remains pressured because losses make the negative P/E a risk signal and there is no dividend support.

Positive Factors

Diversified recurring revenue streams

Recurring software subscriptions and long-term contracts create predictable revenue that reduces volatility versus hardware-only models. This durable mix supports customer retention, recurring cash inflows and steadier funding for R&D and scaling of Drone-as-a-Service operations over months.

High gross margins

A near-80% gross margin reflects software-led economics and strong product pricing, providing structural profitability potential. With disciplined operating expense control, these margins enable significant operating leverage as revenue scales, supporting sustained improvement in operating cash flow over time.

Vertical integration with NDAA compliance

Building NDAA-compliant manufacturing for Spider Vision Sensors creates a vertically integrated supply chain and positions products for U.S. defense procurement. This structural capability reduces supplier risk, raises barriers to entry, and supports durable contract opportunities in defense and security-sensitive markets.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow mean the company currently consumes cash to grow, limiting internal funding for expansion. Continued cash burn forces external financing or dilution, raises refinancing risk, and constrains the firm’s ability to capitalize on strategic opportunities over the coming quarters.

Weak profitability and negative returns

Despite strong top-line growth, negative net and EBIT margins and a deeply negative ROE show the company is not converting revenue into shareholder returns. Sustained unprofitability erodes equity value, weakens reinvestment capacity, and raises structural concerns about long-term capital efficiency and viability.

Governance and related-party transaction risk

A shareholder vote to approve a CEO employment deal, equity grants and related-party asset purchases concentrates governance decisions and can change capital structure. Such actions create lasting alignment and conflict-of-interest risks that may dilute minority holders and affect strategic credibility over time.

ZenaTech, Inc. Business Overview & Revenue Model

Company Description

ZenaTech, Inc., an enterprise software technology company, develops cloud-based software applications in Canada. It provides cryptocurrency wallets and cloud-based enterprise software solutions for the agriculture industry; cloud-based enterprise software solutions for the medical records industry; safety and compliance management software and mobile solutions; field management software and mobile solutions; integrated cloud-based enterprise software and hardware drone technology solutions for various industries; and browser-based enterprise software applications for public safety. ZenaTech, Inc. was formerly known as ZenaDrone, Inc. and changed its name to ZenaTech, Inc. on October 5, 2020. The company was incorporated in 2017 and is based in Toronto, Canada.

How the Company Makes Money

ZenaTech generates revenue through multiple streams, primarily from the sale of software licenses and subscription-based services for its cloud computing and data analytics platforms. Additionally, the company earns income from hardware sales, including networking equipment designed for telecommunications providers. A significant portion of ZENA's revenue is also derived from long-term contracts and partnerships with major telecommunications companies, which enable it to secure a steady income through service agreements and system integrations. Furthermore, ZENA invests in research and development to create innovative solutions that attract new clients and expand its market presence, contributing to its overall profitability.

ZenaTech, Inc. Financial Statement Overview

Summary

Strong top-line expansion (91.76% revenue growth TTM) and a healthy gross margin (79.79%) are outweighed by weak profitability (negative net and EBIT margins) and negative returns (ROE -71.13%). Cash generation is also pressured with negative operating and free cash flow, despite some improvement in free cash flow growth.

Income Statement

ZenaTech, Inc. has shown significant revenue growth of 91.76% in the TTM period, indicating strong top-line expansion. However, the company is struggling with profitability, as evidenced by negative net profit margins (-3.39%) and EBIT margins (-2.18%). The gross profit margin remains healthy at 79.79%, but the inability to convert revenue into profit is a concern.

Balance Sheet

The company's debt-to-equity ratio of 0.59 suggests a moderate level of leverage, which is manageable. However, the return on equity is negative (-71.13%), indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio stands at 52.47%, reflecting a balanced capital structure.

Cash Flow

ZenaTech's cash flow situation is challenging, with negative operating cash flow and free cash flow. The free cash flow growth rate is positive at 43.24%, but the operating cash flow to net income ratio is negative, highlighting cash flow management issues. The free cash flow to net income ratio is above 1, indicating that free cash flow exceeds net income, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.40M	1.96M	1.83M	3.03M	2.29M	992.75K
Gross Profit	7.52M	1.74M	1.68M	2.46M	1.36M	992.75K
EBITDA	-20.37M	-2.75M	487.87K	464.87K	107.14K	-155.93K
Net Income	-26.42M	-4.48M	-241.50K	14.28K	-216.10K	-211.93K
Balance Sheet
Total Assets	78.55M	34.65M	16.45M	13.54M	10.03M	4.32M
Cash, Cash Equivalents and Short-Term Investments	19.53M	3.75M	1.18K	200.79K	1.20M	94.48K
Total Debt	32.11M	10.12M	8.24M	4.97M	4.71M	679.80K
Total Liabilities	37.34M	12.83M	9.13M	5.97M	6.39M	942.46K
Stockholders Equity	41.21M	21.82M	7.32M	7.57M	3.64M	3.38M
Cash Flow
Free Cash Flow	-27.41M	-11.31M	-2.58M	-2.66M	49.72K	-488.72K
Operating Cash Flow	-23.34M	-9.87M	-1.98M	-1.86M	49.72K	-238.72K
Investing Cash Flow	-11.02M	-1.93M	-923.80K	-1.34M	2.82K	-479.46K
Financing Cash Flow	51.09M	14.91M	2.81M	1.96M	1.03M	837.71K

ZenaTech, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.38
• 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 ZENA, the sentiment is Negative. The current price of 3.38 is below the 20-day moving average (MA) of 3.96, below the 50-day MA of 3.58, and below the 200-day MA of 4.10, indicating a bearish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 42.09 is Neutral, neither overbought nor oversold. The STOCH value of 9.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZENA.

ZenaTech, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPAI	56 Neutral	$112.29M	59.06	―	―	―	―
ZENA	52 Neutral	$161.16M	-5.68	-100.32%	―	312.20%	―
STEM	51 Neutral	$130.89M	-1.12	―	―	-35.61%	―
AISP	48 Neutral	$106.29M	-1.92	―	―	-62.56%	-250.18%
ARBE	47 Neutral	$133.90M	-2.64	-142.36%	―	-34.35%	20.88%
ARAI	44 Neutral	$63.64M	―	―	―	―	―

ZenaTech, Inc. Corporate Events

ZenaTech Moves to Expand U.S. Mountain West Drone-as-a-Service Network With Surveying Firm Offer

On December 11, 2025, ZenaTech announced it has signed an offer to acquire a licensed surveying firm based in the Mountain West/Rocky Mountain region of the United States, a move aimed at expanding its Drone as a Service footprint for precision agriculture, ranching, wildfire management and advanced land surveying across multiple states. The target firm’s established regional presence and customer relationships are expected to enhance ZenaTech’s ability to deliver drone-enabled surveying and land-management services, and the deal advances the company’s broader strategy of building a global, multi-service DaaS network—backed by 14 prior surveying acquisitions—by folding profitable, low-tech service providers into a technology-driven platform that offers business and government clients flexible access to drone services without the cost and complexity of owning the hardware themselves.

The most recent analyst rating on (ZENA) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on ZenaTech, Inc. stock, see the ZENA Stock Forecast page.

ZenaTech Calls January 30 Special Meeting to Approve CEO Deal, Equity Grant and Related-Party Asset Purchase

On January 9, 2026, ZenaTech, Inc. filed a Form 6-K announcing a special meeting of shareholders to be held on January 30, 2026, in Toronto, with a record date of December 18, 2025. Shareholders will be asked to approve a new employment agreement for Chief Executive Officer Dr. Shaun Passley, the related distribution of securities to him under the company’s 2022 Long-Term Incentive Plan, and the acquisition of certain assets from a related party, with each item requiring a simple majority of votes cast. The meeting consolidates several governance and related-party matters that could affect ZenaTech’s capital structure, executive compensation profile and asset base, and underscores the importance of both common and super voting shareholders in shaping the company’s strategic and governance direction.

The most recent analyst rating on (ZENA) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on ZenaTech, Inc. stock, see the ZENA Stock Forecast page.

ZenaTech Expands into UK with Casado Design Acquisition

ZenaTech, Inc. recently announced the acquisition of Casado Design Ltd., marking its entry into the UK market and expanding its Drone as a Service (DaaS) offering into the telecom infrastructure sector. This strategic move positions ZenaTech to capitalize on the growing demand for drone-enabled services in the telecom industry, particularly as 5G infrastructure modernization accelerates in the UK and Europe. The acquisition is part of ZenaTech’s broader strategy to build a global DaaS network, enhancing its industry positioning and providing scalable, data-rich inspection and design workflows for telecom operators.

The most recent analyst rating on (ZENA) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on ZenaTech, Inc. stock, see the ZENA Stock Forecast page.

ZenaTech Advances Taiwan Facility and Reports Record Q3 Growth

ZenaTech, Inc. announced significant advancements and strategic expansions in its operations as of November 2025. The company has moved its Taiwan-based Spider Vision Sensors subsidiary to the commissioning phase for its new drone components manufacturing facility, aiming to enhance its supply chain for US defense market compliance. Additionally, ZenaTech has reported a record 1,225% year-over-year revenue growth in Q3 2025, driven by its expanding Drone as a Service business. These developments highlight ZenaTech’s strategic positioning in the defense and technology sectors, with implications for its market competitiveness and stakeholder value.

The most recent analyst rating on (ZENA) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on ZenaTech, Inc. stock, see the ZENA Stock Forecast page.

ZenaTech Reports Financial Growth in Q3 2025

ZenaTech, Inc. has released its unaudited consolidated financial statements for the nine months ending September 30, 2025. The report highlights a significant increase in cash and marketable securities, indicating improved liquidity and financial health. This financial update suggests a positive trajectory for ZenaTech, potentially strengthening its position in the market and providing reassurance to stakeholders about the company’s operational stability.

The most recent analyst rating on (ZENA) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on ZenaTech, Inc. stock, see the ZENA Stock Forecast page.