ZenaTech, Inc. (ZENA) AI Stock Analysis

• Market Cap: $136.79M
• Dividend Yield: N/A
• Average Volume (3M): 808.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.92
• 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: 32,981,125
• 10 Day Avg. Volume: 868,983
• 30 Day Avg. Volume: 808,248
• PEG Ratio: -0.02
• Price to Book (P/B): 9.34
• Price to Sales (P/S): 103.78
• P/FCF Ratio: -19.85
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 26.41
• Enterprise Value/Gross Profit: 29.51
• Enterprise Value/Ebitda: -10.89
• 1Y Price Target: $7.00
• Price Target Upside: 69.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.36
• Revenue Forecast (FY): $16.73M

• Rating: 51 Neutral
• Price Target: $4.00 ▼(-3.38% Downside)

The score is held back primarily by weak fundamentals—ongoing losses, negative ROE, and challenged cash flow—despite strong revenue growth and high gross margins. Technicals are a relative bright spot with price above key moving averages and moderately strong momentum, but valuation is pressured by negative earnings and no dividend yield data.

Positive Factors

Robust Revenue Growth

Consistent, high TTM revenue growth (~91.8%) signals strong market demand for ZenaTech’s software, hardware and Drone-as-a-Service offerings. Durable top-line expansion supports scale economies, funds R&D and network buildout, and underpins potential long-term contract growth.

High Gross Margins

A very high gross margin (~79.8%) reflects valuable software, analytics and proprietary drone components, indicating structural pricing power. This margin cushion supports investments in product development and manufacturing scale while providing room to absorb SG&A as the business scales toward profitability.

Favorable Defense & Government Positioning

ZenaDrone’s push for NDAA-compliance, Blue UAS pursuit, U.S. manufacturing and active federal engagement align with durable policy-driven demand for trusted domestic drones. Structural government procurement trends can create multi-year, contract-based revenue and deeper defense customer relationships.

Negative Factors

Negative Profitability

Despite strong topline growth, negative net and EBIT margins show the company is not yet converting revenues into profits. Persistent operating losses weaken return on invested capital, limit internal funding capacity, and require sustained margin improvement to support long-term expansion.

Weak Operating Cash Flow

Reported negative operating and free cash flow indicate core operations currently consume cash despite revenue growth. Structural cash-generation weakness constrains reinvestment, increases reliance on external financing, and makes scaling manufacturing and M&A integration more difficult over time.

Aggressive M&A Execution Risk

Rapid roll-up (20 acquisitions) materially expands footprint but raises durable integration, execution and capital-allocation risks. When paired with current cash-flow and profitability challenges, the acquisition pace can strain management, delay realization of synergies and increase execution risk.

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

ZenaTech, Inc. is experiencing robust revenue growth, but profitability and cash flow management remain significant challenges. The company has a moderate leverage position, but the negative return on equity and cash flow issues suggest operational inefficiencies.

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: Positive
• Last Price: 4.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZENA, the sentiment is Positive. The current price of 4.14 is above the 20-day moving average (MA) of 3.38, above the 50-day MA of 3.58, and above the 200-day MA of 3.98, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.62 is Neutral, neither overbought nor oversold. The STOCH value of 54.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZENA.

ZenaTech, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HPAI	64 Neutral	$146.06M	76.81	―	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ZENA	51 Neutral	$136.79M	-6.96	-100.32%	―	312.20%	―
STEM	51 Neutral	$142.97M	-1.22	―	―	-35.61%	―
ARBE	44 Neutral	$133.56M	-2.73	-142.36%	―	-34.35%	20.88%
AISP	43 Neutral	$111.41M	-2.01	―	―	-62.56%	-250.18%
ARAI	43 Neutral	$99.22M	―	―	―	―	―

ZenaTech, Inc. Corporate Events

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.

ZenaTech Expands Drone Services and Influence in October 2025

On October 15, 2025, ZenaTech announced significant strategic moves to enhance its position in the drone and technology sectors. The company has upgraded its ZenaDrone subsidiary’s membership with the Association for Uncrewed Vehicle Systems International (AUVSI) to an Advocacy level, allowing it to influence US drone policy and engage with defense stakeholders. Additionally, ZenaTech has reported a substantial increase in revenue and made several acquisitions to expand its DaaS footprint across various US regions and into Europe. These developments are poised to strengthen ZenaTech’s market presence and operational capabilities, particularly in defense and government sectors.

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.