Zapata Computing Holdings (ZPTA)
OTHER OTC:ZPTA
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Zapata Computing Holdings
(OTC:ZPTA)
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Rating:39Underperform
Price Target:
$0.40
▼(-75.19% Downside)
Action:DowngradedDate:04/01/26
The score is driven down primarily by very weak financial performance (zero 2025 revenue, persistent losses and cash burn, and negative equity). Technicals are also bearish (below key moving averages with negative MACD), with only an oversold reading offering limited near-term support. Valuation adds further pressure due to an extremely high P/E and no dividend yield.
Positive Factors
Patent-protected Quantum Intermediate Representation (QIR)
Global patent coverage for a hardware-agnostic QIR creates a durable technical moat. Exclusive rights enable interoperability across diverse quantum hardware, strengthening platform stickiness, licensing potential, and partner engagement as multi-vendor quantum ecosystems scale over the next several years.
Negative Factors
Revenue collapsed to zero in 2025
Revenue dropping to zero is a structural red flag: it indicates a major disruption to commercial activity or recognition. Without recurring sales, the firm lacks internal cash generation and proof of product-market fit, making sustained operations and long-term customer relationships precarious.
Read all positive and negative factors
Positive Factors
Negative Factors
Patent-protected Quantum Intermediate Representation (QIR)
Global patent coverage for a hardware-agnostic QIR creates a durable technical moat. Exclusive rights enable interoperability across diverse quantum hardware, strengthening platform stickiness, licensing potential, and partner engagement as multi-vendor quantum ecosystems scale over the next several years.
Read all positive factors
Zapata Computing Holdings (ZPTA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$86.15M
Dividend YieldN/A
Average Volume (3M)107.39K
Price to Earnings (P/E)17238.9
Beta (1Y)-235.21
Revenue Growth-100.00%
EPS Growth99.55%
CountryUS
Employees50
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)N/A
Shares Outstanding172,293,500
10 Day Avg. Volume93,328
30 Day Avg. Volume107,393
Financial Highlights & Ratios
PEG Ratio-161.23
Price to Book (P/B)-19.47K
Price to Sales (P/S)0.00
P/FCF Ratio-96.66K
Enterprise Value/Market Cap0.27
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/Ebitda-6.72
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.52
Revenue Forecast (FY)$24.00M
Zapata Computing Holdings Business Overview & Revenue Model
Company Description
Zapata Quantum, Inc. operates as a generative AI company. It provides data science and engineering techniques for solutions on an industrial scale. The company was founded by Christopher Savoie, Alan Aspuru-Guzik, Yudong Cao, Jonathan Olson, Peter...
How the Company Makes Money
null...
Zapata Computing Holdings Earnings Call Summary
Earnings Call Date:Aug 14, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Neutral
The earnings call reflects strong momentum in revenue growth, strategic partnerships, and a robust pipeline of opportunities, particularly in the defense and government sectors. However, increased operating costs and a significant net loss are notable challenges.Positive Updates
Revenue and Gross Margin Growth
Q2 2024 revenue was $2 million, a 40% increase from $1.43 million in Q2 2023. Gross margin improved significantly to 36% from 19.7% in Q2 2023.
Negative Updates
Increased Operating Costs
Operating costs increased to $8.09 million in Q2 2024, up from $4.42 million in Q2 2023, driven by higher general and administrative expenses.
Read all updates
Q2-2024 Updates
Positive
Negative
Revenue and Gross Margin Growth
Q2 2024 revenue was $2 million, a 40% increase from $1.43 million in Q2 2023. Gross margin improved significantly to 36% from 19.7% in Q2 2023.
Read all positive updates
Company Guidance
In the recent earnings call for the second quarter of 2024, Zapata AI provided a comprehensive update on its financial performance and strategic initiatives. The company reported a significant increase in revenue to $2 million, up from $1.43 million in the same quarter last year and $1.22 million in Q1 2024. Gross margins also improved markedly to 36%, compared to 19.7% in the year-ago quarter and 13.6% in Q1 of 2024. This improvement was attributed to increased software license deliveries and the progression of customers along their AI journey. The company's operating costs rose to $8.09 million, driven by higher general and administrative expenses, including one-time fees related to its NASDAQ listing. Zapata AI's pipeline of prospective customer engagements now exceeds $30 million, spread across various verticals such as financial services, insurance, telecom, and defense. The company is optimistic about converting these opportunities into commercial agreements, emphasizing its unique approach to AI with small ensemble models and a focus on industrial applications.Zapata Computing Holdings Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
18
Very Negative
Cash Flow
14
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 0.00 | 3.88M | 5.68M | 5.17M | 832.00K |
| Gross Profit | 0.00 | 635.00K | 1.10M | 1.63M | -174.00K |
| EBITDA | -3.43M | -37.04M | -29.55M | -23.21M | -16.82M |
| Net Income | 9.34M | -38.14M | -29.73M | -23.45M | -17.01M |
Balance Sheet | |||||
| Total Assets | 2.27M | 2.73M | 8.07M | 13.45M | 33.02M |
| Cash, Cash Equivalents and Short-Term Investments | 1.66M | 359.00K | 3.47M | 616.12K | 31.03M |
| Total Debt | 4.41M | 2.24M | 2.45M | 605.00K | 240.55K |
| Total Liabilities | 10.54M | 26.21M | 18.29M | 70.53M | 67.86M |
| Stockholders Equity | -8.27M | -23.47M | -10.23M | -57.08M | -34.84M |
Cash Flow | |||||
| Free Cash Flow | -1.67M | -18.14M | -14.76M | -21.24M | -16.42M |
| Operating Cash Flow | -1.67M | -18.11M | -14.76M | -20.99M | -16.30M |
| Investing Cash Flow | 0.00 | -34.00K | 161.04M | -253.00K | -121.00K |
| Financing Cash Flow | 3.02M | 15.10M | -158.45M | 280.00K | 715.00K |
Zapata Computing Holdings Risk Analysis
Zapata Computing Holdings disclosed 99 risk factors in its most recent earnings report. Zapata Computing Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zapata Computing Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $39.29M | 22.16 | 0.58% | ― | 20.68% | 84.51% | |
46 Neutral | $194.71M | -8.15 | -163.57% | ― | 80.89% | 68.29% | |
40 Underperform | $79.73M | -2.91 | -84.58% | ― | -34.35% | 20.88% | |
39 Underperform | $86.15M | 17,238.91 | -55.00% | ― | -100.00% | 99.55% |
* Technology Sector Average
ZPTA
Zapata Computing Holdings
0.50
0.49
4900.00%
JG
Aurora Mobile
6.55
-1.75
-21.08%
ARBE
Arbe Robotics
0.65
-0.43
-39.81%
ARQQ
Arqit Quantum
12.44
-2.56
-17.07%
CISO
Cerberus Cyber Sentinel Corp
0.34
<0.01
0.29%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.