Low LeverageA low reported debt load provides durable financial flexibility, reducing near-term solvency risk and lowering fixed obligations. That conservatism supports the company’s ability to raise capital or invest in operations without onerous interest costs, aiding multi-month stability.

Improving Loss TrendMaterial reduction in the scale of losses versus prior years signals management progress on cost control and operational efficiency. Sustained margin improvement increases the probability of reaching breakeven over the next several quarters and improves cash-burn outlook.

International & Branded StrategyA focus on export markets and branded consumer products creates structural diversification beyond local cultivation. If executed, this expands addressable markets and distribution channels, supporting more durable revenue sources as regulatory acceptance grows internationally.

Bears Say

Declining RevenueSustained top-line decline undermines leverage benefits from fixed costs and constrains path to profitability. Without revenue stabilization or new growth channels, recurring declines increase reliance on financing and make durable margin recovery and scale harder to achieve.

Persistent Cash BurnOngoing negative operating and free cash flow indicate the business consumes cash to operate, forcing reliance on external financing or equity raises. That structural cash burn risks dilution and constrains long-term investment in growth or capex without durable cash-flow turnaround.

Compressed MarginsModest and shrinking gross margins limit the ability to fund SG&A and R&D while moving to profitability. Persistently negative net margins reflect structural profitability challenges in the business model, making sustainable earnings generation uncertain absent product or cost improvements.

ZSTK FAQ

What was ZeroStack’s price range in the past 12 months?

ZeroStack lowest stock price was $5.86 and its highest was $47.00 in the past 12 months.

What is ZeroStack’s market cap?

ZeroStack’s market cap is $20.51M.

When is ZeroStack’s upcoming earnings report date?

ZeroStack’s upcoming earnings report date is Mar 26, 2026 which is in 30 days.

How were ZeroStack’s earnings last quarter?

ZeroStack released its earnings results on Nov 05, 2025. The company reported -$4.93 earnings per share for the quarter, missing the consensus estimate of -$2.13 by -$2.8.

Is ZeroStack overvalued?

According to Wall Street analysts ZeroStack’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does ZeroStack pay dividends?

ZeroStack does not currently pay dividends.

What is ZeroStack’s EPS estimate?

ZeroStack’s EPS estimate is -0.17.

How many shares outstanding does ZeroStack have?

ZeroStack has 2,412,411 shares outstanding.

What happened to ZeroStack’s price movement after its last earnings report?

ZeroStack reported an EPS of -$4.93 in its last earnings report, missing expectations of -$2.13. Following the earnings report the stock price went down -15.158%.

Which hedge fund is a major shareholder of ZeroStack?

Currently, no hedge funds are holding shares in ZSTK

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

ZeroStack

ZeroStack Corp. operates as an AI-powered asset management company focused on providing decentralized AI. ZeroStack is focused on providing exposure to decentralized AI through a concentrated digital asset approach structured to generate yield and fee-based income from staking validators, compute power technology companies, and complementary businesses within the $0G ecosystem and across the wider AI landscape.