Zhibao Technology Inc. (ZBAO) AI Stock Analysis
ZBAO AI stock analysis summary
AI ResearchZhibao Technology Inc. is a Shanghai-based digital insurance brokerage and managing general underwriter services provider. While revenue grew 50.8% to $276.9M in FY2025, the company posted a net loss of -$62.0M and negative free cash flow of -$20.5M. The stock trades at $0.63, having fallen 98.8% over the past year.
- Market cap
- $5.7M
- Revenue (TTM)
- $336.5M
- P/E
- — fwd 8.6x
- 1Y return
- -98.8% S&P 500 16.8%
- Avg. target
- $7.35 1059.2% vs last close
Bull case
- Revenue grew 50.8% in FY2025 to $276.9M, continuing a 5-year revenue CAGR of 43.4%.
- Analyst forecasts project top-line expansion to $443.6M for the fiscal year ending June 30, 2026, and $597.3M the following year.
- The stock trades at a forward P/E of 8.6x, below the US-listed Financial Services peer median of 10.8x.
Bear case
- Net losses expanded substantially to -$62.0M in FY2025, with an operating margin of -19.3%.
- Cash burn worsened to negative free cash flow of -$20.5M in FY2025, leaving cash and short-term investments at $3.9M as of December 31, 2025.
- Short-term liquidity is tight, reflected in a current ratio of 0.86 and net debt of $1.9M against shareholders' equity of $2.8M.
What Zhibao Technology does
Established in 2015 and headquartered in Shanghai, China, Zhibao Technology Inc. operates through its subsidiaries to provide digital insurance brokerage services in the Chinese market. The company also provides managing general underwriter services to facilitate insurance solutions, alongside consultancy services for traditional insurance brokerage via offline channels. Zhibao Technology employs 137 people and focuses on combining its digital platforms with personalized offline consultations to serve both individual and corporate clients seeking tailored insurance products.
Growth and profitability
Zhibao Technology's revenue expanded at a 5-year CAGR of 43.4% from FY2020 through FY2025, reaching $276.9M in FY2025 with 50.8% growth. Gross margin stood at 41.0% in FY2025, consistent with 40.7% in FY2024 and 41.3% in FY2022. However, profitability deteriorated in FY2025 as operating margin dropped to -19.3% and net income fell to -$62.0M, or -$1.92 per share, compared to net income of $13.3M in FY2024. For the trailing twelve months ended December 31, 2025, revenue was $336.5M with quarterly revenue growth of 40.7% year-over-year, while trailing twelve months net margin remained negative at -19.5% and EPS was -$14.04.
Balance sheet and cash flow
As of December 31, 2025, Zhibao Technology held $3.9M in cash and short-term investments against total debt of $5.8M, resulting in net debt of $1.9M. The balance sheet reflects a debt-to-equity ratio of 2.04 and a current ratio of 0.86, with total assets of $40.5M and shareholders' equity of $2.8M. Operating cash flow in FY2025 was -$20.5M, matching free cash flow of -$20.5M. For FY2025, capital expenditures were $22, while share buybacks totaled $5.2M.
Valuation and performance
At $0.63 per share, Zhibao Technology carries a market capitalization of $5.7M and an enterprise value of $45.7M. The stock trades at a forward P/E of 8.6x, compared to the median of 10.8x for its US-listed Financial Services peers. Its EV/EBITDA of 9.5x and price-to-sales of 0.0x also stand below the sector peer medians of 11.7x and 3.2x, respectively, though its price-to-book ratio is 15.3x. Over the past year, ZBAO shares fell 98.8%, underperforming the S&P 500 (SPY) return of 16.8%.
What analysts expect
Wall Street analysts set a mean price target of $7.35 for ZBAO, representing an upside of 1059.2% relative to its last close of $0.63. Consensus expectations project revenue of $443.6M for the fiscal year ending June 30, 2026. For the next fiscal year, analysts forecast revenue to reach $597.3M, representing estimated revenue growth of 34.7%.
Key risks and what to watch
- Liquidity pressure is heightened by a current ratio of 0.86 and cash of $3.9M alongside -$20.5M in FY2025 operating cash flow.
- High debt relative to equity is evident with a debt-to-equity ratio of 2.04 and total debt of $5.8M.
- Extreme price volatility is indicated by a beta of 1.92 and a 98.8% decline over the past 1-year period.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ZBAO AI stock analysis
This page is an AI-written research summary of Zhibao Technology Inc. (ZBAO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ZBAO income statement, ZBAO analyst forecast, ZBAO chart. See the ZBAO stock overview for the latest quote and news.
ZBAO AI stock analysis FAQ
What does Zhibao Technology Inc. do?
Zhibao Technology Inc. is an insurance brokerage services provider based in Shanghai, China. It offers digital insurance brokerage, managing general underwriter solutions, and offline traditional brokerage consultancy.
Does Zhibao Technology pay a dividend?
No, Zhibao Technology does not pay a dividend. In FY2025, the company used capital for $5.2M in share buybacks and $22 in capital expenditures.
What is the analyst price target for ZBAO?
Analysts have a mean price target of $7.35 for ZBAO, which is 1059.2% above its closing price of $0.63 on October 16, 2026.
How did Zhibao Technology perform financially in FY2025?
In FY2025, revenue grew 50.8% to $276.9M, while gross margin was 41.0%. The company reported a net loss of -$62.0M, an operating margin of -19.3%, and free cash flow of -$20.5M.