ZeroStack Corp. (ZSTK) AI Stock Analysis

ZeroStack Corp., through its subsidiary Phatebo GmbH, engages in the pharmaceutical distribution business in Germany. It operates through Commercial & Wholesale and Digital Assets segments. The company distributes pharmaceutical goods and medical products to treat conditions including cancer, attention-deficit/hyperactivity disorder, multiple sclerosis, and depression. It also operates as a decentralized AI treasury company investing in AI infrastructure through strategic ownership of 0G tokens, alongside investments in early-stage companies. Formerly known as Flora Growth Corp. until January 2026, the company was incorporated in 2019 and is based in Toronto, Canada.

ZeroStack generated $76.1M in revenue in FY2023 before sales declined 21.8% in FY2024 to $59.5M and 40.0% in FY2025 to $35.7M. Profitability compressed over this period, with FY2025 gross margin falling to -13.5% and net margin reaching -338.7% on a net income of -$120.9M. EPS came in at -$45.75 in FY2025. For the trailing twelve months ended June 30, 2026, revenue was $40.0M with an operating margin of -18.1% and EPS of -$43.81. However, quarterly revenue growth for the latest quarter increased 40.7% year-over-year.

As of June 30, 2026, ZeroStack held $3.0M in cash and short-term investments against $2.8M in total debt, resulting in net cash of $208,000. Total assets were $25.2M, shareholders' equity was $13.8M, and the current ratio stood at 0.95 with a debt-to-equity ratio of 0.20. In FY2025, operating cash flow was -$8.7M and free cash flow was -$8.8M, with capital expenditures of $127,000. Over a 5-year period, the company's share count increased 17467.9%.

ZeroStack carries a market cap of $87.2M and an enterprise value of $85.6M. The stock trades at a forward P/E of 7.9x, which is lower than the 10.8x forward P/E median of its US-listed Financial Services peers. Its price-to-sales multiple is 2.2x, below the peer group median of 3.2x, while its price-to-book ratio is 6.2x. Over the past year, the stock fell 79.0%, underperforming the S&P 500 benchmark gain of 16.8%, and stands 25.2% below its 200-day moving average.

Wall Street coverage includes 1 Strong Buy rating, with 0 Buy, 0 Hold, 0 Sell, and 0 Strong Sell recommendations. The mean price target is $11.00, representing a 175.0% premium over the last close of $4.00. For the fiscal year ending December 31, 2026, analysts forecast revenue of $29.5M and an EPS of -$4.02, reflecting expected EPS growth of 90.8%. ZeroStack has delivered 0 EPS beats over the last 4 quarters, and its next earnings date is November 4, 2026.

This page is an AI-written research summary of ZeroStack Corp. (ZSTK). 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: ZSTK income statement, ZSTK balance sheet, ZSTK key metrics, ZSTK analyst forecast, ZSTK chart. See the ZSTK stock overview for the latest quote and news.