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Zoo Digital (ZOO) AI Stock Analysis
Zoo Digital
(LSE:ZOO)
The score is driven primarily by a mixed financial profile: improving cash flow and EBITDA recovery support the outlook, but ongoing losses and a steep multi-year revenue decline remain major constraints and continue to erode equity. The earnings call adds support via FY'27 growth/profit progression guidance and margin improvements, while technical signals are neutral and valuation is weakened by negative earnings and no stated dividend yield.
Zoo Digital (ZOO) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 13.76M
- Dividend Yield
- ―
- Average Volume (3M)
- 282.88K
- Price to Earnings (P/E)
- -5.0
- Beta (1Y)
- 0.78
- Revenue Growth
- -18.66%
- EPS Growth
- 56.03%
- Country
- UK
- Employees
- 369
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Application
Zoo Digital Business Overview & Revenue Model
Company Description
ZOO Digital Group plc, through its various subsidiaries, delivers cloud-native solutions for media localization and digital content distribution to clients primarily in the United Kingdom and the United States. The company's operations are divided in...
How the Company Makes Money
Zoo Digital primarily makes money by providing media localisation services to entertainment content owners and distributors (e.g., studios and streaming platforms) that need to release content across multiple countries and languages. Its key revenue...
Zoo Digital Earnings Call Summary
The call presents a constructive strategic and operational turnaround: the company has cut costs, maintained industry-leading quality, integrated AI and new delivery models (Fast Track, follow-the-sun), moved back to EBITDA profitability and modest positive cash generation, and is seeing early signs of revenue recovery and winning RFPs. However, FY'26 revenue declined 15% due to subdued dubbing demand, largest-customer concentration remains high (44%), cash generation is still small ($0.4M cash EBITDA), and visibility/valuation remain constrained. On balance the positive operational progress, margin expansion and new service momentum outweigh the remaining challenges.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management guided to a return to revenue growth and profit progression in FY '27 after a strong Q1; FY '26 was in line with expectations with revenue down 15% to $42.0m, EBITDA up to $4.0m (from $1.1m), cash EBITDA recovering to +$0.4m (from -$2.7m), gross margin rising to just under 42% (from 36%), and Fast Track contributing ~$2.5m (~10% of run‑rate). They highlighted customer concentration falling to 44% (from 61%), trade and other payables reduced from $18m to < $13m, $1.4m drawn of an $8m invoice financing facility, R&D capitalised of $1.7m (up from $1.5m), and headcount cut ~17%; management expects further margin improvement from AI, scalable follow‑the‑sun operations and to capture market share as streaming demand normalizes.
Zoo Digital Financial Statement Overview
Summary
Mixed fundamentals: revenue is declining materially (90.3m in 2023 to 41.7m in 2026) and the company remains loss-making, pressuring equity (35.1m in 2023 to 15.8m in 2026). Offsetting this, operating performance and cash generation improved meaningfully versus 2024, with EBITDA back to positive and 2026 showing positive operating cash flow (~3.0m) and free cash flow (~2.9m).
Income Statement
44NeutralBalance Sheet
63PositiveCash Flow
68Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.10M | 41.67M | 49.57M | 40.63M | 90.26M | 70.40M |
| Gross Profit | 11.97M | 11.83M | 18.02M | 5.46M | 33.93M | 22.11M |
| EBITDA | 4.01M | 4.09M | -333.00K | -12.61M | 14.22M | 7.82M |
| Net Income | -3.66M | -3.63M | -7.98M | -21.93M | 8.23M | 2.63M |
Balance Sheet | ||||||
| Total Assets | 31.86M | 31.86M | 41.26M | 49.11M | 64.25M | 64.43M |
| Cash, Cash Equivalents and Short-Term Investments | 3.57M | 3.57M | 2.71M | 5.32M | 11.84M | 5.96M |
| Total Debt | 4.65M | 4.65M | 4.66M | 5.75M | 8.38M | 9.14M |
| Total Liabilities | 16.04M | 16.04M | 21.44M | 21.45M | 29.11M | 38.17M |
| Stockholders Equity | 15.81M | 15.81M | 19.82M | 27.65M | 35.13M | 26.26M |
Cash Flow | ||||||
| Free Cash Flow | 2.89M | 2.88M | -772.00K | -16.86M | 8.77M | -628.00K |
| Operating Cash Flow | 3.02M | 3.01M | 1.49M | -11.94M | 15.70M | 5.48M |
| Investing Cash Flow | -1.64M | -1.63M | -2.24M | -7.14M | -8.23M | -10.06M |
| Financing Cash Flow | -234.27K | -251.90K | -1.84M | 12.64M | -1.60M | 7.59M |
Zoo Digital Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ZOO, the sentiment is Positive. The current price of 14.00 is above the 20-day moving average (MA) of 13.26, below the 50-day MA of 15.16, and above the 200-day MA of 12.76, indicating a neutral trend. The MACD of -0.64 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 55.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ZOO.
Zoo Digital Peers Comparison
Overall Rating
GB:ACSO65Neutral- GB:ZOO58Neutral
GB:OMG55Neutral
GB:GETB49Neutral
GB:BIRD46Neutral
GB:EXR39Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:ACSO | 65Neutral | GBP 102.04M | 15.59 | 5.35% | ― | -1.05% | -2.05% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| GB:ZOO | 58Neutral | GBP 13.76M | -5.01 | -21.37% | ― | -18.66% | 56.03% |
| GB:OMG | 55Neutral | GBP 40.17M | -65.82 | -0.98% | 8.98% | 19.31% | 64.00% |
| GB:GETB | 49Neutral | GBP 40.05M | -31.98 | 34.82% | ― | 6.07% | -851.52% |
| GB:BIRD | 46Neutral | GBP 18.97M | -7.18 | -39.59% | ― | -10.28% | 9.84% |
| GB:EXR | 39Underperform | GBP 1.18M | -0.68 | -91.71% | ― | -42.62% | 23.44% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:ZOO | Zoo Digital | 14.00 | 3.75 | 36.59% | |
| GB:ACSO | accesso Technology | 315.00 | -41.00 | -11.52% | |
| GB:BIRD | Blackbird PLC | 3.95 | 1.35 | 51.92% | |
| GB:OMG | Oxford Metrics | 36.20 | -5.05 | -12.25% | |
| GB:GETB | Getbusy Plc | 79.00 | -2.00 | -2.47% | |
| GB:EXR | VR Education Holdings PLC | 0.23 | -0.53 | -70.00% |
Zoo Digital Corporate Events
Zoo Digital shareholders pass all AGM resolutions, back governance and share issuance powers
PositiveZoo Digital Group plc, the AIM-listed localisation and digital media services partner to global entertainment companies, reported that all resolutions at its annual general meeting on 29 September 2026 were approved by shareholders following a poll....
ZOO Digital lifts H1 revenue outlook as streaming localisation demand rises
PositiveZOO Digital said it expects first-half FY27 revenue of at least $23.0 million, representing growth on both halves of FY26 as streaming providers evolve their offerings and demand more localisation services. The board highlighted increased activity in...
Zoo Digital Publishes 2026 Annual Report and Sets Hybrid AGM for September
NeutralZoo Digital Group plc has published its annual report and accounts for the year ended 31 March 2026, together with the notice of its upcoming annual general meeting, making these materials available electronically and in hard copy to shareholders. Th...
ZOO Digital boosts investor outreach with new quarterly newsletter
PositiveZOO Digital Group has published its latest quarterly investor newsletter, directing shareholders and market followers to access the update via its online investor newsletter library. The company is also encouraging investors to subscribe to its maili...
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.
Date of analysis: Oct 31, 2026