Zonetail (ZONE) AI Stock Analysis

Zonetail

(TSXV:ZONE)

Select Model

Rating:37Underperform

Price Target:CAD 0.01▼(-6.67% Downside)

Action:reiterated

Date:10/20/26

The overall score is at the absolute minimum, reflecting a company in severe financial distress. The primary driver is a fundamentally broken business model that cannot generate a gross profit, leading to insolvency and persistent cash burn. This is compounded by an extremely overbought technical condition, which signals high downside risk for a penny stock with no valuation support.

Positive Factors

Multi-stream platform modelZonetail combines operator-paid platform fees with advertising, sponsorship, marketplace, and partnership revenue. This creates several potential monetization routes around one building-focused digital experience and could support broader revenue capture as deployments expand.

Negative Factors

Contracting revenueFalling revenue indicates that Zonetail has not yet established durable top-line momentum across its platform business. Continued contraction can weaken operating leverage, reduce customer and partner appeal, and make it harder to fund product development or reach sustainable scale.

Zonetail (ZONE) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 3.30M
Dividend Yield: ―
Average Volume (3M): 400.04K
Price to Earnings (P/E): -19.5
Beta (1Y): -1.19
Revenue Growth: -43.30%
EPS Growth: 57.14%
Country: Canada
Employees: 17
Sector: Technology
Sector Strength: 61
Industry: Software - Application

Zonetail Business Overview & Revenue Model

Company Description

Zonetail Inc., headquartered in Toronto, Canada, delivers a mobile platform tailored for hotels and residential condominiums. This innovative digital solution enables hotel guests and occupants of high-rise buildings to seamlessly access their proper...

How the Company Makes Money

Zonetail’s monetization is primarily tied to selling and operating its building-focused digital platform for property operators and monetizing the attention and commerce opportunities created within that platform. Key revenue streams include: (1) Pla...

Zonetail Financial Statement Overview

Summary

Financial health is critically poor. The company is deeply unprofitable with a TTM net margin of -19.9%, technically insolvent with negative equity of -$826K, and continues to burn cash. The inability to generate a positive gross profit is a fundamental flaw, presenting a maximum risk profile.

Income Statement

8Very Negative

Balance Sheet

1Very Negative

Cash Flow

10Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	15.38K	20.91K	36.88K	39.26K	38.05K	40.89K
Gross Profit	-158.57K	-402.58K	-533.30K	-762.29K	-875.76K	-680.06K
EBITDA	-340.26K	-335.68K	-42.99K	508.81K	-1.98M	-1.83M
Net Income	-403.95K	-415.74K	-891.50K	-805.65K	-2.06M	-1.93M
Balance Sheet
Total Assets	127.09K	214.22K	23.85K	156.57K	296.67K	1.25M
Cash, Cash Equivalents and Short-Term Investments	82.02K	185.81K	716	3,342	176.88K	1.09M
Total Debt	599.94K	633.17K	566.04K	345.15K	567.53K	548.33K
Total Liabilities	953.08K	1.31M	1.45M	1.06M	1.15M	796.76K
Stockholders Equity	-825.98K	-1.10M	-1.42M	-906.07K	-850.37K	454.50K
Cash Flow
Free Cash Flow	-422.79K	-534.91K	-546.04K	-1.01M	-1.53M	-1.98M
Operating Cash Flow	-422.79K	-534.91K	-546.04K	-1.01M	-1.53M	-1.98M
Investing Cash Flow	0	0	0	0	0	0
Financing Cash Flow	498.41K	720.00K	543.41K	838.09K	618.98K	2.92M

Zonetail Technical Analysis

Technical Analysis SentimentPositive

Last Price0.01

Price Trends

50DMA0.01Positive

100DMA0.01Positive

200DMA0.01Positive

Market Momentum

MACD0.00Positive

RSI52.58Neutral

STOCH-0.00Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ZONE, the sentiment is Positive. The current price of 0.01 is above the 20-day moving average (MA) of 0.01, above the 50-day MA of 0.01, and above the 200-day MA of 0.01, indicating a bullish trend. The MACD of 0.00 indicates Positive momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of -0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ZONE.

Zonetail Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

TSE:ZONE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:SHOP	83Outperform	CAD 283.49B	105.70	15.06%	―	31.24%	-16.71%
TSE:MYID	66Neutral	CAD 33.35M	74.32	68.56%	―	18.15%	85.00%
TSE:LSPD	64Neutral	CAD 2.02B	-15.53	-6.60%	―	10.59%	84.91%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TSE:MBO	51Neutral	CAD 2.17M	-3.66	39.85%	―	―	―
TSE:VSBY	41Neutral	CAD 10.20M	-1.12	46.34%	―	-86.57%	45.63%
TSE:ZONE	37Underperform	CAD 4.91M	-19.51	38.57%	―	-43.30%	57.14%

* Technology Sector Average

Performance Comparison

TSE:ZONE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:ZONE	Zonetail, Inc.	0.01	-0.01	-25.00%
TSE:SHOP	Shopify Inc.	217.64	-9.59	-4.22%
TSE:MBO	Mobio Technologies	0.09	-0.01	-10.00%
TSE:LSPD	Lightspeed Pos	15.67	-0.25	-1.57%
TSE:MYID	Reklaim Ltd	0.27	0.18	197.78%
TSE:VSBY	Vsblty Groupe Technologies Corp	0.09	0.00	0.00%

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.

Date of analysis: Oct 20, 2026

Zonetail AI Stock Analysis