Revenue reached $8.5M in 2026Q1, yet the company continues to struggle with operational efficiency as evidenced by a $29.1M SG&A expense load that far exceeds quarterly gross profits.
| Sales/Revenue | 20.32M | 12.91M | 1.96M | 1.83M | 3.03M | 2.29M | 992.75K |
| Revenue Growth % | 710.22% | 557.6% | 7.43% | -39.59% | 32.36% | 130.24% | - |
| Cost of Goods Sold | 10.16M | 17.7M | 222.01K | 149.42K | 567.12K | 930.73K | 0 |
| COGS % of Revenue | - | 137.04% | 11.31% | 8.18% | 18.75% | 40.72% | - |
| Gross Profit | 10.16M | -4.78M | 1.74M | 1.68M | 2.46M | 1.36M | 992.75K |
| Gross Margin % | 50.02% | -37.04% | 88.69% | 91.82% | 81.25% | 59.28% | 100% |
| Gross Profit Growth % | - | -374.61% | 3.77% | -31.73% | 81.42% | 36.49% | - |
| Operating Expenses | 54M | 20.54M | 4.76M | 1.43M | 2.11M | 1.41M | 1.14M |
| OpEx % of Revenue | - | 159.07% | 242.2% | 78.45% | 69.84% | 61.59% | 114.87% |
| Selling, General & Admin | 48.35M | 18.04M | 4.47M | 1.17M | 1.87M | 1.25M | 1.11M |
| SG&A % of Revenue | - | 139.7% | 227.85% | 64.05% | 61.67% | 54.68% | 111.63% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 2.25M | 2.5M | 281.75K | 263.06K | 246.91K | 157.97K | 32.16K |
| Operating Income | -43.83M | -25.32M | -3.01M | 244.53K | 345.48K | -52.84K | -147.59K |
| Operating Margin % | -215.72% | -196.11% | -153.51% | 13.38% | 11.42% | -2.31% | -14.87% |
| Operating Income Growth % | - | -740.11% | -1332.65% | -29.22% | 753.79% | 64.2% | - |
| EBITDA | -40.33M | -23.14M | -2.73M | 507.59K | 592.38K | 105.13K | -115.42K |
| EBITDA Margin % | -198.5% | -179.21% | -139.16% | 27.77% | 19.58% | 4.6% | -11.63% |
| EBITDA Growth % | -607.67% | -746.89% | -638.32% | -14.31% | 463.47% | 191.08% | - |
| D&A (Non-Cash Add-back) | 3.5M | 2.18M | 281.75K | 263.06K | 246.91K | 157.97K | 32.16K |
| EBIT | -51.45M | -25.34M | -3.04M | 224.81K | 217.96K | -50.83K | -188.09K |
| Net Interest Income | -8.8M | -19.79M | -1.42M | -470.49K | -195.75K | -118.12K | 24.3K |
| Interest Income | 7.35M | 88.43K | 27.35K | 0 | 30.42K | 55.74K | 53.91K |
| Interest Expense | 16.15M | 19.88M | 1.45M | 470.49K | 226.17K | 173.86K | 29.61K |
| Other Income/Expense | -23.77M | -19.9M | -1.47M | -490.21K | -346.65K | -169.02K | -70.12K |
| Pretax Income | -67.6M | -45.22M | -4.48M | -245.68K | -1.18K | -221.86K | -217.7K |
| Pretax Margin % | -332.69% | -350.18% | -228.24% | -13.44% | -0.04% | -9.71% | -21.93% |
| Income Tax | 0 | 0 | 0 | -4.17K | -15.45K | -5.76K | -5.77K |
| Effective Tax Rate % | 0% | 0% | 0% | 1.7% | 1312.91% | 2.6% | 2.65% |
| Net Income | -67.6M | -45.22M | -4.48M | -241.5K | 14.28K | -216.1K | -211.93K |
| Net Margin % | -332.69% | -350.18% | -228.24% | -13.21% | 0.47% | -9.45% | -21.35% |
| Net Income Growth % | -653.53% | -908.94% | -1755.77% | -1791.68% | 106.61% | -1.97% | - |
| Net Income (Continuing) | -67.6M | -45.22M | -4.48M | -241.5K | 14.28K | -216.1K | -211.93K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.98 | -1.32 | -0.24 | -0.01 | 0.00 | -0.01 | -0.01 |
| EPS Growth % | -371.14% | -450% | -1578.32% | - | 107.81% | -1.59% | - |
| EPS (Basic) | - | -1.32 | -0.24 | -0.01 | 0.00 | -0.01 | -0.01 |
| Diluted Shares Outstanding | 34.18M | 34.18M | 18.43M | 16.84M | 16.84M | 16.84M | 16.84M |
| Basic Shares Outstanding | 34.18M | 34.18M | 18.43M | 16.84M | 16.85M | 16.85M | 16.85M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Unsustainable negative gross margins
According to the latest quarterly filings, ZenaTech achieved a significant revenue increase to $8.5M in 2026Q1, representing a substantial acceleration from prior periods, though the sustainability of this growth remains questionable given the lack of consistent, recurring software-based revenue streams within the reported financial data.
The sharp revenue uptick suggests the company may be successfully deploying hardware units or fulfilling large-scale project contracts. However, investors should monitor whether this growth is driven by repeatable software licensing or one-time hardware sales, as the latter provides little long-term visibility.
As reported in financial statements, ZenaTech's gross margin profile has deteriorated significantly, reaching a negative 57.2% in 2025Q4 before recovering to 83.6% in 2026Q1, highlighting extreme volatility that suggests the company is struggling to achieve consistent unit-level profitability across its diverse hardware and software offerings.
The erratic nature of these margins implies that the cost of goods sold is highly sensitive to project-specific implementation expenses. Without a stable, positive gross margin, the company remains fundamentally reliant on external capital to subsidize its core operational activities.
Based on ZenaTech's reported figures, SG&A expenses have ballooned to $29.1M in 2026Q1, far exceeding the $8.5M in revenue, which indicates that the company is currently failing to demonstrate the operating leverage necessary to scale its business model toward a path of eventual profitability.
The disproportionate growth in overhead relative to top-line expansion suggests that the company is aggressively investing in market capture at the expense of efficiency. This trend warrants further investigation into whether these expenditures are yielding tangible improvements in customer acquisition or long-term market share.
As indicated by the income statement, ZenaTech reported a net loss of $27.0M in 2026Q1, a figure that underscores the company's persistent inability to generate bottom-line earnings while relying on equity-based compensation and other non-operating adjustments to manage its capital structure during this high-growth phase.
The deep net losses appear to be a structural feature of the current business model rather than a temporary anomaly. Investors should be cautious of the quality of these earnings, as the reliance on external funding to cover such significant deficits creates a high risk of future shareholder dilution.
While management positions the firm as a software-infrastructure provider, the financial data suggests that ZenaTech's current operational reality is that of a capital-intensive hardware manufacturer, which may lead to significant valuation compression if the market re-rates the company away from high-multiple software peers.
The negative gross margins observed in recent periods are inconsistent with a mature SaaS business model and suggest that the company's competitive moat is currently expensive to maintain. This discrepancy between the company's narrative and its financial performance represents a primary risk for long-term investors.
Quick answers to the most common questions about buying ZENA stock.
For fiscal year 2025, ZenaTech, Inc. (ZENA) reported total revenue of $12.9M. This represents a 1200.7% increase compared to $1.0M in 2020.
ZenaTech, Inc. (ZENA) reported a net loss of $45.2M for the fiscal year ending 2025.
ZenaTech, Inc. (ZENA) reported an operating income of $-25.3M, resulting in an operating profit margin of -196.1%. This margin reflects the operational efficiency of the business before interest and taxes.
ZenaTech, Inc. (ZENA) generated $-4.8M in gross profit for the year, representing a gross profit margin of -37.0%. This demonstrates the company's core pricing power and production efficiency.