📊 ZSTK Key Takeaways
Is ZeroStack Corp. (ZSTK) a Good Investment?
ZeroStack exhibits catastrophic unit economics with 4.6% gross margins and -433.5% operating margins despite 14,781% revenue growth, indicating poor growth quality and structural unprofitability. The company is burning $8.7M annually in operating cash flow while holding only $5.6M in cash against $53.5M in long-term debt, creating an imminent liquidity crisis with approximately 7-8 months of runway.
Why Buy ZeroStack Corp. Stock? ZSTK Key Strengths
- Dramatic absolute revenue growth of 14,781% YoY indicates significant market demand or strategic contracts
- Stockholders' equity of $70.6M provides a partial balance sheet buffer
- Debt-to-equity ratio of 0.76x is moderate relative to distressed peer comparison
ZSTK Stock Risks: ZeroStack Corp. Investment Risks
- Operating cash flow of -$8.7M annually with only $5.6M cash reserves indicates severe liquidity crisis and unsustainable burn rate
- Operating margin of -433.5% and gross margin of only 4.6% demonstrate fundamental business model failure at scale
- Current ratio of 1.01x and quick ratio of 0.79x signal inability to meet near-term obligations; combined with negative FCF, bankruptcy risk is elevated
- Net loss of $119.7M exceeds annual revenue, indicating significant one-time charges or persistent operational hemorrhaging
- High leverage ($53.5M debt) on negative cash generation creates refinancing risk
Key Metrics to Watch
- Quarterly operating cash flow trend and cash runway to profitability
- Gross margin progression and cost structure improvement initiatives
- Working capital management and accounts receivable/inventory days
- Debt refinancing maturity schedule and covenant compliance status
ZeroStack Corp. (ZSTK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
ZeroStack Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ZSTK Profit Margin, ROE & Profitability Analysis
ZSTK vs Market Sector: How ZeroStack Corp. Compares
How ZeroStack Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is ZeroStack Corp. Stock Overvalued? ZSTK Valuation Analysis 2026
Based on fundamental analysis, ZeroStack Corp. shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
ZeroStack Corp. Balance Sheet: ZSTK Debt, Cash & Liquidity
ZSTK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: ZeroStack Corp.'s revenue has remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $-50.02 indicates the company is currently unprofitable.
ZSTK Revenue Growth, EPS Growth & YoY Performance
ZSTK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $7.2M | -$3.8M | $-9.05 |
| Q2 2025 | $14.8M | -$2.4M | $-0.11 |
| Q1 2025 | $11.8M | N/A | $-0.04 |
| Q3 2024 | $12.5M | $1.2M | $0.16 |
| Q2 2024 | $15.7M | -$2.6M | $-0.21 |
| Q1 2024 | $18.0M | -$3.4M | $-0.38 |
| Q3 2023 | $9.7M | $1.2M | $0.16 |
| Q2 2023 | $8.9M | -$3.9M | $-6.42 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ZeroStack Corp. Dividends, Buybacks & Capital Allocation
ZSTK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for ZeroStack Corp. (CIK: 0001790169)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ZSTK
What is the AI rating for ZSTK?
ZeroStack Corp. (ZSTK) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ZSTK's key strengths?
Claude: Dramatic absolute revenue growth of 14,781% YoY indicates significant market demand or strategic contracts. Stockholders' equity of $70.6M provides a partial balance sheet buffer.
What are the risks of investing in ZSTK?
Claude: Operating cash flow of -$8.7M annually with only $5.6M cash reserves indicates severe liquidity crisis and unsustainable burn rate. Operating margin of -433.5% and gross margin of only 4.6% demonstrate fundamental business model failure at scale.
What is ZSTK's revenue and growth?
ZeroStack Corp. reported revenue of $35.7M.
Does ZSTK pay dividends?
ZeroStack Corp. does not currently pay dividends.
Where can I find ZSTK SEC filings?
Official SEC filings for ZeroStack Corp. (CIK: 0001790169) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ZSTK's EPS?
ZeroStack Corp. has a diluted EPS of $-43.49.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ZSTK a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, ZeroStack Corp. has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ZSTK stock overvalued or undervalued?
Valuation metrics for ZSTK: ROE of -169.7% (sector avg: 15%), net margin of -335.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ZSTK stock in 2026?
Our dual AI analysis gives ZeroStack Corp. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ZSTK's free cash flow?
ZeroStack Corp.'s operating cash flow is $-8.7M, with capital expenditures of $127.0K. FCF margin is -24.7%.
How does ZSTK compare to other Market stocks?
Vs Default sector averages: Net margin -335.6% (avg: 12%), ROE -169.7% (avg: 15%), current ratio 1.01 (avg: 1.8).