Revenue growth from DaaS is impressive, but the widening net loss driven by non-cash finance charges and high operating costs warrants caution. Monitor the company's ability to reduce reliance on convertible debt and achieve positive operating cash flow. The next catalyst is the integration of acquisitions and progress toward Green/Blue UAS certification.
Price Chart
Executive Summary
ZenaTech's FY2025 20-F shows revenue surged 558% to CAD $12.9M, driven by its new Drone-as-a-Service segment, which contributed CAD $10.1M from ~20 land surveying acquisitions closed during the year. However, the net loss widened to CAD $45.2M (from CAD $4.5M) due to CAD $19.9M in finance expenses (mostly non-cash derivative charges on convertible debt) and CAD $13.4M in wages from the expanded workforce. The company ended the year with CAD $6.0M cash and a working capital surplus of CAD $18.3M, but disclosed a material weakness in internal controls and significant related-party concentration.
Key Facts
- Total revenue increased 558% to CAD $12,912,722 from CAD $1,963,605
- DaaS segment contributed CAD $10,105,734 (78% of total revenue)
- Net loss widened to CAD $45,218,074 from CAD $4,481,751
- Finance expenses of CAD $19,877,279, ~94% non-cash (derivative expense)
- Cash and equivalents: CAD $5,980,366; working capital surplus: CAD $18,254,428
- Total assets grew 188% to CAD $99,763,441
- Completed ~20 land surveying acquisitions during 2025
- Material weakness identified in internal control over financial reporting
- CEO controls >50% of voting power; significant related-party transactions with Epazz, Inc.
- Convertible debt could result in conversion into up to 5,539,500 common shares
Financial Impact
Revenue up ~CAD $10.9M, net loss up ~CAD $40.7M, finance expense up ~CAD $18.4M
Risk Factors
- Integration risk from ~20 recent acquisitions; drone conversion may not materialize as expected
- High non-cash finance charges mask underlying cash burn; operating cash flow was negative CAD $35.5M
- Significant related-party transactions and CEO control create governance concerns
- Material weakness in internal controls could lead to restatements or regulatory issues
- Dilution risk from convertible debt (up to 5.5M shares) and potential future equity offerings
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 10 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 20-F Filing (Primary) | 0001376474-26-000319 |
| Document: zt_ex11z2.htm | 0001376474-26-000319 |
| Document: zt_ex8z1.htm | 0001376474-26-000319 |
| Document: zt_ex12z1.htm | 0001376474-26-000319 |
| Document: zt_ex12z2.htm | 0001376474-26-000319 |
| Document: zt_ex13z2.htm | 0001376474-26-000319 |
| Document: zt_ex13z1.htm | 0001376474-26-000319 |
| Document: 0001376474-26-000319-index-headers.html | 0001376474-26-000319 |
| Document: 0001376474-26-000319-index.html | 0001376474-26-000319 |
| Document: 0001376474-26-000319.txt | 0001376474-26-000319 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 14, 2026 12d ago | 6-K | $1.12 | awaiting T+20 | — | $0.9000 (−19.64%) |
Oct 8, 2026 18d ago | 424B5 | $1.11 | awaiting T+20 | — | $0.9000 (+18.92%) |
Oct 8, 2026 18d ago | 6-K | $1.32 | awaiting T+20 | — | $0.9000 (−31.82%) |
Oct 6, 2026 20d ago | 6-K | $1.35 | awaiting T+20 | — | $0.9000 (−33.33%) |
Oct 2, 2026 24d ago | 6-K | $1.28 | awaiting T+20 | — | $0.9000 (−29.69%) |
Sep 29, 2026 27d ago | Press Release | $1.47 | awaiting T+20 | — | $0.9000 (+38.78%) |
Sep 15, 2026 5w ago | Press Release | $1.41 $1.07 | ▼ −24.11% | ▼ −27.09% | $0.9000 (−36.17%) |
Jul 20, 2026 14w ago | 6-K | $1.51 $2.04 | ▲ +35.10% | ▲ +32.54% | $0.9000 (−40.40%) |
Jul 16, 2026 14w ago | Press Release | $1.53 $2.13 | ▲ +39.22% | ▲ +35.60% | $0.9000 (−41.18%) |
Jun 30, 2026 16w ago | Press Release | $1.50 $1.37 | ▼ −8.67% | ▼ −7.64% | $0.9000 (−40.00%) |
US Market Status
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