ZeroStack (ZSTK)
Market Price (3/30/2026): $5.93 | Market Cap: $6.2 MilSector: Financials | Industry: Asset Management & Custody Banks
ZeroStack (ZSTK)
Market Price (3/30/2026): $5.93Market Cap: $6.2 MilSector: FinancialsIndustry: Asset Management & Custody Banks
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
| Megatrend and thematic driversMegatrends include Cloud Computing, and Artificial Intelligence. Themes include Hybrid Cloud Solutions, AI Software Platforms, Show more. | Weak multi-year price returns2Y Excs Rtn is -67%, 3Y Excs Rtn is -107% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -12 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -27% |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -6.0% | ||
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -19%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -19% | ||
| High stock price volatilityVol 12M is 154% | ||
| Key risksZSTK key risks include [1] heavy concentration and execution risk in its new business model, Show more. |
| Megatrend and thematic driversMegatrends include Cloud Computing, and Artificial Intelligence. Themes include Hybrid Cloud Solutions, AI Software Platforms, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -67%, 3Y Excs Rtn is -107% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -12 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -27% |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -6.0% |
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -19%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -19% |
| High stock price volatilityVol 12M is 154% |
| Key risksZSTK key risks include [1] heavy concentration and execution risk in its new business model, Show more. |
Qualitative Assessment
AI Analysis | Feedback
ZeroStack (ZSTK) stock has lost about 45% since it went public on 1/30/2026 because of the following key factors:
1. Significant Q4 2025 Earnings Miss and Negative Profitability: ZeroStack reported a substantial earnings per share (EPS) miss for Q4 2025, with a reported EPS of -$27.08 against an estimated -$0.40, representing a -6,707.44% surprise. This contributed to a net loss of -$119.7 million for the trailing twelve months, and a deeply negative net profit margin of -335.6%. These poor financial results immediately following its rebranding likely undermined investor confidence.
2. High Debt and Weak Financial Position: As of Q4 2025, ZeroStack held $50.8 million in long-term debt, significantly outweighing its $5.6 million in cash and equivalents. This high debt level, combined with ongoing losses that have increased over the past five years, indicates a precarious financial position for the company as it embarked on its new public identity.
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1. Significant Q4 2025 Earnings Miss and Negative Profitability: ZeroStack reported a substantial earnings per share (EPS) miss for Q4 2025, with a reported EPS of -$27.08 against an estimated -$0.40, representing a -6,707.44% surprise. This contributed to a net loss of -$119.7 million for the trailing twelve months, and a deeply negative net profit margin of -335.6%. These poor financial results immediately following its rebranding likely undermined investor confidence.
2. High Debt and Weak Financial Position: As of Q4 2025, ZeroStack held $50.8 million in long-term debt, significantly outweighing its $5.6 million in cash and equivalents. This high debt level, combined with ongoing losses that have increased over the past five years, indicates a precarious financial position for the company as it embarked on its new public identity.
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Stock Movement Drivers
Fundamental Drivers
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Market Drivers
11/30/2025 to 3/29/2026| Return | Correlation | |
|---|---|---|
| ZSTK | ||
| Market (SPY) | -5.3% | 10.3% |
| Sector (XLF) | -10.0% | 2.2% |
Fundamental Drivers
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Market Drivers
8/31/2025 to 3/29/2026| Return | Correlation | |
|---|---|---|
| ZSTK | ||
| Market (SPY) | 0.6% | 10.3% |
| Sector (XLF) | -10.8% | 2.2% |
Fundamental Drivers
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Market Drivers
2/28/2025 to 3/29/2026| Return | Correlation | |
|---|---|---|
| ZSTK | ||
| Market (SPY) | 9.8% | 10.3% |
| Sector (XLF) | -7.1% | 2.2% |
Fundamental Drivers
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Market Drivers
2/28/2023 to 3/29/2026| Return | Correlation | |
|---|---|---|
| ZSTK | ||
| Market (SPY) | 69.4% | 10.3% |
| Sector (XLF) | 40.5% | 2.2% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| ZSTK Return | - | - | - | - | - | -43% | -43% |
| Peers Return | 45% | -16% | 58% | 47% | 30% | -1% | 263% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -5% | 72% |
Monthly Win Rates [3] | |||||||
| ZSTK Win Rate | - | - | - | - | - | 0% | |
| Peers Win Rate | 72% | 40% | 70% | 70% | 55% | 47% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 33% | |
Max Drawdowns [4] | |||||||
| ZSTK Max Drawdown | - | - | - | - | - | -43% | |
| Peers Max Drawdown | -4% | -31% | -6% | -4% | -20% | -15% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -5% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: MSFT, IBM, AVGO, DELL, CSCO.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 3/27/2026 (YTD)
How Low Can It Go
ZSTK has limited trading history. Below is the Financials sector ETF (XLF) in its place.
| Event | XLF | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -26.9% | -25.4% |
| % Gain to Breakeven | 36.7% | 34.1% |
| Time to Breakeven | 525 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -43.3% | -33.9% |
| % Gain to Breakeven | 76.5% | 51.3% |
| Time to Breakeven | 295 days | 148 days |
| 2018 Correction | ||
| % Loss | -26.1% | -19.8% |
| % Gain to Breakeven | 35.2% | 24.7% |
| Time to Breakeven | 338 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -83.7% | -56.8% |
| % Gain to Breakeven | 515.2% | 131.3% |
| Time to Breakeven | 4,470 days | 1,480 days |
Compare to MSFT, IBM, AVGO, DELL, CSCO
In The Past
SPDR Select Sector Fund's stock fell -26.9% during the 2022 Inflation Shock from a high on 1/12/2022. A -26.9% loss requires a 36.7% gain to breakeven.
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About ZeroStack (ZSTK)
Flora Growth Corp., a cannabis company, cultivates, processes, and supplies cannabis products to pharmacies, medical clinics, and cosmetic companies worldwide. It cultivates, processes, and supplies medicinal-grade cannabis oil, and cannabis oil extracts and related products; manufactures and sells skincare and beauty products, such as gel cleanser, eye cream, moisturizer, and hydrating mask; manufactures dermo cosmetic products; and develops and sells pharmaceutical and over-the-counter products, including dietary supplements, phytotherapeutic and nutraceutical products, supplements, and related products. It also manufactures and sells hemp textiles products focuses on servicing the hospitality, medical, and clothing industries on a B2B basis; designs, produces, and supplies juices, chocolate, and chocolate related products to wholesale distributors, pharmacies, supermarkets, and online distributors; and offers and wellness products. The company's brand includes Mambe, Mind Naturals, Almost Virgin, Flora Lab, and Stardog Loungewear. The company was incorporated in 2019 and is headquartered in Toronto, Canada.
AI Analysis | Feedback
For ZeroStack (ZSTK):
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A 'Johnson & Johnson for cannabis,' cultivating, processing, and supplying a wide array of cannabis-derived products including medical oils, beauty items, supplements, food, and even hemp textiles.
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Like a 'Canopy Growth or Tilray Brands, but significantly more diversified' across consumer goods, encompassing cannabis-infused beauty, food, and hemp clothing, beyond traditional cannabis sales.
AI Analysis | Feedback
- Medicinal Cannabis Products: The company cultivates, processes, and supplies medicinal-grade cannabis oil and extracts.
- Skincare and Beauty Products: It manufactures and sells various skincare and beauty items, including cleansers, eye creams, moisturizers, and hydrating masks.
- Dermo Cosmetic Products: The company produces specialized dermo cosmetic products.
- Pharmaceutical and OTC Products: It develops and sells dietary supplements, phytotherapeutic, nutraceutical, and other over-the-counter products.
- Hemp Textiles: The company manufactures and sells hemp textiles, primarily for B2B clients in hospitality, medical, and clothing sectors.
- Food and Beverage Products: It designs, produces, and supplies juices, chocolate, and chocolate-related products.
- Wellness Products: The company also offers a range of general wellness products.
AI Analysis | Feedback
The company, identified as ZeroStack (ZSTK) based on the provided description of Flora Growth Corp., primarily sells to other companies (B2B).
Its major customer categories include:
- Pharmacies, Medical Clinics, and Cosmetic Companies: For cannabis products, cannabis oil extracts, dermo cosmetic products, and pharmaceutical/over-the-counter products.
- Wholesale Distributors, Supermarkets, and Online Retailers: For juices, chocolate, and related products, and potentially other consumer goods.
- Companies in the Hospitality, Medical, and Clothing Industries: For hemp textiles products on a B2B basis.
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Daniel Reis-Faria, CEO & Director
Daniel Reis-Faria serves as the Chief Executive Officer and a Director of ZeroStack Corp.. His total compensation is noted as above average for companies of a similar size in the U.S. market. Under his leadership, ZeroStack Corp. secured a $6.5 million order for pharmaceutical distribution through its German subsidiary, Phatebo GmbH, which has been a portfolio company for the past five years. Reis-Faria emphasized Phatebo's consistent performance and its role in enabling ZeroStack to scale pharmaceutical operations while diversifying investments into the artificial intelligence (AI) space.
Dany Vaiman, Chief Financial Officer
Dany Vaiman is the Chief Financial Officer of ZeroStack Corp.. His total compensation is reported as US$1.95 million.
Michael Heinrich, Executive Chairman
Michael Heinrich holds the position of Executive Chairman at ZeroStack Corp., with a reported compensation of US$4.00 million.
Manfred Ziegler, Managing Director
Manfred Ziegler is a Managing Director at ZeroStack Corp..
Patrick Moloney, Head of Product Development
Patrick Moloney serves as the Head of Product Development for ZeroStack Corp..
AI Analysis | Feedback
The key risks to ZeroStack (symbol: ZSTK) are primarily related to its significant financial losses, the inherent volatility and regulatory uncertainty of its digital asset investments, and the competitive and regulated nature of its pharmaceutical distribution business.- Significant Financial Losses and Negative Profitability: ZeroStack Corp. reported substantial financial losses, with a net income of -$119.7 million on revenues of $35.7 million and a net profit margin of -335.6% on a trailing twelve-month basis. This indicates severe financial challenges and raises concerns about the company's long-term financial viability.
- Volatility and Regulatory Uncertainty in Digital Assets: The company operates as a decentralized AI treasury, investing in AI infrastructure through the strategic ownership of 0G tokens. The market for digital assets is characterized by high volatility, and the regulatory environment for decentralized artificial intelligence and digital assets is still emerging and subject to rapid, unpredictable changes. This introduces significant risks to the value of its investments and overall operations.
- Competition and Regulatory Risks in Pharmaceutical Distribution: ZeroStack, through its subsidiary Phatebo GmbH, is engaged in the pharmaceutical distribution business in Germany. This sector is highly competitive, with constant pressure on pricing and profit margins, and is subject to stringent and evolving regulations within the German and broader European pharmaceutical markets.
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Addressable Markets for ZeroStack (ZSTK)
ZeroStack Corp. (ZSTK) operates in several growing markets, encompassing organic and pharmaceutical-grade cannabis products, nutraceuticals, cannabis technology, personal care and wellness, and pharmaceutical distribution.
- Organic and Pharmaceutical-Grade Medical Cannabis Products: The global organic cannabis market was valued at approximately USD 42.0 billion in 2023 and is projected to reach USD 160.4 billion by 2031, with a compound annual growth rate (CAGR) of 18.37% from 2024 to 2031. North America is identified as the most advanced segment in this market. For the broader global medical cannabis market, its size was approximately USD 25.86 billion in 2024 and is expected to grow to USD 133.73 billion by 2032, at a CAGR of 22.80% from 2025 to 2032. The global cannabis pharmaceuticals market, a subset focusing on pharmaceutical-grade products, was valued at USD 15.08 billion in 2025 and is predicted to increase to approximately USD 1,439.34 billion by 2035, expanding at a CAGR of 57.75% between 2026 and 2035. North America contributed more than 37% of the revenue share in this market in 2025.
- Nutraceuticals (including Food and Beverage aspects): The global nutraceuticals market size was estimated at USD 636.2 billion in 2025 and is projected to reach USD 1,151.5 billion by 2033, demonstrating a CAGR of 7.7% from 2026 to 2033. Asia Pacific held the largest revenue share in the global nutraceuticals market in 2025.
- Cannabis Accessories and Technology: The global cannabis technology market was valued at USD 6.75 billion in 2024 and is expected to grow from USD 8.59 billion in 2025 to USD 59.23 billion by 2033, at a CAGR of 27.3% during the forecast period of 2026–2033. North America is a key player in this market, with Europe emerging as the fastest-growing region.
- Personal Care and Wellness: The global wellness services market was valued at USD 6.8 trillion in 2024 and is projected to grow at a CAGR of over 6.5% from 2025 to 2034. Specifically, the personal care and beauty wellness services segment recorded USD 1.3 trillion in revenue in 2024 and is expected to grow at a CAGR of around 5.9% from 2025 to 2034. This market is global in scope.
- Distribution of Pharmaceutical Products to International Markets: The global pharmaceutical wholesale and distribution market is projected to expand from USD 673.281 billion in 2021 to USD 2033.98 billion by 2033, growing at a CAGR of 9.651% from 2025 to 2033. This growth is observed globally.
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| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 02282026 | NDAQ | Nasdaq | Insider | Insider Buys 45DStrong Insider BuyingCompanies with multiple insider buys in the last 45 days | 0.0% | 0.0% | 0.0% |
| 02272026 | JEF | Jefferies Financial | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 02272026 | ALAB | Astera Labs | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 0.0% | 0.0% | 0.0% |
| 02272026 | PAYO | Payoneer Global | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 0.0% | 0.0% | 0.0% |
| 02272026 | FOUR | Shift4 Payments | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 0.0% | 0.0% | 0.0% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 204.07 |
| Mkt Cap | 316.1 |
| Rev LTM | 67,909 |
| Op Inc LTM | 13,088 |
| FCF LTM | 11,848 |
| FCF 3Y Avg | 12,324 |
| CFO LTM | 13,259 |
| CFO 3Y Avg | 13,644 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 12.8% |
| Rev Chg 3Y Avg | 9.4% |
| Rev Chg Q | 19.5% |
| QoQ Delta Rev Chg LTM | 3.9% |
| Op Mgn LTM | 20.8% |
| Op Mgn 3Y Avg | 20.4% |
| QoQ Delta Op Mgn LTM | 0.5% |
| CFO/Rev LTM | 21.0% |
| CFO/Rev 3Y Avg | 22.7% |
| FCF/Rev LTM | 18.8% |
| FCF/Rev 3Y Avg | 20.6% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 316.1 |
| P/S | 5.4 |
| P/EBIT | 18.0 |
| P/E | 22.2 |
| P/CFO | 16.8 |
| Total Yield | 5.6% |
| Dividend Yield | 1.3% |
| FCF Yield 3Y Avg | 5.4% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -3.7% |
| 3M Rtn | -18.3% |
| 6M Rtn | -12.8% |
| 12M Rtn | 16.9% |
| 3Y Rtn | 86.0% |
| 1M Excs Rtn | 3.5% |
| 3M Excs Rtn | -9.8% |
| 6M Excs Rtn | -9.1% |
| 12M Excs Rtn | 3.1% |
| 3Y Excs Rtn | 31.8% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 12/31/2025 | 02/27/2026 | 10-K |
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 08/01/2025 | 10-Q |
| 03/31/2025 | 05/13/2025 | 10-Q |
| 12/31/2024 | 03/24/2025 | 10-K |
| 09/30/2024 | 11/13/2024 | 10-Q |
| 06/30/2024 | 08/12/2024 | 10-Q |
| 03/31/2024 | 05/14/2024 | 10-Q |
| 12/31/2023 | 03/28/2024 | 10-K |
| 09/30/2023 | 11/08/2023 | 10-Q |
| 06/30/2023 | 08/10/2023 | 10-Q |
| 03/31/2023 | 05/15/2023 | 10-Q |
| 12/31/2022 | 03/31/2023 | 10-K |
| 09/30/2022 | 11/28/2022 | 6-K |
| 06/30/2022 | 08/15/2022 | 6-K |
| 12/31/2021 | 05/09/2022 | 20-F |
External Quote Links
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| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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