ZenaTech Targets Adjusted EBITDA Breakeven in 2027 Following 425% First-Half Revenue Growth

ZenaTech posts rapid revenue growth but remains deeply unprofitable, targeting breakeven in 2027.

What the company is saying

ZenaTech, Inc. (NASDAQ:ZENA, FSE:49Q) is highlighting a strong acceleration in revenue, reporting C$17.7 million (US$12.6 million) for the first half of 2026, which surpasses its entire 2025 revenue by 37%. Management, led by CEO Shaun Passley, Ph.D., frames this growth as evidence of a business entering a pivotal phase, with preliminary third-quarter revenue estimates of C$13.4 million to C$14.8 million (US$9.5 million to US$10.5 million) and sequential growth of 44% to 59% over the second quarter. The company is positioning its Drone as a Service (DaaS) segment as the main driver, accounting for 93% of first-half revenue, and is emphasizing operational efficiencies and acquisition integration as key levers for a targeted adjusted EBITDA breakeven in 2027. ZenaTech is explicit that this breakeven target is an internal management goal, not a guarantee, and that it will prioritize strategic investments—even at the cost of delaying profitability—if they promise greater long-term value. The tone is confident about growth but measured regarding profitability, with repeated references to flexibility in capital allocation and the risks of continued investment.

What the data suggests

The disclosed numbers show ZenaTech is growing rapidly but remains far from profitability. First-half 2026 revenue reached C$17.7 million (US$12.6 million), up 425% year-over-year, and already 37% higher than all of 2025. Second-quarter revenue was C$9.33 million (US$6.6 million), with DaaS contributing C$8.63 million (US$6.1 million). Preliminary third-quarter revenue is estimated at C$13.4 million to C$14.8 million (US$9.5 million to US$10.5 million), implying strong sequential growth. Net loss for the first half was C$49.09 million (US$34.8 million), and operating expenses were C$61.21 million (US$43.4 million), indicating that scale has not yet translated into operating leverage. At June 30, 2026, ZenaTech held C$34.6 million (US$24.5 million) in cash and marketable securities, with total assets of C$149.3 million (US$105.9 million) and shareholders’ equity of C$91.4 million (US$64.8 million). DaaS revenue growth averaged 27.1% across 20 acquired locations in 2025. The company’s financial disclosures are granular and transparent, but there is no evidence yet of narrowing losses or positive adjusted EBITDA. The company’s willingness to invest further, even at the expense of near-term profitability, signals ongoing high cash burn.

Analysis

The announcement provides detailed realised financial data, including strong revenue growth (first-half 2026 revenue up 37% over 2025, Q2 2026 revenue up 316% YoY), but also discloses substantial ongoing losses (C$49.09 million net loss for H1 2026) and high operating expenses. The most prominent forward-looking claim is management's target of breakeven on an adjusted EBITDA basis in 2027, which is explicitly described as a planning goal, not a guarantee. The company signals ongoing and potentially increased capital outlays for acquisitions and technology investments, even if these defer breakeven. While the tone is measured and the risks are acknowledged, the narrative leans on future profitability and operational leverage that are not yet evident in the numbers. The gap between the upbeat growth story and the persistent, large losses—combined with the long-dated breakeven target and willingness to delay profitability for growth—creates moderate narrative inflation.

Risk flags

• ●Persistent high net losses and operating expenses raise the risk that ZenaTech will require additional capital before reaching breakeven, especially if revenue growth slows or cost efficiencies do not materialize.
• ●The company’s strategy of maintaining flexibility to pursue acquisitions and new technology investments, even at the cost of delaying profitability, increases execution risk and could extend the period of unprofitability.
• ●The 2027 breakeven target is explicitly described as an internal goal, not a forecast or guarantee, and is subject to multiple operational variables including M&A integration, supply chain, and market acceptance of new technologies.
• ●Heavy reliance on DaaS (93% of first-half revenue) concentrates risk in a single segment, making the company vulnerable to shifts in demand, regulatory changes, or technological disruption in that market.
• ●Preliminary third-quarter revenue figures are unaudited and subject to revision, introducing uncertainty about the actual growth trajectory and the reliability of near-term financial guidance.

Bottom line

ZenaTech is delivering strong top-line growth, with first-half 2026 revenue already 37% above its 2025 total, but remains deeply loss-making with a C$49.09 million (US$34.8 million) net loss for the first half and high operating expenses. The company’s narrative is credible on revenue momentum but aspirational on profitability, as the 2027 breakeven target is a management goal rather than a firm forecast and could be deferred by further investment. Cash reserves of C$34.6 million (US$24.5 million) provide some runway, but ongoing losses and a willingness to delay breakeven for growth mean future dilution or debt is likely if profitability does not materialize. Investors should focus on whether ZenaTech can convert revenue growth into operating leverage and positive cash flow, and watch for evidence of cost discipline or narrowing losses in subsequent quarters. The most important takeaway is that while growth is real, profitability is distant and contingent on disciplined execution.

Announcement summary

(NASDAQ:ZENA) (FSE:49Q) ZenaTech, Inc. announced that management is targeting 2027 as a potential breakeven year based on adjusted EBITDA, supported by revenue growth, expansion of its Drone as a Service (DaaS) operations, and anticipated operating efficiencies. In the first half of 2026, ZenaTech reported revenue of C$17.7 million (approximately US$12.6 million), which exceeded the company’s total revenue for all of 2025 by approximately 37%. For the third quarter of 2026, preliminary revenue estimates are C$13.4 million to C$14.8 million (approximately US$9.5 million to US$10.5 million), representing an estimated 44% to 59% sequential revenue growth over the second quarter. Second-quarter 2026 revenue was C$9.33 million (US$6.6 million), and DaaS revenue for the quarter was C$8.63 million (US$6.1 million). For the first half of 2026, DaaS revenue totaled C$16.44 million (US$11.7 million), accounting for 93% of total first-half revenue. Net loss for the second quarter was C$22.54 million (US$16.0 million), and for the first half was C$49.09 million (US$34.8 million). Operating expenses were C$31.24 million (US$22.1 million) for the second quarter and C$61.21 million (US$43.4 million) for the first half of 2026. At June 30, 2026, ZenaTech reported C$34.6 million (US$24.5 million) in cash and marketable securities, C$149.3 million (US$105.9 million) in total assets, and C$91.4 million (US$64.8 million) in shareholders’ equity. The company previously reported average organic revenue growth of 27.1% across approximately 20 DaaS locations acquired in 2025, excluding 2026 acquisitions. Estimated revenue for the first nine months of 2026 is approximately C$31.1 million to C$32.5 million (US$22.1 million to US$23.0 million). ZenaTech intends to maintain flexibility to invest in acquisitions, defense technologies, international operations, and emerging commercial opportunities, even if such investments defer breakeven. Management expects to focus on increasing revenue from existing operations, improving operating efficiencies, integrating acquisitions, and expanding technology-enabled services. The company’s ability to achieve adjusted EBITDA breakeven in 2027 is subject to assumptions and operational variables, including top-line execution, M&A integration, supply chain conditions, expenditure controls, and market acceptance of new technologies. Adjusted EBITDA is defined as net income or loss before interest expense, income taxes, depreciation, and amortization, further excluding non-cash stock-based compensation, acquisition-related transaction and integration expenses, fair-value adjustments, restructuring costs, and other non-recurring or unusual items. ZenaTech’s subsidiaries include ZenaDrone, which manufactures AI-powered autonomous drone solutions for government, defense, and industrial applications, with products such as ZenaDrone 1000, IQ Nano, IQ Square, IQ Quad, IQ Aqua, and IQ Octo. ZenaDrone operates manufacturing and assembly facilities in Arizona, Dubai, and Taiwan. The company’s operating footprint spans North America, Australia, and Taiwan.

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