ZeroStack Corp. Common Stock (ZSTK)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses bought below intrinsic value, and ZeroStack does not fit that mold. It distributes pharmaceuticals in Germany through Phatebo GmbH, but it also describes a decentralized AI treasury operation—two very different activities for a company with 21 employees. The filed numbers are ugly: in FY2025, revenue was $35.7M and net loss was $119.7M. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $7.3M and net loss was $36.7M. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $13.7M and net loss was $24.6M. Annual revenue has fallen from $76.1M in FY2023 to $35.7M in FY2025. FairStock's Lynch category is none because the company has lost money in each of the last four years. At the 2026-10-13 close of $4.37, FairStock shows P/B 0.77, P/E -0.10, ROE -1959.59%, ROCE -33.36%, Piotroski 4/9, Altman Z -17.70, FCF yield -31.3%, and a 35/100 FairStock Score. A price below book can signal value, but only if book value is real and not being consumed by losses. Here, FY2025's net loss alone dwarfs the $18.0M market cap. There is no visible moat: distribution is competitive, the digital assets angle adds volatility, and Beta is 2.05. The stock may look cheap on assets, but on earning power it is not. Until losses stop and cash flow turns positive, I regard it as a speculative situation, not a Graham-style bargain.

In plain English: ZeroStack sells medicines and medical products in Germany and also talks about digital assets and AI treasury work. The business is losing a lot of money: it lost $119.7 million in fiscal 2025 and $24.6 million in the quarter ended June 30, 2026. At $4.37, the stock trades below its reported accounting value, but with heavy losses and negative cash flow, it does not look like a safe bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer