Drone Revenue Surge and Global Expansion Might Change the Case For Investing In ZenaTech (ZENA)

• ZenaTech, Inc. reported third-quarter earnings showing total revenue of C$4.35 million, up sharply from C$327,878 a year earlier, with its Drone as a Service segment now contributing a substantial majority of revenue.

• The company’s accelerated acquisition strategy and recent expansion into new manufacturing and research facilities in the UAE and the U.S. highlight ambitious global scaling and adoption of drone-powered surveying and mapping solutions.

• We’ll explore how the rapid expansion of Drone as a Service operations is influencing ZenaTech’s evolving investment narrative.

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For investors looking at ZenaTech today, the big picture centers on whether you see the company’s rapid scale-up in Drone as a Service (DaaS) and ambitious international expansion as enduring drivers of future growth, or sources of real execution risk. The remarkable surge in Q3 revenue, powered by the DaaS segment, certainly strengthens the case that ZenaTech’s strategy to consolidate the fragmented drone surveying sector is gaining traction. However, this growth brings sizable losses, with net loss more than tripling year-over-year, and the company having less than a year of cash runway left. The latest news, including four US acquisitions and new UAE and US manufacturing facilities, suggests short-term catalysts like new customer wins and commercial contracts could gain momentum. On the flip side, these moves may amplify risks around cash burn, integration, and the need for further funding, especially with the share price under pressure. How ZenaTech manages its balance sheet after this burst of activity is likely to weigh heavily on near-term investor confidence.

But, rising losses and a short cash runway could quickly move to center stage for investors. The analysis detailed in our ZenaTech valuation report hints at an inflated share price compared to its estimated value.

With four fair value estimates from the Simply Wall St Community ranging between C$1.44 and C$8.99, retail investors can see wildly different outcomes for ZenaTech’s stock. Against this, the company’s high growth ambitions and intensifying cash needs signal that the story is far from settled. Consider these differing views as you assess the risks and rewards.

Explore 4 other fair value estimates on ZenaTech – why the stock might be worth over 2x more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ZENA.

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