10-K · February 27, 2026
ZeroStack (formerly Flora Growth) has pivoted from legacy cannabis operations to an AI-focused digital-asset treasury strategy, raising ~$13.5M in a Cash Private Placement and acquiring crypto holdings (71,766,135…
Earnings analysis · 10-Q
ZSTK earnings analysis
Filed May 2, 2026 · Our reading of the company's report
The latest report
ZeroStack Corp. reported a quarterly revenue of $7.3 million for Q1 2026, marking a 5.9% increase from $6.9 million in Q1 2025. Despite this revenue growth, the company faced significant operational losses, primarily…
Read full summary
ZeroStack Corp. reported a quarterly revenue of $7.3 million for Q1 2026, marking a 5.9% increase from $6.9 million in Q1 2025. Despite this revenue growth, the company faced significant operational losses, primarily due to a $60.7 million impairment in digital assets, resulting in a net loss of $36.7 million, compared to a smaller net loss of $0.8 million in the same period last year. Management noted increased operating expenses driven by digital asset impairments and a strategic pivot towards digital asset treasury strategy.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Gross margin
- 43%
What stood out
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Revenue Growth
Revenue increased to $7.3 million in Q1 2026, up from $6.9 million in Q1 2025, a 5.9% increase.
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Improved Gross Profit
Gross profit rose to $3.1 million with a gross margin of 43%, compared to a gross margin of 8% in Q1 2025.
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Staking Revenue Introduced
Introduced staking revenue of $2.8 million, as the company began staking its 0G Tokens.
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Non-Operating Income Surge
Non-operating income soared to $26.0 million, up from $1.4 million in the previous year, mainly due to gains from the fair value adjustments of digital asset instruments.
What to watch
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High Operating Losses
The company faced an operating loss of $65.8 million in Q1 2026 compared to $2.2 million in Q1 2025, exacerbated by digital asset impairments.
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Significant Loss in Digital Assets
Recording a $60.7 million loss from changes in fair value of digital assets greatly impacted profitability this quarter.
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Liquidity Concerns
Cash balance decreased to $2.3 million from $5.6 million at the end of 2025, raising concerns about liquidity amidst ongoing operational losses.
Management's outlook
Outlook deferred to earnings press release / call.
Earlier filings 4
10-Q · November 5, 2025
Flora Growth (to be rebranded ZeroStack) reported Q3 2025 revenue of $9,748 (thousands) up from $7,238 in Q3 2024, but gross profit and operating results weakened. The company materially reshaped its balance sheet via…
10-Q · August 1, 2025
Flora Growth reported Q2 (three months ended June 30, 2025) revenue of $14.796M (down from $15.683M a year earlier) and gross profit of $2.830M (gross margin ~19.1%). Loss per share narrowed to $(0.11) in Q2 2025 versus…
10-Q · May 13, 2025
Flora Growth reported Q1 2025 revenue of $11,786 (thousands), down from $18,031 in Q1 2024, but showed operational improvement with operating loss narrowing to $(977) from $(2,485) and basic loss per share improving to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.