ZSTK earnings analysis
What we found in ZSTK's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth
- Revenue increased to $7.3 million in Q1 2026, up from $6.9 million in Q1 2025, a 5.9% increase.
- 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.
- Staking Revenue Introduced
- Introduced staking revenue of $2.8 million, as the company began staking its 0G Tokens.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- Significant Loss in Digital Assets
- Recording a $60.7 million loss from changes in fair value of digital assets greatly impacted profitability this quarter.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 43%
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads worse than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing ZSTK makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever