ZenaTech Targets Break-Even in 2027 After First-Half Revenue Jumps 425%
Key Facts
ZenaTech said management is targeting 2027 as a potential year for break-even on an adjusted earnings before interest, taxes, depreciation and amortization basis, citing revenue growth, the expansion of its drone-as-a-service operations and expected operating efficiencies. The announcement came on October 26, following a 425% year-over-year increase in revenue in the first half of 2026. The company said revenue for the six months ended June 30 was C$17.7 million, compared with C$3.4 million in the same period of 2025. That places the profitability target against a backdrop of rapid sales growth, but it remains a forward-looking management target. Reaching the current revenue level does not mean the company has already achieved break-even.
Most of the growth came from the drone-as-a-service business, which contributed about C$16.4 million in revenue in the first half, according to the company's financial statements. ZenaTech attributed the performance to contributions from operations it acquired in 2025 and the completion of four acquisitions during the second quarter of 2026. It also said surveying volumes rose at its existing operations. These factors reflect a broader operating base through acquisitions alongside increased work at existing sites. In its 2025 results, the company said annual revenue was C$12.9 million, up 558% from about C$2.0 million in 2024, and that drone-as-a-service contributed C$10.1 million.
Revenue accelerated in the second quarter, reaching C$9.3 million, compared with C$2.2 million in the second quarter of 2025, a year-over-year increase of 316%. But the company posted a net loss of C$22.5 million in the quarter. It attributed the loss to investment in building a global base for its drone platforms and expanding drone-as-a-service offerings. Sales growth therefore coincided with continued spending to build the business, while the break-even target announced by management rests on expected operating improvement. Total assets rose 50% to C$149.2 million on June 30, 2026, compared with C$99.8 million on December 31, 2025.
On liquidity, cash stood at C$12.2 million on June 30, 2026, while cash and marketable securities combined totaled C$34.6 million. The company said average organic growth in its drone-as-a-service operations was 27.1% during 2026 across about 20 sites added in 2025. The measure excluded the effect of 2026 acquisitions, while growth exceeded 40% at some sites. The company compared its rate with IBISWorld's estimate of 1.3% annualized growth in the U.S. surveying and mapping industry between 2021 and 2026, saying its growth was more than 20 times higher. The measure covers the performance of the sites included and does not include the effect of expansion through acquisitions.
In a letter to shareholders published on October 1, the chief executive said the company had achieved seven consecutive quarters of sequential revenue growth since the fourth quarter of 2024. He wrote: "We have now achieved seven consecutive quarters of sequential revenue growth since the fourth quarter of 2024." In a more recent forecast, the company provisionally estimated third-quarter 2026 revenue at between C$13.4 million and C$14.8 million. It said the range was unaudited and could change. The company's shares closed at $1.02 on October 23, after $0.9776 in the previous session, according to EL7 data.