Zenatech Targets Adjusted Break-Even in 2027 After First-Half Revenue Growth of 425%
Key Facts
Zenatech said on October 26 that management is targeting 2027 as a potential year for break-even on an adjusted earnings before interest, taxes, depreciation and amortization basis, as the company’s revenue rose 425% year over year in the first half of 2026. The company said in its statement that this planning target is based on expected revenue expansion, drone services operations and operational efficiencies. The target does not mean reaching net profit, nor is it a forecast or guarantee that it will be achieved by that date. The company posted a net loss of C$49.09 million in the first half, putting rapid revenue growth alongside continuing losses. The break-even target is based on an adjusted measure not recognized under International Financial Reporting Standards or U.S. generally accepted accounting principles.
In an unaudited preliminary estimate, Zenatech forecast third-quarter 2026 revenue of between C$13.4 million and C$14.8 million. That range implies expected sequential growth of between 44% and 59% compared with the second quarter. Second-quarter revenue was C$9.33 million, up 316% year over year. But third-quarter revenue remains a preliminary estimate and is not a final financial result. The figures offer a picture of continued sales expansion, while first-half losses remain part of the assessment of the company’s progress toward its target.
Zenatech’s first-half revenue was C$17.7 million, compared with C$3.4 million in the same period of 2025, according to the company’s filing with the U.S. Securities and Exchange Commission. The chief executive said the company “generated more revenue in the first half of 2026 than it did throughout 2025.” Revenue for all of 2025 was C$12.9 million, meaning first-half revenue exceeded that by about 37%. The company has also recorded seven consecutive quarters of sequential revenue growth since the fourth quarter of 2024. During that period, revenue increased more than 13-fold to C$9.3 million in the second quarter of 2026.
Most revenue is concentrated in drone services, which generated C$16.44 million in the first half, or 93% of total revenue for the period. Revenue from the business was C$10.1 million in 2025, equivalent to 78% of the company’s total revenue that year. Management believes that expansion in services operations and expected operational efficiencies support the break-even target. The company said in May 2026 that it expected a material improvement in the business’s cost structure during an integration period of 12 to 24 months. This is tied to integrating acquired companies and expanding services, according to management’s announcement at the time.
By contrast, Zenatech posted a net loss of C$22.54 million in the second quarter, and its first-half net loss was C$49.09 million. The company said investment in acquisitions, defense technologies, international operations and emerging commercial opportunities could delay reaching break-even. Management added that it “may choose to deploy additional capital even if that delays the break-even timeline.” In its second-quarter results, the company said cash stood at C$12.2 million, while total assets exceeded C$149 million, adding that this provides flexibility to fund growth and acquisitions. It also said signed acquisition offers for geospatial services companies in the United States, Canada and Australia, if completed, are expected to add about C$40 million to services revenue in the first 12 months after closing.
In trading, Zenatech shares closed at $1.02 on October 23, 2026, compared with a close of $1.04 on October 19. The break-even target announcement came after that session, and the available data do not include a later share price. Third-quarter estimates remain preliminary and unaudited, while the company describes 2027 as a potential date for adjusted break-even. The timing of the target could also be affected by capital allocation decisions, acquisitions and growth opportunities cited by management. The company did not specify another date to update the target in its announcement.