Zoo Digital returns to positive full-year adjusted EBITDA

Media localisation specialist Zoo Digital reported higher revenue and a return to positive adjusted EBITDA for the year ended 31 March, it reported on Tuesday, as restructuring measures reduced costs and positioned the business for a return to operating profit and cash generation in the 2026 financial year.

  • Zoo Digital Group
  • 12 August 2025 10:54:29
Zoo Digital

Source: Sharecast

Revenue rose 22% to $49.6m, while adjusted EBITDA recovered to a $1.1m profit from a $13.6m loss a year earlier.

The AIM-traded firm said its operating loss narrowed to $6.5m from $19.1m, with the pre-tax loss reduced to $8.3m from $20.5m.

Year-end cash stood at $2.7m, down from $5.3m, with no drawings on invoice financing facilities.

The group delivered $8.4m in annual fixed cost savings during the year and expects at least $2.5m more in 2026.

“Zoo has shown resilience through a period of market transition and made significant progress to restructure its operations to position the group to deliver operating profit and cash generation in 2026,” said chief executive Stuart Green.

“I believe we have struck a balance between creating a sustainable platform for the future while retaining the flexibility to scale as we deliver increased order volumes.”

He added that the company’s new Fast Track service for localising live and near-live content had been well received, offering potential for long-term growth with global streaming clients.

Customer retention improved, with retained sales at 98.4% compared with 92.3% a year earlier, and Zoo noted that it was named a ‘Preferred Fulfilment Vendor’ for Amazon Prime Video.

The company also strengthened relationships with non-traditional studios to diversify its client base.

In the early parts of the 2026 financial year, revenue fell 18% year-on-year in the first quarter due to reduced dubbing demand, but other service lines recorded three consecutive quarters of growth.

Zoo said further cost reductions, combined with AI and automation initiatives, would create a leaner operating model and support margin improvement as revenues recover.

Its management said it remained focused on profitable growth opportunities as the streaming market evolved.

At 1024 BST, shares in Zoo Digital were up 9.06% at 14.45p.

Reporting by Josh White for Sharecast.com.

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