ZONE Zone Frontier Inc.

Overview and Growth

Fiscal 2026 results for Zone Frontier Inc. combined $3.41M of revenue with net loss of $174.16M and an operating cash outflow of $18.16M. Revenue of $3.41M sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 64.3% above fiscal 2025 revenue of $2.07M, marking a year-over-year increase. The company employed $52.51M of total assets, the balance-sheet base supporting its current operating and cash-flow results. Revenue equaled 0.06x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

The first profit layer was $1.29M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross margin was 37.8%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was an operating loss of $57.98M, reflecting costs that exceeded gross profit. After all below-operating-line items, the company recorded a net loss of $174.16M for the fiscal year. Negative EBITDA totaled $57.72M, confirming that the earnings deficit remained before depreciation and amortization. Relative to period-end equity, the net loss represented 338.1%. Relative to total assets, the net loss represented 331.7%. The bottom-line deficit increased from $6.74M in fiscal 2025 to $174.16M.

Liquidity and Capital Structure

Total assets were $52.51M, supported by $994.78K of liabilities and $51.51M of shareholder equity. The near-term balance sheet paired $18.71M of current assets with $880.81K of current liabilities at the reporting date. At 21.24x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. The company held $15.44M in cash and equivalents, a narrower liquidity measure than total current assets. Equity equaled 98.1% of assets, showing the shareholder-capital layer within the company’s balance sheet. The liabilities-to-assets relationship was 1.9%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 29.4%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 520.2% higher than fiscal 2025 assets of $8.47M, measuring the company’s own balance-sheet change. Cash and equivalents were 956.5% higher than fiscal 2025 cash of $1.46M, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

Cash flow from operations was an outflow of $18.16M, showing that operations absorbed cash during the period. Capital spending of $37.55K added to the period’s operating cash use, reinforcing the overall cash deficit after investment for the year. Negative free cash flow was $18.19M, leaving a cash deficit after capital spending and reducing financial flexibility. Free-cash-flow margin was -534.1%, reflecting a cash deficit equal to 534.1% of revenue after capital spending. The free-cash-flow deficit equaled 34.7% of total assets, placing the cash shortfall against the company’s resource base. The operating cash outflow widened to $18.16M from $2.34M in fiscal 2025.

Based on the annual report for the fiscal year ending Jun 30, 2026. Analysis generated Oct 21, 2026.