Zoo Digital Shares Plunge as Revenue, EBITDA Expected to Miss Expectations

Zoo Digital’s (LON: ZOO) share price plummeted by over 36% on Thursday after the company warned that revenues and EBITDA are expected to be below market expectations, despite an improved order book. In addition, dubbing revenues for FY26 are forecast to be lower than in FY25.

The localisation and digital media services provider expects full-year FY25 revenue of at least $50.5 million, a 24% increase from the previous year. 

The company said it is also set to return to EBITDA profitability of at least $1 million, compared to a $13.6 million loss in FY24. 

However, both revenue and EBITDA are projected to fall short of market expectations.

Zoo Digital has undertaken targeted cost-saving measures, reducing fixed costs by 20%, and expects blended gross margins to rise to 36%. 

While its order book has strengthened, the company notes that the timing of revenue recognition remains uncertain as many projects are dependent on licensors supplying original assets. Some projects have also been delayed or cancelled by customers.

Looking ahead, the company revealed it has secured new client engagements, including being named a Preferred Fulfilment Vendor for Amazon Prime Video, which is expected to contribute meaningfully in FY26. 

However, the volume of new original content processing remains subdued, with a gradual recovery anticipated later in FY26.

Despite expectations for lower dubbing revenues, Zoo Digital believes profitability will improve due to its leaner cost base and a higher-margin revenue mix.