Media group ZOO Digital has revealed its annual results, showing signs of recovery after increasing revenue and shedding losses.
The Sheffield-based firm, which has offices in the US, now has a clear focus on returning to profitability in the year ahead.
The media localisation and digital services company, which works with some of the world’s biggest streaming platforms on subtitling and dubbing content, increased revenue by 22% to $49.6m- a figure slightly lower than the $50.5m which it expected to be at.
It also swung to a positive adjusted EBITDA of $1.1m, compared to a $13.6m loss the previous year – a prediction made by the firm back in February.
Despite an operating loss of $6.5m, the company has significantly reduced its losses and delivered $8.4m in annual cost savings, with more reductions planned in FY26.
The business ended the year with $2.7m in cash and no drawdown on its invoice financing facility, reflecting a strong focus on cash management.
The results are a significant improvement on last year’s when it reported it had swung from an operating profit of $8.1m in 2023 to losses of $19.1m in 2024.
Signs were more positive from the outset of this financial year, when the AIM-listed company said it was recovering from the impact of the Hollywood strikes.
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“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 FY26,” said Stuart Green, CEO of ZOO.
“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.
“As a trusted partner, with a technology-enabled, end-to-end model, we can build solutions for customers’ specific needs.
“Our new Fast Track service, tailored for localising live and near-live content, has been well received and although revenue is modest at this stage, the board is encouraged by the potential growth opportunity this presents the group as we seek to increase our share of spend by several global streamers over the longer term.
“Today we believe most media companies are operating profitable streaming platforms, supported by new content formats and monetisation models. We enter FY26 better positioned to navigate this environment and capture profitable revenue opportunities as the market continues to evolve.”
The company retained 98.4% of its sales from existing customers – up from 92.3% the previous year – and was recently named a Preferred Fulfilment Vendor for Amazon Prime Video.
ZOO also made gains with non-traditional studios, helping to diversify its customer base.
Whilst its share price is a mere fraction of the 4,132.22p which it initially stood at when the company floated 25 years ago (it is now 14.5p), it remains positive and on track to return to profitability.
Cost-saving measures have been implemented at the firm and its share price has increased by just under 50% since it swooped for former NSC Group CFO Robert Pursell at the beginning of May 2025.