Is Zoomd Technologies still a buy?

Zoomd Technologies (Zoomd Technologies Stock Quote, Chart, News, Analysts, Financials TSX:ZOMD) has formed a strategic partnership with E2 to accelerate its expansion into the sports and betting vertical, a move that analysts say reinforces Zoomd’s value proposition and medium-term growth outlook.

The partnership builds on several months of collaboration that Zoomd said demonstrated strong alignment between E2’s industry relationships and Zoomd’s performance-marketing technology, including real-time analytics and performance-based campaign-optimization tools.

“We are constructive on the announcement, which we think validates our thesis that ZOMD offers a strong value proposition to its target verticals, and is well-positioned to continue its growth trajectory over the medium/long-term,” said ATB Capital Markets analyst Martin Toner.

Zoomd chairman Amit Bohensky said the agreement reflects the company’s strategy of broadening into high-growth categories while diversifying customer concentration.

“Together with E2, we will enable sportsbook operators to run smarter, more efficient campaigns and unlock meaningful growth,” he said, adding that initial integrations are underway, with larger-scale campaigns to roll out in select markets in the coming months.

Zoomd’s platform uses data to identify the highest-value inventory for pay-for-performance advertising. The company has secured an increasing roster of large brands, including the NBA, and has delivered a revenue CAGR of roughly 50% since Q2/23, five consecutive quarters of net profitability, and EBITDA margins in the high-20% range. Despite this trajectory, the stock remains under-followed and trades at about 7.4x 2025e EV/EBITDA, below AdTech peers delivering 20–30% growth.

ATB Capital Markets and Toner initiated coverage of Zoomd on Oct. 20 with an “Outperform” rating and a C$4.00 one-year target, saying the company is positioned to capture a growing share of the “Open Internet” ad market through its performance-based user-acquisition platform.

Toner said Zoomd should generate $19.4-million in Adjusted EBITDA on $77.3-million of revenue in fiscal 2025, improving to $21.8-million on $95.2-million in fiscal 2026.

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