Should you sell your Zoomd Technologies stock?

ATB Capital Markets analyst Martin Toner lowered his rating on Zoomd Technologies (Zoomd Technologies Stock Quote, Chart, News, Analysts, Financials TSXV:ZOMD) on May 1 to “Speculative Buy” from “Outperform” and cut his target to $2.00 from $3.50 after a sharper-than-expected fourth-quarter revenue decline.

Zoomd reported fourth-quarter revenue of $7.4-million, down 50% year-over-year, as activity slowed from two of its largest customers. Toner said the broader business remains intact and management expects those accounts to return to previous levels within two or three quarters, while the rest of the customer base grew 30% in the quarter.

“We view the current valuation as a compelling entry point for investors,” Toner said, noting Zoomd trades at 1.7x 2027 estimated EV/EBITDA and has cash equal to 54% of its market cap.

For fiscal 2025, revenue rose 13% to $61.3-million, while net income increased 66% to $14.8-million. Zoomd ended the year with $22-million in cash and no debt.

Toner said the 2026 FIFA World Cup should be a near-term catalyst for Zoomd’s user acquisition platform, alongside more than 20 new clients in iGaming and fintech.

He lowered his 2026 revenue estimate to reflect the customer disruption and now expects Adjusted EBITDA of $8.4-million on revenue of $49.3-million in fiscal 2026, improving to $11.8-million on revenue of $58.8-million in fiscal 2027.

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