**Summary of ZOO Digital Group PLCs Interim Results for H1 FY26 (Six Months Ended 30 September 2025)**
**Financial Performance**
**Revenue** Decreased by 19% to $22.4 million (H1 FY25: $27.6 million), stabilizing at H2 FY25 levels ($22.0 million) due to industry recovery and the absence of the FY24 Hollywood strikes backlog.
**Gross Profit** Remained unchanged at $10.1 million, benefiting from cost rationalization and growth in Media Services.
**Gross Profit Margin** Improved to 45% (H1 FY25: 37%) due to operational efficiencies.
**Adjusted EBITDA** Increased by 18% to $2.0 million (H1 FY25: $1.7 million).
**Cash EBITDA** Turned positive at $0.6 million (H1 FY25: loss of $0.1 million), indicating cash generation from underlying operations.
**Operating Loss** Reduced to $1.2 million (H1 FY25: $2.5 million).
**Cash Position** Gross cash balance of $3.3 million, with $1.7 million drawn on invoice financing facilities to reduce aged creditors.
**Operational Highlights**
**Cost Savings** Previously announced cost-saving initiatives fully implemented, creating a more efficient and cash-generative cost base.
**Fast Track Service** Launched premium Fast Track projects for global streaming services, delivering dubbing in 24 hours and subtitling in 3 hours, compared to industry standards of weeks.
**AI Integration** AI adopted into workflows with customer approval, enhancing efficiency and cost savings while maintaining quality.
**International Operations** Fully integrated international operations, expanding dubbing capabilities and supporting the "follow-the-sun" strategy.
**Strategic Developments**
**Market Positioning** ZOO is positioned as a tech-first, end-to-end vendor in the localisation and media services market, leveraging AI and proprietary technology.
**Customer Relationships** Focus on developing existing customer relationships and increasing market share, targeting revenue growth in FY27.
**Fast Track Growth** Fast Track service expected to drive future growth as customers prioritize faster time-to-market.
**Outlook**
Trading in line with expectationswith Q2 FY26 outperforming Q1.
Confident in delivering full-year results in line with market expectations (revenue: $42.3 million, adjusted EBITDA: $3.8 million).
Targeting revenue growth in FY27 through market share expansion and deeper customer engagement.
**CEO Commentary (Stuart Green)**
ZOO has turned a corner with a rightsized cost base, stable revenues, improved profitability, and cash generation.
Focus on working capitaltechnology investmentand international expansion.
Positioned to capitalize on industry opportunities, particularly with AI integration and Fast Track services.
**Conclusion**
ZOO Digital Group PLC has demonstrated resilience and strategic progress in H1 FY26, positioning itself for growth in a recovering industry. The company’s focus on technology, efficiency, and customer-centric solutions places it well to capitalize on emerging opportunities in the global entertainment localisation market.