ZDGE

No material changes this month.

Risks

Score: 5.8 (Moderate)

High net debt to EBITDA versus most software peers increases refinancing sensitivity and limits strategic flexibility if growth slows or capital markets tighten.

Interest coverage at zero indicates earnings are insufficient to service debt from operating profit, leaving ZDGE more exposed than cash-generative peers to funding stress.

A very negative cash conversion cycle reflects heavy supplier financing, which can support liquidity but also raises working-capital dependence relative to peers with shorter cycles.

Limited profitability visibility, with no reported FCF margin, reduces confidence in self-funding versus peers that can absorb demand volatility without external capital.

Current and quick ratios above 3.0 provide near-term liquidity support, but they do not fully offset leverage-related downside if execution or demand weakens.

Overall Score

Score:

ZDGE’s liquidity and low debt-to-equity provide some flexibility, but high net leverage and zero interest coverage materially constrain resilience versus stronger peer balance sheets.

Sources

Company filings (10-K, 10-Q, investor presentations)
Financial and market data providers
Public news and industry information

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