Breaking Down ZIVO Bioscience, Inc. (ZIVO) Financial Health: Key Insights for Investors

You're looking at ZIVO Bioscience, Inc. (ZIVO) because you see the potential in their biotech/agtech R&D for human and animal health, but honestly, the financials demand a cold, hard look right now. The latest Q3 2025 report confirms they are defintely in a high-risk, pre-revenue stage, showing a net loss of over $1.03 million for the quarter, contributing to a year-to-date net loss of nearly $6.88 million through September 30, 2025. Here's the quick math: with only $57,222 in cash on the balance sheet against total liabilities of over $3.85 million, management has disclosed substantial doubt about the ability to continue as a 'going concern' (meaning, staying in business for the next year). Still, a recent insider purchase of shares worth $284,421 in October 2025 suggests some internal confidence, even as the company estimates needing another $6.0 million to fund basic operations over the next 12 months. This is a classic biotech funding tightrope. To see the full breakdown of their intellectual property value and the path to securing that critical $6.0 million, keep reading.

Revenue Analysis

You're looking at ZIVO Bioscience, Inc. (ZIVO) because the potential of its proprietary algal compounds in both human nutrition and animal health is compelling. But honestly, you need to see if the revenue engine is starting to turn. The direct takeaway is that while ZIVO's revenue growth looks explosive on a percentage basis, the absolute dollar amounts remain minimal, confirming its status as a pre-commercial, research-and-development (R&D) stage company as of late 2025.

For the nine months ended September 30, 2025, ZIVO reported total revenue of just $119,025, which is a significant jump from the $67,220 reported in the same period a year prior. That's a roughly 77% increase year-over-year. That's a huge percentage gain, but it's still less than what a single high-end analyst makes in a year. The trailing twelve-month (TTM) revenue as of September 30, 2025, stood at only $209,000. The market consensus for the full Fiscal Year 2025 revenue is around $987,000, which would be a massive leap, but it remains an estimate. The company is still operating at a substantial loss, which is the key risk here.

Breakdown of Primary Revenue Sources

ZIVO's current revenue comes almost entirely from the sale of its dried algal biomass product, which is marketed as a human food or food ingredient through its ZIVOLife, LLC subsidiary. This is a crucial detail: the minimal sales are coming from the nutritional side, not the high-value therapeutic candidates like the treatments for Bovine Mastitis or Avian Influenza, which are still in the R&D pipeline. The company is defintely a licensor of intellectual property, but that has not yet translated into substantial, consistent licensing revenue.

Here's the quick math on the recent quarter, which shows the growth but also the scale limit:

The gross margin jumped to $21,288 in Q3 2025 from $9,450 in Q3 2024, showing that the small increase in sales volume is flowing through efficiently. But what this estimate hides is that the bulk of the company's activity and spending is in its R&D segments, which contribute virtually nothing to current revenue. The true opportunity is in the therapeutics, but those are still burning cash, not generating it.

Segment Contribution and Revenue Changes

The company operates in two main sectors: biotech (therapeutic applications for animal and human health) and agtech (nutritional and feed ingredients). Currently, the revenue contribution from these segments is heavily skewed:

• Nutritional/Agtech Segment: Contributes nearly 100% of the current commercial revenue through the sale of the algal biomass product.
• Biotech/Therapeutic Segment: Contributes $0 in product revenue, as candidates like Bovine Mastitis and Canine Joint Health are still in development and partnership stages.

The significant change in the revenue stream is really the start of a stream, rather than a shift in a mature one. The 108% Q3 growth is a positive signal for the nutritional product's market acceptance, but it does not materially change the company's financial health, which is dominated by R&D expenses and a critical 'going concern' warning. To understand the long-term vision they are building toward, you should review their Mission Statement, Vision, & Core Values of ZIVO Bioscience, Inc. (ZIVO).

Next step: Dig into the R&D spending to see what milestones that cash is actually buying, because that's the real value driver here.

Profitability Metrics

If you're looking at ZIVO Bioscience, Inc. (ZIVO), you need to look past the top-line revenue growth and focus on the deep, structural unprofitability, which is typical for a pre-commercial biotech company but still requires a clear funding path. The Trailing Twelve Months (TTM) data through September 30, 2025, shows a company with minimal sales and a massive research and development (R&D) and general and administrative (G&A) cost structure, which is the core risk here.

The TTM revenue is only about $209,000, which is far too small to cover the operating burn. This results in a staggering Net Profit Margin of approximately -4,059.7%, meaning for every dollar of revenue, the company loses over forty dollars. Here's the quick math on the key TTM profitability ratios:

Gross Margin vs. Industry Benchmarks

ZIVO's Gross Profit Margin of approximately 31.68% is actually quite respectable for a physical product in the nutraceutical space, where typical gross margins for supplements fall between 30% and 50%. This suggests the cost of producing their proprietary algal biomass is manageable. However, the comparison to the broader Biotechnology sector is stark.

• Biotech industry average Gross Profit Margin is 86.3%.
• ZIVO's margin is much lower, reflecting the sale of a raw or minimally processed ingredient versus a high-value, patented drug.

To be fair, the Net Profit Margin comparison is even more telling. The average Net Profit Margin for the Biotechnology industry is already a deeply negative -177.1% due to massive R&D spending, but ZIVO's -4,059.7% is in a different league, showing the severe impact of minimal revenue trying to support a large research infrastructure.

Operational Efficiency and Profitability Trends

Operational efficiency is where ZIVO Bioscience, Inc. faces its greatest challenge. The TTM Operating Expenses total about $8.55 million, split between $4.83 million in General and Administrative costs and $3.70 million in Research and Development. This cost structure is built for a company with a multi-million dollar revenue stream, not one with only $209,000 in sales. This is a classic pre-revenue biotech/agtech profile: high burn for future payoff.

Still, there are two key trends to note:

• Revenue has been growing at a historical Compound Annual Growth Rate (CAGR) of 74.5% per year, showing strong growth off a tiny base.
• The net loss for the nine months ended September 30, 2025, was $(6,884,474), which is an improvement from the $(11,783,451) loss in the comparable 2024 period.

This improvement is defintely a positive sign of cost management or one-time charges not repeating, but the company still needs an estimated $6.0 million over the next 12 months just to fund basic operations, which is why the going concern disclosure is a major risk for investors. Their future hinges entirely on monetizing their intellectual property, which you can read more about in their Mission Statement, Vision, & Core Values of ZIVO Bioscience, Inc. (ZIVO).

Debt vs. Equity Structure

When you look at ZIVO Bioscience, Inc. (ZIVO)'s financing structure, the immediate takeaway is that the company operates with a significant capital deficit, which is common for early-stage biotechnology firms, but it creates a high-risk profile. As of the third quarter of 2025 (Q3 2025), the company's balance sheet shows a stockholders' deficit of $(3,286,603). This is the core issue: the liabilities exceed the assets, meaning the equity is negative.

The company's reliance on debt is technically low, but only because of this negative equity. Here's the quick math on their leverage:

• Total Liabilities (Q3 2025): $3,846,055.
• Total Long-Term Liabilities (Q3 2025): $231,787.
• Short-Term Debt Component (Unsecured Loan Note): $146,459.

The Debt-to-Equity (D/E) ratio for ZIVO Bioscience, Inc. was reported as -0.02 for the quarter ending June 30, 2025. This negative ratio is not a sign of strength; it simply reflects the negative equity position, making the ratio 'Not Meaningful' (NM) in a traditional sense. For context, the average D/E ratio for the broader Biotechnology industry is typically around 0.17, which is still low, as R&D-focused biotech companies usually prefer equity funding to avoid fixed debt payments. ZIVO Bioscience, Inc.'s negative equity means it is far from that benchmark.

To be fair, ZIVO Bioscience, Inc. is actively balancing its funding, using a mix of debt and equity to cover its estimated $6.0 million cash need over the next 12 months. Their recent financing moves show a clear preference for instruments that convert to equity, pushing the risk onto investors who believe in the long-term science, rather than fixed-payment lenders.

This is what they've done recently to raise capital:

The issuance of the 10% convertible notes is a classic move for a pre-revenue biotech firm. It provides immediate cash flow-a lifeline, defintely-but it also adds to the total debt load and dilutes shareholders if converted. The conversion feature is an incentive for the debt holder to participate in the company's potential upside. The fact that they are also exchanging related party payables for equity is another sign of the tight liquidity situation, effectively turning short-term obligations into long-term capital. You should view ZIVO Bioscience, Inc. as an equity-funded enterprise with a small, but persistent, debt overhang that is constantly being managed through dilutive financing. For a deeper dive into who is taking on this risk, check out Exploring ZIVO Bioscience, Inc. (ZIVO) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need to know if ZIVO Bioscience, Inc. (ZIVO) has the cash to keep the lights on and fund its R&D pipeline, and honestly, the liquidity picture is extremely tight. The 2025 fiscal year data, specifically as of September 30, 2025, shows a company operating with a significant working capital deficit and minimal cash reserves, which raises serious going concern questions.

Assessing ZIVO Bioscience, Inc. (ZIVO)'s Liquidity

The most immediate red flag for ZIVO Bioscience, Inc. (ZIVO) is its liquidity position, which is measured by its ability to cover near-term obligations. Both the Current Ratio and Quick Ratio are dangerously low, indicating a severe mismatch between short-term assets and liabilities.

Here's the quick math on the key liquidity positions as of Q3 2025:

• Current Ratio: The ratio is only about 0.08. This means ZIVO has only 8 cents of current assets (like cash or receivables) for every dollar of current liabilities (debt due within a year). A healthy ratio is typically 1.0 or higher.
• Quick Ratio: This ratio, which excludes less liquid assets like prepaid expenses, is even lower at approximately 0.02. With only 2 cents of the most liquid assets for every dollar of current debt, the company's ability to meet sudden obligations is defintely compromised.

You simply can't ignore ratios this low. The company's cash balance was a mere $57,222 as of September 30, 2025, a steep decline from over $1.5 million at the end of 2024.

Working Capital and Cash Flow Trends

The working capital trend is negative and worsening. Working capital (Current Assets minus Current Liabilities) stood at a deficit of approximately $(3,332,869) in Q3 2025. This deficit has grown substantially from the end of the prior year, primarily due to a sharp increase in total current liabilities to $3,614,268, which includes a significant rise in accrued liabilities for employee bonuses and salaries.

The cash flow statement for the first nine months of 2025 paints a clear picture of the funding challenge:

The $(2,173,204) net cash used in operations shows the core business is not self-sustaining. The company is relying entirely on financing activities, which provided $687,984 in cash, to partially offset the operating burn. This is the definition of a cash-strapped research and development firm.

Potential Liquidity Concerns and Actionable Insight

The primary liquidity concern is the company's stated need for an estimated $6.0 million over the next 12 months just to fund basic operations. This is a massive funding gap relative to the $57,222 in cash on hand. Management has explicitly disclosed substantial doubt about ZIVO Bioscience, Inc. (ZIVO)'s ability to continue as a going concern (a business that will remain in operation for the foreseeable future).

What this estimate hides is the dilution risk. To raise that $6.0 million, the company will almost certainly issue new equity or convertible debt, which will dilute the value of your current shares. For a deeper look at the operational risks, you might want to review the full analysis at Breaking Down ZIVO Bioscience, Inc. (ZIVO) Financial Health: Key Insights for Investors.

Valuation Analysis

You're looking at ZIVO Bioscience, Inc. (ZIVO) and asking the core question: Is this stock overvalued, undervalued, or priced just right? For a development-stage company like ZIVO, which operates in the biotech and agtech sectors, traditional valuation metrics often look messy. The short answer is that based on conventional ratios for profitable companies, ZIVO is difficult to value, but the current stock price of $10.40 as of November 21, 2025, reflects significant investor risk and volatility.

Here's the quick math on the key valuation ratios for the 2025 fiscal year, which tell a story of a company still in the pre-revenue or early-revenue phase, focusing on its intellectual property (IP) portfolio and clinical candidates like those for Bovine Mastitis and Canine Joint Health. You can read more about their focus here: Mission Statement, Vision, & Core Values of ZIVO Bioscience, Inc. (ZIVO).

The most telling data points are the negative ratios, which simply mean the company is losing money and has negative shareholder equity, common for a company focused on research and development.

Stock Price Trends and Analyst View

Looking at the stock price trend over the last 12 months, ZIVO Bioscience, Inc. (ZIVO) has seen its share price decrease by approximately 48.47%. This volatility is intense. The stock traded in a wide range, hitting a 52-week high of $22.15 and a 52-week low of around $7.91. This kind of fluctuation-a 30% intraday move is not defintely uncommon-signals a high-risk, high-reward profile, often driven by news flow related to clinical trials and regulatory milestones, not steady revenue growth. You have to be ready for that kind of ride.

When it comes to dividends, ZIVO is a non-dividend-paying stock. The Trailing Twelve Months (TTM) dividend payout is $0.00, resulting in a dividend yield of 0.00%. This is standard for a company focused on R&D; they are reinvesting every cent back into the business to fund future growth, not rewarding current shareholders with cash.

Analyst consensus is cautious. The average rating from the limited analyst coverage is a simple Neutral. One firm recently upgraded its analysis from a Strong Sell to a Sell candidate, which, to be fair, is a slight improvement, but still a negative outlook. For a stock like this, you shouldn't rely on a consensus rating anyway.

• Monitor cash burn, not just revenue.
• Watch for clinical trial data releases.
• Understand the negative P/B means negative equity.

What this estimate hides is the potential value of their IP if a product, like their proprietary algae strain, gains regulatory approval and commercial traction. That's the real gamble here. The stock is currently valued based on its net assets being negative and its future potential being highly speculative.

Risk Factors

You need to be clear-eyed about ZIVO Bioscience, Inc. (ZIVO). The direct takeaway is that the company faces an immediate and critical liquidity risk, which management itself has flagged as a 'going concern' issue. The company's ability to continue operations hinges entirely on raising new capital very soon, and that risk shadows every other operational and strategic opportunity.

Financial and Operational Headwinds

The most pressing risks are financial and tied to operational execution. As of September 30, 2025, ZIVO's cash position was a minimal $57,222 against total liabilities of approximately $3.85 million. This creates a massive funding gap. Management estimates the company needs about $6.0 million over the next 12 months just to fund basic operations, which is a significant hurdle for a company that generated only $119,025 in revenue for the first nine months of 2025.

Here's the quick math: the nine-month net cash used in operations was over $2.17 million. That burn rate is unsustainable without a major capital infusion. While ZIVO did raise some funds in 2025, including a $250,000 convertible note and an additional $390,000 in cash from subsequent equity sales in October 2025, this only provides a short-term runway and does not address the full $6.0 million requirement.

• Going Concern: Substantial doubt exists about the ability to continue operations.
• Liquidity Crisis: Cash of $57,222 versus $3.85 million in total liabilities.
• Funding Gap: Estimated $6.0 million is needed within 12 months.

Strategic and External Market Risks

Beyond the immediate financial pressure, ZIVO operates in the highly competitive biotech and agtech sectors. The company's core business relies on its proprietary algal cultures for therapeutic and nutritional applications, but the path to market is long and expensive. The animal health industry, where ZIVO is developing treatments for issues like bovine mastitis and avian influenza, is dominated by large, established players.

A major operational risk is the reliance on a single grower and distributor for its algae products, which introduces a single point of failure for production and revenue. Also, the company's product candidates, which include non-antibiotic solutions for poultry health, require successful clinical trials and regulatory approval from bodies like the USDA's Center for Veterinary Biologics, which is a complex and uncertain process.

To be fair, ZIVO is trying to mitigate some of these external risks by pursuing strategic partnerships, such as the one with a major animal health company to advance its immune-enhancing compounds in poultry. This strategy is designed to share the cost and risk of product development and accelerate market acceptance. You can dig deeper into who is supporting the company by Exploring ZIVO Bioscience, Inc. (ZIVO) Investor Profile: Who's Buying and Why?

Internal Control and Process Risks

Investors must also factor in the persistent process risks. The company has repeatedly disclosed 'material weaknesses in internal control over financial reporting' (ICFR) as of September 30, 2025. This isn't a minor issue; it indicates deficiencies in the control environment, including IT controls, documentation, and the financial reporting processes themselves. A lack of defintely robust internal controls raises the risk of errors in financial statements and makes the company a tougher sell to institutional investors.

What this estimate hides is the potential for significant dilution. If ZIVO is forced to raise the estimated $6.0 million through equity, the current share count of approximately 3.83 million (as of September 30, 2025) will increase substantially, negatively impacting earnings per share and the value of existing holdings.

Growth Opportunities

You are looking at ZIVO Bioscience, Inc. (ZIVO) at a pivotal moment, where years of R&D are finally mapping to commercial milestones. The growth story here is defintely not about incremental gains; it's a high-risk, high-reward play centered on two distinct markets: animal health and human nutrition.

The direct takeaway is that ZIVO is positioned to disrupt the $1.5 billion coccidiosis market with a non-antibiotic solution, but near-term revenue growth is heavily dependent on scaling production and securing a major licensing deal, which was anticipated in Q1 2025.

Key Growth Drivers: Non-Antibiotic Solutions and Scale

The primary engine for ZIVO Bioscience, Inc.'s future growth is its proprietary algae-derived compounds, which offer a non-antibiotic therapeutic platform for animal health. This addresses a critical industry need, driven by regulatory pressure against antibiotic overuse and consumer demand for 'clean' livestock products.

The company is pursuing a dual-pronged strategy in poultry: tackling coccidiosis, a parasitic disease that costs producers over $1.5 billion annually, and developing a solution for viral diseases like avian influenza. Positive results from a 42-day confirmatory study on coccidiosis and promising data on reducing viral shedding are the foundations for these market entries.

• Develop non-antibiotic poultry treatments.
• Scale up proprietary algal biomass production.
• Expand into swine, dairy, and companion animal markets.

Revenue Projections and Earnings Estimates for 2025

While the long-term potential is significant, the 2025 fiscal year numbers reflect a company in transition from R&D to commercialization. Analysts project a Consensus Revenue Estimate for the full year ending December 2025 of $987,000. This is an aggressive forecast, implying a massive year-over-year revenue growth rate of 124.2%, but it starts from a very low base.

Here's the quick math: The company reported actual revenue of only $65,625 for the third quarter ended September 30, 2025, with a Net Loss of $1.03 million for that quarter. The consensus EPS Estimate for the full 2025 fiscal year remains a loss at -$1.59. The path to profitability is still a long one, but the revenue growth forecast shows the magnitude of the expected inflection point. The company is still very much a pre-commercialization story.

Strategic Partnerships and Competitive Edge

ZIVO Bioscience, Inc. is mitigating its commercialization risk through strategic partnerships. Its collaboration with a leading global animal health company is key, as it provides the scientific expertise and R&D infrastructure needed to advance its compounds to global markets efficiently. Also, the company has applied for a substantial $100 million USDA grant, which would significantly de-risk large-scale trials for its avian influenza research.

On the human side, the partnership with ZWorldwide, the exclusive North American distributor, includes a commitment to purchase the entire supply of the proprietary Zivolife™ algal biomass for the initial 18 months, plus a minimum of 24,000 kilograms annually for five years. This provides a committed revenue stream as they scale production in their repurposed facility in Peru, which is expected to reach a capacity of 100,000 kilograms of dried product per year in mid-2025.

The company's competitive advantage lies in its intellectual property portfolio, which includes a proprietary, wild freshwater algae strain. This strain has been optimized for commercial production and yields Zivolife™, a product noted for its mild taste and superior nutritional profile compared to other microalgae, making it a premium entrant in the growing nutraceutical market. You can read more about their focus here: Mission Statement, Vision, & Core Values of ZIVO Bioscience, Inc. (ZIVO).

Next Step: Monitor the progress of the licensing deal with the global animal health partner and track the actual production volume from the Alimenta Algae facility in the upcoming Q4 2025 earnings report.