Revenue growth reached 30.3% in 2025Q4, yet gross margins contracted to 66.5% as the company's shift toward capital-intensive robotics weighed on overall profitability.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 1.15B | 806.88M | 669.5M | 884.07M | 784.62M | 1.55B | 3.59B | 4.98B | 4.97B | 4.56B | 3.77B | 1.86B | 749.91M | 287.93M |
| Revenue Growth % | 42.58% | 20.52% | -24.27% | 12.68% | -49.47% | -56.72% | -27.98% | 0.14% | 8.98% | 20.95% | 103.1% | 147.79% | 160.45% | - |
| Cost of Goods Sold | 316.41M | 261.68M | 231.94M | 252.56M | 257.66M | 475.38M | 1.24B | 1.54B | 1.78B | 1.54B | 956.35M | 438.66M | 140.53M | 71.56M |
| COGS % of Revenue | 27.5% | 32.43% | 34.64% | 28.57% | 32.84% | 30.62% | 34.62% | 30.93% | 35.78% | 33.82% | 25.34% | 23.61% | 18.74% | 24.85% |
| Gross Profit | 834.03M | 545.2M | 437.56M | 631.5M | 526.96M | 1.08B | 2.35B | 3.44B | 3.19B | 3.02B | 2.82B | 1.42B | 609.38M | 216.37M |
| Gross Margin % | 72.5% | 67.57% | 65.36% | 71.43% | 67.16% | 69.38% | 65.38% | 69.07% | 64.22% | 66.18% | 74.66% | 76.39% | 81.26% | 75.15% |
| Gross Profit Growth % | 52.98% | 24.6% | -30.71% | 19.84% | -51.08% | -54.08% | -31.83% | 7.71% | 5.75% | 7.22% | 98.48% | 132.94% | 181.64% | - |
| Operating Expenses | 971.91M | 829.56M | 647.4M | 857.1M | 756.53M | 1.61B | 3.46B | 2.97B | 2.75B | 3.03B | 2.6B | 1.33B | 517.17M | 205.9M |
| OpEx % of Revenue | 84.48% | 102.81% | 96.7% | 96.95% | 96.42% | 103.59% | 96.35% | 59.7% | 55.23% | 66.45% | 68.91% | 71.41% | 68.96% | 71.51% |
| Selling, General & Admin | 629.26M | 586.81M | 472.06M | 691.19M | 562.14M | 1.15B | 2.15B | 2.34B | 2.06B | 2.21B | 1.95B | 876.42M | 299.32M | 91.58M |
| SG&A % of Revenue | 54.7% | 72.73% | 70.51% | 78.18% | 71.65% | 73.91% | 59.81% | 46.99% | 41.49% | 48.47% | 51.78% | 47.17% | 39.91% | 31.8% |
| Research & Development | 346.15M | 243.39M | 178.21M | 180.96M | 211.59M | 455.18M | 787.33M | 668.92M | 684.86M | 905.85M | 695.18M | 443.21M | 217.85M | 114.33M |
| R&D % of Revenue | 30.09% | 30.16% | 26.62% | 20.47% | 26.97% | 29.32% | 21.95% | 13.43% | 13.77% | 19.84% | 18.42% | 23.85% | 29.05% | 39.71% |
| Other Operating Expenses | -3.5M | -637K | -2.87M | -15.05M | -17.2M | 5.68M | 523.57M | -35.94M | -990K | -84.99M | -48.49M | 7.22M | 0 | 0 |
| Operating Income | -137.88M | -284.37M | -209.84M | -225.59M | -229.57M | -531.12M | -1.11B | 467.22M | 446.88M | -12.45M | 216.9M | 92.67M | 92.22M | 10.46M |
| Operating Margin % | -11.98% | -35.24% | -31.34% | -25.52% | -29.26% | -34.21% | -30.96% | 9.38% | 8.98% | -0.27% | 5.75% | 4.99% | 12.3% | 3.63% |
| Operating Income Growth % | 51.51% | -35.52% | 6.98% | 1.73% | 56.78% | 52.19% | -337.77% | 4.55% | 3689.97% | -105.74% | 134.06% | 0.49% | 781.37% | - |
| EBITDA | 9.36M | -232.91M | -174.57M | -172.57M | -178.75M | -462.57M | -1.05B | 547.33M | 583.18M | 150.91M | 363.73M | 172.3M | 118.1M | 21.32M |
| EBITDA Margin % | 0.81% | -28.87% | -26.08% | -19.52% | -22.78% | -29.79% | -29.14% | 10.99% | 11.72% | 3.31% | 9.64% | 9.27% | 15.75% | 7.4% |
| EBITDA Growth % | 104.02% | -33.42% | -1.16% | 3.46% | 61.36% | 55.75% | -291.01% | -6.15% | 286.44% | -58.51% | 111.11% | 45.89% | 453.98% | - |
| D&A (Non-Cash Add-back) | 147.24M | 51.45M | 35.26M | 53.02M | 50.82M | 68.55M | 65.47M | 80.11M | 136.3M | 163.36M | 146.84M | 79.63M | 25.88M | 10.86M |
| EBIT | -137.88M | -284.37M | -209.84M | -225.59M | -229.57M | -531.12M | -565.25M | 467.22M | 446.88M | -9.56M | 266.78M | 100.97M | 92.22M | 10.46M |
| Net Interest Income | 30.63M | 44.42M | 60.98M | 35.71M | 25.39M | 35.66M | 110.01M | 87.72M | 22.6M | 7.78M | 14.55M | 28.22M | 7.08M | 3.26M |
| Interest Income | 30.63M | 44.42M | 60.98M | 35.71M | 25.39M | 35.66M | 110.01M | 87.72M | 22.6M | 7.78M | 14.55M | 28.22M | 7.08M | 3.26M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -88.8M | -269.96M | -427.81M | -320.19M | -110M | 1.04B | 745.23M | 802.5M | 986.38M | -56.45M | 21.48M | 6.53M | 18.47M | 4.3M |
| Pretax Income | -226.68M | -554.33M | -637.65M | -545.78M | -339.57M | 508.25M | -365.69M | 1.27B | 1.43B | -68.9M | 238.38M | 99.2M | 110.69M | 14.76M |
| Pretax Margin % | -19.7% | -68.7% | -95.24% | -61.74% | -43.28% | 32.73% | -10.19% | 25.49% | 28.81% | -1.51% | 6.32% | 5.34% | 14.76% | 5.13% |
| Income Tax | 8.47M | 47.26M | -43.78M | -25.09M | 13.63M | 97.09M | 7.9M | 117M | 57.6M | -12.19M | 63.74M | 27.89M | 48.67M | 4.92M |
| Effective Tax Rate % | -3.74% | -8.53% | 6.87% | 4.6% | -4.01% | 19.1% | -2.16% | 9.21% | 4.02% | 17.69% | 26.74% | 28.12% | 43.97% | 33.3% |
| Net Income | -257.71M | -617.56M | -602.9M | -513.48M | -351.13M | 416.73M | -343.84M | 1.13B | 1.33B | -80.53M | 176.35M | 68.32M | 62.02M | 9.84M |
| Net Margin % | -22.4% | -76.54% | -90.05% | -58.08% | -44.75% | 26.84% | -9.58% | 22.67% | 26.83% | -1.76% | 4.67% | 3.68% | 8.27% | 3.42% |
| Net Income Growth % | 58.27% | -2.43% | -17.42% | -46.24% | -184.26% | 221.2% | -130.45% | -15.4% | 1757.55% | -145.66% | 158.13% | 10.16% | 530.01% | - |
| Net Income (Continuing) | -235.15M | -601.59M | -593.87M | -520.69M | -353.2M | 411.16M | -373.59M | 1.15B | 1.38B | -56.71M | 174.64M | 71.31M | 62.02M | 9.84M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 350.9M | 306.53M | 204.69M | 71.45M | 81.02M | 41.01M | 62.27M | 118.08M | 212.6M | 188.83M | 136.19M | 76.53M | 0 | 0 |
| EPS (Diluted) | -409.00 | -1027.00 | -1023.50 | -904.50 | -617.50 | 714.00 | -682.00 | 285.00 | 360.00 | -21.00 | 47.50 | 19.50 | 19.00 | 3.39 |
| EPS Growth % | 60.18% | -0.34% | -13.16% | -46.48% | -186.48% | 204.69% | -339.3% | -20.83% | 1814.29% | -144.21% | 143.59% | 2.63% | 460.47% | - |
| EPS (Basic) | -409.00 | -1027.00 | -1024.50 | -905.00 | -617.50 | 724.00 | -682.00 | 292.50 | 360.00 | -21.00 | 47.50 | 20.50 | 22.00 | 3.77 |
| Diluted Shares Outstanding | 613.39K | 601.22K | 589.05K | 577.47K | 572.02K | 559.78K | 547.62K | 576.19K | 570.06K | 554.9K | 570.72K | 536.69K | 454.39K | 418.79K |
| Basic Shares Outstanding | 613.39K | 601.22K | 588.36K | 577.15K | 572.02K | 559.78K | 547.6K | 561.24K | 570.04K | 554.9K | 570.7K | 504.11K | 391.65K | 376.38K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Unproven AI hardware pivot
According to recent financial disclosures, CMCM achieved a 30.3% year-over-year revenue increase in 2025Q4, yet this top-line expansion appears heavily influenced by volatile hardware deployments rather than consistent organic growth, as the company struggles to stabilize its transition from legacy mobile utility applications to robotics.
While the double-digit revenue growth suggests successful market penetration in the robotics segment, the lack of sequential consistency warrants caution regarding the sustainability of these gains. Investors should monitor whether this growth is driven by recurring service contracts or one-time hardware sales, as the latter provides little long-term visibility.
As reported in quarterly filings, CMCM's gross margin contracted to 66.5% in 2025Q4 from a peak of 76.1% in 2025Q2, suggesting that the shift toward capital-intensive robotics and hardware integration is exerting downward pressure on the company's historically high software-driven profitability profile.
The erosion of gross margins indicates that the company is likely sacrificing pricing power to gain market share in the competitive service robotics space. This trend suggests that the transition to a hardware-heavy model may permanently alter the company's cost structure, making a return to previous margin levels increasingly unlikely.
Based on the provided income statement data, R&D expenses surged to $149.9M in 2025Q4, representing a significant escalation in spending that appears to be the primary driver behind the company's deepening operating losses and inability to achieve consistent profitability during its ongoing strategic pivot.
The aggressive reinvestment into AI and robotics research suggests management is prioritizing long-term technological positioning over near-term bottom-line performance. However, the lack of operating leverage implies that these expenditures have yet to yield the necessary scale to offset the rising costs of hardware production and software development.
Data from the most recent quarter reveals an operating loss of $104.2M, highlighting a significant disconnect between revenue scaling and operational efficiency that may lead skeptics to question the viability of the company's current business model in the absence of a clear path to profitability.
The persistent negative operating margins suggest that the cost of acquiring and maintaining customers in the robotics segment may be structurally higher than the legacy software model. Investors should monitor whether the company can achieve break-even status before its substantial cash reserves are depleted by these ongoing operational deficits.
Quick answers to the most common questions about buying CMCM stock.
For fiscal year 2025, Cheetah Mobile Inc. (CMCM) reported total revenue of $1.15B. This represents a 299.6% increase compared to $287.9M in 2012.
Cheetah Mobile Inc. (CMCM) reported a net loss of $257.7M for the fiscal year ending 2025.
Cheetah Mobile Inc. (CMCM) reported an operating income of $-137.9M, resulting in an operating profit margin of -12.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Cheetah Mobile Inc. (CMCM) generated $834.0M in gross profit for the year, representing a gross profit margin of 72.5%. This demonstrates the company's core pricing power and production efficiency.