The company's top-line performance remains under extreme pressure, with revenue contracting by 76.8% in 2026Q1 while gross margins languish at a thin 7.0%.
| Metric | TTM | 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 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 |
|---|
| Sales/Revenue | 3.35M | 4.61M | 15.44M | 30.59M | 26.23M | 47.33M | 38.41M | 58.08M | 57.15M | 46.63M | 34.75M | 32.27M | 38.9M | 30.29M | 46.6M | 28.73M | 41.59M | 37.72M | 21.51M | 35.09K | 11.96K |
| Revenue Growth % | -75.33% | -70.11% | -49.52% | 16.58% | -44.57% | 23.22% | -33.87% | 1.63% | 22.54% | 34.2% | 7.7% | -17.05% | 28.4% | -34.99% | 62.19% | -30.91% | 10.24% | 75.4% | 61195.56% | 193.31% | - |
| Cost of Goods Sold | 3.13M | 4.26M | 14.99M | 31.02M | 26.43M | 47.23M | 37.78M | 52.58M | 54.73M | 42.02M | 27M | 24.66M | 32.27M | 16.56M | 31.56M | 12.03M | 18.97M | 21.23M | 13.79M | 0 | 0 |
| COGS % of Revenue | - | 92.35% | 97.11% | 101.43% | 100.74% | 99.79% | 98.35% | 90.53% | 95.77% | 90.11% | 77.7% | 76.41% | 82.98% | 54.68% | 67.72% | 41.86% | 45.62% | 56.29% | 64.1% | - | - |
| Gross Profit | 220K | 353K | 446K | -436K | -194K | 98K | 632K | 5.5M | 2.42M | 4.61M | 7.75M | 7.61M | 6.62M | 13.73M | 15.04M | 16.7M | 22.62M | 16.49M | 7.72M | 35.09K | 11.96K |
| Gross Margin % | 6.58% | 7.65% | 2.89% | -1.43% | -0.74% | 0.21% | 1.65% | 9.47% | 4.23% | 9.89% | 22.3% | 23.59% | 17.02% | 45.32% | 32.28% | 58.14% | 54.38% | 43.71% | 35.9% | 100% | 100% |
| Gross Profit Growth % | - | -20.85% | 202.29% | -124.74% | -297.96% | -84.49% | -88.5% | 127.38% | -47.58% | -40.49% | 1.85% | 14.92% | -51.77% | -8.72% | -9.95% | -26.14% | 37.15% | 113.56% | 21906.9% | 193.31% | - |
| Operating Expenses | 1.51M | 2.31M | 4.2M | 5.58M | 10.93M | 13.69M | 6.33M | 7.19M | 8.39M | 11.46M | 13.74M | 14.25M | 15.88M | 12.26M | 10.53M | 13.54M | 7.77M | 7.08M | 3.95M | 161.3K | 93.35K |
| OpEx % of Revenue | - | 49.98% | 27.22% | 18.23% | 41.64% | 28.92% | 16.49% | 12.37% | 14.68% | 24.57% | 39.54% | 44.16% | 40.83% | 40.47% | 22.6% | 47.13% | 18.68% | 18.77% | 18.36% | 459.69% | 780.34% |
| Selling, General & Admin | 1.62M | 2.31M | 4.2M | 4.33M | 8.57M | 13.36M | 5.79M | 6.32M | 7.46M | 10.2M | 11.74M | 12.08M | 13.22M | 10.27M | 8.71M | 11.41M | 6.86M | 6.6M | 3.75M | 140.68K | 79.47K |
| SG&A % of Revenue | - | 49.98% | 27.22% | 14.15% | 32.68% | 28.23% | 15.09% | 10.88% | 13.05% | 21.87% | 33.8% | 37.45% | 34% | 33.89% | 18.7% | 39.71% | 16.5% | 17.5% | 17.42% | 400.92% | 664.3% |
| Research & Development | 0 | 0 | 0 | 17K | 229K | 326K | 539K | 869K | 933K | 1.26M | 2M | 2.16M | 2.66M | 2M | 1.82M | 2.13M | 907K | 480K | 202K | 0 | 0 |
| R&D % of Revenue | - | - | - | 0.06% | 0.87% | 0.69% | 1.4% | 1.5% | 1.63% | 2.7% | 5.74% | 6.71% | 6.84% | 6.59% | 3.9% | 7.42% | 2.18% | 1.27% | 0.94% | - | - |
| Other Operating Expenses | -104K | 0 | 0 | 1.23M | 2.12M | 0 | -31K | 0 | -30K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20.62K | 13.88K |
| Operating Income | -1.29M | -1.95M | -3.76M | -6.01M | -11.12M | -13.59M | -5.7M | -1.69M | -5.97M | -9.44M | -6.15M | -9.32M | -14.63M | 1.47M | 4.51M | 3.16M | 14.85M | 9.41M | 3.77M | -126.21K | -81.39K |
| Operating Margin % | -38.71% | -42.33% | -24.33% | -19.66% | -42.38% | -28.71% | -14.84% | -2.91% | -10.45% | -20.25% | -17.69% | -28.87% | -37.62% | 4.85% | 9.68% | 11.01% | 35.7% | 24.94% | 17.55% | -359.69% | -680.34% |
| Operating Income Growth % | - | 48.02% | 37.51% | 45.93% | 18.18% | -138.38% | -237.74% | 71.73% | 36.76% | -53.58% | 34.01% | 36.34% | -1095.51% | -67.41% | 42.63% | -78.7% | 57.8% | 149.31% | 3090.25% | -55.07% | - |
| EBITDA | -974K | -1.68M | -2.8M | -4.36M | -8.56M | -12.75M | -4.83M | -1.43M | -5.43M | -8.02M | -4.58M | -7.55M | -13.2M | 3.09M | 6.15M | 4.17M | 15.31M | 9.62M | 3.85M | -105.59K | -67.51K |
| EBITDA Margin % | -29.12% | -36.3% | -18.12% | -14.26% | -32.64% | -26.94% | -12.57% | -2.46% | -9.5% | -17.2% | -13.17% | -23.39% | -33.93% | 10.19% | 13.19% | 14.53% | 36.82% | 25.49% | 17.9% | -300.92% | -564.3% |
| EBITDA Growth % | 63.64% | 40.11% | 35.85% | 49.08% | 32.84% | -164.11% | -238.1% | 73.7% | 32.29% | -75.26% | 39.37% | 42.81% | -527.5% | -49.78% | 47.27% | -72.74% | 59.23% | 149.7% | 3747.09% | -56.41% | - |
| D&A (Non-Cash Add-back) | 321K | 278K | 960K | 1.65M | 2.56M | 839K | 873K | 260K | 541K | 1.42M | 1.57M | 1.77M | 1.44M | 1.62M | 1.64M | 1.01M | 465K | 207K | 77K | 20.62K | 13.88K |
| EBIT | -1.25M | -1.95M | -3.76M | -4.78M | -9M | -13.59M | -5.7M | -1.19M | -13.33M | -9.65M | -6.17M | -9.16M | -14.54M | 1.47M | 4.39M | 3.16M | 14.85M | 9.41M | 3.77M | -125.16K | -81.39K |
| Net Interest Income | 180K | 189K | 298K | 298K | 116K | 4K | 1K | -35K | -37K | -107K | 77K | 70K | 70K | 99K | 186K | 13K | 13K | 14K | 8K | 2K | 0 |
| Interest Income | 180K | 189K | 298K | 298K | 116K | 4K | 1K | 0 | 0 | 40K | 90K | 117K | 122K | 125K | 186K | 13K | 13K | 14K | 8K | 2K | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 35K | 37K | 147K | 13K | 47K | 52K | 26K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 177K | 182K | 387K | 36K | 1.32M | 11.08M | 623K | 467K | 1.15M | -362K | -35K | 104K | -97K | -754K | -124K | 873K | 1.88M | -4.51M | -12K | 1.05K | 81.39K |
| Pretax Income | -1.12M | -1.77M | -3.37M | -5.98M | -9.79M | -2.51M | -5.08M | -1.22M | -13.36M | -9.76M | -6.18M | -9.21M | -14.59M | 716K | 4.39M | 4.04M | 16.73M | 4.9M | 3.76M | -125.16K | -81.39K |
| Pretax Margin % | -33.42% | -38.38% | -21.83% | -19.54% | -37.33% | -5.31% | -13.22% | -2.1% | -23.38% | -20.93% | -17.79% | -28.55% | -37.51% | 2.36% | 9.41% | 14.04% | 40.22% | 12.99% | 17.49% | -356.68% | -680.34% |
| Income Tax | -3K | -1K | 399K | -2K | -3K | 177K | 143K | 49K | 764K | 251K | 102K | -1.5M | -653K | 816K | 529K | 1.03M | 352K | 880K | 962K | 0 | 81.39K |
| Effective Tax Rate % | 0.27% | 0.06% | -11.84% | 0.03% | 0.03% | -7.05% | -2.82% | -4.01% | -5.72% | -2.57% | -1.65% | 16.24% | 4.48% | 113.97% | 12.06% | 25.65% | 2.1% | 17.96% | 25.57% | 0% | -100% |
| Net Income | -1.11M | -1.77M | -3.76M | -5.97M | -9.79M | -2.75M | -5.22M | -1.26M | -14.13M | -10.13M | -6.49M | -9.09M | -13.74M | -234K | 3M | 3M | 16.59M | 4.02M | 2.8M | -125.16K | -81.39K |
| Net Margin % | -33.27% | -38.36% | -24.36% | -19.53% | -37.32% | -5.82% | -13.59% | -2.17% | -24.72% | -21.71% | -18.68% | -28.18% | -35.32% | -0.77% | 6.43% | 10.42% | 39.89% | 10.65% | 13.02% | -356.68% | -680.34% |
| Net Income Growth % | 67.66% | 52.94% | 37.04% | 38.98% | -255.52% | 47.25% | -314.04% | 91.07% | -39.53% | -55.96% | 28.6% | 33.82% | -5770.94% | -107.81% | 0.03% | -81.95% | 312.76% | 43.54% | 2337.21% | -53.78% | - |
| Net Income (Continuing) | -1.11M | -1.77M | -3.77M | -5.97M | -9.79M | -2.69M | -5.22M | -1.27M | -14.13M | -10.01M | -6.29M | -7.72M | -12.42M | -283K | 3.41M | 3M | 16.38M | 4.02M | 2.8M | -125.16K | -81.39K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -50K | -1.47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 61K | 60K | 60K | 0 | 0 | 0 | -66K | -57K | -49K | 177K | 54K | 375K | -277K | -123K | 621K | 5.85M | -70K | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.34 | -0.67 | -1.86 | -0.83 | -1.37 | -0.41 | -1.21 | -0.37 | -4.45 | -4.18 | -2.86 | -4.25 | -7.66 | -0.13 | 1.75 | 1.75 | 9.88 | -1.87 | 2.50 | -0.16 | -0.19 |
| EPS Growth % | 75.04% | 63.98% | -124.1% | 39.42% | -234.15% | 66.12% | -227.03% | 91.69% | -6.46% | -46.15% | 32.71% | 44.52% | -5792.31% | -107.43% | 0% | -82.29% | 628.34% | -174.8% | 1662.5% | 15.79% | - |
| EPS (Basic) | - | -0.67 | -1.86 | -0.83 | -1.37 | -0.41 | -1.21 | -0.37 | -4.45 | -4.18 | -2.86 | -4.25 | -7.70 | -0.13 | 1.75 | 1.75 | 11.75 | -1.87 | 2.50 | -0.16 | -0.19 |
| Diluted Shares Outstanding | 3.27M | 2.66M | 2.02M | 7.2M | 7.14M | 6.61M | 4.32M | 3.43M | 3.17M | 2.42M | 2.27M | 2.14M | 1.79M | 1.78M | 1.77M | 1.5M | 1.67M | 1.19M | 1.1M | 800K | 428K |
| Basic Shares Outstanding | 3.27M | 2.66M | 2.02M | 7.2M | 7.14M | 6.61M | 4.32M | 3.43M | 3.17M | 2.42M | 2.27M | 2.14M | 1.78M | 1.78M | 1.77M | 1.48M | 1.34M | 1.19M | 1.1M | 800K | 428K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and business model failure
As reported in recent financial filings, CNET experienced a staggering 76.8% year-over-year revenue decline in 2026Q1, signaling a profound erosion of its core franchise recruitment and advertising business as clients migrate toward more integrated, high-traffic digital ecosystems that offer superior lead generation capabilities for small enterprises.
The consistent double-digit quarterly revenue declines suggest that the company's legacy portal model is struggling to maintain relevance in a competitive Chinese advertising landscape. This trajectory implies that the firm's pivot toward blockchain-based services has yet to provide a meaningful offset to the rapid decay of its primary revenue streams.
Based on the company's latest income statement, gross margins have languished at a thin 7.0%, reflecting a business model that appears to function more as a low-value traffic reseller than a proprietary technology provider, leaving little room to absorb the high fixed costs of portal maintenance.
The inability to sustain gross margins above the low single digits suggests a lack of pricing power and a high dependency on third-party traffic acquisition costs. Without a shift toward higher-margin software or data-driven products, the current margin profile appears insufficient to cover the company's operating overhead.
According to historical income statement data, CNET has consistently failed to achieve operating leverage, with SG&A expenses frequently dwarfing gross profits and resulting in persistent operating losses that indicate a fundamental misalignment between the company's cost structure and its current, diminished scale of operations.
The recurring operating losses suggest that the company's corporate overhead is not appropriately scaled to its current revenue base. Investors should monitor whether management can implement meaningful cost rationalization, as the current structure appears to be consuming capital without generating a path toward sustainable operating profitability.
Financial statements indicate that with cash reserves dwindling to approximately $970,000, the company faces significant liquidity risks, as the current rate of operating cash burn may necessitate dilutive financing or asset liquidation to maintain basic corporate functions over the coming fiscal year, based on recent trends.
The combination of a 70% revenue contraction and persistent negative operating margins creates a precarious environment for shareholders. The reliance on speculative blockchain pivots to replace legacy advertising revenue warrants extreme caution, as there is little evidence in the current data to suggest a successful turnaround is underway.
Quick answers to the most common questions about buying CNET stock.
For fiscal year 2025, ZW Data Action Technologies Inc. (CNET) reported total revenue of $4.6M. This represents a 38468.9% increase compared to $0.0M in 2006.
ZW Data Action Technologies Inc. (CNET) reported a net loss of $1.8M for the fiscal year ending 2025.
ZW Data Action Technologies Inc. (CNET) reported an operating income of $-2.0M, resulting in an operating profit margin of -42.3%. This margin reflects the operational efficiency of the business before interest and taxes.
ZW Data Action Technologies Inc. (CNET) generated $0.4M in gross profit for the year, representing a gross profit margin of 7.7%. This demonstrates the company's core pricing power and production efficiency.