Revenue declined by 9.2% in 2025Q2, while the reported 163.8% net margin appears heavily distorted by non-operating gains rather than core operational success.
| 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 | Dec'05 |
|---|
| Sales/Revenue | 602.2M | 549.96M | 630.2M | 838M | 426.41M | 356.13M | 227.98M | 204.89M | 214.11M | 241.2M | 216.08M | 178.2M | 87.33M | 45.97M | 22.37M | 165.03M | 134.51M | 111M | 86.97M | 65.11M | 50.43M | 37.86M |
| Revenue Growth % | -1.41% | -12.73% | -24.8% | 96.52% | 19.73% | 56.21% | 11.27% | -4.31% | -11.23% | 11.63% | 21.25% | 104.06% | 89.97% | 105.53% | -86.45% | 22.69% | 21.18% | 27.62% | 33.58% | 29.1% | 33.21% | - |
| Cost of Goods Sold | 548.43M | 337.24M | 348.88M | 384.45M | 311.1M | 258.23M | 188.52M | 160.15M | 143.94M | 175.82M | 156.33M | 110.78M | 58.85M | 22.21M | 12.75M | 74.16M | 54.64M | 44.59M | 36.13M | 27.66M | 21.32M | 14.62M |
| COGS % of Revenue | - | 61.32% | 55.36% | 45.88% | 72.96% | 72.51% | 82.69% | 78.16% | 67.23% | 72.89% | 72.35% | 62.16% | 67.39% | 48.31% | 57.02% | 44.94% | 40.62% | 40.17% | 41.54% | 42.48% | 42.28% | 38.6% |
| Gross Profit | 53.76M | 212.72M | 281.32M | 453.55M | 115.31M | 97.89M | 39.46M | 44.74M | 70.17M | 65.38M | 59.75M | 67.43M | 28.48M | 23.76M | 9.61M | 91.11M | 79.87M | 66.41M | 50.84M | 37.45M | 29.11M | 23.24M |
| Gross Margin % | 8.93% | 38.68% | 44.64% | 54.12% | 27.04% | 27.49% | 17.31% | 21.84% | 32.77% | 27.11% | 27.65% | 37.84% | 32.61% | 51.69% | 42.98% | 55.21% | 59.38% | 59.83% | 58.46% | 57.52% | 57.72% | 61.4% |
| Gross Profit Growth % | - | -24.38% | -37.97% | 293.35% | 17.79% | 148.1% | -11.8% | -36.24% | 7.31% | 9.42% | -11.38% | 136.75% | 19.86% | 147.19% | -89.45% | 14.07% | 20.26% | 30.62% | 35.75% | 28.65% | 25.24% | - |
| Operating Expenses | 73.46M | 267.45M | 321.93M | 436.23M | 523M | 426.21M | 236.13M | 197.26M | 162.81M | 118.8M | 106.59M | 77.2M | 46.74M | 12.21M | 2.56M | 84.32M | 82.46M | 71.03M | 64.98M | 47.36M | 34.5M | 28.97M |
| OpEx % of Revenue | - | 48.63% | 51.08% | 52.06% | 122.65% | 119.68% | 103.57% | 96.27% | 76.04% | 49.25% | 49.33% | 43.32% | 53.52% | 26.55% | 11.47% | 51.1% | 61.31% | 63.99% | 74.71% | 72.74% | 68.41% | 76.53% |
| Selling, General & Admin | 96.73M | 103.3M | 112.91M | 133.18M | 136.11M | 127.13M | 61.35M | 52.93M | 48.65M | 43.28M | 39.58M | 29.83M | 16.82M | 24.75M | 27.07M | 56.5M | 52.7M | 44.81M | 31.74M | 23.09M | 16.04M | 18.2M |
| SG&A % of Revenue | - | 18.78% | 17.92% | 15.89% | 31.92% | 35.7% | 26.91% | 25.84% | 22.72% | 17.94% | 18.32% | 16.74% | 19.27% | 53.83% | 121.03% | 34.24% | 39.18% | 40.37% | 36.5% | 35.46% | 31.81% | 48.07% |
| Research & Development | 190.1M | 164.15M | 213.37M | 303.06M | 267.59M | 207.45M | 111.23M | 91.94M | 115.58M | 75.78M | 66.87M | 47.37M | 29.91M | 4.48M | 5.89M | 7.29M | 6.41M | 3.86M | 8.81M | 5.64M | 2.77M | 2.05M |
| R&D % of Revenue | - | 29.85% | 33.86% | 36.16% | 62.75% | 58.25% | 48.79% | 44.87% | 53.98% | 31.42% | 30.95% | 26.58% | 34.25% | 9.75% | 26.35% | 4.42% | 4.76% | 3.47% | 10.13% | 8.67% | 5.5% | 5.41% |
| Other Operating Expenses | -2M | 0 | -4.35M | 0 | 119.31M | 91.64M | 63.54M | 52.38M | -1.42M | -256.26K | 139K | 0 | 0 | -17.02M | -30.4M | 20.53M | 23.35M | 22.36M | 24.43M | 18.62M | 15.68M | 8.73M |
| Operating Income | -19.7M | -54.73M | -43.7M | 18.38M | -409.77M | -328.32M | -198.62M | -152.78M | -92.64M | -53.42M | -46.7M | -9.77M | -18.23M | -1.04M | -17.43M | 4.12M | -2.21M | -4.61M | -14.23M | -9.72M | -5.38M | -5.73M |
| Operating Margin % | -3.27% | -9.95% | -6.94% | 2.19% | -96.1% | -92.19% | -87.12% | -74.57% | -43.27% | -22.15% | -21.61% | -5.48% | -20.88% | -2.26% | -77.95% | 2.49% | -1.64% | -4.16% | -16.36% | -14.93% | -10.67% | -15.13% |
| Operating Income Growth % | - | -25.22% | -337.85% | 104.48% | -24.81% | -65.3% | -30% | -64.92% | -73.43% | -14.39% | -377.91% | 46.41% | -1656.25% | 94.05% | -523.63% | 286.42% | 52.16% | 67.57% | -46.33% | -80.62% | 6.03% | - |
| EBITDA | -7.49M | -41.38M | -31.36M | 26.58M | -401.11M | -321.13M | -192.56M | -147.84M | -89.05M | -50.84M | -44.39M | -7.76M | -17M | -75.16K | -15.93M | 8.68M | 2.37M | -46.89K | -9.58M | -5.92M | -2.52M | -3.41M |
| EBITDA Margin % | -1.24% | -7.52% | -4.98% | 3.17% | -94.07% | -90.17% | -84.46% | -72.16% | -41.59% | -21.08% | -20.54% | -4.35% | -19.47% | -0.16% | -71.23% | 5.26% | 1.76% | -0.04% | -11.01% | -9.1% | -4.99% | -9.01% |
| EBITDA Growth % | 93.2% | -31.94% | -217.99% | 106.63% | -24.91% | -66.77% | -30.25% | -66.02% | -75.16% | -14.52% | -472.36% | 54.39% | -22523.6% | 99.53% | -283.59% | 265.86% | 5158.66% | 99.51% | -61.68% | -135.31% | 26.18% | - |
| D&A (Non-Cash Add-back) | 12.21M | 13.34M | 12.34M | 8.21M | 8.66M | 7.19M | 6.06M | 4.94M | 3.59M | 2.58M | 2.3M | 2.02M | 1.23M | 963K | 1.5M | 4.56M | 4.58M | 4.57M | 4.65M | 3.8M | 2.87M | 2.32M |
| EBIT | -19.7M | -54.73M | -43.7M | 18.38M | -409.77M | -215.15M | -198.62M | -140.07M | -85.65M | -52.08M | -45.7M | -9.77M | -18.23M | 11.08M | 12.57M | 6.75M | -2.21M | -4.61M | -14.23M | -9.72M | -5.38M | -5.74M |
| Net Interest Income | 37.21M | 47.14M | 37.21M | 35.39M | 8.95M | 1.48M | 2.45M | 3.91M | 4.97M | -235K | -1.13M | -953K | -957K | -1.03M | -770.93K | -426K | -176.92K | -116.42K | 692.64K | 638.45K | 170.81K | -319.98K |
| Interest Income | 37.21M | 50.01M | 40.08M | 36.15M | 9.6M | 2.08M | 3.24M | 4.94M | 5.98M | 1.22M | 502K | 451K | 559K | 451.04K | 387.46K | 133.65K | 225.46K | 282.96K | 1.22M | 937.6K | 559.54K | 175.47K |
| Interest Expense | 0 | 2.87M | 2.87M | 759K | 652K | 592K | 787K | 1.03M | 1.01M | 1.46M | 1.63M | 1.4M | 1.52M | 1.49M | 1.16M | 561.03K | 402.38K | 399.37K | 527.87K | 299.15K | 388.73K | 495.45K |
| Other Income/Expense | 554.73M | 577.45M | 89.07M | 87.23M | 51.52M | 173.19M | 87.74M | 52.2M | 25.32M | 33.53M | 65.58M | 21.8M | 13.48M | -1.49M | 29.31M | 710.89K | -402.38K | -399.37K | -527.87K | -299.15K | -386.77K | -502.33K |
| Pretax Income | 535.03M | 522.72M | 45.36M | 105.6M | -360.24M | -155.33M | -110.88M | -100.58M | -67.32M | -19.88M | 18.89M | 12.03M | -4.78M | 10.07M | 11.88M | 4.83M | -2.61M | -5.01M | -14.76M | -10.02M | -5.77M | -6.23M |
| Pretax Margin % | 88.85% | 95.05% | 7.2% | 12.6% | -84.48% | -43.62% | -48.64% | -49.09% | -31.44% | -8.24% | 8.74% | 6.75% | -5.47% | 21.91% | 53.1% | 2.93% | -1.94% | -4.52% | -16.97% | -15.39% | -11.44% | -16.46% |
| Income Tax | 67.47M | 63.78M | 7.19M | 4.51M | -283K | 11.92M | 4.83M | 3.27M | 3.96M | 3.08M | 4.33M | 1.6M | 1.34M | 1.05M | 1.12M | 3.14M | 2.58M | 2.07M | 1.5M | 837.21K | 1.96K | 141.06K |
| Effective Tax Rate % | 12.61% | 12.2% | 15.85% | 4.27% | 0.08% | -7.67% | -4.36% | -3.26% | -5.89% | -15.49% | 22.93% | 13.34% | -28.11% | 10.43% | 9.4% | 65.1% | -98.98% | -41.21% | -10.19% | -8.35% | -0.03% | -2.26% |
| Net Income | 466.88M | 458.12M | 37.73M | 100.78M | -360.83M | -194.65M | -125.73M | -106.02M | -74.81M | -26.74M | 11.7M | 7.99M | -32.82M | 5.92M | 3.64M | 710.22K | -6.86M | -8.75M | -17.76M | -17.19M | -9.61M | -6.78M |
| Net Margin % | 77.53% | 83.3% | 5.99% | 12.03% | -84.62% | -54.66% | -55.15% | -51.75% | -34.94% | -11.08% | 5.41% | 4.49% | -37.58% | 12.87% | 16.27% | 0.43% | -5.1% | -7.88% | -20.41% | -26.4% | -19.05% | -17.9% |
| Net Income Growth % | 1212.42% | 1114.23% | -62.56% | 127.93% | -85.38% | -54.81% | -18.59% | -41.73% | -179.78% | -328.56% | 46.35% | 124.36% | -654.79% | 62.59% | 412.23% | 110.35% | 21.55% | 50.72% | -3.29% | -78.94% | -41.77% | - |
| Net Income (Continuing) | 467.56M | 458.94M | 38.17M | 101.09M | -360.39M | -167.04M | -115.52M | -103.68M | -71.29M | -22.96M | 14.56M | 10.43M | -6.12M | 9.02M | 10.76M | 3.08M | -5.19M | -7.08M | -16.26M | -10.86M | -5.77M | -6.37M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.03M | -1.98M | -7.22M | -1.4M | 0 | 0 | 0 | -5.11M | 0 | 0 |
| Minority Interest | 12.86M | 13.34M | 11.92M | 12.85M | 26.5M | 52.62M | 34.83M | 24.89M | 23.26M | 23.23M | 19.79M | 18.92M | 58.8M | 15.97M | 13.07M | 12.54M | 9.25M | 9.4M | 9.28M | 7.31M | 7.03M | 5.66M |
| EPS (Diluted) | 2.68 | 2.60 | 0.22 | 0.60 | -2.15 | -1.25 | -0.90 | -0.80 | -0.55 | -0.22 | 0.10 | -0.32 | -0.33 | 0.06 | 0.03 | 0.01 | -0.07 | -0.09 | -0.17 | -0.17 | -0.10 | -0.09 |
| EPS Growth % | 1165.87% | 1081.82% | -63.33% | 127.91% | -72% | -38.89% | -12.5% | -45.45% | -150% | -324.49% | 130.63% | 3.03% | -689.29% | 62.32% | - | 110.53% | 22.22% | 49.71% | 0% | -70% | -8.11% | - |
| EPS (Basic) | - | 2.65 | 0.22 | 0.60 | -2.15 | -1.25 | -0.90 | -0.80 | -0.55 | -0.22 | 0.10 | -0.32 | -0.33 | 0.06 | 0.04 | 0.01 | -0.07 | -0.09 | -0.17 | -0.17 | -0.10 | -0.09 |
| Diluted Shares Outstanding | 174.51M | 174.58M | 174.57M | 173.84M | 169.43M | 158.54M | 139.59M | 133.14M | 132.85M | 123.43M | 119.94M | 109.32M | 105.79M | 105.76M | 105.3M | 105.31M | 103.06M | 102.46M | 102.46M | 102.43M | 91.43M | 73.33M |
| Basic Shares Outstanding | 174.98M | 171.66M | 171.07M | 169.93M | 169.43M | 158.54M | 139.59M | 133.14M | 132.85M | 123.43M | 119.43M | 109.32M | 105.13M | 104.1M | 103.84M | 103.49M | 103.06M | 102.46M | 102.46M | 102.43M | 91.43M | 73.33M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 14.79% | - | - | - | - | - | - | - |
Lumpy milestone revenue dependency
As reported in recent financial filings, HUTCHMED experienced a revenue decline of 9.2% in 2025Q2, reflecting the inherent instability of a business model heavily reliant on the timing of non-recurring milestone payments rather than consistent, high-volume commercial product sales across its oncology and distribution segments.
The revenue trajectory appears highly sensitive to the recognition of licensing milestones, which creates significant quarter-over-quarter fluctuations. Investors should monitor whether the transition toward global royalty streams from Fruquintinib can eventually smooth out these lumpy inflows and provide a more predictable growth baseline.
Based on the provided income statement data, gross margins have fluctuated significantly, reaching 39.7% in 2025Q2, which suggests that the company's blended margin profile remains constrained by the lower-margin nature of its 'Other Ventures' distribution business compared to its proprietary oncology drug portfolio.
The wide variance in gross margins, ranging from negative figures to nearly 94% in historical periods, indicates that the company's profitability is currently dictated by the specific accounting treatment of licensing deals. Sustained margin expansion will likely require a shift in revenue composition toward higher-margin royalty income.
According to the latest quarterly data, the reported net margin of 163.8% in 2025Q2 appears to be significantly inflated by non-operating items, as the company simultaneously reported a negative operating margin of 1.3%, highlighting a disconnect between accounting net income and core operational performance.
The massive discrepancy between operating and net margins suggests that investors should exercise caution when evaluating the company's bottom line. The reliance on one-time gains to drive net income may mask the underlying cash burn associated with the company's extensive R&D and clinical trial commitments.
As indicated by the financial statements, R&D expenses of $36.0M in 2025Q2 continue to represent a substantial portion of the cost structure, which, when combined with SG&A, keeps the company in a state of operating loss despite the recent commercialization of key oncology assets.
Management's expense discipline appears focused on maintaining the discovery engine, yet the current scale of operations has not reached the inflection point required to achieve consistent operating leverage. Future profitability will likely depend on the company's ability to control these fixed costs while scaling global commercial revenue.
Quick answers to the most common questions about buying HCM stock.
For fiscal year 2025, HUTCHMED (China) Limited (HCM) reported total revenue of $550.0M. This represents a 1352.6% increase compared to $37.9M in 2005.
HUTCHMED (China) Limited (HCM) is profitable, generating $458.1M in net income for the fiscal year ending 2025 with a net profit margin of 83.3%.
HUTCHMED (China) Limited (HCM) reported an operating income of $-54.7M, resulting in an operating profit margin of -10.0%. This margin reflects the operational efficiency of the business before interest and taxes.
HUTCHMED (China) Limited (HCM) generated $212.7M in gross profit for the year, representing a gross profit margin of 38.7%. This demonstrates the company's core pricing power and production efficiency.