Revenue growth has decelerated with TTM revenue down 12.7% to $1.4B, while gross margin compressed from 41.1% in 2024Q1 to 17.0% in 2026Q2, reflecting a mix shift toward lower-margin distribution and milestone volatility.
HUTCHMED (China) Limited (HCM) annual income statement — 21-year revenue, gross profit & net income history
| 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 | 549.12M | 549.96M | 630.2M | 838M | 426.41M | 356.13M | 228.37M | 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 % | -8.81% | -12.73% | -24.8% | 96.52% | 19.73% | 55.94% | 11.46% | -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 | 548.01M | 337.24M | 347.63M | 384.45M | 311.1M | 28.79M | 188.84M | 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% | 55.16% | 45.88% | 72.96% | 8.08% | 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 | 1.11M | 212.72M | 282.57M | 453.55M | 115.31M | 327.34M | 39.52M | 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 % | 0.2% | 38.68% | 44.84% | 54.12% | 27.04% | 91.92% | 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 % | - | -24.72% | -37.7% | 293.35% | -64.78% | 728.19% | -11.65% | -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 | 35.89M | 267.45M | 326.28M | 436.23M | 834.1M | 684.45M | 238.14M | 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% | 51.77% | 52.06% | 195.61% | 192.19% | 104.28% | 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 | 107.88M | 103.3M | 112.91M | 133.18M | 136.11M | 127.13M | 61.45M | 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 | 161.54M | 164.15M | 213.37M | 303.06M | 386.89M | 299.09M | 176.69M | 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% | 90.73% | 83.98% | 77.37% | 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 | -4M | 0 | 0 | 0 | 311.1M | 258.23M | 0 | 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 | -34.78M | -54.73M | -43.7M | 18.38M | -718.8M | -357.1M | -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 % | -6.33% | -9.95% | -6.94% | 2.19% | -168.57% | -100.27% | -86.97% | -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% | 102.56% | -101.29% | -79.8% | -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 | -20.52M | -41.42M | -31.36M | 26.58M | -710.13M | -349.91M | -192.56M | -147.84M | -89.05M | -50.84M | -44.36M | -7.76M | -17M | -75.16K | -15.93M | 8.68M | 2.37M | -46.89K | -9.58M | -5.92M | -2.52M | -3.41M |
| EBITDA Margin % | -3.74% | -7.53% | -4.98% | 3.17% | -166.54% | -98.25% | -84.32% | -72.16% | -41.59% | -21.08% | -20.53% | -4.35% | -19.47% | -0.16% | -71.23% | 5.26% | 1.76% | -0.04% | -11.01% | -9.1% | -4.99% | -9.01% |
| EBITDA Growth % | -173.86% | -32.05% | -217.99% | 103.74% | -102.95% | -81.72% | -30.25% | -66.02% | -75.16% | -14.62% | -471.89% | 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) | 14.26M | 13.31M | 12.34M | 8.21M | 8.66M | 7.19M | 6.06M | 4.94M | 3.59M | 2.58M | 2.34M | 2.02M | 1.23M | 963K | 1.5M | 4.56M | 4.58M | 4.57M | 4.65M | 3.8M | 2.87M | 2.32M |
| EBIT | -34.78M | -54.73M | -43.7M | 18.38M | -360.02M | -154.53M | -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 | 0 | 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 | 0 | 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 | 788.35K | 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 | 54.85M | 577.45M | 89.07M | 87.23M | 358.13M | 201.98M | 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 | 20.08M | 522.72M | 45.36M | 105.6M | -360.67M | -155.12M | -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 % | 3.66% | 95.05% | 7.2% | 12.6% | -84.58% | -43.56% | -48.55% | -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 | 1.66M | 63.78M | 7.19M | 4.51M | -283K | 11.92M | 4.84M | 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 % | 8.25% | 12.2% | 15.85% | 4.27% | 0.08% | -7.68% | -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 | 17.88M | 458.12M | 37.73M | 100.78M | -360.83M | -194.65M | -125.95M | -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 % | 3.26% | 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 % | -96.17% | 1114.23% | -62.56% | 127.93% | -85.38% | -54.55% | -18.79% | -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) | 18.42M | 458.94M | 38.17M | 101.09M | -360.39M | -167.04M | -115.72M | -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 | 14.19M | 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) | 0.10 | 2.60 | 0.22 | 0.60 | -2.15 | -1.25 | -4.50 | -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 % | -96.17% | 1081.82% | -63.33% | 127.91% | -72% | 72.22% | -462.5% | -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 | -4.50 | -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 | 174.57M | 174.58M | 174.57M | 173.84M | 169.43M | 158.54M | 27.92M | 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 | 173.17M | 171.66M | 171.07M | 169.93M | 169.43M | 158.54M | 27.92M | 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% | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Milestone revenue volatility and thin cash
Milestone-Driven Revenue Volatility
TTM revenue declined 12.7% to $1.4B, reflecting a gap in milestone payments. As reported in financial statements, quarterly revenue has been flat around $139M in 2026, suggesting a pause in licensing income.
The -12.73% TTM revenue growth is primarily attributable to the absence of large upfront or milestone payments, which historically have caused significant quarterly swings. The flat sequential revenue in 2026Q1 and Q2 at $139.1M indicates that the company is currently relying on recurring product sales and royalties, which appear stable but not growing. This suggests that the growth trajectory is highly dependent on the timing of partnership milestones, making it inherently lumpy and difficult to forecast.
Gross Margin Compression from Mix Shift
Gross margin swung from 41.1% in 2024Q1 to 17.0% in 2026Q2, as reported in financial statements. This appears driven by a higher proportion of low-margin distribution revenue and negative gross profit in some quarters.
The dramatic decline in gross margin from 41.1% to 17.0% over the past two years suggests a structural shift in revenue mix, likely due to increased contribution from the Other Ventures distribution business, which carries lower margins. The negative gross margins in 2025Q3-Q4 and 2024Q3-Q4 are particularly concerning, as they indicate that COGS exceeded revenue, possibly due to inventory write-downs or one-time costs. This implies that the company's overall profitability is being dragged down by its non-core distribution segment, while the oncology segment's higher-margin royalty income is not yet sufficient to offset this drag.
Operating Leverage Still Elusive
Operating margin improved from -9.0% in 2024Q1 to +0.3% in 2026Q2, as per reported figures. However, this is due to a sharp reduction in R&D and SG&A, not revenue growth, indicating limited operating leverage.
The improvement in operating margin from -9.0% to +0.3% is primarily a result of cost containment, with R&D expenses declining from $47.6M to $39.4M and SG&A from $28.9M to $23.2M over the same period. Revenue remained roughly flat, so the company has not yet achieved the scale needed to generate meaningful operating leverage. This suggests that while management is disciplined in controlling costs, the business model still requires significant investment to drive growth, and the current near-breakeven operating income is fragile.
Net Income Distorted by One-Time Gains
Net margin of 83.3% TTM is misleading, as it includes a $227.5M net income in 2025Q1-Q2, likely from a licensing deal. Excluding that, core operations are barely profitable, as seen in 2026Q2 net income of only $8.0M.
The reported net margin of 83.3% is heavily influenced by a one-time gain of $227.5M in 2025Q1 and Q2, which appears to be an upfront payment from the Takeda partnership. In contrast, 2026Q2 net income of $8.0M on revenue of $139.1M yields a net margin of only 5.7%, which is more indicative of the underlying profitability. This suggests that investors should focus on ex-item earnings to assess the company's recurring earnings power, as the headline net income is not sustainable.
R&D Discipline Amidst Pipeline Needs
R&D expenses have been reduced from $59.1M in 2024Q4 to $39.4M in 2026Q2, a 33% cut, as reported in financial statements. This appears to be a deliberate effort to manage cash burn, but may limit pipeline progress.
The significant reduction in R&D spending from $59.1M to $39.4M per quarter suggests a strategic pivot towards cost containment, likely in response to the thin cash position of $71M. While this improves near-term operating margins, it may indicate a slowdown in clinical development, which could impact future growth prospects. Investors should monitor whether this reduction is a temporary measure or a long-term shift, as it could affect the company's ability to advance its pipeline and secure future partnerships.
2025 Milestone Windfall and Its Aftermath
The 2025Q1-Q2 period marked a major inflection, with net income of $227.5M per quarter, likely from the Takeda upfront payment. This contrasts sharply with the $8.0M net income in 2026Q2, highlighting the lumpy nature of the business.
The 2025Q1-Q2 quarters represent a clear inflection point in the income statement, as the company recognized a substantial one-time gain, likely from the Takeda licensing deal. This event temporarily transformed the company from a loss-making entity to a highly profitable one, but the subsequent quarters have reverted to more normalized, modest profitability. The lasting impact is that the company now has a validated global asset (Fruzaqla) and a stronger balance sheet, but the income statement volatility underscores the need for recurring royalty streams to smooth out earnings.
What Could Invalidate the Base Case
The reliance on one-time licensing income and a thin $71M cash position could expose the company to funding gaps. As reported in financial statements, operating losses persist, and the absence of guidance increases uncertainty.
Short-sellers might argue that the company's profitability is an illusion, driven by non-recurring milestone payments rather than sustainable operations. The negative operating margins in several quarters and the dependence on partnership deals for cash flow suggest that the core business is not yet self-sustaining. Additionally, the lack of formal guidance and the potential for increased R&D costs due to global expansion could strain the already thin cash reserves, making the company vulnerable to adverse developments in its pipeline or partnerships.