Revenue growth remains in a state of structural decay, evidenced by a 37.4% year-over-year contraction in 2025Q2 alongside gross margin compression to 24.1%.
| Sales/Revenue | 1.63B | 2.25B | 3.67B | 4.46B | 4.13B | 3.31B | 2.33B | 1.41B | 581.91M |
| Revenue Growth % | -48.7% | -38.7% | -17.84% | 8.03% | 24.76% | 42.29% | 64.69% | 142.9% | - |
| Cost of Goods Sold | 1.15B | 1.44B | 2.32B | 2.83B | 2.7B | 2.07B | 1.56B | 1.02B | 482.54M |
| COGS % of Revenue | - | 64.21% | 63.21% | 63.37% | 65.23% | 62.46% | 67.06% | 72.51% | 82.92% |
| Gross Profit | 487.88M | 804.5M | 1.35B | 1.64B | 1.44B | 1.24B | 766.86M | 388.63M | 99.37M |
| Gross Margin % | 29.87% | 35.79% | 36.79% | 36.63% | 34.77% | 37.54% | 32.94% | 27.49% | 17.08% |
| Gross Profit Growth % | - | -40.38% | -17.47% | 13.81% | 15.54% | 62.15% | 97.33% | 291.08% | - |
| Operating Expenses | 791.6M | 1.11B | 1.72B | 2.58B | 2.77B | 2.58B | 2.42B | 1.62B | 1.01B |
| OpEx % of Revenue | - | 49.29% | 46.83% | 57.86% | 67.01% | 77.87% | 104.07% | 114.87% | 173.83% |
| Selling, General & Admin | 442.88M | 482.39M | 780.32M | 1.24B | 1.43B | 1.46B | 1.39B | 963.95M | 478.31M |
| SG&A % of Revenue | - | 21.46% | 21.28% | 27.69% | 34.61% | 44.21% | 59.81% | 68.2% | 82.2% |
| Research & Development | 228.24M | 510.9M | 955.2M | 1.42B | 1.35B | 1.17B | 956.1M | 459.18M | 537.23M |
| R&D % of Revenue | - | 22.73% | 26.05% | 31.76% | 32.74% | 35.42% | 41.07% | 32.49% | 92.32% |
| Other Operating Expenses | 0 | 114.74M | -17.91M | -70.82M | -13.92M | -58.43M | 74.25M | 200.54M | -3.98M |
| Operating Income | -303.72M | -303.53M | -368.21M | -981.56M | -1.4B | -1.47B | -1.66B | -1.11B | -890.3M |
| Operating Margin % | -18.59% | -13.5% | -10.04% | -21.99% | -33.99% | -44.39% | -71.13% | -78.84% | -153% |
| Operating Income Growth % | - | 17.57% | 62.49% | 30.12% | 4.46% | 11.2% | -48.59% | -25.17% | - |
| EBITDA | -261.92M | -203.9M | -166.87M | -700.13M | -965.99M | -1.38B | -1.2B | -760.34M | -602.75M |
| EBITDA Margin % | -16.03% | -9.07% | -4.55% | -15.68% | -23.38% | -41.66% | -51.38% | -53.79% | -103.58% |
| EBITDA Growth % | -82.76% | -22.19% | 76.17% | 27.52% | 30% | -15.38% | -57.3% | -26.15% | - |
| D&A (Non-Cash Add-back) | 41.81M | 99.63M | 201.34M | 281.43M | 438.75M | 90.4M | 459.86M | 354.03M | 287.55M |
| EBIT | -278.31M | -180.54M | -342.18M | -955M | -1.37B | -1.82B | -1.59B | -1B | -891.04M |
| Net Interest Income | 39.07M | 55.06M | 10.49M | -22.46M | -47.81M | -73.13M | -46.57M | -18.92M | -75.1M |
| Interest Income | 46.29M | 67.48M | 29.58M | 14.71M | 28.82M | 77.24M | 128.26M | 188.81M | 10.61M |
| Interest Expense | 7.21M | 12.42M | 19.09M | 37.17M | 76.64M | 150.36M | 174.83M | 160.65M | 85.59M |
| Other Income/Expense | 54.84M | 54.2M | 157.87M | -8.61M | -37.87M | -80.93M | -61.42M | -49.45M | -86.33M |
| Pretax Income | -248.88M | -249.34M | -210.34M | -990.17M | -1.44B | -1.55B | -1.76B | -1.16B | -976.63M |
| Pretax Margin % | -15.24% | -11.09% | -5.74% | -22.18% | -34.91% | -46.83% | -75.71% | -82.34% | -167.83% |
| Income Tax | 460.08M | 455.37M | 9.76M | -62.15M | -112.09M | -137.13M | -74.92M | 26.47M | -369.68M |
| Effective Tax Rate % | -184.86% | -182.63% | -4.64% | 6.28% | 7.77% | 8.84% | 4.25% | -2.27% | 37.85% |
| Net Income | -677.19M | -459.68M | -362.71M | -872.27M | -1.28B | -1.35B | -1.69B | -1.2B | -606.96M |
| Net Margin % | -41.46% | -20.45% | -9.89% | -19.54% | -31.02% | -40.87% | -72.49% | -84.59% | -104.3% |
| Net Income Growth % | -1937.51% | -26.73% | 58.42% | 31.94% | 5.31% | 19.79% | -41.13% | -97% | - |
| Net Income (Continuing) | -708.96M | -704.71M | -220.1M | -928.03M | -1.33B | -1.41B | -1.69B | -1.19B | -606.96M |
| Discontinued Operations | 0 | 209.5M | -151.37M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -61.73M | -54.51M | -18.98M | -14.65M | 41.1M | 89.91M | 150.43M | 110.6M | 0 |
| EPS (Diluted) | -18.64 | -12.60 | -9.90 | -24.00 | -34.80 | -38.10 | -53.10 | -38.70 | -27.00 |
| EPS Growth % | -177.16% | -27.27% | 58.75% | 31.03% | 8.66% | 28.25% | -37.21% | -43.33% | - |
| EPS (Basic) | - | -12.60 | -9.90 | -24.00 | -34.80 | -38.10 | -53.10 | -38.70 | -27.00 |
| Diluted Shares Outstanding | 36.33M | 36.32M | 36.32M | 36.49M | 36.94M | 35.49M | 31.31M | 30.79M | 22.37M |
| Basic Shares Outstanding | 36.33M | 36.32M | 36.32M | 36.34M | 36.83M | 35.49M | 31.27M | 30.79M | 22.37M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Structural Revenue Decay
As reported in recent financial filings, OCFT experienced a severe 37.4% year-over-year revenue decline in 2025Q2, signaling a sustained contraction that suggests the company's core transaction-based and implementation service models are struggling to maintain relevance within the current Chinese financial technology landscape and broader credit environment.
The consistent double-digit revenue decay over the last ten quarters indicates that the firm's reliance on legacy financial institution migration projects is failing to offset the loss of transaction volume. This trend suggests that the company's growth thesis, once anchored in Ping An ecosystem expansion, may be fundamentally impaired by a shrinking addressable market for its specific software modules.
Based on the provided income statement data, gross margins have deteriorated to 24.1% in 2025Q2, down from historical peaks near 38%, which implies that the company lacks the pricing power necessary to defend its profitability against rising competitive pressures and the high costs of white-glove implementation.
The inability to maintain gross margins above 30% suggests that the company's 'Gamma' platform requires significant, non-scalable customization for each client. Investors should monitor whether this margin erosion is a permanent feature of the business model or a temporary byproduct of aggressive efforts to retain premium customers during a period of industry-wide consolidation.
According to the latest quarterly results, OCFT continues to report negative operating margins of -11.4%, demonstrating that the company has failed to achieve the necessary operating leverage to scale its fixed cost base effectively despite significant reductions in research and development spending over the past year.
The persistent gap between gross profit and operating expenses suggests that the company's overhead remains bloated relative to its current revenue scale. Without a clear path to rationalizing SG&A, the firm appears trapped in a cycle where it must continue to burn capital to maintain its existing technical infrastructure.
Analysis of the income statement reveals that despite a sharp contraction in top-line revenue, the company's SG&A and R&D expenses remain disproportionately high, as evidenced by the 2025Q2 operating loss of $49.4M, which highlights a lack of expense discipline in the face of declining business activity.
The company's cost structure appears heavily weighted toward technical personnel and maintenance, which are difficult to shed quickly during a downturn. This rigidity suggests that management may be prioritizing long-term product development over immediate operational efficiency, a strategy that warrants further investigation given the current revenue trajectory.
While the company maintains a substantial cash position, the persistent net losses and the 38.7% TTM revenue decline suggest that the market may be correctly discounting the firm's future, as the cash pile appears to be masking the underlying operational decay rather than funding a viable turnaround.
Short-term observers might argue that the company's cash reserves provide a safety net, but the fundamental analysis suggests this capital is being eroded by ongoing operational losses. The disconnect between the cash-rich balance sheet and the deteriorating income statement implies that the market is skeptical of management's ability to pivot toward a self-sustaining, profitable business model.
Quick answers to the most common questions about buying OCFT stock.
For fiscal year 2024, OneConnect Financial Technology Co., Ltd. (OCFT) reported total revenue of $2.25B. This represents a 286.3% increase compared to $581.9M in 2017.
OneConnect Financial Technology Co., Ltd. (OCFT) reported a net loss of $459.7M for the fiscal year ending 2024.
OneConnect Financial Technology Co., Ltd. (OCFT) reported an operating income of $-303.5M, resulting in an operating profit margin of -13.5%. This margin reflects the operational efficiency of the business before interest and taxes.
OneConnect Financial Technology Co., Ltd. (OCFT) generated $804.5M in gross profit for the year, representing a gross profit margin of 35.8%. This demonstrates the company's core pricing power and production efficiency.