Revenue growth has stalled at 2.2% year-over-year, while gross margins have compressed significantly from a peak of 80.1% to 71.4%, indicating rising cost pressures that are eroding profitability.
Weibo Corporation (WB) annual income statement — 14-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 |
|---|
| Sales/Revenue | 1.79B | 1.76B | 1.75B | 1.76B | 1.84B | 2.26B | 1.69B | 1.77B | 1.72B | 1.15B | 655.8M | 477.89M | 334.17M | 188.31M | 65.93M |
| Revenue Growth % | 1.77% | 0.41% | -0.29% | -4.17% | -18.64% | 33.56% | -4.36% | 2.82% | 49.43% | 75.37% | 37.23% | 43.01% | 77.46% | 185.63% | - |
| Cost of Goods Sold | 478.02M | 422.95M | 369.52M | 374.28M | 400.58M | 403.84M | 302.18M | 328.83M | 277.65M | 231.25M | 171.23M | 141.96M | 83.6M | 59.89M | 46.43M |
| COGS % of Revenue | - | 24.01% | 21.06% | 21.27% | 21.81% | 17.89% | 17.88% | 18.61% | 16.16% | 20.11% | 26.11% | 29.71% | 25.02% | 31.8% | 70.42% |
| Gross Profit | 1.32B | 1.34B | 1.39B | 1.39B | 1.44B | 1.85B | 1.39B | 1.44B | 1.44B | 918.8M | 484.57M | 335.93M | 250.57M | 128.42M | 19.5M |
| Gross Margin % | 73.36% | 75.99% | 78.94% | 78.73% | 78.19% | 82.11% | 82.12% | 81.39% | 83.84% | 79.89% | 73.89% | 70.29% | 74.98% | 68.2% | 29.58% |
| Gross Profit Growth % | - | -3.34% | -0.03% | -3.5% | -22.53% | 33.54% | -3.5% | -0.19% | 56.82% | 89.61% | 44.25% | 34.07% | 95.12% | 558.57% | - |
| Operating Expenses | 876.32M | 872.86M | 890.83M | 912.62M | 955.28M | 1.16B | 880.95M | 840.5M | 831.61M | 511.25M | 343.59M | 298.43M | 272.68M | 187.03M | 117.34M |
| OpEx % of Revenue | - | 49.54% | 50.77% | 51.86% | 52.02% | 51.21% | 52.13% | 47.57% | 48.39% | 44.45% | 52.39% | 62.45% | 81.6% | 99.32% | 177.99% |
| Selling, General & Admin | 556.93M | 547.78M | 582.09M | 579M | 529.91M | 725.16M | 556.84M | 556.06M | 571.18M | 317.85M | 189.5M | 154.98M | 146.03M | 85.59M | 46.16M |
| SG&A % of Revenue | - | 31.09% | 33.17% | 32.9% | 28.86% | 32.13% | 32.95% | 31.47% | 33.24% | 27.64% | 28.9% | 32.43% | 43.7% | 45.45% | 70.01% |
| Research & Development | 319.69M | 325.08M | 308.75M | 333.63M | 415.19M | 430.67M | 324.11M | 284.44M | 249.87M | 193.39M | 154.09M | 143.44M | 125.83M | 100.74M | 71.19M |
| R&D % of Revenue | - | 18.45% | 17.6% | 18.96% | 22.61% | 19.08% | 19.18% | 16.1% | 14.54% | 16.82% | 23.5% | 30.02% | 37.65% | 53.5% | 107.97% |
| Other Operating Expenses | -289.21K | 0 | 0 | 0 | 10.18M | 0 | 0 | 0 | 10.55M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 439.32M | 466.05M | 494.32M | 472.93M | 480.47M | 697.41M | 506.8M | 597.58M | 609.26M | 407.55M | 140.98M | 37.5M | -22.1M | -58.61M | -97.84M |
| Operating Margin % | 24.49% | 26.45% | 28.17% | 26.87% | 26.16% | 30.9% | 29.99% | 33.82% | 35.45% | 35.44% | 21.5% | 7.85% | -6.61% | -31.12% | -148.41% |
| Operating Income Growth % | - | -5.72% | 4.52% | -1.57% | -31.11% | 37.61% | -15.19% | -1.92% | 49.49% | 189.09% | 275.92% | 269.67% | 62.29% | 40.1% | - |
| EBITDA | 598.64M | 524.19M | 566M | 545.24M | 546.62M | 758.64M | 542.88M | 627.15M | 629.11M | 422.88M | 154.96M | 58.45M | 957K | -37.08M | -81.46M |
| EBITDA Margin % | 33.37% | 29.75% | 32.26% | 30.98% | 29.77% | 33.61% | 32.12% | 35.49% | 36.61% | 36.77% | 23.63% | 12.23% | 0.29% | -19.69% | -123.55% |
| EBITDA Growth % | 0.92% | -7.39% | 3.81% | -0.25% | -27.95% | 39.74% | -13.44% | -0.31% | 48.77% | 172.89% | 165.11% | 6007.94% | 102.58% | 54.48% | - |
| D&A (Non-Cash Add-back) | 30.56M | 58.13M | 71.68M | 72.3M | 66.16M | 61.23M | 36.08M | 29.57M | 19.85M | 15.33M | 13.98M | 20.95M | 23.06M | 21.53M | 16.39M |
| EBIT | 538.77M | 607.2M | 526.05M | 622.85M | 199.68M | 621.72M | 433.34M | 632.29M | 684.23M | 421.31M | 140.98M | 37.5M | -22.1M | -58.61M | -97.84M |
| Net Interest Income | 70.28M | 125.31M | 17.94M | -1.86M | 33.84M | 6.27M | 28.4M | 55.49M | 42.58M | 15.26M | 8.76M | 6.34M | 6.78M | -2.87M | -4.85M |
| Interest Income | 123.69M | 125.31M | 123.34M | 118.21M | 105.43M | 77.28M | 85.83M | 85.39M | 57.97M | 19.45M | 8.76M | 6.34M | 6.78M | 0 | 0 |
| Interest Expense | 53.41M | 0 | 105.4M | 120.07M | 71.6M | 71.01M | 57.43M | 29.9M | 15.39M | 4.2M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 17.78M | 141.14M | -73.67M | 29.85M | -352.38M | -146.69M | -130.88M | 4.81M | 59.58M | 9.56M | -31M | -723K | -42.24M | 17.94M | -6.19M |
| Pretax Income | 457.47M | 607.2M | 420.65M | 502.78M | 128.09M | 550.72M | 375.91M | 602.4M | 668.84M | 417.11M | 109.98M | 36.78M | -61.51M | -37.84M | -104.04M |
| Pretax Margin % | 25.5% | 34.46% | 23.97% | 28.57% | 6.98% | 24.4% | 22.24% | 34.09% | 38.92% | 36.27% | 16.77% | 7.7% | -18.41% | -20.1% | -157.8% |
| Income Tax | 127.41M | 144.9M | 110.55M | 145.29M | 30.28M | 138.84M | 61.32M | 109.56M | 96.22M | 66.75M | 4.32M | 2.59M | 1.13M | 271K | -1.55M |
| Effective Tax Rate % | 27.85% | 23.86% | 26.28% | 28.9% | 23.64% | 25.21% | 16.31% | 18.19% | 14.39% | 16% | 3.92% | 7.04% | -1.83% | -0.72% | 1.49% |
| Net Income | 318.55M | 450.21M | 300.8M | 342.6M | 85.56M | 428.32M | 313.36M | 494.68M | 571.82M | 352.59M | 108.03M | 34.74M | -65.33M | -39.79M | -102.49M |
| Net Margin % | 17.76% | 25.55% | 17.14% | 19.47% | 4.66% | 18.98% | 18.54% | 28% | 33.27% | 30.66% | 16.47% | 7.27% | -19.55% | -21.13% | -155.45% |
| Net Income Growth % | -14.39% | 49.67% | -12.2% | 300.44% | -80.03% | 36.68% | -36.65% | -13.49% | 62.18% | 226.39% | 210.91% | 153.19% | -64.17% | 61.18% | - |
| Net Income (Continuing) | 330.07M | 462.29M | 310.11M | 357.5M | 97.81M | 411.88M | 314.6M | 492.83M | 572.56M | 350.37M | 105.79M | 34.2M | -65.47M | -40.94M | -102.49M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 74.27M | 86.83M | 96.11M | 118.88M | 60.29M | 94.2M | 73.91M | -1.45M | 2.68M | 2.21M | 4.13M | 7.36M | 1.05M | 0 | 0 |
| EPS (Diluted) | 1.17 | 1.70 | 1.16 | 1.43 | 0.36 | 1.86 | 1.38 | 2.18 | 2.46 | 1.56 | 0.48 | 0.16 | -0.34 | -0.17 | -0.45 |
| EPS Growth % | -14.82% | 46.55% | -18.88% | 297.22% | -80.65% | 34.78% | -36.7% | -11.38% | 57.69% | 225% | 200% | 147.06% | -100% | 62.22% | - |
| EPS (Basic) | - | 1.89 | 1.27 | 1.45 | 0.36 | 1.87 | 1.38 | 2.19 | 2.56 | 1.60 | 0.50 | 0.17 | -0.34 | -0.17 | -0.45 |
| Diluted Shares Outstanding | 271.55M | 268.56M | 265.24M | 239.97M | 236.41M | 230.21M | 227.64M | 226.41M | 232.68M | 225.36M | 222.86M | 217.92M | 186.88M | 229.76M | 229.76M |
| Basic Shares Outstanding | 239.46M | 238.79M | 237.32M | 235.56M | 235.16M | 228.81M | 226.92M | 225.45M | 223.75M | 220.56M | 214.75M | 208.16M | 186.64M | 228.19M | 228.19M |
| Dividend Payout Ratio | - | 43.46% | 64.63% | 58.42% | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying WB stock.
For fiscal year 2025, Weibo Corporation (WB) reported total revenue of $1.76B. This represents a 2572.4% increase compared to $65.9M in 2012.
Weibo Corporation (WB) is profitable, generating $450.2M in net income for the fiscal year ending 2025 with a net profit margin of 25.6%.
Weibo Corporation (WB) reported an operating income of $466.1M, resulting in an operating profit margin of 26.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Weibo Corporation (WB) generated $1.34B in gross profit for the year, representing a gross profit margin of 76.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Stagnant revenue growth amid competition
Growth Stalls at a Critical Juncture
Weibo's revenue growth has decelerated to near-zero, with the most recent quarter showing only 2.2% year-over-year expansion, a stark contrast to the double-digit growth seen in prior periods. This suggests the platform's core advertising business is maturing and may be facing structural headwinds.
The trajectory from -4.4% growth in 2024Q1 to a peak of 6.2% in 2026Q1, followed by a slide to 2.2%, indicates a failed attempt to re-accelerate. This pattern implies that any cyclical recovery in the Chinese ad market is insufficient to overcome secular pressures from short-video competitors. The durability of this near-zero growth baseline is the key question for the investment thesis.
Gross Margin Erosion Signals Cost Pressure
Gross margins have contracted from a peak of 80.1% in 2024Q3 to 71.4% in the latest quarter, a significant 870 basis point decline that suggests rising content, moderation, or infrastructure costs are outpacing revenue gains. This structural compression warrants close monitoring.
The steady decline in gross margin, even as revenue growth stalled, indicates that the high-fixed-cost model is under pressure. This could stem from increased investment in premium content to retain users or higher regulatory compliance costs. The margin profile is now closer to Pinterest's 80.1% than its own historical highs, potentially limiting operating leverage.
Operating Leverage Fails to Materialize
Despite a high gross margin structure, operating income has not scaled with revenue, as operating margins have compressed from 30.9% in 2024Q2 to 26.2% in 2026Q2. This indicates that SG&A and R&D expenses are growing in lockstep with, or faster than, the top line.
The inability to expand operating margins during periods of modest revenue growth suggests a lack of operating leverage. SG&A expenses, in particular, appear sticky, potentially due to the need for sustained marketing spend to defend market share. This dynamic means that even a revenue recovery may not translate into meaningful profit growth without explicit cost discipline.
Net Income Volatility Masks Core Profitability
Reported net income has been highly volatile, swinging from a loss of $4.7M in 2025Q4 to a profit of $221.1M in 2025Q3, driven largely by non-operating items and tax effects. This volatility obscures the underlying cash-generating power of the core advertising business.
The wide gap between operating income and net income in several quarters, such as 2025Q3 where net margin was 49.9% versus an operating margin of 26.5%, points to significant non-operational influences like investment gains or one-time tax benefits. Investors should focus on operating metrics to assess sustainable earnings power, as headline EPS figures are unreliable indicators of operational performance.
SG&A Discipline Appears to Be Waning
SG&A expenses as a percentage of revenue have fluctuated significantly, spiking to 35.1% in 2025Q4 before settling at 28.6% in the latest quarter, indicating inconsistent cost control. This volatility in the largest controllable expense line complicates margin forecasting.
The pattern suggests that management may be using SG&A as a lever, potentially pulling back on marketing during weaker quarters and ramping up during competitive periods. However, the recent trend shows SG&A consuming a larger share of revenue than in early 2024, which, combined with rising COGS, is the primary driver of operating margin compression. This lack of expense discipline is a key risk to profitability.
The Margin Compression Narrative Is Overdone
While gross margins have declined, they remain above 70%, and the recent operating margin of 26.2% is still robust compared to peers like Snap (-9.0%) and Pinterest (7.6%). The market may be overly focused on margin trends rather than the absolute level of profitability.
The strongest challenge to the bear case is that Weibo's cost structure, while under pressure, still generates substantial operating cash flow. The margin compression appears to be a deliberate investment in user retention and content quality rather than a sign of operational decay. If revenue stabilizes, the existing cost base could support significant profit expansion, making the current valuation discount potentially excessive.