Revenue remains highly inconsistent, with the firm reporting a 29.1% operating margin in 2025Q4 despite a net loss of $738,400 for the same period.
| Net Interest Income | 60.92K | 26 | 1.87K | 354.83K | 313 | 437 | 1.99K | 16.3K | 469 |
| NII Growth % | 234192.31% | -98.61% | -99.47% | 113264.86% | -28.38% | -78.08% | -87.77% | 3376.12% | - |
| Net Interest Margin % | 0.58% | 0% | 0.05% | 4.36% | 0% | 0% | 0.02% | 0.44% | 0.04% |
| Interest Income | 60.92K | 26 | 1.87K | 354.83K | 313 | 437 | 1.99K | 16.3K | 469 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Loan Loss Provision | 0 | 0 | 0 | 660K | 0 | 227.41K | 0 | 0 | 0 |
| Non-Interest Income | 1.14M | 619.97K | 2.45M | 1.31M | 936.62K | 644.69K | 3.08M | 5.31M | 3.64M |
| Non-Interest Income % | 94.92% | 100% | 99.92% | 78.72% | 99.97% | 99.93% | 99.94% | 99.69% | 99.99% |
| Total Revenue | 1.2M | 620K | 2.45M | 1.67M | 936.93K | 645.13K | 3.08M | 5.32M | 3.64M |
| Revenue Growth % | 93.55% | -74.69% | 46.94% | 77.95% | 45.23% | -79.05% | -42.17% | 46.44% | - |
| Non-Interest Expense | 2.04M | 2.58M | 3.21M | 3.22M | 3.36M | 6.82M | 2.41M | 2.6M | 2.71M |
| Efficiency Ratio | 170.2% | 416.13% | 131.06% | 193.18% | 358.49% | 1056.68% | 78.19% | 48.77% | 74.56% |
| Operating Income | -842.35K | -1.96M | -760.86K | -2.21M | -2.42M | -6.4M | 671.6K | 2.73M | 925.07K |
| Operating Margin % | -70.2% | -316.13% | -31.06% | -132.76% | -258.49% | -991.93% | 21.81% | 51.23% | 25.44% |
| Operating Income Growth % | 57.02% | -157.6% | 65.63% | 8.6% | 62.15% | -1052.83% | -75.38% | 194.86% | - |
| Pretax Income | -4.6M | -3.19M | -2.85M | -3.37M | -2.37M | -6.28M | 706.05K | 2.66M | 857.99K |
| Pretax Margin % | -383.17% | -514.23% | -116.37% | -202.19% | -253.42% | -973.15% | 22.93% | 50.03% | 23.6% |
| Income Tax | 0 | 3.3K | 31.2K | 0 | 0 | 0 | 276.82K | 716.82K | 217.03K |
| Effective Tax Rate % | 0% | -0.1% | -1.09% | 0% | 0% | 0% | 39.21% | 26.91% | 25.29% |
| Net Income | -4.6M | -3.19M | -2.88M | -2.91M | -8.56M | -14.88M | 429.23K | 1.95M | 640.96K |
| Net Margin % | -383.17% | -514.84% | -117.64% | -174.56% | -914.02% | -2306.94% | 13.94% | 36.57% | 17.63% |
| Net Income Growth % | -44.05% | -10.74% | 0.97% | 66.02% | 42.46% | -3567.33% | -77.95% | 203.74% | - |
| Net Income (Continuing) | -4.6M | -3.19M | -2.88M | -3.37M | -2.37M | -6.28M | 429.23K | 1.95M | 640.96K |
| EPS (Diluted) | -0.27 | -0.31 | -0.30 | -0.31 | -0.32 | -1.87 | 0.06 | 0.25 | 0.08 |
| EPS Growth % | 13.29% | -4.01% | 2.16% | 5.79% | 82.63% | -3196.36% | -75.8% | 203.65% | - |
| EPS (Basic) | -0.27 | -0.31 | -0.30 | -0.31 | -0.32 | -1.87 | 0.06 | 0.25 | 0.08 |
| Diluted Shares Outstanding | 17.25M | 10.25M | 9.63M | 9.51M | 9.48M | 7.96M | 7.1M | 7.8M | 7.8M |
Regulatory and geopolitical volatility
As indicated by the quarterly financial data, ZBAI's revenue exhibits extreme volatility, fluctuating from zero in 2025Q1 to $750,000 in 2025Q4, which underscores the project-based nature of its advisory model and the inherent difficulty in maintaining consistent top-line growth within the micro-cap cross-border listing market.
The erratic revenue stream suggests that the company's performance is heavily tethered to the timing of specific transaction completions rather than a recurring service model. Investors should monitor whether the recent revenue spike in 2025Q4 represents a sustainable shift in mandate volume or merely a lumpy recognition of a single, non-repeatable advisory success.
According to the provided income statement, ZBAI consistently reports a 100% gross margin, a figure that reflects its pure-play service model but masks the underlying reality that the firm's primary costs are embedded within operating expenses rather than direct costs of service delivery.
While the 100% gross margin appears impressive, it provides a misleading view of profitability because the firm's professional talent and compliance overhead are classified as SG&A. This structural classification suggests that the company lacks the ability to scale its advisory services without a commensurate increase in fixed operating costs.
Based on reported figures, ZBAI's operating leverage is currently non-existent, as the company frequently incurs operating losses that exceed its gross profit, demonstrating that the current revenue scale is insufficient to cover the fixed costs required to maintain its public listing and advisory infrastructure.
The persistent gap between gross profit and operating expenses suggests that the firm is struggling to achieve the necessary economies of scale. Unless the company can significantly increase its mandate pipeline, the current cost structure appears to be a permanent drag on bottom-line performance.
As reported in financial statements, ZBAI has consistently generated significant net losses, with the 2025Q4 net loss of $738,400 highlighting a disconnect between top-line revenue growth and the company's ability to achieve bottom-line profitability, raising concerns regarding the long-term viability of its current business model.
The recurring net losses suggest that the company's advisory activities are not yet self-sustaining. Analysts should investigate whether these losses are driven by excessive administrative overhead or if the firm is subsidizing its operations through its existing cash reserves, which may not be a sustainable long-term strategy.
Based on an analysis of the income statement, the primary risk to the investment thesis is the company's inability to convert its advisory pipeline into consistent, profitable revenue, as evidenced by the deep net margin deficits observed across the majority of the reported ten-quarter period.
Short-sellers would likely focus on the company's reliance on lumpy, non-recurring transaction fees and the high fixed-cost base that continues to erode shareholder value. The lack of a clear path to operational break-even warrants further investigation into whether the firm's current strategy can survive prolonged periods of market inactivity.
Quick answers to the most common questions about buying ZBAI stock.
ATIF Holdings Ltd. (ZBAI) reported a net loss of $4.6M for the fiscal year ending 2025.
ATIF Holdings Ltd. (ZBAI) reported an operating income of $-0.8M, resulting in an operating profit margin of -70.2%. This margin reflects the operational efficiency of the business before interest and taxes.
ATIF Holdings Ltd. (ZBAI) generated $1.2M in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.