Revenue contraction remains a primary concern, with the company reporting a 23.2% year-over-year decline in 2025Q4 alongside a compressed gross margin of 39.4%.
Zhongchao Inc. (ZCMD) annual income statement — 9-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 |
|---|
| Sales/Revenue | 19.73M | 11.37M | 15.86M | 19.43M | 14.15M | 16.3M | 17.99M | 14.88M | 12.87M | 9.82M |
| Revenue Growth % | - | -28.3% | -18.37% | 37.33% | -13.16% | -9.41% | 20.88% | 15.68% | 31.07% | - |
| Cost of Goods Sold | 10.51M | 6.54M | 6.95M | 10.92M | 7.79M | 6.86M | 6.12M | 4.66M | 4.46M | 3.97M |
| COGS % of Revenue | - | 57.53% | 43.82% | 56.2% | 55.08% | 42.08% | 34.01% | 31.28% | 34.64% | 40.44% |
| Gross Profit | 9.22M | 4.83M | 8.91M | 8.51M | 6.36M | 9.44M | 11.87M | 10.23M | 8.41M | 5.85M |
| Gross Margin % | - | 42.47% | 56.18% | 43.8% | 44.92% | 57.92% | 65.99% | 68.72% | 65.36% | 59.56% |
| Gross Profit Growth % | - | -45.79% | 4.7% | 33.91% | -32.65% | -20.5% | 16.09% | 21.61% | 43.84% | - |
| Operating Expenses | 20.12M | 11.02M | 9.25M | 21.8M | 9.31M | 9.76M | 7.38M | 6.58M | 5.13M | 4.8M |
| OpEx % of Revenue | - | 96.9% | 58.33% | 112.15% | 65.8% | 59.89% | 41.04% | 44.24% | 39.91% | 48.87% |
| Selling, General & Admin | 19.99M | 11.01M | 9M | 13.41M | 8.9M | 9M | 6.57M | 5.72M | 3.69M | 3.85M |
| SG&A % of Revenue | - | 96.83% | 56.73% | 68.99% | 62.89% | 55.23% | 36.5% | 38.44% | 28.66% | 39.26% |
| Research & Development | 125.47K | 8.09K | 252.45K | 514.41K | 411.52K | 758.88K | 816.55K | 864.32K | 1.45M | 943.25K |
| R&D % of Revenue | - | 0.07% | 1.59% | 2.65% | 2.91% | 4.66% | 4.54% | 5.81% | 11.25% | 9.61% |
| Other Operating Expenses | 0 | 0 | 863 | 7.87M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -10.9M | -6.19M | -341.27K | -13.28M | -2.95M | -320.74K | 4.49M | 3.64M | 3.27M | 1.05M |
| Operating Margin % | - | -54.43% | -2.15% | -68.35% | -20.88% | -1.97% | 24.95% | 24.47% | 25.45% | 10.68% |
| Operating Income Growth % | - | -1714.19% | 97.43% | -349.62% | -821.14% | -107.14% | 23.26% | 11.22% | 212.28% | - |
| EBITDA | -10.2M | -5.87M | 87.09K | -12.36M | -2.22M | 382.24K | 4.89M | 3.88M | 3.3M | 1.06M |
| EBITDA Margin % | - | -51.6% | 0.55% | -63.6% | -15.72% | 2.35% | 27.2% | 26.09% | 25.68% | 10.85% |
| EBITDA Growth % | - | -6839.8% | 100.7% | -455.73% | -681.88% | -92.19% | 26.01% | 17.53% | 210.21% | - |
| D&A (Non-Cash Add-back) | 696.45K | 321.67K | 428.36K | 923.61K | 730.31K | 702.98K | 403.01K | 240.51K | 28.78K | 16.27K |
| EBIT | -10.2M | -5.77M | -340.4K | -5.41M | -2.55M | -110.75K | 4.49M | 3.64M | 3.27M | 1.05M |
| Net Interest Income | 625.82K | 343.13K | 243.01K | 237.05K | 142.01K | 175.99K | 146.97K | 211.48K | 191.61K | 17.33K |
| Interest Income | 625.82K | 343.13K | 243.01K | 237.05K | 142.01K | 175.99K | 146.97K | 211.48K | 191.61K | 17.33K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -290.35K | 422.54K | 403.02K | 1.31M | 404.46K | 209.99K | 452.53K | 745.5K | 228.97K | 292.35K |
| Pretax Income | -11.19M | -5.77M | 61.76K | -11.98M | -2.55M | -110.75K | 4.94M | 4.39M | 3.5M | 1.34M |
| Pretax Margin % | - | -50.71% | 0.39% | -61.63% | -18.02% | -0.68% | 27.47% | 29.48% | 27.23% | 13.66% |
| Income Tax | 528.61K | 46.18K | 335.17K | -669.76K | 272.31K | -349.42K | 484.79K | 387.14K | 502.13K | -153.95K |
| Effective Tax Rate % | -4.72% | -0.8% | 542.73% | 5.59% | -10.68% | 315.49% | 9.81% | 8.82% | 14.33% | -11.48% |
| Net Income | -12.34M | -6.31M | -643.23K | -11.34M | -2.94M | 238.66K | 4.46M | 4.05M | 3.02M | 1.53M |
| Net Margin % | - | -55.47% | -4.05% | -58.33% | -20.78% | 1.46% | 24.78% | 27.19% | 23.47% | 15.58% |
| Net Income Growth % | - | -881.01% | 94.33% | -285.46% | -1332.23% | -94.65% | 10.17% | 34.03% | 97.43% | - |
| Net Income (Continuing) | -11.72M | -5.81M | -273.41K | -11.31M | -2.82M | 238.66K | 4.46M | 4M | 3M | 1.49M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 3.94M | 3.97M | 3.31M | 3.03M | 3.09M | 0 | 0 | -46.62K | -27.84K | -10K |
| EPS (Diluted) | - | -172.05 | -89.28 | -3236.40 | -840.72 | 71.42 | 1331.76 | 1175.52 | 900.24 | 453.84 |
| EPS Growth % | - | -92.71% | 97.24% | -284.96% | -1277.08% | -94.64% | 13.29% | 30.58% | 98.36% | - |
| EPS (Basic) | - | -172.05 | -89.28 | -3236.40 | -840.72 | 71.42 | 1331.76 | 1175.52 | 900.24 | 453.84 |
| Diluted Shares Outstanding | 54.97K | 36.76K | 7K | 3.5K | 3.49K | 3.35K | 3.35K | 3.44K | 3.37K | 3.37K |
| Basic Shares Outstanding | 54.97K | 36.76K | 7K | 3.5K | 3.49K | 3.35K | 3.35K | 3.44K | 3.37K | 3.37K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ZCMD stock.
For fiscal year 2025, Zhongchao Inc. (ZCMD) reported total revenue of $11.4M. This represents a 15.9% increase compared to $9.8M in 2017.
Zhongchao Inc. (ZCMD) reported a net loss of $6.3M for the fiscal year ending 2025.
Zhongchao Inc. (ZCMD) reported an operating income of $-6.2M, resulting in an operating profit margin of -54.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Zhongchao Inc. (ZCMD) generated $4.8M in gross profit for the year, representing a gross profit margin of 42.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Unsustainable operating cash burn
Persistent Revenue Contraction Trends
As reported in recent financial filings, ZCMD experienced a 23.2% year-over-year revenue decline in 2025Q4, marking a sustained period of top-line erosion that suggests the company's project-based medical education model is struggling to maintain relevance within the competitive Chinese healthcare information services landscape.
The consistent downward trajectory in revenue indicates that the firm's reliance on customized pharmaceutical marketing projects is highly susceptible to cyclical budget cuts. This volatility suggests that the company lacks a recurring revenue base, leaving it vulnerable to shifts in client spending patterns.
Structural Margin Compression Risks
Based on the latest income statement data, ZCMD's gross margin has compressed to 39.4% in 2025Q4, reflecting a significant deterioration from the 69.3% levels observed in 2022Q2 and highlighting the rising costs associated with delivering specialized medical content in a fragmented market.
The inability to maintain high gross margins suggests that the company lacks meaningful pricing power over its pharmaceutical sponsors. Investors should monitor whether these margin pressures are a permanent feature of the business model or a temporary result of increased competition for medical experts.
Operating Leverage Remains Severely Constrained
According to the company's income statement, ZCMD reported an operating margin of -92.0% in 2025Q4, demonstrating a profound lack of operating leverage as SG&A expenses continue to dwarf gross profit, which totaled only $2.3 million for the same period.
The current cost structure appears fundamentally misaligned with the company's revenue scale, suggesting that administrative overhead is not scaling efficiently with business volume. This disconnect implies that the firm may require a drastic reduction in fixed costs to reach a break-even point.
Sustainability of Current Business Model
Financial data indicates that ZCMD's net loss of $5.3 million in 2025Q4, combined with a 28.3% annual revenue decline, raises serious questions regarding the viability of its current operating model, particularly as cash reserves are depleted to fund ongoing negative operating margins.
Short-term observers may focus on the company's debt-free status, but the underlying operational performance suggests a business in distress rather than a growth-stage enterprise. The lack of a clear path to profitability warrants significant caution regarding the company's long-term survival without a strategic pivot.