Revenue growth has stalled into a 3.7% contraction as of 2025Q2, while structural competitive pressures keep gross margins compressed at a modest 16.5%.
| Sales/Revenue | 8.75B | 8.99B | 8.76B | 8.72B | 8.32B | 7.65B | 4.69B |
| Revenue Growth % | -0.75% | 2.58% | 0.46% | 4.88% | 8.63% | 63.34% | - |
| Cost of Goods Sold | 7.27B | 7.51B | 7.25B | 7.27B | 7B | 6.61B | 4.01B |
| COGS % of Revenue | - | 83.58% | 82.76% | 83.35% | 84.15% | 86.42% | 85.48% |
| Gross Profit | 1.48B | 1.48B | 1.51B | 1.45B | 1.32B | 1.04B | 680.27M |
| Gross Margin % | 16.94% | 16.42% | 17.24% | 16.65% | 15.85% | 13.58% | 14.52% |
| Gross Profit Growth % | - | -2.3% | 4% | 10.23% | 26.73% | 52.84% | - |
| Operating Expenses | 1.77B | 1.69B | 1.85B | 1.85B | 2B | 2.15B | 1.08B |
| OpEx % of Revenue | - | 18.79% | 21.11% | 21.23% | 24.09% | 28.09% | 23.05% |
| Selling, General & Admin | 2.16B | 1.16B | 1.29B | 1.24B | 1.3B | 1.45B | 693.61M |
| SG&A % of Revenue | - | 12.92% | 14.7% | 14.18% | 15.58% | 18.93% | 14.8% |
| Research & Development | 172.31M | 165.52M | 169.5M | 175.91M | 240.53M | 256.42M | 149.59M |
| R&D % of Revenue | - | 1.84% | 1.93% | 2.02% | 2.89% | 3.35% | 3.19% |
| Other Operating Expenses | 2M | 362.17M | 391.69M | 438.96M | 467.38M | 444.51M | 236.88M |
| Operating Income | -290.71M | -213.34M | 338.77M | -398.72M | -685.71M | -1.11B | -399.81M |
| Operating Margin % | -3.32% | -2.37% | 3.87% | -4.57% | -8.25% | -14.51% | -8.53% |
| Operating Income Growth % | - | -162.97% | 184.96% | 41.85% | 38.25% | -177.74% | - |
| EBITDA | -222.02M | -164.98M | 412.24M | -325.26M | -609.63M | -1.06B | -362.58M |
| EBITDA Margin % | -2.54% | -1.84% | 4.71% | -3.73% | -7.33% | -13.81% | -7.74% |
| EBITDA Growth % | 12.8% | -140.02% | 226.74% | 46.65% | 42.35% | -191.64% | - |
| D&A (Non-Cash Add-back) | 68.69M | 48.36M | 73.47M | 73.47M | 76.07M | 53.02M | 37.23M |
| EBIT | -252.59M | -127.7M | -338.77M | -285.36M | -637.41M | -1.08B | -391.18M |
| Net Interest Income | 76.28M | 38.74M | 45.24M | 34.36M | -79.62M | 17.68M | 2.08M |
| Interest Income | 104.93M | 50.09M | 64.25M | 53.7M | 14.56M | 28.28M | 6.14M |
| Interest Expense | 28.65M | 11.35M | 19M | 19.34M | 94.18M | 10.59M | 4.06M |
| Other Income/Expense | 60.68M | 74.28M | 71.74M | 94.02M | -45.89M | 16.53M | 4.58M |
| Pretax Income | -230.03M | -139.05M | -267.03M | -304.7M | -731.59M | -1.09B | -395.23M |
| Pretax Margin % | -2.63% | -1.55% | -3.05% | -3.49% | -8.8% | -14.29% | -8.43% |
| Income Tax | 1.05M | 689K | 1.01M | 195K | -471K | 200K | 1.91M |
| Effective Tax Rate % | -0.46% | -0.5% | -0.38% | -0.06% | 0.06% | -0.02% | -0.48% |
| Net Income | -231.09M | -139.74M | -268.04M | -304.31M | -735.68M | -1.12B | -401.73M |
| Net Margin % | -2.64% | -1.55% | -3.06% | -3.49% | -8.85% | -14.66% | -8.57% |
| Net Income Growth % | 1.25% | 47.87% | 11.92% | 58.64% | 34.46% | -179.41% | - |
| Net Income (Continuing) | -231.09M | -139.74M | -268.04M | -304.9M | -731.12M | -1.09B | -397.15M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 4.24M | 3.9M | 12.24M |
| EPS (Diluted) | -1.42 | -0.84 | -1.64 | -1.84 | -8.05 | -10.15 | -4.55 |
| EPS Growth % | 26.04% | 48.78% | 10.87% | 77.14% | 20.69% | -123.08% | - |
| EPS (Basic) | - | -0.84 | -1.64 | -1.84 | -8.05 | -10.15 | -4.55 |
| Diluted Shares Outstanding | 162.25M | 162.46M | 163.89M | 162.17M | 151.43M | 138.73M | 129.41M |
| Basic Shares Outstanding | 162.25M | 162.46M | 163.89M | 162.17M | 151.43M | 138.73M | 129.41M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Industrial demand cyclicality
According to the latest quarterly financial data, ZKH's revenue growth has decelerated to a contraction of 3.7% in 2025Q2, signaling that the company's aggressive expansion phase is facing significant resistance from a cooling Chinese industrial sector and potential market saturation in its core MRO hubs.
The shift from positive growth in early 2025 to a contraction suggests that the company's reliance on domestic manufacturing output is a primary vulnerability. Investors should monitor whether this trend reflects a structural slowdown in industrial procurement or a deliberate pivot toward higher-margin, lower-volume marketplace transactions.
As reported in recent income statements, ZKH maintains a gross margin of 16.5%, which remains significantly compressed compared to global MRO peers like Grainger and Fastenal, highlighting the intense price transparency and competitive pressures inherent in the fragmented Chinese industrial distribution market.
The inability to expand gross margins beyond the mid-teens suggests that the company lacks the pricing power necessary to offset its high variable fulfillment costs. This structural limitation implies that achieving profitability will require a fundamental shift in the revenue mix toward the 3P marketplace model rather than relying on direct product sales.
Based on the provided financial figures, ZKH continues to struggle with operating leverage, as evidenced by a persistent negative operating margin of 3.3% in 2025Q2, indicating that the company has yet to achieve the scale required to absorb its fixed investments in regional distribution infrastructure.
The lack of a clear path to positive operating income suggests that SG&A expenses remain disproportionately high relative to gross profit generation. Further investigation is warranted to determine if management can optimize fulfillment costs without compromising the service levels that underpin their competitive moat.
Analysis of the income statement reveals that ZKH's net losses are frequently exacerbated by significant share-based compensation, which totaled $17.0 million in 2025Q2, masking the true underlying cash burn rate and complicating the assessment of the company's path to sustainable profitability.
The recurring nature of these non-cash expenses suggests that investors should focus on normalized earnings metrics to gauge operational progress. The volatility in net income, ranging from losses to occasional near-break-even results, implies that the company's bottom line remains highly sensitive to non-operating items and accounting adjustments.
Quick answers to the most common questions about buying ZKH stock.
For fiscal year 2025, ZKH Group Limited (ZKH) reported total revenue of $8.99B. This represents a 91.8% increase compared to $4.69B in 2020.
ZKH Group Limited (ZKH) reported a net loss of $139.7M for the fiscal year ending 2025.
ZKH Group Limited (ZKH) reported an operating income of $-213.3M, resulting in an operating profit margin of -2.4%. This margin reflects the operational efficiency of the business before interest and taxes.
ZKH Group Limited (ZKH) generated $1.48B in gross profit for the year, representing a gross profit margin of 16.4%. This demonstrates the company's core pricing power and production efficiency.