Revenue growth has contracted sharply, with a 43.5% year-over-year decline in 2025Q4 and thin gross margins of 5.9% that fail to cover operating expenses.
| Sales/Revenue | 71.24M | 108.2M | 111.6M | 102.39M | 99.41M | 86.85M | 63.88M | 54.88M | 44.95M | 36.81M | 34.99M |
| Revenue Growth % | -34.16% | -3.05% | 8.99% | 3% | 14.46% | 35.95% | 16.4% | 22.1% | 22.12% | 5.21% | - |
| Cost of Goods Sold | 67.2M | 101.65M | 110.3M | 94.8M | 92.94M | 82.9M | 48.24M | 36.59M | 31.84M | 25.33M | 24.81M |
| COGS % of Revenue | 94.33% | 93.95% | 98.84% | 92.58% | 93.49% | 95.46% | 75.51% | 66.67% | 70.84% | 68.82% | 70.92% |
| Gross Profit | 4.04M | 6.55M | 1.3M | 7.6M | 6.47M | 3.94M | 15.64M | 18.29M | 13.11M | 11.48M | 10.17M |
| Gross Margin % | 5.67% | 6.05% | 1.16% | 7.42% | 6.51% | 4.54% | 24.49% | 33.33% | 29.16% | 31.18% | 29.08% |
| Gross Profit Growth % | -38.29% | 405.02% | -82.93% | 17.38% | 64.13% | -74.8% | -14.47% | 39.53% | 14.23% | 12.81% | - |
| Operating Expenses | 6.54M | 8.27M | 61.74M | 11.56M | 10.12M | 5.82M | 7M | 8.67M | 5.03M | 3.86M | 2.57M |
| OpEx % of Revenue | 9.17% | 7.64% | 55.32% | 11.29% | 10.19% | 6.7% | 10.95% | 15.8% | 11.19% | 10.49% | 7.34% |
| Selling, General & Admin | 5.2M | 6.33M | 7.09M | 7.8M | 8.89M | 4.7M | 5.55M | 7.02M | 3.7M | 2.56M | 1.64M |
| SG&A % of Revenue | 7.3% | 5.85% | 6.36% | 7.62% | 8.94% | 5.41% | 8.68% | 12.79% | 8.23% | 6.95% | 4.68% |
| Research & Development | 859.7K | 1.2M | 1.27M | 987.19K | 1.23M | 1.12M | 1.45M | 1.65M | 1.33M | 1.3M | 928.83K |
| R&D % of Revenue | 1.21% | 1.11% | 1.14% | 0.96% | 1.24% | 1.29% | 2.27% | 3.01% | 2.96% | 3.54% | 2.65% |
| Other Operating Expenses | 475.02K | 740.71K | 53.37M | 2.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -2.5M | -1.72M | -60.44M | -3.96M | -3.65M | -1.88M | 8.65M | 9.62M | 8.08M | 7.62M | 7.61M |
| Operating Margin % | -3.5% | -1.59% | -54.16% | -3.87% | -3.68% | -2.16% | 13.53% | 17.52% | 17.97% | 20.69% | 21.74% |
| Operating Income Growth % | -45.27% | 97.16% | -1424.58% | -8.51% | -94.4% | -121.74% | -10.1% | 19.03% | 6.09% | 0.14% | - |
| EBITDA | -1.63M | -868.9K | -59.47M | -2.46M | -2.6M | -1.43M | 9.04M | 10.03M | 8.52M | 8.07M | 8.11M |
| EBITDA Margin % | -2.28% | -0.8% | -53.29% | -2.4% | -2.62% | -1.65% | 14.14% | 18.27% | 18.95% | 21.93% | 23.19% |
| EBITDA Growth % | -87.24% | 98.54% | -2315.66% | 5.45% | -82.14% | -115.82% | -9.87% | 17.69% | 5.53% | -0.51% | - |
| D&A (Non-Cash Add-back) | 869.05K | 849.33K | 975.71K | 1.5M | 1.05M | 449.83K | 388.92K | 407.74K | 438.4K | 456.04K | 507.71K |
| EBIT | -3.69M | -1.12M | -7.24M | -1.19M | -3.65M | -1.88M | 8.65M | 9.62M | 8.08M | 7.62M | 7.61M |
| Net Interest Income | 105.16K | -1.22M | -1.55M | -3.34M | -1.18M | -993.36K | -1.13M | -1.23M | -1.22M | -1.37M | -1.78M |
| Interest Income | 435.39K | 15.14K | 36.7K | 109.29K | 13.73K | 7.19K | 24.44K | 10.7K | 24.46K | 51.06K | 132.75K |
| Interest Expense | 330.23K | 1.23M | 1.58M | 3.45M | 1.2M | 1M | 1.15M | 1.24M | 1.25M | 1.42M | 1.91M |
| Other Income/Expense | -1.52M | -1.05M | -1.31M | -3.43M | -700.83K | -385.84K | -204.63K | -1.12M | -1.15M | -1.21M | -1.64M |
| Pretax Income | -4.02M | -2.77M | -61.75M | -7.4M | -4.35M | -2.27M | 8.44M | 8.5M | 6.93M | 6.41M | 5.96M |
| Pretax Margin % | -5.64% | -2.56% | -55.33% | -7.22% | -4.38% | -2.61% | 13.21% | 15.49% | 15.41% | 17.41% | 17.04% |
| Income Tax | -948 | 12.11K | -459.86K | -1.34M | -552.15K | -1.43M | 248.23K | 1.4M | 995K | 1.11M | 952.12K |
| Effective Tax Rate % | 0.02% | -0.44% | 0.74% | 18.13% | 12.68% | 63.05% | 2.94% | 16.45% | 14.36% | 17.25% | 15.97% |
| Net Income | -3.99M | -2.78M | -61.06M | -6.08M | -3.8M | -825.61K | 8.11M | 7.02M | 5.87M | 5.25M | 5.01M |
| Net Margin % | -5.59% | -2.57% | -54.71% | -5.94% | -3.82% | -0.95% | 12.69% | 12.79% | 13.07% | 14.26% | 14.32% |
| Net Income Growth % | -43.25% | 95.44% | -904.06% | -60.06% | -360.2% | -110.18% | 15.51% | 19.47% | 11.9% | 4.81% | - |
| Net Income (Continuing) | -4.02M | -2.78M | -61.29M | -6.05M | -3.8M | -837.02K | 8.19M | 7.1M | 5.93M | 5.3M | 5.01M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 116.6K | 153.59K | 157.98K | 386.68K | 324.57K | 309.79K | 299.67K | 225.75K | 150.03K | 88.93K | 24.14K |
| EPS (Diluted) | -0.70 | -0.57 | -13.59 | -1.45 | -1.22 | -0.35 | 3.43 | 3.60 | 3.75 | 2.73 | 2.59 |
| EPS Growth % | -23.5% | 95.83% | -835.73% | -19.47% | -248.4% | -110.18% | -4.88% | -3.81% | 37.26% | 5.41% | - |
| EPS (Basic) | -0.70 | -0.57 | -13.59 | -1.45 | -1.22 | -0.35 | 3.43 | 3.61 | 3.75 | 2.73 | 2.59 |
| Diluted Shares Outstanding | 5.68M | 4.91M | 4.49M | 4.19M | 3.12M | 2.37M | 2.36M | 1.95M | 1.57M | 1.93M | 1.93M |
| Basic Shares Outstanding | 5.68M | 4.91M | 4.49M | 4.19M | 3.12M | 2.37M | 2.36M | 1.94M | 1.57M | 1.93M | 1.93M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and demand contraction
As reported in recent financial filings, ZKIN experienced a significant 43.5% year-over-year revenue decline in 2025Q4, signaling a sharp deterioration in demand for its stainless steel piping solutions within the Chinese infrastructure market that warrants close monitoring by investors concerned with long-term growth durability.
The consistent downward trend in quarterly revenue suggests that the company is struggling to secure project-based contracts amidst a broader slowdown in Chinese municipal and residential construction. This persistent contraction indicates that the firm's specialized technology may not be sufficient to insulate it from the cyclical volatility inherent in its primary geographic market.
Based on the company's reported figures, gross margins have remained thin, hovering near 5.67% in recent periods, which suggests that ZKIN lacks the pricing power necessary to offset rising raw material costs or competitive pressures within the highly fragmented Chinese steel fabrication industry.
The inability to expand gross margins beyond single digits implies that the company functions primarily as a price-taker, leaving it highly exposed to commodity price volatility. Without a shift toward higher-value engineering services, the current margin profile appears insufficient to support the company's fixed cost base.
According to the income statement data, ZKIN's operating margin of -3.50% indicates a lack of operating leverage, as the company has failed to scale its revenue sufficiently to cover essential selling, general, and administrative expenses during recent periods of significant top-line decline.
The negative operating income suggests that the company's cost structure is too rigid for its current revenue scale, creating a persistent drag on bottom-line performance. Investors should monitor whether management can implement meaningful cost-rationalization measures to prevent further erosion of operating efficiency.
As evidenced by the reported net income figures, ZKIN has struggled to achieve consistent profitability, with recent quarters showing net margins as low as -10.2%, further complicated by the emergence of stock-based compensation expenses that dilute shareholder value without corresponding operational improvements.
The recurring net losses suggest that the company's core business model is currently unable to generate sustainable earnings, raising questions about the long-term viability of its current capital allocation strategy. The presence of non-operating items and stock-based compensation warrants further investigation into the true underlying cash-generating capacity of the firm.
Based on the provided financial snapshot, the company's cash balance of $3.8 million against $71 million in annual revenue suggests a precarious liquidity position that may limit the firm's ability to navigate prolonged downturns in the Chinese construction sector without seeking external financing.
Short-sellers would likely focus on the mismatch between the company's revenue scale and its thin cash cushion, which could be exacerbated by long payment cycles typical of municipal infrastructure projects. This liquidity constraint appears to be a significant risk factor that could force management into dilutive capital raises.
Quick answers to the most common questions about buying ZKIN stock.
For fiscal year 2025, ZK International Group Co., Ltd. (ZKIN) reported total revenue of $71.2M. This represents a 103.6% increase compared to $35.0M in 2015.
ZK International Group Co., Ltd. (ZKIN) reported a net loss of $4.0M for the fiscal year ending 2025.
ZK International Group Co., Ltd. (ZKIN) reported an operating income of $-2.5M, resulting in an operating profit margin of -3.5%. This margin reflects the operational efficiency of the business before interest and taxes.
ZK International Group Co., Ltd. (ZKIN) generated $4.0M in gross profit for the year, representing a gross profit margin of 5.7%. This demonstrates the company's core pricing power and production efficiency.