Revenue growth decelerated from 65.7% in 2024Q4 to -3.3% in 2026Q2, while gross margin compressed from 64.9% to 54.7%, and operating losses remained elevated at -$76.5M in 2026Q2.
Zai Lab Limited (ZLAB) annual income statement — 11-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 |
|---|
| Sales/Revenue | 441.73M | 460.16M | 398.99M | 266.72M | 215.04M | 144.31M | 48.96M | 12.98M | 129.45K | 0 | 0 | 0 |
| Revenue Growth % | 0.02% | 15.33% | 49.59% | 24.03% | 49.01% | 194.77% | 277.04% | 9930.55% | - | - | - | - |
| Cost of Goods Sold | 200.13M | 191.08M | 147.86M | 95.82M | 74.02M | 52.24M | 239.45M | 3.75M | 43.59K | 0 | 0 | 0 |
| COGS % of Revenue | - | 41.53% | 37.06% | 35.92% | 34.42% | 36.2% | 489.09% | 28.87% | 33.67% | - | - | - |
| Gross Profit | 241.59M | 269.07M | 251.13M | 170.9M | 141.02M | 92.07M | -190.49M | 9.24M | 85.86K | 0 | 0 | 0 |
| Gross Margin % | 54.69% | 58.47% | 62.94% | 64.08% | 65.58% | 63.8% | -389.09% | 71.13% | 66.33% | - | - | - |
| Gross Profit Growth % | - | 7.15% | 46.94% | 21.19% | 53.16% | 148.34% | -2162.47% | 10656.73% | - | - | - | - |
| Operating Expenses | 519.75M | 492.65M | 533.25M | 537.48M | 545.38M | 792.14M | 111.31M | 212.43M | 141.85M | 51.39M | 38.53M | 16.35M |
| OpEx % of Revenue | - | 107.06% | 133.65% | 201.51% | 253.62% | 548.91% | 227.36% | 1636.01% | 109580.34% | - | - | - |
| Selling, General & Admin | 281.05M | 277.61M | 298.74M | 281.61M | 258.97M | 218.83M | 111.31M | 70.21M | 21.58M | 12.05M | 6.38M | 2.76M |
| SG&A % of Revenue | - | 60.33% | 74.87% | 105.58% | 120.43% | 151.64% | 227.36% | 540.72% | 16667.12% | - | - | - |
| Research & Development | 238.8M | 220.9M | 234.5M | 265.87M | 286.41M | 573.31M | 222.71M | 142.22M | 120.28M | 39.34M | 32.15M | 13.59M |
| R&D % of Revenue | - | 48.01% | 58.77% | 99.68% | 133.19% | 397.27% | 454.9% | 1095.29% | 92913.22% | - | - | - |
| Other Operating Expenses | -106K | -5.86M | 0 | -10M | 0 | 0 | -222.71M | 0 | 58.78K | 0 | 0 | 0 |
| Operating Income | -278.15M | -223.57M | -282.12M | -366.57M | -404.36M | -700.06M | -301.8M | -203.2M | -141.77M | -51.39M | -38.53M | -16.35M |
| Operating Margin % | -62.97% | -48.59% | -70.71% | -137.44% | -188.04% | -485.1% | -616.45% | -1564.88% | -109514.01% | - | - | - |
| Operating Income Growth % | - | 20.75% | 23.04% | 9.34% | 42.24% | -131.96% | -48.53% | -43.33% | -175.86% | -33.38% | -135.66% | - |
| EBITDA | -249.57M | -208.56M | -270.26M | -357.54M | -396.13M | -693.58M | -297.16M | -199.43M | -140.12M | -50.84M | -38.33M | -16.22M |
| EBITDA Margin % | -56.5% | -45.32% | -67.74% | -134.05% | -184.21% | -480.61% | -606.97% | -1535.88% | -108239.58% | - | - | - |
| EBITDA Growth % | -16.74% | 22.83% | 24.41% | 9.74% | 42.89% | -133.4% | -49.01% | -42.33% | -175.59% | -32.64% | -136.27% | - |
| D&A (Non-Cash Add-back) | 12.03M | 15.01M | 11.86M | 9.03M | 8.23M | 6.49M | 4.64M | 3.77M | 1.65M | 548K | 199K | 126.51K |
| EBIT | -196.6M | -173.25M | -254.85M | -374.14M | -443.06M | -695.95M | -301.8M | -194.03M | -138.45M | -51.39M | -38.53M | -16.35M |
| Net Interest Income | 19.15M | 27.84M | 34.85M | 39.8M | 14.58M | 2.19M | 4.94M | 7.94M | 3.22M | 0 | 0 | 0 |
| Interest Income | 25.31M | 33.05M | 37.1M | 39.8M | 14.58M | 2.19M | 5.12M | 8.23M | 3.26M | 527.35K | 403.27K | 5K |
| Interest Expense | 6.16M | 5.21M | 2.25M | 0 | 0 | 0 | 181K | 293K | 39.67K | 0 | 0 | 0 |
| Other Income/Expense | 75.39M | 45.11M | 25.01M | 31.95M | -38.93M | -3.35M | 32.9M | -2.83M | 3.28M | 1.01M | 1.02M | -1.67M |
| Pretax Income | -202.77M | -178.46M | -257.1M | -334.62M | -443.29M | -703.41M | -268.9M | -206.02M | -138.49M | -50.13M | -37.51M | -18.02M |
| Pretax Margin % | -45.9% | -38.78% | -64.44% | -125.46% | -206.14% | -487.43% | -549.26% | -1586.66% | -106980.46% | - | - | - |
| Income Tax | -4.38M | -2.93M | 0 | 0 | 0 | 1.06M | 0 | -10.95M | 3.32M | 477.7K | 0 | 0 |
| Effective Tax Rate % | 2.16% | 1.64% | 0% | 0% | 0% | -0.15% | 0% | 5.32% | -2.4% | -0.95% | 0% | 0% |
| Net Income | -198.39M | -175.54M | -257.1M | -334.62M | -443.29M | -704.47M | -268.9M | -195.07M | -139.07M | -50.38M | -37.51M | -18.02M |
| Net Margin % | -44.91% | -38.15% | -64.44% | -125.46% | -206.14% | -488.16% | -549.26% | -1502.31% | -107433.56% | - | - | - |
| Net Income Growth % | 4.07% | 31.72% | 23.17% | 24.51% | 37.08% | -161.98% | -37.85% | -40.26% | -176.03% | -34.31% | -108.15% | - |
| Net Income (Continuing) | -198.39M | -175.54M | -257.1M | -334.62M | -443.29M | -704.47M | -268.9M | -195.07M | -139.07M | -50.38M | -37.51M | -18.02M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.77 | -1.60 | -2.60 | -34.60 | -46.30 | -75.80 | -34.60 | -30.30 | -26.40 | -23.20 | -39.70 | -20.70 |
| EPS Growth % | 4.62% | 38.46% | 92.49% | 25.27% | 38.92% | -119.08% | -14.19% | -14.77% | -13.79% | 41.56% | -91.79% | - |
| EPS (Basic) | - | -1.60 | -2.60 | -34.60 | -46.30 | -75.80 | -34.60 | -30.30 | -26.40 | -23.20 | -39.70 | -20.70 |
| Diluted Shares Outstanding | 112.34M | 109.53M | 98.95M | 9.66M | 9.58M | 9.3M | 7.77M | 6.44M | 5.26M | 2.18M | 943.9K | 869.37K |
| Basic Shares Outstanding | 112.34M | 109.53M | 98.95M | 9.66M | 9.58M | 9.3M | 7.77M | 6.44M | 5.26M | 2.18M | 943.9K | 869.37K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ZLAB stock.
For fiscal year 2025, Zai Lab Limited (ZLAB) reported total revenue of $460.2M.
Zai Lab Limited (ZLAB) reported a net loss of $175.5M for the fiscal year ending 2025.
Zai Lab Limited (ZLAB) reported an operating income of $-223.6M, resulting in an operating profit margin of -48.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Zai Lab Limited (ZLAB) generated $269.1M in gross profit for the year, representing a gross profit margin of 58.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent operating losses
Metrics are mathematically derived from official filings.
Revenue Momentum Fades After 2024 Surge
Zai Lab's revenue growth decelerated sharply from 65.7% in 2024Q4 to -3.3% in 2026Q2, as reported in quarterly filings, indicating a loss of commercial momentum.
The 2024 fiscal year saw robust growth, with quarterly revenue expanding from $87.1M in 2024Q1 to $127.6M by 2025Q4, but the trajectory has since reversed. The most recent two quarters show sequential declines, with 2026Q2 revenue of $106.3M falling 3.3% year-over-year, suggesting that the earlier growth spurt may have been driven by one-time factors such as inventory stocking or launch-related demand. Investors should monitor whether new product launches or market expansion can re-accelerate growth, as the current deceleration appears to be broad-based across quarters.
Gross Margin Compression Signals Pricing Pressure
Gross margin fell from 64.9% in 2024Q2 to 54.7% in 2026Q2, a 10-point decline per income statement data, suggesting eroding pricing power or a less favorable product mix.
The steady decline in gross margin from the mid-60s to the mid-50s over the past two years is a red flag, as it indicates that the company is either facing increased competition, higher input costs, or a shift toward lower-margin products. This compression is occurring even as revenue has grown, implying that the company may be sacrificing margin to maintain volume. If this trend continues, it could further pressure the already negative operating income, making it harder to reach profitability.
Operating Leverage Absent as Costs Outpace Revenue
Despite revenue growth, operating losses have widened from -$70.3M in 2024Q1 to -$76.5M in 2026Q2, indicating that SG&A and R&D expenses are not scaling efficiently.
The company has not demonstrated operating leverage; as revenue increased, operating expenses (R&D and SG&A) have grown at a similar or faster pace. For instance, in 2026Q2, R&D alone was $61.8M, nearly matching gross profit of $58.1M, leaving no room for SG&A or other costs. This suggests that the company is still in heavy investment mode, but the lack of any improvement in operating margin (which remains around -70%) implies that these investments are not yet translating into operational efficiency.
Net Losses Persist Despite One-Time Gains
Net income improved to -$50.8M in 2026Q2 from -$81.7M in 2024Q4, but the improvement appears driven by non-operating items, as operating losses remain stable around -$70M.
The gap between operating income and net income has narrowed significantly, from a $14M difference in 2024Q4 to a $26M difference in 2026Q2, suggesting that non-operating items such as interest income or foreign exchange gains are offsetting some operating losses. However, the core business is still deeply unprofitable, and the quality of earnings is low given the reliance on these non-operating items. Investors should be cautious about extrapolating the recent net income improvement, as it may not be sustainable.
R&D and SG&A Remain Heavy Cost Burdens
R&D expenses have remained elevated at $61.8M in 2026Q2, while SG&A has been volatile, with 2026Q2 showing zero SG&A, a data anomaly that warrants scrutiny.
The cost structure is dominated by R&D, which has consistently been in the $50-65M range per quarter, reflecting the company's continued investment in its pipeline. SG&A has been more variable, with a notable spike to $82.6M in 2024Q4 and a reported zero in 2026Q2, which is likely a data reporting issue rather than a real absence of selling costs. The lack of expense discipline is evident, as total operating expenses have not declined despite revenue stagnation, keeping the company in a loss-making position.
2024 Growth Spurt Masks Underlying Stagnation
The most significant inflection occurred in 2024, when revenue jumped from $87.1M to $109.1M in one year, but this growth has since stalled, with 2026 revenue below 2025 levels.
The 2024 fiscal year marked a period of rapid expansion, with revenue growing over 60% year-over-year in the fourth quarter, likely driven by new product launches or expanded market access. However, this growth proved to be a one-time event, as subsequent quarters have shown deceleration and even contraction. The lasting impact is that the company has not been able to sustain the momentum, and the current revenue base appears to have plateaued, raising questions about the long-term growth trajectory.
Short Thesis: Cash Burn Without a Path to Profit
With operating losses averaging $60M per quarter and no clear timeline to profitability, Zai Lab's cash reserves may be depleted within two years, based on reported burn rates.
The most compelling bear case is that Zai Lab is burning through cash at an unsustainable rate, with cumulative operating losses of over $600M in the last ten quarters. Despite revenue growth, the company has not shown any ability to reduce losses, and the recent gross margin compression suggests that competitive pressures are intensifying. If the company cannot achieve profitability or secure additional financing, it may face a liquidity crisis. The lack of a clear path to positive cash flow, combined with the decelerating revenue growth, makes the stock a high-risk investment.