Revenue growth has decelerated into a 6.5% year-over-year contraction as of 2026Q1, while structural royalty obligations appear to cap gross margins near 61.5%.
| Sales/Revenue | 453.28M | 460.16M | 398.99M | 266.72M | 215.04M | 144.31M | 48.96M | 12.98M | 129.45K | 0 | 0 | 0 |
| Revenue Growth % | 8.36% | 15.33% | 49.59% | 24.03% | 49.01% | 194.77% | 277.04% | 9930.55% | - | - | - | - |
| Cost of Goods Sold | 190.77M | 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 | 262.51M | 269.07M | 251.13M | 170.9M | 141.02M | 92.07M | -190.49M | 9.24M | 85.86K | 0 | 0 | 0 |
| Gross Margin % | 57.91% | 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 | 504.91M | 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 | 279.25M | 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 | 225.77M | 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 | -242.4M | -223.57M | -282.12M | -366.57M | -404.36M | -700.06M | -301.8M | -203.2M | -141.77M | -51.39M | -38.53M | -16.35M |
| Operating Margin % | -53.48% | -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 | -226.91M | -208.56M | -261.84M | -357.54M | -396.13M | -693.58M | -297.16M | -199.43M | -140.12M | -50.84M | -38.33M | -16.22M |
| EBITDA Margin % | -50.06% | -45.32% | -65.63% | -134.05% | -184.21% | -480.61% | -606.97% | -1535.88% | -108239.58% | - | - | - |
| EBITDA Growth % | 10.49% | 20.35% | 26.77% | 9.74% | 42.89% | -133.4% | -49.01% | -42.33% | -175.59% | -32.64% | -136.27% | - |
| D&A (Non-Cash Add-back) | 15.5M | 15.01M | 20.27M | 9.03M | 8.23M | 6.49M | 4.64M | 3.77M | 1.65M | 548K | 199K | 126.51K |
| EBIT | -173.94M | -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 | 25.23M | 27.84M | 34.85M | 39.8M | 14.58M | 2.19M | 4.94M | 7.94M | 3.22M | 0 | 0 | 0 |
| Interest Income | 30.89M | 33.05M | 37.1M | 39.8M | 14.58M | 2.19M | 5.12M | 8.23M | 3.26M | 527.35K | 403.27K | 5K |
| Interest Expense | 5.66M | 5.21M | 2.25M | 0 | 0 | 0 | 181K | 293K | 39.67K | 0 | 0 | 0 |
| Other Income/Expense | 62.8M | 45.11M | 25.01M | 31.95M | -38.93M | -3.35M | 32.9M | -2.83M | 3.28M | 1.01M | 1.02M | -1.67M |
| Pretax Income | -179.6M | -178.46M | -257.1M | -334.62M | -443.29M | -703.41M | -268.9M | -206.02M | -138.49M | -50.13M | -37.51M | -18.02M |
| Pretax Margin % | -39.62% | -38.78% | -64.44% | -125.46% | -206.14% | -487.43% | -549.26% | -1586.66% | -106980.46% | - | - | - |
| Income Tax | -1.49M | -2.93M | 0 | 0 | 0 | 1.06M | 0 | -10.95M | 3.32M | 477.7K | 0 | 0 |
| Effective Tax Rate % | 0.83% | 1.64% | 0% | 0% | 0% | -0.15% | 0% | 5.32% | -2.4% | -0.95% | 0% | 0% |
| Net Income | -178.12M | -175.54M | -257.1M | -334.62M | -443.29M | -704.47M | -268.9M | -195.07M | -139.07M | -50.38M | -37.51M | -18.02M |
| Net Margin % | -39.29% | -38.15% | -64.44% | -125.46% | -206.14% | -488.16% | -549.26% | -1502.31% | -107433.56% | - | - | - |
| Net Income Growth % | 29.34% | 31.72% | 23.17% | 24.51% | 37.08% | -161.98% | -37.85% | -40.26% | -176.03% | -34.31% | -108.15% | - |
| Net Income (Continuing) | -178.12M | -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) | -1.61 | -1.60 | -2.60 | -34.60 | -46.30 | -75.80 | -34.60 | -30.30 | -26.40 | -23.20 | -39.70 | -20.70 |
| EPS Growth % | 87.93% | 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 | 110.74M | 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 | 110.74M | 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 | - | - | - | - | - | - | - | - | - | - | - | - |
Regulatory and Licensing Dependency
According to recent quarterly financial disclosures, Zai Lab's revenue growth has decelerated significantly, culminating in a 6.5% year-over-year contraction in 2026Q1, which highlights the inherent volatility of a business model reliant on periodic product launches and the competitive landscape of the Chinese pharmaceutical market.
The transition from double-digit growth in 2025 to a contraction in the most recent quarter suggests that the initial volume uptake of core oncology assets may be reaching a saturation point. Investors should monitor whether this deceleration reflects broader market pricing pressures or a temporary lull in the product pipeline's ability to drive incremental revenue.
As reported in financial statements, Zai Lab maintains a gross margin profile hovering near 60%, a figure that appears structurally capped by the royalty obligations inherent in its license-and-commercialize business model rather than the high-margin profile typical of fully integrated global pharmaceutical innovators.
The fluctuation in gross margins, notably the dip to 51.2% in 2025Q4, underscores the sensitivity of the cost structure to product mix and potential royalty step-ups. This margin profile suggests that achieving profitability will require significant scale to overcome the fixed-cost burden of its specialized commercial infrastructure.
Based on the company's income statement history, operating expenses continue to track closely with gross profit, as evidenced by persistent operating losses that reached $69.3 million in 2026Q1, indicating that the firm has yet to achieve the necessary operating leverage to scale its bottom line.
The inability to decouple SG&A and R&D growth from revenue generation suggests that the company remains in a high-investment phase, potentially masking the true long-term profitability of its commercialized assets. Analysts should scrutinize whether the current level of R&D spending is a strategic necessity or a reflection of inefficiencies in the clinical trial bridging process.
Data from recent filings reveals that stock-based compensation remains a substantial non-cash expense, consistently exceeding $13 million per quarter, which warrants careful consideration when evaluating the company's true operational burn rate and the dilution risk faced by existing shareholders in the current capital-constrained environment.
The reliance on equity-based incentives to retain scientific talent in a competitive Shanghai market effectively shifts the cost of operations from the income statement to the balance sheet via dilution. This practice may obscure the underlying cash requirements of the business, making it difficult to assess the true path to self-sustaining operations.
While management emphasizes the speed of its NMPA regulatory bridge, the income statement suggests a precarious reliance on external innovation, as the lack of internally developed, high-margin assets leaves the company vulnerable to potential licensing bottlenecks and the rising costs of securing late-stage global drug rights.
Short-term revenue volatility and the persistent negative net margins suggest that the 'in-China-for-China' strategy may be more capital-intensive than the market initially anticipated. Investors should remain cautious regarding the long-term viability of this model if geopolitical tensions continue to restrict access to high-quality Western biotech assets.
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.