Revenue growth has decelerated to 10.3% in 2025Q2, while gross margins have compressed significantly from the 33.8% peak observed in 2024Q2.
| Sales/Revenue | 46.32B | 47.76B | 44.28B | 38.42B | 35.38B | 30.41B | 25.21B | 22.11B | 17.6B | 13.06B | 9.79B | 6.09B | 3.9B |
| Revenue Growth % | 14.7% | 7.86% | 15.26% | 8.6% | 16.35% | 20.59% | 14.04% | 25.59% | 34.8% | 33.42% | 60.83% | 55.92% | - |
| Cost of Goods Sold | 33.59B | 35.82B | 30.56B | 26.76B | 26.34B | 23.82B | 19.38B | 15.49B | 12.24B | 8.71B | 6.35B | 4B | 2.77B |
| COGS % of Revenue | - | 75.01% | 69.02% | 69.64% | 74.45% | 78.33% | 76.85% | 70.05% | 69.53% | 66.73% | 64.83% | 65.7% | 70.97% |
| Gross Profit | 12.73B | 11.94B | 13.72B | 11.66B | 9.04B | 6.59B | 5.84B | 6.62B | 5.36B | 4.35B | 3.44B | 2.09B | 1.13B |
| Gross Margin % | 27.48% | 24.99% | 30.98% | 30.36% | 25.55% | 21.67% | 23.15% | 29.95% | 30.47% | 33.27% | 35.17% | 34.3% | 29.03% |
| Gross Profit Growth % | - | -12.98% | 17.62% | 29.02% | 37.18% | 12.89% | -11.84% | 23.42% | 23.46% | 26.22% | 64.91% | 84.26% | - |
| Operating Expenses | 1.55B | 2.57B | 1.94B | 1.65B | 1.3B | 1.09B | 1.08B | 1.16B | 1.03B | 597.15M | 673.89M | 558.49M | 532.74M |
| OpEx % of Revenue | - | 5.37% | 4.38% | 4.31% | 3.68% | 3.57% | 4.29% | 5.24% | 5.87% | 4.57% | 6.88% | 9.18% | 13.65% |
| Selling, General & Admin | 2.56B | 0 | 2.69B | 2.43B | 2.08B | 1.88B | 1.66B | 1.55B | 1.21B | 780.52M | 706M | 591.74M | 534.54M |
| SG&A % of Revenue | - | - | 6.07% | 6.31% | 5.87% | 6.17% | 6.6% | 6.99% | 6.88% | 5.98% | 7.21% | 9.72% | 13.69% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -4M | 2.57B | -749.78M | -770.65M | -774.58M | -789.5M | -580.97M | -387.89M | -178.06M | -183.37M | -32.1M | -33.25M | -1.8M |
| Operating Income | 11.18B | 9.37B | 11.78B | 10.01B | 7.74B | 5.5B | 4.75B | 5.46B | 4.33B | 3.75B | 2.77B | 1.53B | 600.3M |
| Operating Margin % | 24.13% | 19.62% | 26.6% | 26.05% | 21.87% | 18.1% | 18.86% | 24.71% | 24.61% | 28.7% | 28.29% | 25.13% | 15.38% |
| Operating Income Growth % | - | -20.43% | 17.68% | 29.36% | 40.59% | 15.75% | -12.97% | 26.1% | 15.57% | 35.37% | 81.07% | 154.74% | - |
| EBITDA | 13.78B | 12.66B | 14.8B | 12.88B | 10.41B | 7.72B | 6.59B | 6.73B | 5.19B | 4.31B | 3.09B | 1.69B | 664.32M |
| EBITDA Margin % | 29.76% | 26.5% | 33.42% | 33.53% | 29.42% | 25.41% | 26.16% | 30.43% | 29.46% | 32.99% | 31.61% | 27.72% | 17.02% |
| EBITDA Growth % | 0.41% | -14.47% | 14.88% | 23.79% | 34.72% | 17.13% | -1.97% | 29.72% | 20.36% | 39.27% | 83.37% | 153.99% | - |
| D&A (Non-Cash Add-back) | 2.61B | 3.29B | 3.02B | 2.88B | 2.67B | 2.22B | 1.84B | 1.26B | 853.72M | 560.37M | 324.98M | 158.06M | 64.01M |
| EBIT | 11.79B | 11.08B | 12.01B | 10.98B | 8.48B | 5.87B | 5.07B | 6.76B | 5.34B | 3.84B | 2.83B | 1.77B | 603.71M |
| Net Interest Income | 562.42M | 484.88M | 655.62M | 417.23M | 313.2M | 237.39M | 407.39M | 585.4M | 400.38M | 150.66M | 31.8M | -1.3M | 2.61M |
| Interest Income | 867.56M | 726.72M | 993.53M | 706.76M | 503.72M | 363.89M | 442.7M | 585.4M | 401.16M | 166.32M | 44.79M | 15.09M | 3.41M |
| Interest Expense | 305.14M | 241.84M | 337.92M | 289.53M | 190.52M | 126.5M | 35.31M | 0 | 780K | 15.67M | 12.99M | 16.39M | 798K |
| Other Income/Expense | 375.32M | 1.47B | -43.9M | 685.13M | 555.82M | 203.77M | 261.91M | 1.29B | 984.82M | 56.83M | 14.61M | 222.39M | 8.19M |
| Pretax Income | 11.55B | 10.84B | 11.73B | 10.69B | 8.29B | 5.71B | 5.02B | 6.75B | 5.32B | 3.81B | 2.78B | 1.75B | 608.49M |
| Pretax Margin % | 24.94% | 22.69% | 26.5% | 27.83% | 23.44% | 18.77% | 19.89% | 30.53% | 30.2% | 29.14% | 28.44% | 28.78% | 15.59% |
| Income Tax | 2.72B | 1.85B | 2.85B | 1.94B | 1.63B | 1.01B | 689.83M | 1.08B | 929.13M | 646.36M | 731.99M | 420M | 202.49M |
| Effective Tax Rate % | 23.56% | 17.1% | 24.25% | 18.13% | 19.7% | 17.62% | 13.75% | 15.98% | 17.47% | 16.99% | 26.3% | 23.98% | 33.28% |
| Net Income | 8.71B | 8.83B | 8.82B | 8.75B | 6.81B | 4.75B | 4.31B | 5.67B | 4.38B | 3.16B | 2.05B | 1.33B | 406.43M |
| Net Margin % | 18.81% | 18.49% | 19.91% | 22.77% | 19.25% | 15.64% | 17.1% | 25.66% | 24.9% | 24.19% | 20.98% | 21.88% | 10.41% |
| Net Income Growth % | 1.58% | 0.19% | 0.78% | 28.49% | 43.2% | 10.26% | -24% | 29.46% | 38.72% | 53.84% | 54.22% | 227.67% | - |
| Net Income (Continuing) | 8.83B | 8.98B | 8.89B | 8.75B | 6.66B | 4.7B | 4.33B | 5.67B | 4.39B | 3.16B | 2.05B | 1.33B | 406M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 658.2M | 752.56M | 612.44M | 478.66M | 443.92M | 290.33M | 120.89M | 100.79M | 52.31M | 6M | 5.71M | 11.98M | 26.89M |
| EPS (Diluted) | 10.47 | 10.91 | 10.70 | 10.60 | 8.36 | 5.80 | 5.42 | 7.23 | 5.82 | 4.40 | 2.91 | 1.65 | 0.52 |
| EPS Growth % | 1.83% | 1.96% | 0.94% | 26.79% | 44.14% | 7.01% | -25.03% | 24.23% | 32.27% | 51.2% | 76.36% | 217.31% | - |
| EPS (Basic) | - | 11.05 | 10.95 | 10.83 | 8.41 | 5.80 | 5.42 | 7.24 | 5.83 | 4.41 | 2.91 | 1.65 | 0.52 |
| Diluted Shares Outstanding | 832.05M | 820.8M | 838.44M | 838.95M | 819.96M | 819.96M | 796.15M | 784.33M | 752.67M | 717.6M | 634.58M | 783.22M | 783.22M |
| Basic Shares Outstanding | 798.49M | 797.63M | 824M | 825.23M | 809.44M | 819.96M | 796.1M | 784.01M | 751.81M | 717.14M | 634.58M | 783.12M | 783.12M |
| Dividend Payout Ratio | - | 42.52% | 63.58% | 23.69% | 19.43% | 28.48% | 38.25% | 22.4% | 20.42% | - | - | 8.64% | - |
Regulatory labor cost inflation
As reported in recent financial statements, ZTO's revenue growth has stabilized at approximately 10.3% in 2025Q2, reflecting a broader deceleration in the Chinese e-commerce parcel volume market as the industry transitions from aggressive, volume-chasing expansion toward a more sustainable, profit-oriented operational model for all major logistics players.
The consistent double-digit growth suggests that ZTO is successfully maintaining its market share despite the maturation of domestic consumption patterns. Investors should monitor whether this growth trajectory can be sustained without further price concessions, as the shift toward value-oriented e-commerce platforms may continue to pressure top-line expansion.
Based on the company's latest quarterly filings, gross margins have contracted to 24.9% in 2025Q2 from the 33.8% peak observed in 2024Q2, indicating that the company's historical pricing power is being tested by a more competitive environment and rising operational costs within the domestic logistics sector.
This margin compression appears to reflect the impact of intense competition and potentially higher input costs, such as fuel and labor. While ZTO remains a cost leader, the narrowing gap between its margins and those of its peers warrants investigation into whether the structural cost advantage is beginning to erode.
According to the income statement data, ZTO's operating margin declined to 20.9% in 2025Q2, down from 30.0% in 2024Q2, suggesting that the company is currently struggling to scale its operating income at the same pace as its gross profit due to rising overhead and administrative expenses.
The lack of operating leverage in recent quarters may indicate that the company is reaching a point of diminishing returns on its historical investments in automation. Analysts should evaluate whether this trend is a temporary byproduct of infrastructure upgrades or a permanent shift in the company's ability to manage its fixed cost base.
As evidenced by the quarterly income statements, ZTO's net income has experienced significant fluctuations, partly driven by periodic spikes in stock-based compensation, which reached $220.3 million in 2025Q1, thereby obscuring the underlying core profitability of the express delivery business for the average retail investor.
The inconsistency in non-operating items and compensation expenses makes it difficult to assess the true cash-generating capability of the firm on a quarterly basis. Investors should focus on normalized earnings metrics to better understand the company's operational health, as these accounting anomalies may mask underlying trends in core service profitability.
Based on an analysis of the provided financial data, the primary risk to the investment thesis is the potential for ZTO's margin premium to converge toward industry averages, as the company's structural cost advantages are increasingly challenged by regulatory mandates and the aggressive pricing strategies of newer market entrants.
Short-sellers would likely focus on the recent decline in net margins, which fell to 16.4% in 2025Q2, as a signal that the company's competitive moat is narrowing. If the company cannot maintain its cost leadership, the current valuation may be difficult to justify given the slowing growth in the Chinese e-commerce market.
Quick answers to the most common questions about buying ZTO stock.
For fiscal year 2025, ZTO Express (Cayman) Inc. (ZTO) reported total revenue of $47.76B. This represents a 1123.5% increase compared to $3.90B in 2014.
ZTO Express (Cayman) Inc. (ZTO) is profitable, generating $8.83B in net income for the fiscal year ending 2025 with a net profit margin of 18.5%.
ZTO Express (Cayman) Inc. (ZTO) reported an operating income of $9.37B, resulting in an operating profit margin of 19.6%. This margin reflects the operational efficiency of the business before interest and taxes.
ZTO Express (Cayman) Inc. (ZTO) generated $11.94B in gross profit for the year, representing a gross profit margin of 25.0%. This demonstrates the company's core pricing power and production efficiency.