ZKH Group Limited reported its fourth‑quarter and full‑year 2025 results on March 19, 2026. Net revenues rose 7.9% to RMB2.56 billion in Q4 and 2.6% to RMB8.99 billion for the year. Gross profit fell 2.1% to RMB396.4 million, giving a gross margin of 15.5% versus 17.1% in 2024. Operating loss narrowed to RMB28.2 million, a 13.4% improvement from RMB32.6 million in Q4 2024, while net profit turned to RMB4.8 million from a RMB29.1 million loss. Operating cash flow reached RMB116.1 million and the net profit margin settled at 0.2%.
The revenue beat of roughly RMB60 million over analyst expectations was driven by stronger demand in the company’s core MRO platform, while a shift toward lower‑margin product mix and a reduced contribution from the marketplace model compressed gross margins. The AI‑driven efficiency program, which has deployed more than 5,000 robotic process automations and a vertical large‑language model, has helped control costs and improve operational leverage.
For the full year, net revenue of RMB8.99 billion was up 2.6% from RMB8.80 billion in 2024. Gross profit fell 2.3% to RMB1.48 billion, and the gross margin slipped to 16.4% from 17.2%. The company’s net loss narrowed to RMB139.7 million from RMB268.0 million, reflecting the combined effect of revenue growth and cost discipline. GMV grew 8.5% in Q4 but declined 3.3% for the year, a trend attributed to strategic optimization of the marketplace.
CEO Eric Long Chen said the company has “returned to profitability and is entering a healthier growth phase.” CFO Max Chun Chiu Lai added that the company’s focus on AI‑driven efficiency and private‑label expansion is “building a more resilient, sustainable foundation for future growth.”
Investors responded positively to the earnings, citing the return to profitability and the revenue beat as key drivers. Analysts noted that while gross margins are compressing, the company’s operational improvements and customer base expansion provide a solid foundation for near‑term upside.
The results underscore the impact of the AI‑driven efficiency program, which has reduced operating expenses as a percentage of revenue and increased operating cash flow. The company’s private‑label mix is growing, and customer count rose 59.8% YoY in Q4, supporting higher GMV. Headwinds include commodity price fluctuations, competitive pressure, and a temporary unfavorable product mix that diluted gross profit. Tailwinds are the continued AI investment, improved operational leverage, and the expansion of the international footprint.
Segment analysis shows that revenue is split between the ZKH Platform and the GBB Platform, with product sales and marketplace contributions both playing a role. The company’s shift toward higher‑margin private‑label products and the AI‑enabled marketplace are expected to help stabilize margins over the next few quarters.
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