ZKH Group (ZKH) Q1 2026 earnings summary

Executive summary

• Achieved strong year-over-year growth in GMV (12.9%) and net revenues (9.2%) for Q1 2026, with broad-based momentum across customer segments.

• Non-GAAP adjusted net profit turned positive for the first time in a seasonally soft Q1, reaching RMB 1.7 million, and non-GAAP EBITDA turned positive at RMB 4.2 million.

• Operating loss narrowed to RMB 22.5 million, and net cash outflow from operating activities improved significantly year-over-year.

• Customer base expanded to over 66,700, up 11.0% year-over-year, with strong growth in SME and central SOE segments.

• Continued investments in product ecosystem, fulfillment network, and AI-powered digitalization enhanced operational efficiency and customer penetration.

Financial highlights

• GMV increased 12.9% year-over-year to RMB 2.45 billion; net revenues were RMB 2.11 billion, up 9.2%.

• Gross profit rose 6.6% year-over-year to RMB 354 million; gross margin was 16.7%, down from 17.2% year-over-year.

• Operating loss narrowed by 72.2% to RMB 22.5 million; non-GAAP EBITDA margin turned positive at 0.2%.

• Cash and equivalents totaled RMB 1.84 billion as of March 31, 2026.

• Net cash used in operating activities was RMB 34 million, down from RMB 97.1 million a year ago.

Outlook and guidance

• Management expressed confidence in achieving double-digit GMV growth and full-year profitability for 2026.

• Expect GMV growth to accelerate further in Q2 based on current trends.

• Goal to reach breakeven for international business in 2026.

• Continued focus on scaling platform and AI capabilities to drive growth and operational efficiency.

• Ongoing international expansion, particularly serving China-outbound manufacturers and enhancing U.S. business operations.