ZKH Group (ZKH) Q2 2025 earnings summary

Executive summary

• Achieved strong business development and operational efficiency in Q2 2025, with high customer activity, record customer numbers, and a 53.5% year-over-year increase in the customer base to over 74,000.

• Underlying GMV grew year-over-year excluding SOE optimization, but reported GMV declined 12.1% to RMB 2.42 billion and revenue decreased 3.7% to RMB 2.17 billion.

• Net loss narrowed by 19.3% year-over-year to RMB 53.5 million, with net loss margin improving to 2.5% and monthly break-even achieved in June.

• Continued investment in product capabilities, AI tools, last-mile delivery, and overseas expansion, with U.S. revenue up 260% quarter-over-quarter and new initiatives in Europe and Southeast Asia.

• Operational launch of the Taicang Smart Manufacturing Base enhanced R&D and private-label product development.

Financial highlights

• Gross margin on a GMV basis reached 14.8%, up 0.8 percentage points year-over-year, and gross margin for product sales rose to 16% on ZKH platform and 7% on GBB platform.

• Net revenues for Q2 2025 were RMB 2,166.8 million, down from RMB 2,250.0 million in Q2 2024.

• Net loss decreased to RMB 53.5 million from RMB 66.3 million, with net loss margin improving to 2.5% from 2.9%.

• Marketplace (3P) take rate increased 206.7bps year-over-year to 14.2%.

• Private-label product GMV grew 25% year-over-year to RMB 210 million, now 8.7% of total GMV.

Outlook and guidance

• Anticipates easing of SOE-related headwinds and a potential turnaround in top-line growth in the second half of 2025, with Europe business and standalone site launch targeted by year-end.

• Confident in recovery and positive growth for the second half, with overseas investments expected to show results.

• Focus remains on financial stability, near-term profitability in China, and sustainable long-term growth through targeted investments and prudent cost management.