ZKH Group (ZKH) Q3 2025 earnings summary

Executive summary

• Business stabilized and returned to growth, with net revenues up 2.1% year-over-year to RMB 2,328.4 million and transacting customers exceeding 70,800, a new quarterly high, supported by efficiency gains and AI-driven operational improvements.

• Private-label GMV grew 16.7% year-over-year, now representing 8.2% of total GMV, with over 600 new SKUs launched.

• Customer base expanded 48% year-over-year, with improved mix across key accounts and SMEs, and international expansion continued, including U.S. channel growth and support for China-outbound clients.

• AI initiatives and warehouse consolidation drove productivity and cost savings, with customer service productivity up 42% and procurement productivity up 52% year-over-year.

• Achieved monthly break-even in September, with adjusted net loss down 78.7% to RMB 14.1 million and adjusted net loss margin at 0.6%.

Financial highlights

• Net revenues for 3Q2025 were RMB 2,328.4 million, up 2.1% year-over-year; gross profit rose 0.5% to RMB 390.2 million.

• Gross margin was 16.8% (down 27.3 bps year-over-year); on a GMV basis, gross margin improved by 41.5 bps to 14.9%.

• Operating loss narrowed 69.3% to RMB 32.3 million; non-GAAP EBITDA loss improved to RMB 8.5 million from RMB 62.8 million.

• Net loss narrowed to RMB 24.3 million (1.0% margin), and non-GAAP adjusted net loss to RMB 14.1 million (0.6% margin).

• Net cash from operating activities was RMB 105.5 million, compared to a net outflow of RMB 160.5 million a year ago.

Outlook and guidance

• Confident in achieving quarterly profitability in Q4 2025, with annual GMV growth of 15%-20% expected going forward.

• Overseas business expected to reach break-even in 2026, with near-term focus on serving Chinese companies abroad.

• Management remains focused on AI development, overseas expansion, and long-term value creation.