iSoftStone Information Technology (301236) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 7.01 billion, up 28.65% year-over-year.

• Net loss attributable to shareholders narrowed to RMB -197.7 million, a 28.76% improvement year-over-year.

• Basic and diluted EPS improved to -0.21 from -0.29 in the prior year period.

Financial highlights

• Operating cash flow was negative RMB 1.84 billion, down from negative RMB 1.38 billion year-over-year, mainly due to reduced operating payables.

• Total assets at quarter-end were RMB 22.59 billion, down 2.54% from year-end 2024.

• Shareholders' equity decreased 2.13% to RMB 10.35 billion compared to year-end 2024.

• Non-recurring gains totaled RMB 18.33 million, mainly from government grants and asset disposals.

Key financial ratios and metrics

• Gross margin declined as cost of revenue increased to RMB 6.29 billion from RMB 4.87 billion year-over-year.

• Weighted average ROE improved to -1.89% from -2.66% year-over-year.

• Net margin improved but remained negative.