ZKH Group (ZKH) Q2 2025 earnings summary

Executive summary

• Achieved strong business development and operational efficiency in Q2 2025, with record customer numbers and a 53.5% year-over-year increase in the customer base to over 74,000, despite macroeconomic challenges and a 12.1% GMV decline due to SOE business optimization.

• Net loss narrowed by 19.3% year-over-year to RMB 53.5 million, with net loss margin improving to 2.5% from 2.9%, and monthly break-even achieved in June.

• International expansion accelerated, with U.S. revenue up 260% quarter-over-quarter and European operations targeted for launch by year-end 2025.

• Continued investment in product capabilities, AI tools, last-mile delivery, and overseas expansion, including the operational launch of the Taicang smart manufacturing base.

• Private-label product GMV grew 25% year-over-year to RMB 210 million, now 8.7% of total GMV, supporting a more profitable revenue mix.

Financial highlights

• Net revenues for Q2 2025 were RMB 2.17 billion, down 3.7% year-over-year, with net product revenues at RMB 2.11 billion and net service revenues at RMB 40.7 million.

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

• Operating expenses decreased by 5.6% year-over-year to RMB 428.9 million, representing 19.8% of revenue.

• Non-GAAP adjusted net loss was RMB 36.5 million, and non-GAAP EBITDA loss improved to RMB 38.7 million.

• Cash and cash equivalents at June 30, 2025, were RMB 1.85 billion.

Outlook and guidance

• Management anticipates easing SOE-related headwinds and a potential turnaround in top-line growth in the second half of 2025, with a focus on high-quality revenue growth and prudent cost management.

• Europe business and standalone site launch targeted by year-end 2025, with continued focus on expanding international presence and enhancing AI/data infrastructure.

• Focus remains on financial stability, near-term profitability in China, and sustainable long-term growth.