ZKH Group (NYSE:ZKH) Posts Earnings Results, Misses Expectations By $0.04 EPS

ZKH Group (NYSE:ZKH) posted its quarterly earnings results on Thursday. The company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.04), FiscalAI reports. The business had revenue of $365.51 million during the quarter, compared to the consensus estimate of $351.68 million. ZKH Group had a negative return on equity of 5.72% and a negative net margin of 1.97%.

Here are the key takeaways from ZKH Group’s conference call:

• Returned to profitability in Q4 with an adjusted net profit of ~CNY 14.8–14.9M, positive operating cash flow in both Q4 and full year, and a stated target of achieving full‑year profitability in 2026.
• GMV and customer momentum — Q4 GMV grew 8.5% YoY to RMB 2.92B (11% sequential), transacting customers reached ~74,000 (+60% YoY), SME GMV +20% YoY, and international GMV expanded ~50% sequentially with a footprint in 17 countries.
• Efficiency and AI scale — through‑warehouse fulfillment costs declined ~13% YoY, operating expenses fell and operating leverage improved; AI/RPA adoption (>5,000 digital workers, ~80B tokens/month) materially boosted productivity and automation.
• Margin pressure and commodity risk — Q4 gross margin declined to 15.5% (from 17.1%) driven by product‑mix shifts and commodity‑led pull‑forward purchases (e.g., wires/cables) and exposure to oil/supplier price volatility, creating short‑term headwinds for margins.

ZKH Group Stock Performance

Shares of ZKH Group stock opened at $2.29 on Friday. ZKH Group has a 12 month low of $2.20 and a 12 month high of $3.90. The firm has a market capitalization of $370.81 million, a P/E ratio of -15.23 and a beta of 0.06. The business has a fifty day simple moving average of $3.43 and a two-hundred day simple moving average of $3.21. The company has a current ratio of 1.85, a quick ratio of 1.62 and a debt-to-equity ratio of 0.05.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen upgraded ZKH Group to a “hold” rating in a research report on Saturday, January 3rd. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the stock presently has a consensus rating of “Sell”.

Institutional Investors Weigh In On ZKH Group

Several hedge funds have recently added to or reduced their stakes in the stock. FIL Ltd grew its holdings in shares of ZKH Group by 26.0% during the fourth quarter. FIL Ltd now owns 7,621,884 shares of the company’s stock valued at $28,049,000 after buying an additional 1,572,957 shares during the last quarter. Renaissance Technologies LLC grew its stake in shares of ZKH Group by 442.1% during the 4th quarter. Renaissance Technologies LLC now owns 91,500 shares of the company’s stock valued at $337,000 after purchasing an additional 74,621 shares during the period. Jain Global LLC purchased a new stake in shares of ZKH Group in the 3rd quarter worth $238,000. Invesco Ltd. purchased a new stake in ZKH Group in the 4th quarter worth approximately $291,000. Finally, Goldman Sachs Group Inc. bought a new position in ZKH Group in the 4th quarter worth $106,000. 9.52% of the stock is owned by institutional investors.

ZKH Group Company Profile

ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People’s Republic of China. The company provides MRO procurement and management services; digitalized MRO procurement solutions; and logistics and warehousing services. It also engages in the production and sale of intelligent warehousing equipment. ZKH Group Limited was founded in 1998 and is based in Shanghai, the People’s Republic of China.