ZKH Group Limited (NYSE:ZKH) reported fourth-quarter results that exceeded revenue forecasts and marked a return to profitability after a loss in the same period a year earlier. Shares rose about 0.6% following the announcement.
The MRO procurement services platform generated revenue of $365.68 million for the quarter ended December 31, 2025, surpassing the analyst consensus estimate of $347.38 million. Revenue increased 7.9% from RMB2,370.2 million in the fourth quarter of the prior year. The company reported adjusted earnings per ADS of $0.01, compared with an adjusted loss per ADS of RMB0.09 in the fourth quarter of 2024. On a GAAP basis, ZKH recorded a net profit of RMB4.8 million, reversing a net loss of RMB29.1 million in the year-earlier period.
“In the fourth quarter, we achieved accelerated YoY GMV and revenue growth and returned to profitability, closing the year on a strong note,” said Eric Long Chen, Chairman and Chief Executive Officer. “This performance marks the start of a fundamentally healthier, more resilient growth phase for the Company.”
Gross merchandise value rose 8.5% year over year to RMB2,918.3 million in the fourth quarter, supported by expansion of the company’s customer base. The number of customers increased 59.8% year over year to 73,803. Gross margin, however, declined to 15.5% from 17.1% in the prior-year quarter, mainly due to shifts in product mix, although this was partly offset by a greater contribution from higher-margin private-label products.
Operating expenses fell 3.0% year over year to RMB424.6 million, representing 16.6% of net revenue compared with 18.5% in the same period last year. The company also reported non-GAAP EBITDA of RMB19.7 million, improving from negative RMB13.3 million in the fourth quarter of 2024.
For the full fiscal year 2025, ZKH reported revenue of RMB8,987.7 million, an increase of 2.6% compared with 2024. The company’s annual net loss narrowed to RMB139.7 million from RMB268.0 million the previous year.