ZKH Group Ltd (NYSE:ZKH) Q3 2025 Earnings Miss Estimates, Stock Declines

ZKH Group Ltd (NYSE:ZKH), a leading maintenance, repair and operations (MRO) procurement service platform in China, reported its third quarter 2025 financial results, revealing a significant divergence from analyst expectations on key profitability metrics. The company's performance and the subsequent market reaction highlight the challenges it faces in its path toward sustained profitability.

Earnings and Revenue Versus Estimates

The third quarter results fell notably short of Wall Street's projections, particularly on the bottom line. The company reported a loss, contrasting sharply with the profit analysts had anticipated.

• Revenue: Reported revenue of 2.33 billion CNY, missing the analyst estimate of 2.53 billion CNY.
• Earnings Per Share (EPS): Reported a non-GAAP loss per share of 0.07 CNY, a stark contrast to the estimated profit of 0.19 CNY per share.

This double miss indicates that ZKH is grappling with both top-line growth pressures and profitability issues. The revenue shortfall suggests potential challenges in customer demand or competitive pressures, while the unexpected loss points to ongoing cost management difficulties or investments that have yet to yield returns.

Market Reaction

The immediate market response to the earnings release has been negative. In pre-market trading, the stock experienced a sharp decline, reflecting investor disappointment with the results. This price action underscores the market's focus on the company's ability to meet profitability targets. The negative sentiment in pre-market trading often sets the tone for the regular session, indicating a likely sell-off as the market fully digests the earnings report.

Press Release Summary

The company's press release announced its unaudited financial results for the quarter ended September 30, 2025. While the full details of the release were not provided in the available context, the core announcement centered on the publication of these Q3 2025 figures. The release serves as the official source for the reported revenue and earnings per share data that have driven the current market movement.

Outlook and Forward Estimates

The provided context does not include a specific financial outlook or guidance from ZKH Group's management for the upcoming quarters. The absence of formal guidance means investors are left to rely solely on the historical results and independent analyst estimates to gauge the company's future trajectory. Without management's own projections, it is more challenging to assess whether the Q3 shortcomings are viewed internally as a temporary setback or part of a longer-term trend.

For a detailed breakdown of historical earnings, future analyst estimates, and consensus projections, you can review the data available here: ZKH Earnings and Estimates.

---

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an offer to solicit any transaction. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.