Linklogis reported Q1 2025 results that underscore a sharp quarter-over-quarter deceleration and sustained profitability pressures, despite a still attractive gross margin profile. Revenue of CNY 187.253 million declined 9.34% year over year and fell 39.41% sequentially from the prior quarter (Q4 2024), while gross profit reached CNY 104.932 million for a gross margin of 56.0%. The operating loss widened meaningfully to CNY -168.555 million and EBITDA softened to CNY -160.428 million, driven by an outsized cost base despite ceding some of the top-line strength.
Management commentary (where available) has signaled continued heavy investment in platform development (Anchor Cloud, FI Cloud, Crossborder Cloud, and SME Credit Tech solutions) to accelerate longer-term monetization, even as near-term revenue and profitability pressures persist. Net income fell to an annualized rate with a loss of CNY -189.864 million and a diluted EPS of -0.096. While gross margins remain in the mid-50s, the company must achieve meaningful operating leverage and/or revenue acceleration to transition toward sustained profitability. Investors should monitor the trajectory of platform adoption, customer growth, monetization of newer modules, and cost discipline to determine whether the path to breakeven can be reached in a reasonable timeframe.