Zhibao Technology Inc (ZBAO) Q3 2024 Earnings Report

Zhibao Technology reported a solid YoY rebound in Q3 2024 with revenue of $6.88 million and a gross margin of ~45%. Net income and EPS were positive, with net income of $1.51 million and an EPS of $0.049, reflecting a period of meaningful margin leverage despite a difficult sequential comparison. The company delivered EBITDA of $1.29 million and an EBITDA margin of ~18.8%, underscoring meaningful operating profitability on a stand-alone basis. However, overhead and funding of working capital contributed to a material cash flow wash, with aggregate operating cash flow of $(6.19) million and free cash flow of $(6.21) million for the quarter.

On the balance sheet, Zhibao maintains a modest cash position but a substantial receivable balance and elevated current liabilities. Total assets stood at $28.92 million, while total liabilities were $20.05 million and total stockholders’ equity was $8.86 million. Net debt stood at approximately $(4.72) million, reflecting near-term liquidity challenges as receivables and working capital dynamics dominate cash flow. The current ratio sits at 1.40, but the cash ratio is a stringent 0.017, highlighting a fragile liquidity stance despite positive earnings.

Given the lack of a formal transcript in the provided data, the assessment relies on reported quarterly results, recent trend lines, and macro/industry considerations. The QQ3 2024 results imply improving profitability on an absolute basis, but the sustainability of cash generation will depend on working capital optimization, receivables collection efficiency, and potential monetization of the platform’s growth opportunities within China’s evolving digital insurance brokerage segment.