Executive Summary
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.
Key Performance Indicators
QoQ: -39.41% | YoY:-9.34%
QoQ: -50.55% | YoY:-28.35%
QoQ: 30.23% | YoY:-80.72%
QoQ: 36.14% | YoY:-57.69%
QoQ: 35.87% | YoY:-67.89%
Key Insights
Revenue: CNY 187.253 million; YoY change: -9.34%; QoQ change: -39.41%
Gross Profit: CNY 104.932 million; YoY change: -28.35%; QoQ change: -50.55%
Gross Margin: 56.04%
Operating Income: CNY -168.555 million; YoY change: -80.72%; QoQ change: +30.23%
EBITDA: CNY -160.428 million; EBITDA Margin: -85.67%
Net Income: CNY -189.864 million; Net Margin: -1.01%
EPS (Diluted): -0.0962; YoY EPS change: -67.89%; QoQ EPS change: +35.87%
R&D Expense: CNY 71.263 million
G&A Expense: CNY 46.116 million
S...
Financial Highlights
Revenue: CNY 187.253 million; YoY change: -9.34%; QoQ change: -39.41%
Gross Profit: CNY 104.932 million; YoY change: -28.35%; QoQ change: -50.55%
Gross Margin: 56.04%
Operating Income: CNY -168.555 million; YoY change: -80.72%; QoQ change: +30.23%
EBITDA: CNY -160.428 million; EBITDA Margin: -85.67%
Net Income: CNY -189.864 million; Net Margin: -1.01%
EPS (Diluted): -0.0962; YoY EPS change: -67.89%; QoQ EPS change: +35.87%
R&D Expense: CNY 71.263 million
G&A Expense: CNY 46.116 million
Selling & Marketing Expense: CNY 36.659 million
Selling General & Administrative (SG&A) Expenses: CNY 197.920 million
Other Expenses: CNY 4.305 million
Total Cost and Expenses: CNY 355.808 million
Weighted Avg Shares Outstanding: ~1.973 billion
Notes: Balance sheet and cash flow data are not provided in the supplied data; therefore, liquidity and balance sheet health cannot be fully assessed from this transcript alone. The quarter exhibits material operating loss and negative cash-flow proxy signals (negative EBITDA) despite a mid-50s gross margin.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
187.25M |
-9.34% |
-39.41% |
| Gross Profit |
104.93M |
-28.35% |
-50.55% |
| Operating Income |
-168.56M |
-80.72% |
30.23% |
| Net Income |
-189.86M |
-57.69% |
36.14% |
| EPS |
-0.10 |
-67.89% |
35.87% |
Management Commentary
No earnings call transcript data were provided in the input. Consequently, there are no management quotes or granular commentary to cite within this section. Please supply the earnings call transcript to extract themes by management, including strategy, execution milestones, and market commentary.
Forward Guidance
The materials presented do not include explicit full-year guidance for 2025. Based on the metrics, the near-term priority appears to be monetizing the Anchor Cloud, FI Cloud, Crossborder Cloud, and SME Credit Tech offerings while achieving scale to unlock operating leverage. Risks include continued top-line volatility, competitive intensity in China’s software infrastructure space, and regulatory considerations in the Chinese fintech ecosystem. Key factors to monitor: (1) sequential and year-over-year revenue stabilization and growth, (2) improvement in gross margin sustainability, (3) operating expense control to achieve breakeven or positive EBITDA, and (4) user/adoption metrics for new cloud modules and cross-border solutions. If the company can accelerate ARR growth and achieve meaningful operating leverage, the path to a more favorable profitability profile could materialize in 2025–2026; otherwise, the current burn rate may persist.