ZLAB Zai Lab Ltd

Overview and Growth

Zai Lab Ltd generated $460.16M of revenue in fiscal 2025, with net loss of $175.54M and an operating cash outflow of $150.79M. At $460.16M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 15.3% above fiscal 2024 revenue of $398.99M, marking a year-over-year increase. Diluted earnings per share were -$0.16, translating the period’s attributable earnings into the amount reported for each diluted share. The diluted weighted-average share count was 1.10B, linking total earnings with the per-share result received by shareholders. Total assets stood at $1.17B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. The revenue-to-assets relationship was 0.39x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Gross profit was $269.64M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 58.6% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced a $229.43M operating loss before non-operating and tax effects. Relative to revenue, the operating deficit measured 49.9%, showing the shortfall after operating costs. The company ended the period with a net loss of $175.54M, extending the operating result through all remaining items. Measured against revenue, the bottom-line deficit represented 38.1% after all recognized items. Negative EBITDA totaled $214.42M, confirming that the earnings deficit remained before depreciation and amortization. The pretax result was a loss of $178.46M, establishing the deficit before tax effects. Measured against revenue, the pretax deficit represented 38.8%. An income-tax benefit of $2.93M improved the final result relative to pretax income or loss. The loss-to-equity relationship was 24.5%, placing the bottom-line deficit against shareholder capital. Relative to total assets, the net loss represented 15.0%. Compared with a $257.10M net loss in fiscal 2024, the current loss improved to $175.54M.

Liquidity and Capital Structure

The company held $1.17B of assets against $456.88M of liabilities and $715.50M of equity, revealing how the asset base was financed. At period end, current assets of $1.02B compared with current liabilities of $416.17M, defining the company’s short-term resource position. Current assets covered current liabilities by 2.45x, leaving a positive buffer for near-term obligations. Reported cash and equivalents were $679.57M, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 163.3% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Equity equaled 61.0% of assets, showing the shareholder-capital layer within the company’s balance sheet. Liabilities represented 39.0% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 58.0% of total assets, showing the liquid cash component within the company’s broader resource base. Total assets were 1.1% lower than fiscal 2024 assets of $1.19B, measuring the company’s own balance-sheet change. Against $840.90M of equity in fiscal 2024, the current book-equity balance moved 14.9% and ended lower. Cash and equivalents were 51.1% higher than fiscal 2024 cash of $449.67M, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

Operating activities used $150.79M of cash, resulting in an operating cash outflow for the year. Capital spending of $8.10M added to the period’s operating cash use, reinforcing the overall cash deficit after investment for the year. Negative free cash flow was $158.89M, leaving a cash deficit after capital spending and reducing financial flexibility. Free-cash-flow margin was -34.5%, reflecting a cash deficit equal to 34.5% of revenue after capital spending. The free-cash-flow deficit equaled 13.6% of total assets, placing the cash shortfall against the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.