Zai Lab Limited Financials
This page shows Zai Lab Limited (ZLAB) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 11 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Zai Lab Limited has an operating margin of -49.9%, meaning the company retains $-50 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is up from -70.7% the prior year.
Zai Lab Limited's revenue surged 15.3% year-over-year to $460.2M, reflecting rapid business expansion. This strong growth earns a score of 59/100.
Zai Lab Limited carries a low D/E ratio of 0.64, meaning only $0.64 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 89/100, indicating a strong balance sheet with room for future borrowing.
Zai Lab Limited's current ratio of 2.45 indicates adequate short-term liquidity, earning a score of 46/100. The company can meet its near-term obligations, though with limited headroom.
While Zai Lab Limited generated -$150.8M in operating cash flow, capex of $8.1M consumed most of it, leaving -$158.9M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
Zai Lab Limited generates a -24.5% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is up from -30.6% the prior year.
Zai Lab Limited passes 3 of 9 financial strength tests. 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Zai Lab Limited generates $0.86 in operating cash flow (-$150.8M OCF vs -$175.5M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Zai Lab Limited earns $-44.0 in operating income for every $1 of interest expense (-$229.4M vs $5.2M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Zai Lab Limited generated $460.2M in revenue in fiscal year 2025. This represents an increase of 15.3% from the prior year.
Zai Lab Limited's EBITDA was -$214.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 20.7% from the prior year.
Zai Lab Limited reported -$175.5M in net income in fiscal year 2025. This represents an increase of 31.7% from the prior year.
Zai Lab Limited earned $-0.16 per diluted share (EPS) in fiscal year 2025. This represents an increase of 38.5% from the prior year.
Cash & Balance Sheet
Zai Lab Limited generated -$158.9M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 27.9% from the prior year.
Zai Lab Limited held $679.6M in cash against $0 in long-term debt as of fiscal year 2025.
Zai Lab Limited had 1.11B shares outstanding in fiscal year 2025. This represents an increase of 2.7% from the prior year.
Margins & Returns
Zai Lab Limited's gross margin was 58.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 4.5 percentage points from the prior year.
Zai Lab Limited's operating margin was -49.9% in fiscal year 2025, reflecting core business profitability. This is up 20.8 percentage points from the prior year.
Zai Lab Limited's net profit margin was -38.1% in fiscal year 2025, showing the share of revenue converted to profit. This is up 26.3 percentage points from the prior year.
Zai Lab Limited's ROE was -24.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 6.0 percentage points from the prior year.
Capital Allocation
Zai Lab Limited invested $220.9M in research and development in fiscal year 2025. This represents a decrease of 5.8% from the prior year.
Zai Lab Limited invested $8.1M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 43.2% from the prior year.
ZLAB Income Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $127.6M+9.9% | $116.1M+5.6% | $110.0M+3.3% | $106.5M-2.4% | $109.1M+6.7% | $102.3M+1.8% | $100.5M+15.3% | $87.1M |
| Cost of Revenue | $62.3M+33.2% | $46.8M+8.7% | $43.0M+11.8% | $38.5M-8.0% | $41.8M+14.3% | $36.6M+4.0% | $35.1M+4.5% | $33.6M |
| Gross Profit | $65.3M-5.8% | $69.3M+3.5% | $67.0M-1.6% | $68.0M+1.1% | $67.3M+2.4% | $65.7M+0.5% | $65.4M+22.1% | $53.5M |
| R&D Expenses | $61.6M+28.6% | $47.9M-5.3% | $50.6M-16.7% | $60.7M+16.2% | $52.3M-20.8% | $66.0M+7.1% | $61.6M+12.8% | $54.6M |
| SG&A Expenses | $73.0M+4.2% | $70.1M-1.3% | $71.0M+12.0% | $63.4M-23.2% | $82.6M+22.9% | $67.2M-15.7% | $79.7M+15.2% | $69.2M |
| Operating Income | -$69.4M-42.2% | -$48.8M+11.1% | -$54.9M+2.5% | -$56.3M+17.1% | -$67.9M-0.1% | -$67.9M+10.8% | -$76.1M-8.2% | -$70.3M |
| Interest Expense | $1.4M-2.9% | $1.4M+10.9% | $1.3M+6.3% | $1.2M+31.3% | $904K+21.3% | $745K+51.4% | $492K+335.4% | $113K |
| Income Tax | -$2.9M | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Net Income | -$50.4M-40.2% | -$36.0M+11.7% | -$40.7M+15.9% | -$48.4M+40.7% | -$81.7M-96.0% | -$41.7M+48.1% | -$80.3M-50.1% | -$53.5M |
| EPS (Diluted) | N/A | $-0.03+25.0% | $-0.040.0% | $-0.04 | N/A | $-0.04+50.0% | $-0.08-60.0% | $-0.05 |
ZLAB Balance Sheet
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.2B+1.2% | $1.2B-0.4% | $1.2B-0.8% | $1.2B-1.0% | $1.2B+20.3% | $985.3M-0.2% | $987.4M-0.1% | $988.4M |
| Current Assets | $1.0B-1.3% | $1.0B-0.1% | $1.0B-0.7% | $1.0B-0.8% | $1.1B+22.1% | $860.5M-1.1% | $869.9M-2.1% | $888.6M |
| Cash & Equivalents | $679.6M-5.2% | $717.2M-2.0% | $732.2M-3.3% | $757.3M+68.4% | $449.7M-27.0% | $616.1M-2.2% | $630.0M-3.2% | $650.8M |
| Inventory | $74.7M+11.3% | $67.1M+8.8% | $61.7M+16.3% | $53.1M+33.1% | $39.9M+0.8% | $39.5M-5.5% | $41.8M+10.6% | $37.9M |
| Accounts Receivable | $106.1M+24.3% | $85.4M-3.5% | $88.5M+15.6% | $76.6M-10.1% | $85.2M+70.5% | $50.0M-28.2% | $69.6M+15.2% | $60.4M |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $456.9M+14.5% | $399.0M+7.2% | $372.4M+2.7% | $362.6M+5.1% | $344.9M+8.6% | $317.7M+12.2% | $283.2M+25.2% | $226.3M |
| Current Liabilities | $416.2M+15.7% | $359.8M+8.5% | $331.5M+3.7% | $319.8M+6.8% | $299.4M+4.6% | $286.3M+13.7% | $251.7M+31.0% | $192.1M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $715.5M-5.8% | $759.9M-4.0% | $791.7M-2.3% | $810.8M-3.6% | $840.9M+25.9% | $667.7M-5.2% | $704.2M-7.6% | $762.2M |
| Retained Earnings | -$2.6B-2.0% | -$2.6B-1.4% | -$2.5B-1.6% | -$2.5B-2.0% | -$2.5B-3.4% | -$2.4B-1.8% | -$2.3B-3.6% | -$2.2B |
ZLAB Cash Flow Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$26.0M+18.8% | -$32.0M-3.3% | -$31.0M+49.7% | -$61.7M-10.6% | -$55.8M-107.9% | -$26.8M+36.4% | -$42.2M+53.2% | -$90.1M |
| Capital Expenditures | $677K-77.5% | $3.0M+4.2% | $2.9M+88.1% | $1.5M-41.0% | $2.6M+93.7% | $1.3M+81.1% | $741K-23.9% | $974K |
| Free Cash Flow | -$26.7M+23.8% | -$35.0M-3.4% | -$33.9M+46.4% | -$63.2M-8.3% | -$58.4M-107.3% | -$28.2M+34.4% | -$42.9M+52.9% | -$91.1M |
| Investing Cash Flow | -$11.3M-179.0% | -$4.0M-38.6% | -$2.9M-100.9% | $326.1M+193.8% | -$347.8M-1063.6% | -$29.9M-3432.5% | -$846K-125.7% | $3.3M |
| Financing Cash Flow | -$430K-102.1% | $20.8M+135.0% | $8.8M-79.5% | $43.1M-81.9% | $237.8M+463.4% | $42.2M+89.1% | $22.3M-53.1% | $47.5M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
ZLAB Financial Ratios
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 51.2%-8.5pp | 59.7%-1.2pp | 60.9%-3.0pp | 63.9%+2.2pp | 61.7%-2.5pp | 64.2%-0.8pp | 65.0%+3.6pp | 61.4% |
| Operating Margin | -54.4%-12.3pp | -42.0%+7.9pp | -49.9%+3.0pp | -52.9%+9.4pp | -62.3%+4.1pp | -66.3%+9.3pp | -75.7%+5.0pp | -80.7% |
| Net Margin | -39.5%-8.5pp | -31.0%+6.0pp | -37.0%+8.5pp | -45.5%+29.4pp | -74.9%-34.1pp | -40.8%+39.1pp | -79.9%-18.5pp | -61.4% |
| Return on Equity | -7.0%-2.3pp | -4.7%+0.4pp | -5.1%+0.8pp | -6.0%+3.7pp | -9.7%-3.5pp | -6.2%+5.2pp | -11.4%-4.4pp | -7.0% |
| Return on Assets | -4.3%-1.2pp | -3.1%+0.4pp | -3.5%+0.6pp | -4.1%+2.8pp | -6.9%-2.7pp | -4.2%+3.9pp | -8.1%-2.7pp | -5.4% |
| Current Ratio | 2.45-0.4 | 2.87-0.2 | 3.12-0.1 | 3.26-0.3 | 3.51+0.5 | 3.01-0.5 | 3.46-1.2 | 4.63 |
| Debt-to-Equity | 0.64+0.1 | 0.53+0.1 | 0.47+0.0 | 0.45+0.0 | 0.41-0.1 | 0.48+0.1 | 0.40+0.1 | 0.30 |
| FCF Margin | -20.9%+9.3pp | -30.2%+0.6pp | -30.8%+28.5pp | -59.4%-5.9pp | -53.5%-26.0pp | -27.5%+15.2pp | -42.7%+61.8pp | -104.5% |
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Frequently Asked Questions
What is Zai Lab Limited's annual revenue?
Zai Lab Limited (ZLAB) reported $460.2M in total revenue for fiscal year 2025. This represents a 15.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Zai Lab Limited's revenue growing?
Zai Lab Limited (ZLAB) revenue grew by 15.3% year-over-year, from $399.0M to $460.2M in fiscal year 2025.
Is Zai Lab Limited profitable?
No, Zai Lab Limited (ZLAB) reported a net income of -$175.5M in fiscal year 2025, with a net profit margin of -38.1%.
What is Zai Lab Limited's EBITDA?
Zai Lab Limited (ZLAB) had EBITDA of -$214.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Zai Lab Limited's gross margin?
Zai Lab Limited (ZLAB) had a gross margin of 58.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Zai Lab Limited's operating margin?
Zai Lab Limited (ZLAB) had an operating margin of -49.9% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Zai Lab Limited's net profit margin?
Zai Lab Limited (ZLAB) had a net profit margin of -38.1% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Zai Lab Limited's return on equity (ROE)?
Zai Lab Limited (ZLAB) has a return on equity of -24.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Zai Lab Limited's free cash flow?
Zai Lab Limited (ZLAB) generated -$158.9M in free cash flow during fiscal year 2025. This represents a 27.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Zai Lab Limited's operating cash flow?
Zai Lab Limited (ZLAB) generated -$150.8M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Zai Lab Limited's total assets?
Zai Lab Limited (ZLAB) had $1.2B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Zai Lab Limited's capital expenditures?
Zai Lab Limited (ZLAB) invested $8.1M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Zai Lab Limited spend on research and development?
Zai Lab Limited (ZLAB) invested $220.9M in research and development during fiscal year 2025.
What is Zai Lab Limited's current ratio?
Zai Lab Limited (ZLAB) had a current ratio of 2.45 as of fiscal year 2025, which is generally considered healthy.
What is Zai Lab Limited's debt-to-equity ratio?
Zai Lab Limited (ZLAB) had a debt-to-equity ratio of 0.64 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Zai Lab Limited's return on assets (ROA)?
Zai Lab Limited (ZLAB) had a return on assets of -15.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Zai Lab Limited's cash runway?
Based on fiscal year 2025 data, Zai Lab Limited (ZLAB) had $679.6M in cash against an annual operating cash burn of $150.8M. This gives an estimated cash runway of approximately 54 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Zai Lab Limited's Piotroski F-Score?
Zai Lab Limited (ZLAB) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Zai Lab Limited's earnings high quality?
Zai Lab Limited (ZLAB) has an earnings quality ratio of 0.86x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Zai Lab Limited cover its interest payments?
Zai Lab Limited (ZLAB) has an interest coverage ratio of -44.0x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Zai Lab Limited?
Zai Lab Limited (ZLAB) scores 32 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.