LZ Technology Holdings Limited Announces Filing of 2025 Annual Report on Form 20-F and Highlights Selected Business Developments: Revenue Increased by 37.2% Year-over-Year, Reflecting Continued Business Scale Expansion, Broader Customer Coverage and Growth in Lifestyle Services Retail Business
Rhea-AI Summary
LZ Technology (NASDAQ: LZMH) filed its Form 20-F for fiscal year 2025 and reported total revenues of approximately US$161.4 million, a 37.2% increase from 2024. Out-of-home advertising revenues rose 46.5% to ~US$115.0 million while Lifestyle Services – Retail Sales reached ~US$46.3 million.
Cash and cash equivalents grew to ~US$3.36 million (up ~466%), and contract liabilities increased to ~US$5.61 million (up ~4,090%). The company reported a net loss that included substantial non-cash equity-based compensation and investments in growth initiatives.
Positive
- Total revenue +37.2% YoY to ~US$161.4M
- Out-of-home advertising +46.5% YoY to ~US$115.0M
- Cash balance +466% YoY to ~US$3.36M
- New advertising customers accounted for 66.7% of OOH revenues
Negative
- Company reported a net loss for fiscal 2025 (amount not specified)
- Contract liabilities increased ~4,090% to ~US$5.61M
- Lifestyle Services gross margin remains low at 3.2% despite improvement
News Market Reaction – LZMH
In the May 6 session, LZMH declined 5.16%, reflecting a notable negative market reaction. Argus tracked a peak move of +8.9% during that session. Argus tracked a trough of -8.9% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Dec 05 | MENA partnership | Positive | -4.4% | Agreement with UAE family office to build MENA regional headquarters and expand. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Limited history shows one prior positive partnership headline followed by a negative price reaction, suggesting occasional selloffs on good news.
In the last six months, LZ Technology highlighted international expansion with a December 5, 2025 partnership to build a MENA regional headquarters and scale its smart access control, smart-community and IoT infrastructure model across multiple Gulf and North African markets. That strategic announcement saw a -4.37% move, indicating prior positive news did not translate into immediate upside. Today’s 2025 Form 20-F filing and strong revenue growth update add fundamental detail to that earlier expansion story.
Key Terms
form 20-f regulatory
contract liabilities financial
equity-based compensation financial
iot technical
holding foreign companies accountable act regulatory
pcaob regulatory
form s-8 regulatory
equity incentive plan financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
HUZHOU, China, May 06, 2026 (GLOBE NEWSWIRE) -- LZ Technology Holdings Limited (NASDAQ: LZMH) ( “LZ Technology” or the “Company”), a leading provider of information technology and advertising services in China, today announced that has filed its annual report on Form 20-F for the fiscal year ended December 31, 2025 with the U.S. Securities and Exchange Commission (the “Form 20-F”).
The Company is also providing the following summary of selected financial and business highlights for fiscal year 2025. Investors are encouraged to review the Company’s Form 20-F in its entirety for a comprehensive discussion of its financial condition and results of operations.
For fiscal year 2025, the Company generated total revenues of approximately US
Fiscal Year 2025 Financial and Business Highlights
- Total revenues increased by
37.2% year-over-year. The Company’s total revenues reached approximately US$161.4 million for fiscal year 2025, compared with approximately US$117.7 million for fiscal year 2024. - Out-of-home advertising revenues increased by
46.5% year-over-year. The Company’s out-of-home advertising revenues were approximately US$115.0 million for fiscal year 2025, compared with approximately US$78.5 million for fiscal year 2024. In 2025, the Company added 59 new advertising customers, and revenues generated from these new customers accounted for66.7% of the Company’s out-of-home advertising revenues for the year. - Revenues from the Company’s Lifestyle Services – Retail Sales business were approximately US
$46.3 million for fiscal year 2025, compared with approximately US$39.0 million for fiscal year 2024, representing an increase of18.8% . - Gross profit increased year-over-year, and gross margin of the Lifestyle Services – Retail Sales business improved. The Company’s gross profit was approximately US
$5.33 million for fiscal year 2025, compared with approximately US$4.93 million for fiscal year 2024, representing an increase of8.1% . The gross margin of the Lifestyle Services – Retail Sales business increased from1.5% in 2024 to3.2% in 2025, primarily due to revenue growth driven by the expansion of product categories, while the growth rate of purchase costs was lower than the growth rate of revenues. - Cash and cash equivalents increased significantly year-over-year. As of December 31, 2025, the Company had cash and cash equivalents of approximately US
$3.36 million , compared with approximately US$0.59 million as of December 31, 2024, representing an increase of approximately466% . The increase in cash and cash equivalents reflected an improvement in the Company’s short-term liquidity position as compared with the prior fiscal year-end. - As of December 31, 2025, the Company’s contract liabilities were approximately US
$5.61 million , compared with approximately US$0.13 million as of December 31, 2024, representing an increase of approximately 4,090% . Contract liabilities primarily consisted of customer prepayments related to advertising services. The Company expects the related unsatisfied performance obligations to be completed within 12 months and recognized as revenue when the applicable revenue recognition criteria are met.
Fiscal Year 2025 Financial Summary
| Financial Metric | Fiscal Year 2024 | Fiscal Year 2025 | Year-over-Year Change |
| Total revenues | Approximately US | Approximately US | + |
| Out-of-home advertising revenues | Approximately US | Approximately US | + |
| Lifestyle Services – Retail Sales revenues | Approximately US | Approximately US | + |
| Cash and cash equivalents at year-end | Approximately US | Approximately US | +approximately |
| Contract liabilities | Approximately US | Approximately US | +approximately 4, |
Note: U.S. dollar amounts are presented for the convenience of readers and are translated based on the exchange rate disclosed in the Company’s fiscal year 2025 Form 20-F. Certain amounts and percentages may not add up exactly due to rounding.
Theo Zhang, Chief Executive Officer of LZ Technology, commented: “Fiscal year 2025 was an important year for LZ Technology as we completed our listing on Nasdaq and continued to expand our business. Although our results for the year reflected a net loss, such loss included substantial non-cash equity-based compensation expenses. In addition, we continued to invest in platform system development, overseas market research and initial overseas market expansion initiatives to support future business development, which had a short-term impact on profitability. At the same time, we achieved positive progress in revenue scale, customer coverage and Lifestyle Services – Retail Sales business development.”
“We believe our fiscal year 2025 results demonstrate the continued expansion of our business foundation. The growth of our out-of-home advertising business and the contribution from newly added advertising customers reflect our enhanced customer acquisition and market development capabilities. The continued expansion of our Lifestyle Services – Retail Sales business also supports our efforts to build broader community-based service and transaction capabilities. Going forward, we intend to continue focusing on revenue quality, operating efficiency, working capital management and long-term business development.”
About LZ Technology Holdings Limited
LZ Technology Holdings Limited is a Nasdaq-listed global smart community service platform and provider of information technology and advertising services. With a focus on empowering full-scenario lifestyle services, the Company’s core businesses include smart community solutions, outdoor advertising, and lifestyle services. LZ Technology is committed to delivering high-quality and compliant services to communities and commercial clients, and to helping build smarter, safer, and more harmonious community living experiences.
The Company’s smart access control terminals have covered over 4,000 residential communities across more than 120 cities in China, reaching over 10 million community residents. Leveraging Internet of Things and AI technologies, the Company has developed a closed-loop business system integrating front-end traffic capture, mid-end data accumulation, back-end scenario empowerment and end-point value monetization.
For more information, visit the Company’s website at http://www.lzmh.co/en/
Forward-Looking Statements
Certain statements in this press release are “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “believe”, “plan”, “expect”, “intend”, “should”, “seek”, “estimate”, “will”, “aim” and “anticipate”, or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov.
For further information, please contact:
Michael Wu
Investor Relations
LZ Technology Holdings Limited
michael@lzmh.co
