ZW Data 2025 Q3 Earnings 94.3% Net Loss Reduction Amidst Revenue Decline

ZW Data (CNET) reported fiscal 2025 Q3 earnings on November 14, 2025, revealing a 47.0% revenue drop to $1.72 million and a 94.3% reduction in net losses to $-108,000. The stock gained 4.32% in the latest trading day but fell 6.76% month-to-date.

Revenue

ZW Data’s total revenue for Q3 2025 fell sharply to $1.72 million, a 47.0% decline from $3.24 million in the prior-year period. Internet advertising and related services remained the core driver, contributing $1.64 million, while the distribution of search engine marketing rights accounted for a minimal $1,000. IP Services added $82,000 to the revenue stream, and the internet advertising and related data services segment mirrored the core advertising revenue at $1.63 million. The results reflect a significant contraction in the company’s primary business lines, with no single segment offsetting the overall downturn.

Earnings/Net Income

The company narrowed its net loss to $-108,000 in Q3 2025, a 94.3% improvement from the $-1.91 million loss in 2024 Q3. Per-share losses also declined dramatically, falling to $0.04 from $1.06 (96.2% improvement). While the reduction in losses signals operational progress, the persistent negative net income underscores ongoing profitability challenges.

Price Action

The stock price of ZW Data rose 4.32% during the latest trading day and gained 1.05% over the past week. However, it has declined 6.76% month-to-date, reflecting mixed investor sentiment despite the earnings improvement.

Post-Earnings Price Action Review

The strategy of buying ZW Data (CNET) shares on the day of earnings and holding for 30 days has underperformed the market significantly. Over the past three years, this approach has yielded a -36.84% return, compared to a 52.27% return for the benchmark. The strategy’s Sharpe ratio of -0.23 highlights its poor risk-adjusted performance, underscoring consistent negative returns.

CEO Commentary

The CEO emphasized operational efficiency gains and cost-cutting measures as key factors in narrowing the net loss, though revenue challenges persisted. Strategic priorities include diversifying revenue streams and leveraging IP Services growth. The tone was cautiously optimistic, acknowledging progress but highlighting the need for sustained execution.

Guidance

The company provided no specific forward-looking guidance in the earnings call. However, based on the 94.3% reduction in net losses and $1.72 million revenue, ZW Data appears to prioritize stabilizing core operations while exploring new revenue opportunities.

Additional News

No material non-earnings related news (M&A, C-level changes, or dividend announcements) was reported by ZW Data in the three weeks surrounding November 14, 2025. The company remains focused on core operational improvements rather than external strategic moves.