Zhibao Technology Inc (ZBAO) Q4 2024 Earnings Report

Zhibao Technology delivered a robust quarterly top-line performance and margin expansion in QQ4 2024, underscored by Revenue of $13.78 million, Gross Profit of $5.82 million and Net Income of $3.02 million, translating to gross margin of ~42.3% and net margin of ~21.9%. Year-over-year comparisons reflect meaningful improvements across key profitability lines (Revenue +18.4% YoY, EBITDA +~N/A YoY, Net Income +355.8% YoY), while the company sustains positive EBITDA of $2.93 million and operating income of $2.56 million. However, significant cash-flow headwinds persist: operating cash flow was deeply negative at -$12.36 million, resulting in a negative free cash flow of -$12.39 million for the quarter. The deleveraging and liquidity profile is further highlighted by a substantial build in accounts receivable/other current assets and a quarterly cash balance burn, despite a financing impulse that added ~$6.11 million in common stock issued. The balance sheet shows solid asset coverage and a moderate debt position, but liquidity risk remains a key draw for investors until cash flow conversion improves. Outlook remains contingent on working-capital optimization, monetization of platform capabilities, and China regulatory dynamics.