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CNET

ZW Data Action Technologies Inc.

CNET

ZW Data Action Technologies Inc. • NASDAQ
$1.51 ▼ -2.58% (-0.04)
Market Cap $3.78 M
52w High $2.78
52w Low $0.96
Dividend Yield 0%
P/E -2.07
Volume 3.83K
Outstanding Shares 2.51M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $1.717M ▲ $251K ▼ $-108K ▲ -6.29% ▲ $-0.045 ▲ $-25K ▲
Q2-2025 $548K ▼ $729K ▼ $-637K ▼ -116.241% ▼ $-0.27 ▼ $-601K ▼
Q1-2025 $1.652M ▼ $739K ▲ $-531K ▲ -32.143% ▲ $-0.23 ▲ $-544K ▼
Q4-2024 $2.249M ▼ $533K ▼ $-781K ▲ -34.727% ▲ $-0.39 ▲ $-317K ▲
Q3-2024 $3.239M $2.047M $-1.914M -59.092% $-1.06 $-1.755M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $1.761M ▲ $9.65M ▲ $6.241M ▲ $3.347M ▼
Q2-2025 $1.706M ▲ $9.246M ▼ $5.673M ▼ $3.512M ▲
Q1-2025 $807K ▼ $9.541M ▼ $6.369M ▲ $3.111M ▼
Q4-2024 $812K ▼ $9.686M ▼ $5.968M ▼ $3.658M ▼
Q3-2024 $1.123M $11.007M $6.106M $4.838M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-108K ▲ $-488.092K ▼ $2.714K ▲ $537.187K ▲ $55K ▼ $-488.48K ▼
Q2-2025 $-637K ▼ $685K ▲ $-28K ▼ $250K ▼ $899K ▲ $1.257M ▲
Q1-2025 $-530K ▲ $-984K ▼ $484K ▲ $500K ▲ $-5K ▲ $-1.621M ▼
Q4-2024 $-781K ▲ $-830K ▼ $250K ▲ $269K ▼ $-311K ▼ $-830K ▼
Q3-2024 $-1.921M $-198K $-6K $806K $613K $-195K

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Online Advertising Placement
Online Advertising Placement
 $0 ▲$0 ▲$0 ▲$0 ▲
Search Engine Marketing and Data Service
Search Engine Marketing and Data Service
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement The business is operating at a very small scale, with revenue that has been low and fairly flat for several years. There is no clear trend of strong growth. Operating results hover around breakeven but lean toward losses, meaning the core business is not yet sustainably profitable. Earnings per share appear very negative and volatile, largely because of repeated reverse stock splits rather than a sudden collapse in the underlying business. Overall, the income statement shows a company still searching for scale and profitability rather than one with an established, healthy earnings engine.

Balance Sheet

Balance Sheet The balance sheet is very light, with a small base of assets and only a thin layer of equity. Cash balances are limited, but the company carries essentially no financial debt, which reduces the risk of pressure from lenders. The trade‑off is that the financial cushion is slim, leaving little room to absorb unexpected shocks or prolonged losses. This profile fits a small, fragile company that must manage spending carefully and may need to seek external capital if growth initiatives do not quickly translate into better results.

Cash Flow

Cash Flow Cash generation from the core business has been weak, hovering close to zero and occasionally dipping into outflows. Free cash flow tells a similar story: the company is not burning large amounts of cash on heavy investment, but it is also not consistently generating cash from operations. Capital spending appears minimal, which helps conserve cash but also suggests that most investment is intangible (software, people, product development) rather than in physical assets. Taken together, the cash flow picture points to a business that is still in a delicate position and highly dependent on stabilizing operations and scaling revenue to become self‑funding.

Competitive Edge

Competitive Edge CNET operates in China’s online advertising and marketing space, an area dominated by very large technology platforms and established agencies. In that context, its direct scale and brand power are modest. The company is trying to compete by narrowing its focus: it targets franchise businesses and small to mid‑sized enterprises, offering data‑driven marketing, AI tools, and blockchain‑based solutions. Its main edge is its long history and data set in the Chinese franchise industry, which can make its AI models more tailored and accurate for that niche. However, this moat is still emerging and depends heavily on execution and client adoption. Limited financial resources, recent Nasdaq compliance issues, and the crowded nature of the digital marketing market all represent real competitive pressures.

Innovation and R&D

Innovation and R&D The strategic bet is on innovation, especially in artificial intelligence and blockchain. CNET is developing an AI model specifically for the franchise industry, aiming to offer tools like AI‑driven marketing campaigns, automated content creation, and even digital “human” presenters. This leverages its long experience and data in that niche, which could be a real differentiator if customers adopt it. In parallel, the company has built a blockchain framework designed to make it easier for smaller businesses to use blockchain for things like supply chain tracking, NFTs, and basic DeFi functions, without needing deep technical skills. These initiatives are still early in their commercial life. The key question is whether CNET can convert promising technology into recurring, paying usage quickly enough, given its tight resources and the broader uncertainty around SME adoption of advanced tech in a challenging economic environment.

Summary

CNET looks like a very small, financially fragile company trying to reinvent itself through specialized technology. The historic financials show low and flat revenue, ongoing albeit modest operating losses, thin capitalization, and minimal cash generation. Multiple reverse stock splits and Nasdaq compliance challenges signal sustained share price and listing pressure. Against that backdrop, management is pursuing a focused strategy: using its long‑standing data in the franchise sector to build AI tools, and offering a blockchain platform aimed at smaller businesses that lack in‑house expertise. If these products gain traction, they could gradually improve the company’s scale and economics, especially because the model is software‑ and data‑driven rather than capital‑intensive. The main risks are weak financial resilience, intense competition from much larger digital marketing players, and uncertainty about how quickly SMEs will adopt its AI and blockchain solutions. Key things to watch would be evidence of real customer uptake, growing recurring revenue from the new platforms, clearer progress toward consistent profitability, and stable compliance with listing requirements.