📊 CNET Key Takeaways
Investment Thesis
ZW Data Action Technologies exhibits severe financial distress with collapsing revenues (-49.5% YoY), deeply negative profitability (net margin -32.6%), and substantial operating losses (-$1.4M). The company is burning cash rapidly (-$846K free cash flow) while generating minimal gross margin (7.8%), indicating fundamental business model weakness that threatens viability.
CNET Strengths
- Positive current ratio of 1.41x suggests adequate short-term liquidity
- No material long-term debt burden provides limited downside from leverage
- Cash position of $1.8M provides temporary runway
CNET Risks
- Revenue collapse of 49.5% year-over-year indicates severe business deterioration
- Operating losses of -$1.4M with negative operating margin of -36.1% show inability to control costs
- Negative free cash flow of -$846K means company is consuming cash reserves; at current burn rate, ~26 months of cash remaining
- Gross margin of 7.8% is critically low, suggesting pricing power issues or unfavorable cost structure
- Negative ROE (-38.1%) and ROA (-13.2%) demonstrate destruction of shareholder value
- No insider buying activity in last 90 days signals lack of management confidence
Key Metrics to Watch
- Quarterly revenue trend - stabilization would be critical first indicator of business viability
- Gross margin expansion - operating leverage impossible without addressing unit economics
- Monthly cash burn rate and path to cash flow breakeven - survival dependent on duration of runway
- Operating expense reduction initiatives - current cost structure unsustainable relative to revenue base
CNET Financial Metrics
💡 AI Analyst Insight
ZW Data Action Technologies Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CNET Profitability Ratios
CNET vs Technology Sector
How ZW Data Action Technologies Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CNET Balance Sheet & Liquidity
CNET 5-Year Financial Trend
5-Year Trend Summary: ZW Data Action Technologies Inc.'s revenue has declined by 47% over the 5-year period, indicating business contraction. The most recent EPS of $-3.11 indicates the company is currently unprofitable.
CNET Growth Metrics (YoY)
CNET Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.7M | -$108.0K | $-0.04 |
| Q2 2025 | $548.0K | -$216.0K | $-0.11 |
| Q1 2025 | $1.7M | -$531.0K | $-0.23 |
| Q3 2024 | $3.2M | -$1.5M | $-0.84 |
| Q2 2024 | $6.4M | -$216.0K | $-0.03 |
| Q1 2024 | $3.5M | N/A | $-0.12 |
| Q3 2023 | $7.2M | N/A | $-0.21 |
| Q2 2023 | $6.9M | -$1.4M | $-0.19 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CNET Capital Allocation
CNET SEC Filings
Access official SEC EDGAR filings for ZW Data Action Technologies Inc. (CIK: 0001376321)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CNET
What is the AI rating for CNET?
ZW Data Action Technologies Inc. (CNET) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CNET's key strengths?
Positive current ratio of 1.41x suggests adequate short-term liquidity. No material long-term debt burden provides limited downside from leverage.
What are the risks of investing in CNET?
Revenue collapse of 49.5% year-over-year indicates severe business deterioration. Operating losses of -$1.4M with negative operating margin of -36.1% show inability to control costs.
What is CNET's revenue and growth?
ZW Data Action Technologies Inc. reported revenue of $3.9M.
Does CNET pay dividends?
ZW Data Action Technologies Inc. does not currently pay dividends.
Where can I find CNET SEC filings?
Official SEC filings for ZW Data Action Technologies Inc. (CIK: 0001376321) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CNET's EPS?
ZW Data Action Technologies Inc. has a diluted EPS of $-0.13.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.