Revenue declined 13.3% year-over-year in the latest TTM period, with gross margins stuck at 4.9% and operating margins remaining negative at -2.0%, reflecting structural margin compression.
| Sales/Revenue | 3.18B | 3.01B | 3.47B | 3.3B | 2.68B | 1.74B |
| Revenue Growth % | -4.42% | -13.34% | 5.2% | 23.23% | 54.38% | - |
| Cost of Goods Sold | 3.02B | 2.85B | 3.31B | 3.16B | 2.54B | 1.65B |
| COGS % of Revenue | - | 94.67% | 95.43% | 95.75% | 94.69% | 95.34% |
| Gross Profit | 160.39M | 160.36M | 158.76M | 140.22M | 142.31M | 80.81M |
| Gross Margin % | 5.04% | 5.33% | 4.57% | 4.25% | 5.31% | 4.66% |
| Gross Profit Growth % | - | 1.01% | 13.22% | -1.47% | 76.1% | - |
| Operating Expenses | 196.06M | 179.37M | 224.42M | 295.63M | 237.95M | 212.25M |
| OpEx % of Revenue | - | 5.96% | 6.46% | 8.95% | 8.88% | 12.23% |
| Selling, General & Admin | 158.45M | 144.01M | 187.36M | 250.84M | 208.32M | 189.74M |
| SG&A % of Revenue | - | 4.78% | 5.39% | 7.6% | 7.78% | 10.93% |
| Research & Development | 37.72M | 37.24M | 37.95M | 57.17M | 49.95M | 46.78M |
| R&D % of Revenue | - | 1.24% | 1.09% | 1.73% | 1.86% | 2.7% |
| Other Operating Expenses | -107K | -1.88M | -887K | -12.37M | -20.31M | -24.27M |
| Operating Income | -35.67M | -19.01M | -65.66M | -155.41M | -95.64M | -131.43M |
| Operating Margin % | -1.12% | -0.63% | -1.89% | -4.71% | -3.57% | -7.57% |
| Operating Income Growth % | - | 71.05% | 57.75% | -62.5% | 27.23% | - |
| EBITDA | -31.85M | -10.84M | -57.16M | -143.85M | -84.23M | -116.59M |
| EBITDA Margin % | -1% | -0.36% | -1.65% | -4.36% | -3.14% | -6.72% |
| EBITDA Growth % | 77.43% | 81.05% | 60.26% | -70.79% | 27.76% | - |
| D&A (Non-Cash Add-back) | 1.32M | 8.17M | 8.49M | 11.56M | 11.41M | 14.85M |
| EBIT | -31.92M | -15.92M | -60.69M | -158.51M | -88.24M | -140.46M |
| Net Interest Income | 2.84M | 957K | 5.2M | 3.95M | -1.41M | -6.24M |
| Interest Income | 3.24M | 3.24M | 6.04M | 5.4M | 1.89M | 278K |
| Interest Expense | 398K | 2.28M | 838K | 1.45M | 3.3M | 6.52M |
| Other Income/Expense | 3.35M | 813K | 4.13M | -4.54M | 4.1M | -15.55M |
| Pretax Income | -32.32M | -18.2M | -61.53M | -159.95M | -91.54M | -146.98M |
| Pretax Margin % | -1.02% | -0.6% | -1.77% | -4.84% | -3.42% | -8.47% |
| Income Tax | -386K | -406K | -291K | -363K | -521K | -522K |
| Effective Tax Rate % | 1.19% | 2.23% | 0.47% | 0.23% | 0.57% | 0.36% |
| Net Income | -31.93M | -17.79M | -61.24M | -159.59M | -91.02M | -146.46M |
| Net Margin % | -1% | -0.59% | -1.76% | -4.83% | -3.4% | -8.44% |
| Net Income Growth % | 77.56% | 70.95% | 61.63% | -75.33% | 37.85% | - |
| Net Income (Continuing) | -31.93M | -17.79M | -61.24M | -159.59M | -91.02M | -146.46M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.39 | -0.21 | -0.71 | -20.30 | -3.51 | -0.57 |
| EPS Growth % | 78.51% | 70.42% | 96.5% | -478.35% | -515.79% | - |
| EPS (Basic) | - | -0.21 | -0.77 | -20.30 | -3.51 | -0.57 |
| Diluted Shares Outstanding | 82.19M | 82.58M | 86.51M | 75.46M | 79.49M | 79.49M |
| Basic Shares Outstanding | 82.19M | 82.58M | 79.4M | 75.46M | 79.49M | 79.49M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Regulatory margin compression risk
Revenue declined 13.3% year-over-year in the latest TTM period, a sharp reversal from prior growth, suggesting structural headwinds from regulatory tightening or competitive saturation in China's auto insurance market.
The 20.8% YoY drop in 2025Q2 revenue, following a 14.3% decline in 2025Q1, indicates the contraction is accelerating rather than stabilizing. This appears tied to the broader slowdown in Chinese auto sales and potential commission cap regulations that directly impact CCG's transaction-based model. The absence of organic growth drivers beyond the core auto insurance channel raises questions about the durability of the top line.
Gross margin has remained in a tight 4.3%-5.2% range over the past ten quarters, reflecting a structurally low take rate that limits pricing power and leaves little room for operating leverage.
Despite a slight uptick to 4.9% in 2025Q2 from 3.6% in 2024Q2, the gross margin remains below the 6.1% reported in 2022Q4, suggesting no meaningful improvement in the company's ability to retain commission income. The high-variable cost model, where most revenue is passed through to partners, appears entrenched. Peer comparison shows Huize Holding's 27.1% gross margin, highlighting CCG's disadvantage in a different product mix.
Operating income has been negative for ten consecutive quarters, with the operating margin improving only marginally to -2.0% in 2025Q2 from -5.3% in 2023Q4, indicating fixed costs are not scaling with revenue.
SG&A expenses have declined from $79.6M in 2023Q4 to $37.3M in 2025Q2, a 53% reduction, yet operating losses persist because gross profit is insufficient to cover even reduced overhead. The negative operating leverage suggests the business model requires either higher gross margins or significantly larger scale to reach breakeven. The recent cost cuts may not be sustainable without impairing partner relationships.
Reported net income swung to a $4.1M profit in 2024Q3, but this appears driven by non-operating items rather than operational improvement, as operating income remained negative at -$6.0M.
The volatility in net income, from -$55.4M in 2023Q3 to +$4.1M in 2024Q3, suggests significant non-recurring gains or tax benefits that obscure underlying performance. Stock-based compensation has also fluctuated wildly, from $42.6M in 2023Q4 to $3.0M in 2024Q3, distorting EPS comparability. Investors should focus on operating income as a cleaner measure of business health.
COGS consumes over 95% of revenue, reflecting the pass-through nature of the business where most commission income is redirected to distribution partners, leaving minimal gross profit to cover overhead.
R&D and SG&A combined represent roughly 7% of revenue in 2025Q2, down from 11% in 2023Q4, indicating management's focus on cost control. However, the primary cost driver—partner remuneration—is largely outside management's control, as it is dictated by competitive dynamics and regulatory caps. Any margin expansion likely requires a shift toward higher-margin SaaS or data services, which remain a small portion of revenue.
The 13.3% revenue decline and persistent negative margins suggest the embedded insurance model may face structural limits, as regulatory pressure and EV maker disintermediation threaten CCG's intermediary role.
Short-sellers would likely argue that CCG's low gross margin and negative operating income indicate a business that destroys value at scale. The reliance on a single geography and regulatory regime creates binary risk, while the lack of a clear path to profitability makes the equity difficult to value. The recent revenue contraction could be the beginning of a secular decline if Chinese insurers or OEMs bypass intermediaries.
Quick answers to the most common questions about buying CCG stock.
For fiscal year 2025, Cheche Group Inc. (CCG) reported total revenue of $3.01B. This represents a 73.4% increase compared to $1.74B in 2021.
Cheche Group Inc. (CCG) reported a net loss of $17.8M for the fiscal year ending 2025.
Cheche Group Inc. (CCG) reported an operating income of $-19.0M, resulting in an operating profit margin of -0.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Cheche Group Inc. (CCG) generated $160.4M in gross profit for the year, representing a gross profit margin of 5.3%. This demonstrates the company's core pricing power and production efficiency.