Boqii Holding (NYSE:BQ), a long-term destination for pet lovers in China, today reported its unaudited financial results for the six months ended September 30, 2025.
The company’s performance during the first half of fiscal year 2026 reflects a deliberate pivot away from low-margin volume toward a more sustainable, profit-oriented operating model, resulting in a dramatic narrowing of net losses.
For the six-month period, Boqii reported total revenues of RMB207.9 million (US$29.2 million), a 16.7% decrease compared to the same period in the prior year.
This revenue dip accompanied a contraction in Total Gross Merchandise Volume (GMV), which fell to RMB376.4 million (US$52.9 million) from RMB538.2 million a year ago.
Management attributed the decline to a strategic optimization of the company’s product mix and a more disciplined approach to promotional spending in an increasingly competitive domestic e-commerce environment.
Despite the lower top-line figures, Boqii’s profitability metrics showed marked improvement.
The company’s gross margin surged to 25.9%, up 520 basis points from the prior-year period.
This expansion was a primary driver in narrowing the net loss to RMB7.4 million (US$1 million), representing a 75.1% improvement year-over-year.
Operational streamlining also played a key role in the half-year results.
Boqii officially excluded Nanjing Xingmu from its consolidated financial statements following the cessation of that entity’s operations.
As part of this transition, the company recognized a disposal consideration receivable of RMB41.9 million, further cleaning up the balance sheet as it focuses on its core digital platform and physical community hubs.
As of September 30, 2025, Boqii maintained cash and short-term investments of RMB30.5 million.