• Zhihu Inc. Reports Unaudited Second Quarter 2025 Financial Results

    Source: Nasdaq GlobeNewswire / 27 Aug 2025 01:55:46   America/Los_Angeles

    BEIJING, China, Aug. 27, 2025 (GLOBE NEWSWIRE) -- Zhihu Inc. (“Zhihu” or the “Company”) (NYSE: ZH; HKEX: 2390), a leading online content community in China, today announced its unaudited financial results for the quarter ended June 30, 2025.

    Second Quarter 2025 Highlights

    • Total revenues were RMB716.9 million (US$100.1 million) in the second quarter of 2025, compared with RMB933.8 million in the same period of 2024.
    • Gross margin expanded to 62.5% in the second quarter of 2025 from 59.6% in the same period of 2024.
    • Net income was RMB72.5 million (US$10.1 million) in the second quarter of 2025, compared with a net loss of RMB80.6 million in the same period of 2024.
    • Adjusted net income (non-GAAP)[1] was RMB91.3 million (US$12.8 million) in the second quarter of 2025, compared with an adjusted net loss of RMB44.6 million in the same period of 2024.
    • Average monthly subscribing members[2] were 13.2 million in the second quarter of 2025.

    “We achieved our third consecutive quarter of non-GAAP profitability,” said Mr. Yuan Zhou, chairman and chief executive officer of Zhihu. “This reflects the continued effectiveness of our refined operational strategies and the efficiency improvements driven by AI integration. Our community remains vibrant, with a stable user base and notable improvements in DAU time spent, core user retention, and creator activity. AI is now deeply embedded in our product experience, enhancing value for both users and creators. Zhihu has also been a key platform for AI-related content, product launches, and expert engagement. We believe the synergy arising from high-quality content, trusted creators, and AI capabilities will sharpen our differentiation and deliver significant long-term competitive advantages.”

    Mr. Han Wang, chief financial officer of Zhihu, added, “In the second quarter, we achieved a non-GAAP net income of RMB91.3 million, compared with a non-GAAP net loss of RMB44.6 million in the same period last year. Gross margin improved by approximately 3 percentage points year-over-year to 62.5%. These results reflect the ongoing improvements to our cost structure and operating efficiency, supported by AI-driven productivity gains. We remain focused on disciplined execution and sustainable monetization to drive long-term growth.”

    Second Quarter 2025 Financial Results

    Total revenues were RMB716.9 million (US$100.1 million) in the second quarter of 2025, compared with RMB933.8 million in the same period of 2024.

    Marketing services revenue was RMB222.8 million (US$31.1 million), compared with RMB344.0 million in the same period of 2024. The decrease was primarily due to our proactive and ongoing refinement of service offerings to strategically focus on margin improvement.

    Paid membership revenue was RMB402.0 million (US$56.1 million), compared with RMB432.7 million in the same period of 2024. The slight decrease was primarily due to a decline in the number of our average monthly subscribing members.

    Vocational training revenue was RMB62.1 million (US$8.7 million), compared with RMB133.6 million in the same period of 2024. The decrease was primarily due to the strategic refinement of our businesses.

    Other revenues increased by 27.6% to RMB30.0 million (US$4.2 million) from RMB23.5 million in the same period of 2024.

    Cost of revenues decreased by 28.8% to RMB268.7 million (US$37.5 million) from RMB377.3 million in the same period of 2024. The decrease was primarily due to reduced content and operating costs associated with the decline in our revenues, a decrease in personnel-related expenses and a decrease in cloud services and bandwidth costs resulting from our improved technological efficiency.

    Gross profit was RMB448.2 million (US$62.6 million), compared with RMB556.5 million in the same period of 2024. Gross margin expanded to 62.5% from 59.6% in the same period of 2024, primarily attributable to our monetization enhancements and improvements in our operating efficiency.

    Total operating expenses decreased by 27.2% to RMB539.2 million (US$75.3 million) from RMB740.4 million in the same period of 2024.

    Selling and marketing expenses decreased by 21.8% to RMB326.3 million (US$45.5 million) from RMB417.0 million in the same period of 2024. The decrease was primarily due to more disciplined promotional spending and a decrease in personnel-related expenses.

    Research and development expenses decreased by 30.4% to RMB145.7 million (US$20.3 million) from RMB209.3 million in the same period of 2024. The decrease was primarily attributable to improvements in our research and development efficiency.

    General and administrative expenses decreased by 41.1% to RMB67.3 million (US$9.4 million) from RMB114.1 million in the same period of 2024. The decrease was primarily attributable to a decline in the allowance for expected credit losses on trade receivables and lower share-based compensation expenses.

    Loss from operations narrowed by 50.5% to RMB91.0 million (US$12.7 million) from RMB183.9 million in the same period of 2024.

    Adjusted loss from operations (non-GAAP)[1] narrowed by 51.4% to RMB71.5 million (US$10.0 million) from RMB147.1 million in the same period of 2024.

    Investment income was RMB140.8 million (US$19.7 million), compared with RMB21.8 million in the same period of 2024. The increase was primarily attributable to unrealized gains as a result of re-measuring the fair value of our investment in a privately held company associated with an observable price change in the second quarter of 2025.

    Net income was RMB72.5 million (US$10.1 million) in the second quarter of 2025, compared with a net loss of RMB80.6 million in the same period of 2024.

    Adjusted net income (non-GAAP)[1] was RMB91.3 million (US$12.8 million) in the second quarter of 2025, compared with an adjusted net loss of RMB44.6 million in the same period of 2024.

    Diluted net income per American depositary share (“ADS”) was RMB0.88 (US$0.12), compared with a diluted net loss per ADS of RMB0.89 in the same period of 2024.

    Cash and cash equivalents, term deposits, restricted cash and short-term investments
    As of June 30, 2025, the Company had cash and cash equivalents, current and non-current term deposits, restricted cash and short-term investments of RMB4,820.8 million (US$673.0 million), compared with RMB4,859.0 million as of December 31, 2024.

    Share Repurchase Programs

    As of June 30, 2025, the Company had repurchased 31.1 million Class A ordinary shares (including Class A ordinary shares underlying the ADSs) for a total price of US$66.5 million on both the New York Stock Exchange and The Stock Exchange of Hong Kong Limited under the Company’s existing share repurchase programs.

    [1] Adjusted income/(loss) from operations and adjusted net income/(loss) are non-GAAP financial measures. For more information on the non-GAAP financial measures, please see the section “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.

    [2] Monthly subscribing members refers to the number of members who subscribed for our membership packages in a specified month. Average monthly subscribing members for a period is calculated by dividing the sum of monthly subscribing members for each month during the specified period by the number of months in such period.

    Conference Call

    The Company's management will host a conference call at 7:00 A.M. U.S. Eastern Time on Wednesday, August 27, 2025 (7:00 P.M. Beijing/Hong Kong Time on Wednesday, August 27, 2025) to discuss the results.

    All participants wishing to join the conference call must pre-register online using the link provided below. Once the pre-registration has been completed, each participant will receive a set of dial-in numbers and a unique access PIN which can be used to join the conference call.

    Registration Link: https://register-conf.media-server.com/register/BI9225ac7d5dd24ef5919b95e9966af176

    Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.zhihu.com.

    About Zhihu Inc.

    Zhihu Inc. (NYSE: ZH; HKEX: 2390) is a leading online content community where people come to find solutions, make decisions, seek inspiration, and have fun. Since the initial launch in 2010, Zhihu has grown into the largest Q&A-inspired online content community in China. For more information, please visit https://ir.zhihu.com. 

    Use of Non-GAAP Financial Measures

    In evaluating the business, the Company considers and uses non-GAAP financial measures, such as adjusted income/(loss) from operations and adjusted net income/(loss), to supplement the review and assessment of its operating performance. The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisitions and the tax effects of the non-GAAP adjustments, which are non-cash expenses. The Company believes that the non-GAAP financial measures facilitate comparisons of operating performance from period to period and company to company by adjusting for potential impacts of items, which the Company’s management considers to be indicative of its operating performance. The Company believes that the non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company’s consolidated results of operations in the same manner as they help the Company’s management.

    The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The presentation of the non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. The use of the non-GAAP financial measures has limitations as an analytical tool, and investors should not consider them in isolation from or as a substitute for analysis of our results of operations or financial condition as reported under U.S. GAAP. For more information on the non-GAAP financial measures, please see the tables captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.

    Exchange Rate Information

    This announcement contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at a rate of RMB7.1636 to US$1.00, the exchange rate in effect as of June 30, 2025 as set forth in the H.10 statistical release of the Federal Reserve Board.

    Safe Harbor Statement

    This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

    For investor and media inquiries, please contact:

    Zhihu Inc.
    Email: ir@zhihu.com

    Christensen Advisory
    Roger Hu
    Tel: +86-10-5900-1548
    Email: zhihu@christensencomms.com

     
    ZHIHU INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (All amounts in thousands, except share, ADS, per share data and per ADS data)
        
     For the Three Months Ended For the Six Months Ended
     June 30,
    2024    		 March 31,
    2025    		 June 30,
    2025    		 June 30,
    2024    		 June 30,
    2025
     RMB RMB RMB US$ RMB RMB US$
    Revenues:             
    Marketing services343,979  196,959  222,778  31,099  674,521  419,737  58,593 
    Paid membership432,652  417,874  401,974  56,113  882,376  819,848  114,446 
    Vocational training133,633  94,531  62,100  8,669  279,069  156,631  21,865 
    Others23,546  20,301  30,042  4,194  58,707  50,343  7,028 
    Total revenues933,810  729,665  716,894  100,075  1,894,673  1,446,559  201,932 
    Cost of revenues(377,266) (278,561) (268,711) (37,511) (794,650) (547,272) (76,396)
    Gross profit556,544  451,104  448,183  62,564  1,100,023  899,287  125,536 
                  
    Selling and marketing expenses(416,985) (320,632) (326,255) (45,543) (894,939) (646,887) (90,302)
    Research and development expenses(209,323) (141,866) (145,683) (20,337) (406,679) (287,549) (40,140)
    General and administrative expenses(114,107) (41,209) (67,251) (9,388) (207,024) (108,460) (15,140)
    Total operating expenses(740,415) (503,707) (539,189) (75,268) (1,508,642) (1,042,896) (145,582)
                  
    Loss from operations(183,871) (52,603) (91,006) (12,704) (408,619) (143,609) (20,046)
                  
    Other income/(expenses):             
    Investment income21,811  19,349  140,836  19,660  38,713  160,185  22,361 
    Interest income26,754  20,610  20,247  2,826  57,517  40,857  5,703 
    Fair value change of financial instruments31,412  -  -  -  40,820  -  - 
    Exchange gains/(losses)289  (96) (38) (5) 409  (134) (19)
    Others, net15,947  2,399  31,120  4,344  18,990  33,519  4,679 
                  
    (Loss)/Income before income tax(87,658) (10,341) 101,159  14,121  (252,170) 90,818  12,678 
    Income tax benefits/(expenses)7,063  233  (28,679) (4,003) 5,779  (28,446) (3,971)
    Net (loss)/income(80,595) (10,108) 72,480  10,118  (246,391) 62,372  8,707 
    Net (income)/loss attributable to noncontrolling interests(2,144) 14  2  -  (1,194) 16  2 
    Net (loss)/income attributable to Zhihu Inc.’s shareholders(82,739) (10,094) 72,482  10,118  (247,585) 62,388  8,709 
                  
    Net (loss)/income per share             
    Basic(0.30) (0.04) 0.30  0.04  (0.88) 0.26  0.04 
    Diluted(0.30) (0.04) 0.29  0.04  (0.88) 0.25  0.04 
                  
    Net (loss)/income per ADS (One ADS represents three Class A ordinary shares)             
    Basic(0.89) (0.12) 0.90  0.13  (2.65) 0.77  0.11 
    Diluted(0.89) (0.12) 0.88  0.12  (2.65) 0.76  0.11 
                  
    Weighted average number of ordinary shares outstanding             
    Basic279,241,647  244,504,405  240,762,092  240,762,092  280,403,026  242,622,911  242,622,911 
    Diluted279,241,647  244,504,405  245,755,672  245,755,672  280,403,026  247,329,829  247,329,829 
                  


    ZHIHU INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
    (All amounts in thousands, except share, ADS, per share data and per ADS data)
        
     For the Three Months Ended For the Six Months Ended
     June 30,
    2024    		 March 31,
    2025    		 June 30,
    2025    		 June 30,
    2024    		 June 30,
    2025
     RMB RMB RMB US$ RMB RMB US$
    Share-based compensation expenses included in:             
    Cost of revenues750  (872) 10  1  3,247  (862) (121)
    Selling and marketing expenses(6,063) 262  (294) (41) (2,791) (32) (4)
    Research and development expenses4,439  (599) (870) (121) 8,119  (1,469) (205)
    General and administrative expenses33,515  15,367  17,124  2,390  49,878  32,491  4,536 
                         


    ZHIHU INC.
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
    (All amounts in thousands)
        
     As of December 31,
    2024    		 As of June 30,
    2025
     RMB RMB US$
    ASSETS     
    Current assets:     
    Cash and cash equivalents3,999,160 3,198,537 446,499
    Term deposits320,088 599,602 83,701
    Short-term investments538,816 811,783 113,321
    Restricted cash900 900 126
    Trade receivables420,636 356,687 49,792
    Amounts due from related parties41,588 20,857 2,912
    Prepayments and other current assets163,446 137,471 19,190
    Total current assets5,484,634 5,125,837 715,541
    Non-current assets:     
    Property and equipment, net8,490 6,861 958
    Intangible assets, net54,534 47,361 6,611
    Goodwill126,344 126,344 17,637
    Long-term investments, net51,176 165,366 23,084
    Term deposits- 210,000 29,315
    Right-of-use assets7,151 56,560 7,895
    Other non-current assets623 8,203 1,145
    Total non-current assets248,318 620,695 86,645
    Total assets5,732,952 5,746,532 802,186
    LIABILITIES AND SHAREHOLDERS’ EQUITY     
    Current liabilities     
    Accounts payable and accrued liabilities835,688 756,409 105,591
    Salary and welfare payables275,260 166,906 23,299
    Taxes payables22,081 19,085 2,664
    Contract liabilities235,539 204,843 28,595
    Amounts due to related parties6,825 5,489 766
    Short term lease liabilities17,308 40,942 5,715
    Short-term borrowings- 161,295 22,516
    Other current liabilities131,955 118,328 16,518
    Total current liabilities1,524,656 1,473,297 205,664
    Non-current liabilities     
    Long term lease liabilities1,823 27,348 3,818
    Deferred tax liabilities6,830 34,734 4,849
    Other non-current liabilities3,957 3,605 503
    Total non-current liabilities12,610 65,687 9,170
    Total liabilities1,537,266 1,538,984 214,834
          
    Total Zhihu Inc.’s shareholders’ equity4,136,123 4,141,195 578,089
    Noncontrolling interests59,563 66,353 9,263
    Total shareholders’ equity4,195,686 4,207,548 587,352
          
    Total liabilities and shareholders’ equity5,732,952 5,746,532 802,186
          


    ZHIHU INC.
    UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
    (All amounts in thousands)
        
     For the Three Months Ended For the Six Months Ended
     June 30,
    2024    		 March 31,
    2025    		 June 30,
    2025    		 June 30,
    2024    		 June 30,
    2025
     RMB RMB RMB US$ RMB RMB US$
    Loss from operations(183,871) (52,603) (91,006) (12,704) (408,619) (143,609) (20,046)
    Add:             
    Share-based compensation expenses32,641  14,158  15,970  2,229  58,453  30,128  4,206 
    Amortization of intangible assets resulting from business acquisitions4,115  3,490  3,490  487  9,480  6,980  974 
    Adjusted loss from operations(147,115) (34,955) (71,546) (9,988) (340,686) (106,501) (14,866)
                  
                  
    Net (loss)/income(80,595) (10,108) 72,480  10,118  (246,391) 62,372  8,707 
    Add:             
    Share-based compensation expenses32,641  14,158  15,970  2,229  58,453  30,128  4,206 
    Amortization of intangible assets resulting from business acquisitions4,115  3,490  3,490  487  9,480  6,980  974 
    Tax effects on non-GAAP adjustments(756) (600) (600) (84) (1,825) (1,200) (168)
    Adjusted net (loss)/income(44,595) 6,940  91,340  12,750  (180,283) 98,280  13,719 
                  

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