Zhihu Stock Earnings Reports

Zhihu reported its third consecutive quarter of non-GAAP profitability with adjusted net income of RMB 91.3 million in Q2 2025 and expanding gross margin (62.5%). Total revenue was RMB 716.9 million, down year-over-year but the revenue decline narrowed sequentially as the company refines its business mix. Management emphasized strong cost discipline (operating expenses down ~27% YoY), improved monetization and AI-driven productivity gains. Key operating highlights: marketing services showing sequential recovery (Q2 marketing revenue RMB 222.8M, +13.1% QoQ) while client mix and ad quality improve; paid membership remains the largest revenue contributor (avg. monthly paying members 13.2M; paid membership revenue RMB 402M) with new premium formats and IP monetization gaining traction; IP licensing grew triple digits; vocational training revenue declined as the business is being optimized, but operating profit improved materially. Strategic priorities center on deeper AI integration (Zhihu Zhida knowledge base/AI search), scaling trust-based user-generated professional content as a moat, expanding commercial IP and creator monetization, and continued share repurchases. Balance sheet and shareholder actions: cash and short-term investments ~RMB 4.8B; active buyback program executed (repurchases disclosed through June and continuing). Management expects marketing services to stabilize and recover in H2, continued focus on member retention/ARPU, and sees an increased likelihood of approaching full-year non-GAAP breakeven.