This article first appeared on GuruFocus .
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Full Year Non-GAAP Profit:RMB37.9 million, a turnaround from a loss of RMB96.3 million in 2024.
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Q4 Total Revenue:RMB643.5 million, compared to RMB859.2 million in Q4 2024.
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Q4 Marketing Services Revenue:RMB234.8 million, up 24% sequentially.
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Q4 Paid Membership Revenue:RMB333.5 million, with 12.2 million average monthly paid members.
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Q4 Other Revenues:RMB75.2 million, reflecting strategic refinement of vocational training business.
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Q4 Gross Profit:RMB344.8 million, with a gross margin of 53.6%.
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Q4 Total Operating Expenses:RMB608.7 million, including a one-time non-cash goodwill impairment charge of RMB126.3 million.
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Q4 GAAP Net Loss:RMB210.8 million, compared to RMB86.4 million in Q4 2024.
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Q4 Non-GAAP Adjusted Net Loss:RMB39.4 million, compared to adjusted net income of RMB97.1 million in Q4 2024.
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Cash and Cash Equivalents:RMB4.5 billion as of December 31, 2025.
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Share Repurchase:31.1 million Class A ordinary shares repurchased for USD66.5 million in 2025.
Release Date: March 25, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Zhihu Inc ( NYSE:ZH ) achieved its first-ever full-year non-GAAP profit in 2025, marking a significant turnaround from the previous year's loss.
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Average daily time spent per user increased to over 41 minutes, indicating strong user engagement.
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The company successfully integrated AI into its platform, enhancing content quality and user interaction.
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Marketing services revenue saw a 24% sequential increase, driven by improved client quality and new commercial products.
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Zhihu Inc ( NYSE:ZH ) is leveraging its unique assets to explore new AI-driven monetization opportunities, such as AI-enabled short-form dramas and data services.
Negative Points
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Total revenues for Q4 2025 decreased compared to the same period in 2024, reflecting ongoing efforts to optimize revenue mix.
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Gross margin decreased to 53.6% from 62.9% in the same period of 2024, due to efforts to enhance content offerings.
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GAAP net loss for the quarter was RMB210.8 million, compared to RMB86.4 million in the same period of 2024.
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Paid membership revenue declined year-over-year, with average monthly subscribing members decreasing.
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The company faced a one-time non-cash goodwill impairment charge of RMB126.3 million, impacting operating expenses.
Q & A Highlights
Q: What's the earnings outlook for 2026, and how does Zhihu plan to balance investment with cash flow and profitability? A: Wang Han, Zhihu's CFO, stated that while 2025 demonstrated Zhihu's ability to achieve profitability, the company sees larger opportunities in the AI era. They plan to focus on AI-driven opportunities and invest in them, maintaining bottom-line discipline without returning to cash-burning growth models. Investments will be concentrated in areas with visible ROI potential, aiming to deliver growth in new AI-driven revenue streams while keeping the overall bottom line healthy.
Q: What is Zhihu's strategy for commercialization and core priorities for 2026? A: Wang Han explained that Zhihu's strategy in 2026 focuses on two tracks: enhancing the core community business with AI to improve efficiency and user experience, and developing new AI businesses. The company aims to maintain stable revenue and operating profitability while leveraging its unique assets to develop AI-enabled short-form drama and comic adaptations, and AI data services. These initiatives are expected to generate meaningful and scalable AI revenue.
Q: How is AI impacting the Zhihu community, and what new initiatives are planned for product and user experience enhancement? A: Yuan Zhou, Zhihu's CEO, highlighted that AI is actively integrated into the community, improving content consumption and creator experience. AI has enhanced user interactions and content discovery, with features like AI reading panels and search upgrades. Looking forward, Zhihu plans to upgrade its AI search capabilities towards an agent-based experience, aiming for broader product experience upgrades across the community.
Q: Can you share data to help understand AI's impact on Zhihu's community? A: Yuan Zhou noted that AI has positively impacted both core retained users and new users. AI has improved user interactions and content discovery, with significant year-over-year growth in positive user interactions and content creation. AI capabilities have enhanced reading efficiency and user engagement, with notable improvements in search interactions and content discovery.
Q: What are Zhihu's plans for AI-driven revenue streams? A: Wang Han mentioned that Zhihu is focusing on AI-enabled short-form drama and comic adaptations, leveraging its library of high-quality IP and active creator ecosystem. Additionally, Zhihu is exploring AI data services, aiming to provide differentiated data solutions for AI developers. These initiatives are expected to generate positive cash flow and scalable AI revenue.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
