Zhihu Inc. (ZH) Q4 2025 Earnings Call Transcript

Access earnings results, analyst expectations, report, slides, earnings call, and transcript.

Overview

Despite challenges in financial performance, such as revenue declines and increased net loss, Zhihu's strategic focus on AI and international expansion shows potential for future growth. The positive sentiment from management's detailed Q&A responses about AI impact and future strategies balances the negative aspects. The stock price reaction is likely to be neutral, considering the mixed signals from financial metrics and strategic initiatives.

Key Financial Performance

Full Year 2025 Adjusted Net Income RMB 37.9 million, a significant turnaround from an adjusted net loss of RMB 96.3 million in 2024. This improvement was attributed to strategic transformation and operational leverage.

Q4 2025 Total Revenue RMB 643.5 million, compared to RMB 859.2 million in Q4 2024, reflecting a year-over-year decrease due to revenue mix optimization and focus on sustainable growth. However, the sequential decline narrowed, indicating recovery.

Q4 2025 Marketing Services Revenue RMB 234.8 million, compared to RMB 315.9 million in Q4 2024, a year-over-year decline due to refinement of service offerings. Sequentially, it grew by 24%, driven by stronger client quality and new commercial products.

Q4 2025 Paid Membership Revenue RMB 333.5 million, compared to RMB 422 million in Q4 2024, reflecting a year-over-year decline due to prioritization of unit economics over scale. Sequential improvements in ARPPU and renewal rates were observed.

Q4 2025 Other Revenues RMB 75.2 million, compared to RMB 123.1 million in Q4 2024, a year-over-year decrease due to strategic refinement of the vocational training business, partially offset by growth in intellectual property derivatives revenue.

Q4 2025 Gross Profit RMB 344.8 million, compared to RMB 540.7 million in Q4 2024, with a gross margin of 53.6% (down from 62.9% in Q4 2024). The decline was due to efforts to enhance content offerings.

Q4 2025 Total Operating Expenses RMB 608.7 million, compared to RMB 528.8 million in Q4 2024, an increase primarily due to a one-time non-cash goodwill impairment charge of RMB 126.3 million related to prior acquisitions.

Q4 2025 Selling and Marketing Expenses RMB 275.2 million, a 13% decrease from RMB 316.2 million in Q4 2024, driven by disciplined marketing spend and lower personnel-related expenses.

Q4 2025 Research and Development Expenses RMB 123.1 million, a 16% decrease from RMB 146.6 million in Q4 2024, due to improved R&D efficiency.

Q4 2025 General and Administrative Expenses RMB 84 million, compared to RMB 66 million in Q4 2024, an increase due to higher share-based compensation expenses.

Q4 2025 GAAP Net Loss RMB 210.8 million, compared to RMB 86.4 million in Q4 2024, reflecting a year-over-year increase in net loss.

Q4 2025 Non-GAAP Adjusted Net Loss RMB 39.4 million, compared to adjusted net income of RMB 97.1 million in Q4 2024, reflecting a year-over-year decline.

Cash and Cash Equivalents as of December 31, 2025 RMB 4.5 billion, compared to RMB 4.9 billion as of December 31, 2024, reflecting a decrease due to share repurchases and other expenditures.

You have reached the limit. Sign up to access full content

Get started

Operating Highlights

AI Integration: Accelerated AI integration within the community, including AI productivity tools and export data solutions to enhance IP monetization and unlock new commercial opportunities.

Content Creation Tools: Rolled out AI-powered features like intelligent editing, automated formatting, and image pairing to improve content creation efficiency and quality.

AI Search Upgrade: Introduced cross-topic content aggregation and hot trend summarization, increasing click-through rates and user interactions.

Marketing Services Expansion: Revenue from marketing services reached RMB 234.8 million in Q4, up 24% sequentially, with deeper industry penetration and new client acquisition in sectors like automotive and healthcare.

IP Monetization: Revenue from IP-related projects increased 21% year-over-year, with successful adaptations of Yan'an Stories into popular short dramas.

Non-GAAP Profitability: Achieved first-ever full-year non-GAAP profit of RMB 37.9 million in 2025, marking a significant turnaround from a loss in 2024.

Cost Discipline: Sustained cost discipline and tighter expense control contributed to improved operating leverage and profitability.

Community Engagement: Average daily time spent per user increased to over 41 minutes, with a 20% year-over-year rise in daily creation of high-quality content.

AI-Driven Monetization: Focused on scaling AI-driven commercialization and exploring new revenue models, including export data solutions and AI-powered IP development.

Content Ecosystem Optimization: Enhanced community governance with algorithm-driven workflows and introduced metrics for trustworthy content recognition.

You have reached the limit. Sign up to access full content

Get started

Risk or Challenges

Revenue Decline: Total revenues for Q4 2025 were RMB 643.5 million, a decrease from RMB 859.2 million in Q4 2024, reflecting ongoing efforts to optimize revenue mix and focus on sustainable growth.

Marketing Services Revenue Decline: Marketing services revenue for Q4 2025 was RMB 234.8 million, down from RMB 315.9 million in Q4 2024, despite sequential growth of 24%.

Paid Membership Revenue Decline: Paid membership revenue decreased to RMB 333.5 million in Q4 2025 from RMB 422 million in Q4 2024, with average monthly subscribers declining to 12.2 million.

Gross Margin Decline: Gross margin for Q4 2025 decreased to 53.6% from 62.9% in Q4 2024, primarily due to efforts to broaden and enhance content offerings.

Operating Expenses Increase: Total operating expenses for Q4 2025 increased to RMB 608.7 million from RMB 528.8 million in Q4 2024, driven by a one-time non-cash goodwill impairment charge of RMB 126.3 million.

Net Loss: GAAP net loss for Q4 2025 was RMB 210.8 million, compared to RMB 86.4 million in Q4 2024. Non-GAAP adjusted net loss was RMB 39.4 million, compared to adjusted net income of RMB 97.1 million in Q4 2024.

Cash Reserves Decline: Cash and cash equivalents decreased to RMB 4.5 billion as of December 31, 2025, from RMB 4.9 billion as of December 31, 2024.

Goodwill Impairment: A one-time non-cash goodwill impairment charge of RMB 126.3 million was recorded, primarily associated with prior acquisitions and lower valuations amid current market conditions.

You have reached the limit. Sign up to access full content

Get started

Guidance & Outlook

AI-driven commercialization: Zhihu plans to scale AI-driven commercialization in 2026, including building industry-leading export data solutions and deploying AI productivity tools to accelerate IP monetization of the Yan'an Stories franchise.

Marketing services revenue: In 2026, Zhihu aims to drive continued recovery and sustainable long-term growth in marketing services, supported by a healthier commercial ecosystem.

Paid membership and IP monetization: Zhihu is exploring new growth drivers for paid memberships and IP monetization, including AI-powered comic dramas and other emerging formats. The company expects rapid advances in multimodal AI to expand monetization opportunities for its Yan'an Stories IP.

Export data solutions: Zhihu is developing export data solution capabilities to commercialize high-value data solutions, leveraging its expert network and authentic discussion scenarios.

AI integration: In 2026, Zhihu will accelerate AI integration across its community and commercial models, focusing on efficiency gains, content quality, and AI-driven monetization innovations.

You have reached the limit. Sign up to access full content

Get started

Shareholder Return Plan

Share Repurchase Program: As of December 31, 2025, Zhihu repurchased 31.1 million Class A ordinary shares on the open market for an aggregate value of USD 66.5 million. Additionally, throughout 2025, the company repurchased a total of 16.6 million Class A ordinary shares through the company's trustee for an aggregate value of USD 23.4 million, representing 6.29% of the total issued ordinary shares.

You have reached the limit. Sign up to access full content

Get started

Key Q&A

Q:What is the earnings outlook for 2026 and how does Zhihu plan to balance investment with cash flow and profitability?

A:Zhihu CFO Wang Han stated that while 2025 demonstrated profitability, the company sees a larger opportunity in the AI era. They are not solely focused on delivering profitability year-over-year but aim to invest in AI opportunities while maintaining bottom-line discipline. Investments will be concentrated in areas with visible ROI potential, aiming to grow 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:Zhihu's strategy for 2026 focuses on two tracks: enhancing the core community business with AI to improve efficiency and user experience while maintaining stable revenue and profitability, and leveraging unique assets to develop new AI businesses. The two main areas of focus are AI-enabled short-form drama and comic adaptation, and AI data services. Both areas are expected to generate scalable AI revenue and positive cash flow without aggressive cash burn.

Q:What data can management share about the impact of AI on the Zhihu community, and what new initiatives are planned for product upgrades and user experience enhancement?

A:Zhihu CEO Zhou Yuan highlighted that AI has positively impacted the community by improving content consumption and creator experience. For core users, AI has enhanced social interactions and reading efficiency through features like one-click summaries and professional term explanations. For new users, AI has lowered barriers to content discovery and participation, with metrics like MAU growth of 260% YoY and improved retention rates. Future plans include upgrading Zhida's capabilities from AI search to an agent-based experience to further enhance user experience.

Q:Review of Unclear Management Responses

A:Management provided detailed responses to all questions and did not appear to avoid any questions or provide vague answers.

You have reached the limit. Sign up to access full content

Get started

Earnings Word Cloud

The most frequently occurring keywords in this quarter's earning call

ZH Transcript

Zhihu Inc. (ZH) Q4 2025 Earnings Call Transcript

Unknown3-25

Zhihu Inc. (ZH) Q3 2025 Earnings Call Transcript

Unknown11-25

Despite challenges like decreased revenues and increased losses, management's optimistic guidance and AI progress provide a counterbalance. The Q&A highlighted positive AI integration and a healthy user ecosystem. The commitment to share buybacks also supports sentiment. However, the absence of clear market cap data and ongoing financial pressures suggest a cautious outlook, resulting in a neutral prediction.

Zhihu Inc. (ZH) Q2 2025 Earnings Call Transcript

Unknown8-27

The earnings call presents mixed signals: a decline in revenue and specific segments, but an improvement in gross margin, cost control, and profitability. The Q&A section reveals cautious optimism, with management focusing on AI integration and shareholder returns. However, the lack of specific guidance and avoidance of detailed plans may concern investors. The share repurchase program and profitability turnaround are positives, but the overall sentiment remains balanced, leading to a neutral stock price prediction.

Zhihu Inc. (NYSE:ZH) Q1 2025 Earnings Call Transcript

Unknown5-28

While Zhihu showed improved profitability and a new share repurchase program, revenue declines in key segments and unclear guidance suggest a balanced outlook. The positive EPS surprise and improved gross margin are offset by revenue declines and supply chain challenges. The focus on AI and community trust is promising but not enough to outweigh the immediate revenue concerns. Overall, the mixed signals from financial performance and strategic initiatives suggest a neutral stock price movement.

ZH Report

Frequently Asked Questions

Where does this earnings call transcript come from?

All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.

How soon is the transcript available after the earnings call ends?

Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.

Is the transcript edited or altered in any way?

No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.

Why do some answers appear as “Unclear” or “Inaudible”?

When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.

Who creates the AI Summary and Key Q&A highlights shown above the transcript?

They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.