Zhihu Inc. (NYSE: ZH; HKEX: 2390) reported its unaudited fourth‑quarter and full‑year 2025 results, showing a 4% year‑over‑year decline in revenue to RMB 643.5 million (US$92.0 million) for the quarter and RMB 2,749.0 million (US$393.1 million) for the year. The company posted a net loss of RMB 210.8 million (US$30.1 million) in Q4 and RMB 195.2 million (US$27.9 million) for the full year, but achieved its first full‑year non‑GAAP profit of RMB 269.2 million (US$38.5 million).
The decline in revenue reflects a broader contraction in user‑generated content demand, while the company’s gross margin fell to 53.6% in Q4 from 62.9% a year earlier and to 59.9% for the year from 60.6% in 2024. Management attributed the margin compression to “ongoing efforts to broaden and enhance content offerings for all users,” which increased content‑creation costs and diluted high‑margin segments.
Operating‑expense data in the original article were incorrect. Zhihu’s total operating expenses actually rose to RMB 608.7 million in Q4 2025 from RMB 528.8 million in Q4 2024, an increase of 15.3%. The company’s operating loss widened to RMB 263.9 million (US$37.7 million) in the quarter, while the adjusted non‑GAAP operating loss narrowed to RMB 89.3 million (US$12.8 million).
Cash and cash equivalents stood at RMB 4,451.2 million (US$636.5 million) as of December 31, 2025, providing a solid liquidity buffer. Zhihu also repurchased 31.1 million shares for a total of US$66.5 million under its share‑repurchase program. “In 2025, we achieved our first‑ever full‑year non‑GAAP profit. This historic milestone validates our strategic transformation and underscores the structural durability of our operational leverage,” said the company’s CEO during the earnings call. The CFO added, “Financially, this progress was driven by sustained cost discipline, improved operating leverage, and tighter expense control while maintaining healthy growth margins.”
The results underscore a strategic pivot toward AI‑driven monetization. The company highlighted its investment in AI integration across the platform and expressed confidence that 2026 will see “another leap in AI productivity, complemented by rapid expansion of real‑world applications.” Despite the revenue decline and margin compression, the first non‑GAAP profit signals a turning point in Zhihu’s profitability trajectory and suggests that cost discipline and AI initiatives are beginning to pay off.
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