Zhihu Inc.

What they do

Zhihu operates a content-centric platform where users ask and answer questions, share knowledge, and consume text, audio, and video content. The company monetizes via advertising, paid membership subscriptions (Zhihu Salon and other packages), and vocational training courses. It serves users in China with both mobile apps and PC/web access, and reports metrics such as mobile MAUs, average MAUs, and average monthly subscribing members.

Revenue drivers

• Advertising — Generates revenue from advertiser placements on the platform; historically a primary revenue stream, though overall revenue has declined in recent years.
• Membership — Recurring subscription fees from monthly subscribing members who pay for premium content and features; contributes to stable revenue.
• Vocational training — Revenue from online courses and other paid educational offerings; a growth area the company mentions as a strategic focus.
• Other services — Includes value-added services such as live-streaming, e-commerce, and other monetization tools; smaller but diversified.

Recent performance

In fiscal 2025, Zhihu reported revenue of $393.1 million, down 20% from $493.0 million in 2024, and a net loss of $27.9 million, slightly worse than a $23.1 million loss in 2024. Diluted EPS was $(0.11) versus $(0.09) in the prior year. Operating cash flow remained negative at $(52.0) million. As of December 31, 2025, the company held $481.8 million in cash and equivalents against total assets of $742.3 million and total liabilities of $188.2 million.

Strategy

Management is prioritizing profitability improvements, focusing on high-margin revenue streams like membership and vocational training while managing costs. The company is investing in AI-driven content recommendation and user engagement features to differentiate its community. Zhihu is also optimizing its advertising products to improve advertiser ROI. The stated goal is to achieve sustainable long-term growth with a path to profitability.

Risks

• Regulatory risk in China — Zhihu operates in the PRC where internet and education regulations are stringent and can change abruptly, affecting content, data, and business model.
• Revenue decline — Revenue has fallen for two consecutive years (2024 and 2025), indicating demand or monetization headwinds that may persist.
• Persistent losses and negative cash flow — Despite narrower losses, the company has not achieved profitability and continues to burn cash from operations.
• Competition — Zhihu faces intense competition from larger Chinese internet platforms with superior resources in content, AI, and advertising.

Outlook

Management expects revenue to remain under pressure as the market matures, but believes membership and vocational training will offset advertising softness. The company anticipates continued investment in AI and community features, while striving to narrow losses. No specific forward guidance for 2026 was provided.