Zhihu (ZH) investor relations material

Executive summary

• Achieved first-ever full-year non-GAAP profit in 2025, with adjusted net income of RMB 37.9 million, reversing a prior year loss and marking a structural inflection point for high-quality operations.

• Strategic transformation focused on AI integration, operational leverage, and ecosystem health drove results, with a shift toward high-quality earnings resilience.

• Community engagement and high-quality content creation surged, with daily user time and professional AI-related content both up significantly; DAUs spent over 41 minutes per day.

• AI-driven commercialization and new monetization avenues, including expert data solutions and IP monetization, are key growth drivers.

• Focus for 2026 is on enhancing commercialization, especially in AI, leveraging expert networks and trusted content.

Financial highlights

• Full-year 2025 non-GAAP net income reached RMB 37.9 million, compared to a loss of RMB 96.3 million in 2024; FY 2025 total revenues were RMB2,749.0 million, down from RMB3,598.9 million.

• Q4 total revenue was RMB 643.5 million, down from RMB 859.2 million year-over-year, but sequential decline narrowed; Q4 gross profit was RMB 344.8 million, gross margin at 53.6% versus 62.9% prior year.

• Q4 marketing services revenue was RMB 234.8 million, up 24% sequentially, signaling recovery, though down year-over-year; Q4 paid membership revenue was RMB 333.5 million, with 12.2 million average monthly paid members.

• Q4 GAAP net loss was RMB 210.8 million, impacted by a one-time goodwill impairment; non-GAAP adjusted net loss was RMB 39.4 million.

• Cash and equivalents, term deposits, restricted cash, and short-term investments totaled RMB 4,451.2 million as of December 31, 2025.

Outlook and guidance

• 2026 strategy prioritizes disciplined investment in AI-driven growth areas while maintaining bottom-line health and cost discipline.

• Focus on scaling AI-enabled short-form drama, comic adaptation, and expert data services with visible ROI and positive cash flow potential.

• Emphasis on higher-margin, capital-efficient revenue streams and disciplined capital allocation, including share repurchases.

• Core business to remain stable, increasingly AI-enhanced, and financially stronger.

• Continued emphasis on operating leverage and scalability to enhance earnings quality.