Zhihu (ZH) Q3 2025 earnings summary

Executive summary

• Q3 2025 total revenues were RMB 658.9 million (US$92.6 million), down from RMB 845 million year-over-year, with progress toward full-year non-GAAP break-even and improved operating efficiency narrowing non-GAAP operating loss by 16.3% year-over-year.

• Net loss for Q3 was RMB 46.7 million (US$6.6 million), with non-GAAP adjusted net loss at RMB 21 million (US$3.0 million).

• Community ecosystem strengthened, with improved user mix, engagement, and modest MAU growth from Q2; average monthly subscribing members reached 14.3 million.

• AI integration accelerated, with agentic AI upgrades enhancing user experience and content creation, positioning the platform as a trusted source for Chinese LLMs and AI applications.

• Management highlighted ongoing cost discipline and confidence in achieving full-year non-GAAP breakeven.

Financial highlights

• Gross margin was 61.3%, down from 63.9% year-over-year; gross profit was RMB 403.6 million (US$56.7 million).

• Cost of revenues decreased by 16.3% to RMB 255.3 million (US$35.9 million).

• Total operating expenses fell 19.4% to RMB 503.5 million (US$70.7 million); selling and marketing expenses down 14.9%, R&D expenses down 36.2%.

• Marketing services revenue was RMB 189.4 million (US$26.6 million), with the year-over-year decrease narrowing, indicating a bottoming out of the adjustment cycle.

• Paid membership revenue reached RMB 385.6 million (US$54.2 million), with average monthly paid members rebounding 8.1% sequentially to 14.3 million.

Outlook and guidance

• Confident in achieving first full-year non-GAAP profitability in 2025, using Q3 and Q4 for fine-tuning and targeted investments.

• Marketing services expected to recover sequentially from Q4, with each quarter in 2025 projected to exceed Q3 2025 baseline.

• Paid membership remains in transition; further experimentation planned to optimize product and retention.

• Focus remains on monetization resilience, new revenue models, and sustainable growth.

• Ongoing focus on AI-driven innovation, trusted content, and expert network to drive long-term growth.