ZH — Zhihu Inc.

Zhihu Inc. Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenues: RMB 658.9 million, down from RMB 845 million year-over-year.
• Non-GAAP Operating Loss: Narrowed by 16.3% year-over-year.
• Marketing Services Revenue: RMB 189.4 million, a decrease from RMB 256.6 million, but the year-over-year decline is narrowing.
• Paid Membership Revenue: RMB 386 million, down from RMB 459.4 million, though average monthly paid members increased by 8.1% sequentially to 14.3 million.
• Gross Profit: RMB 403.6 million, with a gross margin of 61.3%.
• GAAP Net Loss: RMB 46.7 million, compared to RMB 9 million in the same period last year.
• Cash Position: RMB 4.6 billion as of September 30, 2025.

2. Strategic Updates and Business Highlights

• Continued focus on structural optimization and cost control, leading to improved operational efficiency.
• AI Integration: Enhanced AI capabilities, including the launch of Zhihu Zhida, which has seen a penetration rate increase to 15%.
• Content Creation: Daily high-quality content creation rose over 25% year-over-year, with professional AI-focused content increasing by over 30%.
• Community Engagement: Strong user engagement metrics, with daily time spent on the platform trending higher.
• Creator Ecosystem: Growth in verified creators by 29% year-over-year, with a focus on enhancing the creator experience through new tools and initiatives.

3. Forward Guidance and Outlook

• Profitability Target: On track to achieve full-year non-GAAP profitability in 2025.
• Marketing Services Recovery: Expected sequential growth starting in Q4 2025.
• Paid Membership Strategy: Ongoing experimentation to improve retention and average revenue per user (ARPU).
• Investment Focus: Continued investment in AI capabilities and content quality to drive long-term growth.

4. Bad News, Challenges, or Points of Concern

• Revenue Decline: Total revenues decreased year-over-year, indicating ongoing challenges in monetization.
• Paid Membership Revenue: Although there was a sequential increase in members, year-over-year revenue decline raises concerns about retention and product differentiation.
• GAAP Net Loss: Increased loss compared to the previous year, highlighting ongoing financial pressures.
• Market Conditions: Competitive pressures in the AI and content space may pose risks to sustaining growth and profitability.

5. Notable Q&A Insights

• AI Progress: The penetration rate of Zhihu Zhida has significantly increased, reflecting strong user endorsement of AI integration.
• User Ecosystem Health: Management emphasized a stable and improving community ecosystem, focusing on content quality and creator incentives.
• Future Product Direction: Plans to enhance utility and identity within the platform, aiming to integrate AI with community engagement.
• Shareholder Returns: Commitment to maintaining an active share buyback program, reflecting confidence in achieving profitability and addressing undervaluation concerns.

Overall, Zhihu is navigating a complex landscape with a focus on improving operational efficiency, enhancing AI capabilities, and fostering community engagement, while also addressing challenges related to revenue generation and profitability.