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Mar 31

Zhihu Q1 2025 Earnings Report

Zhihu reported narrowed net losses and posted its first-ever first-quarter non-GAAP profitability.

Key Takeaways

Zhihu Inc. showed a notable improvement in Q1 2025, with a net loss significantly reduced from the prior year and the company achieving non-GAAP profitability for the first time in a first quarter.

Revenue totaled $100,552,000, down from $132,404,000 a year earlier.

Net loss narrowed to $1,392,000, a 93.9% improvement year-over-year.

Zhihu achieved a non-GAAP net income of $957,000 in Q1 2025.

Gross margin expanded to 61.8% thanks to improved efficiency and monetization.

Total Revenue
$101M
Previous year: $133M
-24.4%
EPS
$0.01
Previous year: -$0.2
-105.0%
Avg. Subscribing Members
14.2M
Gross Margin
61.8%
Previous year: 56.6%
+9.2%
Gross Profit
$62.2M
Previous year: $543M
-88.6%
Cash and Equivalents
$446M
Previous year: $722M
-38.1%
Total Assets
$783M
Previous year: $904M
-13.4%

Zhihu

Zhihu

Zhihu Revenue by Segment

Forward Guidance

Zhihu plans to maintain its profitability momentum and further develop its AI integration and monetization strategies.

Positive Outlook

  • Company achieved non-GAAP net income for Q1 for the first time since IPO.
  • Gross margin expanded significantly year-over-year.
  • Operational efficiency improved across departments.
  • AI integration driving user engagement and content quality.
  • Focused business adjustments aimed at long-term profitability.

Challenges Ahead

  • Overall revenue declined compared to Q1 2024.
  • Marketing services revenue saw a sharp drop.
  • Vocational training revenue weakened due to reduced contribution from acquired businesses.
  • Subscribing member base slightly declined.
  • Net loss persisted despite strong non-GAAP performance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income