EX-99.1 2 tm2532151d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Zhihu Inc. Reports Unaudited Third Quarter 2025 Financial Results

 

BEIJING, China, November 25, 2025 — Zhihu Inc. (“Zhihu” or the “Company”) (NYSE: ZH; HKEX: 2390), a leading online content community in China, today announced its unaudited financial results for the quarter ended September 30, 2025.

 

Third Quarter 2025 Highlights

 

·Total revenues were RMB658.9 million (US$92.6 million), compared with RMB845.0 million in the same period of 2024.

 

·Gross margin was 61.3%, compared with 63.9% in the same period of 2024.

 

·Net loss was RMB46.7 million (US$6.6 million), compared with RMB9.0 million in the same period of 2024.

 

·Adjusted net loss (non-GAAP)[1] was RMB21.0 million (US$3.0 million), compared with RMB13.1 million in the same period of 2024.

 

·Average monthly subscribing members[2] were 14.3 million in the third quarter of 2025.

 

“We are firmly on track to achieve full-year non-GAAP breakeven, with solid progress made during the quarter,” said Mr. Yuan Zhou, chairman and chief executive officer of Zhihu. “As our structural optimization initiatives continue to take effect, we are further refining our service offerings and striking a stronger balance between commercialization and community health. Our community remains vibrant, with growing user engagement and increasing contribution of authentic, high-quality content from both day-to-day users and professional creators. With our High-quality Content × Expert Network × AI Capabilities working in greater synergy, Zhihu is accelerating its evolution into an AI-native community that delivers trusted and differentiated experiences for users both within and beyond.”

 

Mr. Han Wang, chief financial officer of Zhihu, added, “In the third quarter, our non-GAAP operating loss narrowed by 16.3% year over year, reflecting disciplined cost management and continued gains in operational efficiency. While we continue investing in long-term growth initiatives, we have maintained effective control over total costs and expenses. Looking ahead, we will further strengthen monetization resilience and pursue new revenue models by leveraging our core advantages in content quality, creator expertise, and AI-driven innovation. We remain focused on delivering sustainable, high-quality growth.”

 

Third Quarter 2025 Financial Results

 

Total revenues were RMB658.9 million (US$92.6 million), compared with RMB845.0 million in the same period of 2024.

 

1 

 

 

Marketing services revenue was RMB189.4 million (US$26.6 million), compared with RMB256.6 million in the same period of 2024. The decrease was primarily due to our proactive and ongoing refinement of service offerings.

 

Paid membership revenue was RMB385.6 million (US$54.2 million), compared with RMB459.4 million in the same period of 2024. The decrease was primarily due to a decline in the number of our average monthly subscribing members.

 

Other revenues[3] were RMB83.9 million (US$11.8 million), compared with RMB129.0 million in the same period of 2024. The decrease was primarily due to the strategic refinement of our vocational training business.

 

Cost of revenues decreased by 16.3% to RMB255.3 million (US$35.9 million) from RMB304.9 million in the same period of 2024. The decrease was primarily due to reduced content and operating costs associated with the decline in our revenues.

 

Gross profit was RMB403.6 million (US$56.7 million), compared with RMB540.1 million in the same period of 2024. Gross margin was 61.3%, compared with 63.9% in the same period of 2024.

 

Total operating expenses decreased by 19.4% to RMB503.5 million (US$70.7 million) from RMB624.5 million in the same period of 2024.

 

Selling and marketing expenses decreased by 14.9% to RMB330.1 million (US$46.4 million) from RMB388.0 million in the same period of 2024. The decrease was primarily due to more disciplined promotional spending and a decrease in personnel-related expenses.

 

Research and development expenses decreased by 36.2% to RMB114.4 million (US$16.1 million) from RMB179.3 million in the same period of 2024. The decrease was primarily attributable to improvements in our research and development efficiency.

 

General and administrative expenses were RMB59.0 million (US$8.3 million), compared with RMB57.2 million in the same period of 2024.

 

Loss from operations was RMB99.8 million (US$14.0 million), compared with RMB84.3 million in the same period of 2024.

 

Adjusted loss from operations (non-GAAP)[1] narrowed by 16.3% to RMB73.5 million (US$10.3 million) from RMB87.8 million in the same period of 2024.

 

Net loss was RMB46.7 million (US$6.6 million), compared with RMB9.0 million in the same period of 2024.

 

Adjusted net loss (non-GAAP)[1] was RMB21.0 million (US$3.0 million), compared with RMB13.1 million in the same period of 2024.

 

2 

 

 

Diluted net loss per American depositary share (“ADS”) was RMB0.58 (US$0.08), compared with RMB0.11 in the same period of 2024.

 

Cash and cash equivalents, term deposits, restricted cash and short-term investments

 

As of September 30, 2025, the Company had cash and cash equivalents, current and non-current term deposits, restricted cash and short-term investments of RMB4,583.2 million (US$643.8 million), compared with RMB4,859.0 million as of December 31, 2024.

 

Share Repurchase Programs

 

As of September 30, 2025, the Company had repurchased 31.1 million Class A ordinary shares (including Class A ordinary shares underlying the ADSs) for a total price of US$66.5 million on both the New York Stock Exchange and The Stock Exchange of Hong Kong Limited under the Company’s existing share repurchase programs.

 

[1] Adjusted loss from operations and adjusted net loss are non-GAAP financial measures. For more information on the non-GAAP financial measures, please see the section “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.

 

[2] Monthly subscribing members refers to the number of members who subscribed for our membership packages in a specified month. Average monthly subscribing members for a period is calculated by dividing the sum of monthly subscribing members for each month during the specified period by the number of months in such period.

 

[3] Starting from the third quarter of 2025, the Company simplified its revenue stream by reclassifying vocational training into “others” to align with its overall strategy. Revenues for the applicable comparison periods have been retrospectively reclassified.

 

Conference Call

 

The Company's management will host a conference call at 6:00 A.M. U.S. Eastern Time on Tuesday, November 25, 2025 (7:00 P.M. Beijing/Hong Kong Time on Tuesday, November 25, 2025) to discuss the results.

 

All participants wishing to join the conference call must pre-register online using the link provided below. Once the pre-registration has been completed, each participant will receive a set of dial-in numbers and a unique access PIN which can be used to join the conference call.

 

Registration Link:

https://register-conf.media-server.com/register/BId01f39d00a68420ba15e28d3dc711d2d

 

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.zhihu.com.

 

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About Zhihu Inc.

 

Zhihu Inc. (NYSE: ZH; HKEX: 2390) is a leading online content community where people come to find solutions, make decisions, seek inspiration, and have fun. Since the initial launch in 2010, Zhihu has grown into the largest Q&A-inspired online content community in China. For more information, please visit https://ir.zhihu.com.

 

Use of Non-GAAP Financial Measures

 

In evaluating the business, the Company considers and uses non-GAAP financial measures, such as adjusted income from operations and adjusted net income, to supplement the review and assessment of its operating performance. The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisitions and the tax effects of the non-GAAP adjustments, which are non-cash expenses. The Company believes that the non-GAAP financial measures facilitate comparisons of operating performance from period to period and company to company by adjusting for potential impacts of items, which the Company’s management considers to be indicative of its operating performance. The Company believes that the non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company’s consolidated results of operations in the same manner as they help the Company’s management.

 

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The presentation of the non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. The use of the non-GAAP financial measures has limitations as an analytical tool, and investors should not consider them in isolation from or as a substitute for analysis of our results of operations or financial condition as reported under U.S. GAAP. For more information on the non-GAAP financial measures, please see the tables captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.

 

Exchange Rate Information

 

This announcement contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at a rate of RMB7.1190 to US$1.00, the exchange rate in effect as of September 30, 2025 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

Safe Harbor Statement

 

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

 

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For investor and media inquiries, please contact:

 

Zhihu Inc.

Email: ir@zhihu.com

 

Christensen Advisory

Roger Hu

Tel: +86-10-5900-1548

Email: zhihu@christensencomms.com

 

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ZHIHU INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(All amounts in thousands, except share, ADS, per share data and per ADS data)

 

   For the Three Months Ended   For the Nine Months Ended 
   September 30,
2024		  

June 30,

2025

  

September 30,

2025

   September 30,
2024		  

September 30,

2025

 
   RMB   RMB   RMB   US$   RMB   RMB   US$ 
Revenues:                            
Marketing services   256,631    222,778    189,388    26,603    931,152    609,125    85,563 
Paid membership   459,387    401,974    385,625    54,168    1,341,763    1,205,473    169,332 
Others   129,002    92,142    83,916    11,788    466,778    290,890    40,861 
Total revenues   845,020    716,894    658,929    92,559    2,739,693    2,105,488    295,756 
Cost of revenues   (304,879)   (268,711)   (255,288)   (35,860)   (1,099,529)   (802,560)   (112,735)
Gross profit   540,141    448,183    403,641    56,699    1,640,164    1,302,928    183,021 
                                    
Selling and marketing expenses   (388,049)   (326,255)   (330,144)   (46,375)   (1,282,988)   (977,031)   (137,243)
Research and development expenses   (179,261)   (145,683)   (114,362)   (16,064)   (585,940)   (401,911)   (56,456)
General and administrative expenses   (57,161)   (67,251)   (58,950)   (8,281)   (264,185)   (167,410)   (23,516)
Total operating expenses   (624,471)   (539,189)   (503,456)   (70,720)   (2,133,113)   (1,546,352)   (217,215)
                                    
Loss from operations   (84,330)   (91,006)   (99,815)   (14,021)   (492,949)   (243,424)   (34,194)
                                    
Other income/(expenses):                                   
Investment income   13,679    140,836    37,050    5,204    52,392    197,235    27,705 
Interest income   31,136    20,247    17,306    2,431    88,653    58,163    8,170 
Fair value change of financial instruments   6,887    -    -    -    47,707    -    - 
Exchange losses   (1,097)   (38)   (43)   (6)   (688)   (177)   (25)
Others, net   23,799    31,120    (391)   (55)   42,789    33,128    4,653 
                                    
(Loss)/Income before income tax   (9,926)   101,159    (45,893)   (6,447)   (262,096)   44,925    6,309 
Income tax benefits/(expenses)   949    (28,679)   (850)   (119)   6,728    (29,296)   (4,115)
Net (loss)/income   (8,977)   72,480    (46,743)   (6,566)   (255,368)   15,629    2,194 
Net (income)/loss attributable to noncontrolling interests   (1,514)   2    88    12    (2,708)   104    15 
Net (loss)/income attributable to Zhihu Inc.’s shareholders   (10,491)   72,482    (46,655)   (6,554)   (258,076)   15,733    2,209 
                                    
Net (loss)/income per share                                   
Basic   (0.04)   0.30    (0.19)   (0.03)   (0.92)   0.07    0.01 
Diluted   (0.04)   0.29    (0.19)   (0.03)   (0.92)   0.06    0.01 
                                    
Net (loss)/income per ADS (One ADS represents three Class A ordinary shares)                                   
Basic   (0.11)   0.90    (0.58)   (0.08)   (2.77)   0.20    0.03 
Diluted   (0.11)   0.88    (0.58)   (0.08)   (2.77)   0.19    0.03 
                                    
Weighted average number of ordinary shares outstanding                                   
Basic   277,309,431    240,762,092    239,496,037    239,496,037    279,367,448    241,569,166    241,569,166 
Diluted   277,309,431    245,755,672    239,496,037    239,496,037    279,367,448    246,688,130    246,688,130 

 

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ZHIHU INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)

(All amounts in thousands, except share, ADS, per share data and per ADS data)

 

   For the Three Months Ended   For the Nine Months Ended 
   September 30,
2024		  

June 30,

2025

  

September 30,

2025

   September 30,
2024		  

September 30,

2025

 
   RMB   RMB   RMB   US$   RMB   RMB   US$ 
Share-based compensation expenses included in:                                   
Cost of revenues   1,016    10    110    15    4,263    (752)   (106)
Selling and marketing expenses   547    (294)   (434)   (61)   (2,244)   (466)   (65)
Research and development expenses   6,233    (870)   2,825    397    14,352    1,356    190 
General and administrative expenses   (14,767)   17,124    20,352    2,859    35,111    52,843    7,423 

 

7 

 

 

ZHIHU INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands)

 

  

As of December 31,

2024

  

As of September 30,

2025

 
   RMB   RMB   US$ 
ASSETS               
Current assets:               
Cash and cash equivalents   3,999,160    2,730,011    383,482 
Term deposits   320,088    597,385    83,914 
Short-term investments   538,816    1,044,870    146,772 
Restricted cash   900    900    127 
Trade receivables   420,636    326,292    45,834 
Amounts due from related parties   41,588    23,812    3,345 
Prepayments and other current assets   163,446    148,881    20,913 
Total current assets   5,484,634    4,872,151    684,387 
Non-current assets:               
Property and equipment, net   8,490    5,998    843 
Intangible assets, net   54,534    43,705    6,139 
Goodwill   126,344    126,344    17,747 
Long-term investments, net   51,176    190,262    26,726 
Term deposits   -    210,000    29,499 
Right-of-use assets    7,151    46,355    6,511 
Other non-current assets    623    6,611    929 
Total non-current assets   248,318    629,275    88,394 
Total assets   5,732,952    5,501,426    772,781 
LIABILITIES AND SHAREHOLDERS’ EQUITY               
Current liabilities               
Accounts payable and accrued liabilities   835,688    684,295    96,122 
Salary and welfare payables   275,260    159,417    22,393 
Taxes payables    22,081    15,474    2,174 
Contract liabilities   235,539    192,681    27,066 
Amounts due to related parties   6,825    5,734    805 
Short-term lease liabilities    17,308    24,848    3,490 
Short-term borrowings   -    105,508    14,821 
Other current liabilities   131,955    132,880    18,666 
Total current liabilities   1,524,656    1,320,837    185,537 
Non-current liabilities               
Long-term lease liabilities   1,823    20,351    2,859 
Deferred tax liabilities   6,830    34,848    4,895 
Other non-current liabilities   3,957    3,915    550 
Total non-current liabilities   12,610    59,114    8,304 
Total liabilities   1,537,266    1,379,951    193,841 
                
Total Zhihu Inc.’s shareholders’ equity   4,136,123    4,051,810    569,154 
Noncontrolling interests   59,563    69,665    9,786 
Total shareholders’ equity   4,195,686    4,121,475    578,940 
                
Total liabilities and shareholders’ equity   5,732,952    5,501,426    772,781 

 

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ZHIHU INC.

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands)

 

   For the Three Months Ended   For the Nine Months Ended 
   September 30,
2024		  

June 30,

2025

  

September 30,

2025

   September 30,
2024		  

September 30,

2025

 
   RMB   RMB   RMB   US$   RMB   RMB   US$ 
Loss from operations   (84,330)   (91,006)   (99,815)   (14,021)   (492,949)   (243,424)   (34,194)
Add:                                   
Share-based compensation expenses   (6,971)   15,970    22,853    3,210    51,482    52,981    7,442 
Amortization of intangible assets resulting from business acquisitions   3,490    3,490    3,490    490    12,970    10,470    1,471 
Adjusted loss from operations   (87,811)   (71,546)   (73,472)   (10,321)   (428,497)   (179,973)   (25,281)
                                    
                                    
Net (loss)/income   (8,977)   72,480    (46,743)   (6,566)   (255,368)   15,629    2,194 
Add:                                   
Share-based compensation expenses   (6,971)   15,970    22,853    3,210    51,482    52,981    7,442 
Amortization of intangible assets resulting from business acquisitions   3,490    3,490    3,490    490    12,970    10,470    1,471 
Tax effects on non-GAAP adjustments   (600)   (600)   (600)   (84)   (2,425)   (1,800)   (253)
Adjusted net (loss)/income   (13,058)   91,340    (21,000)   (2,950)   (193,341)   77,280    10,854 

 

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