BRIEF: Zhihu reports adjusted profit as operating costs drop sharply - Bamboo Works - China stock insights for global investors

May 28, 2025

2390.HK ZH.US

Online Q&A platform Zhihu Inc. (2390.HK; ZH.US) announced on Tuesday its revenue for the first quarter fell 24.1% year-on-year to 729.7 million yuan ($100.6 million), while its net loss narrowed by 93.9% to 10.09 million yuan. The company recorded a non-GAAP adjusted net profit of 6.9 million yuan, compared with a loss of 136 million yuan in the same period last year.

The company attributed the strong quarter to refined operational strategies and deeper integration of artificial intelligence (AI). During the quarter, total operating expenses fell 34.4% to 503.7 million yuan, with R&D spending down 28.1% to 141.9 million yuan. Its gross margin improved from 56.6% to 61.8%.

The company’s paid membership revenue declined 7% year-on-year to 420 million yuan, primarily due to a slight decrease in average monthly subscribers, which stood at 14.2 million for the quarter. Advertising and marketing services revenue dropped 40.4% to nearly 200 million yuan.

Zhihu’s New York-listed shares rose 1.78% to $4 on Tuesday in New York after the announcement.

By Lee Shih Ta

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