36Kr Holdings Earnings Call Marks Profit Turnaround

36Kr Holdings Inc Adr Class A ((KRKR)) has held its Q4 earnings call. Read on for the main highlights of the call.

36Kr Holdings Inc. used its latest earnings call to showcase a convincing operational turnaround, as the company swung back to profitability in fiscal 2025 and expanded margins sharply. Management acknowledged lingering revenue and macro risks, but emphasized growing traction in live streaming, video, and AI-driven products that are starting to reshape the business mix.

Profitability Returns After Years of Losses

36Kr moved from a net loss of RMB 140.8 million in FY 2024 to net income of RMB 11.4 million in FY 2025, marking a clear break from its loss-making past. The second half was even stronger, with net income of RMB 15.2 million versus a loss of RMB 44.9 million a year earlier, underscoring accelerating momentum.

Gross Margins Climb to Nearly 60 Percent

The company delivered a notable gross margin uplift, with full-year gross profit margin rising to 57.7%, up about 9.1 percentage points year over year. Gross profit climbed 17.1% to RMB 131.5 million, and H2 2025 margin reached 60%, driving a 20.8% jump in second-half gross profit to RMB 80.8 million.

Cost Discipline Drives Leaner Operating Model

Operating expenses fell 36.1% to RMB 121.5 million, as 36Kr tightened spending across the board while still supporting growth initiatives. Sales and marketing costs dropped 19.6%, general and administrative expenses were cut by more than half, and R&D spending declined 11.8%, with H2 opex down 10.3% year over year.

Cash Reserves Strengthen Balance Sheet

The balance sheet ended 2025 noticeably stronger, with cash, cash equivalents, restricted cash and short-term investments up 25.5% to RMB 116.1 million. Management framed the improved liquidity as a buffer for macro uncertainty and a base to fund selective investment, while maintaining a focus on stable cash generation.

Second-Half Revenue Stabilizes on Tech and AI Ads

After pressure earlier in the year, H2 2025 revenue rose 4.7% to RMB 134.8 million, suggesting stabilizing top-line trends. Online advertising services, still the core of the business, increased 5% to RMB 105.2 million in the half, supported by robust demand from AI-related and high-tech clients.

Live Streaming and Youth Verticals Power New Growth

Live streaming emerged as a key growth engine, with revenue surging nearly 40% year over year in 2025 as format innovation attracted new advertisers. Younger-audience sub-vertical channels such as Oh! Youth and Tide posted revenue gains exceeding 50%, and new clients accounted for more than half of live and video orders.

Audience Scale Expands Across Platforms

36Kr continued to build reach, with total followers surpassing 36.8 million and user growth logged for 19 straight quarters. Video followers grew by 9.5 million and WeChat followers and channels followers rose 54% and 67% year over year respectively, while major IP events like WAVES, WISE and AI summits drew hundreds of millions of views.

AI Tools Enhance Content and Monetization

Management highlighted progress in AI-powered products, including AI meeting coverage spanning 1,308 companies and the Omni-Intelligence platform now tracking more than 7,800 listed firms. With 36,600 cumulative users and thousands of subscribers plus 516 AI-generated review articles, these tools are improving content efficiency and expanding commercial reach.

Clean Comparables as Impairments Roll Off

Other income swung to a positive RMB 1.4 million from other expenses of RMB 63 million in 2024, mainly due to the absence of large investment impairment charges. This accounting shift boosted headline profitability, but also underscored how prior-year volatility in long-term investments had weighed on comparability.

Full-Year Revenue Still Slightly Under Pressure

Despite the stronger second half, full-year revenue dipped 1.4% to RMB 227.9 million, showing that growth remains fragile. Management framed 2025 as a year of stabilization and restructuring, but investors will likely watch closely for a return to consistent revenue expansion to support the higher margin base.

Subscription Services See Strategic Contraction

Subscription services revenue fell 14.2% to RMB 15.1 million for the year, with H2 revenue slipping modestly to RMB 8.7 million. The company attributed the decline to strategic adjustments in training offerings and a deliberate refinement of its customer base, trading near-term revenue for what it hopes will be higher-quality recurring clients.

Profit Boost Heavily Dependent on Cost Cuts

A large part of the profit rebound came from slimmer operating expenses and the removal of one-off impairments, rather than strong top-line growth. This reliance on cost discipline and cleaner comparables raises execution risk if revenue growth does not accelerate, as there is less room for further deep cuts without hurting operations.

R&D Cutbacks Pose Long-Term Question Marks

R&D spending fell 11.8% to RMB 12.7 million, driven by headcount reductions under restructuring efforts that supported near-term margins. While AI initiatives are advancing, sustained underinvestment in R&D could ultimately slow innovation and product development, potentially undermining competitiveness in a fast-moving tech media landscape.

Advertising Outlook Clouded by Macro Headwinds

Management struck a cautious tone on the 2026 advertising environment, pointing to clients’ budget sensitivity and broader economic uncertainty. While tech and AI advertisers are currently providing a tailwind, the company acknowledged that any macro-driven pullback in ad spending could pressure its core revenue engine.

Guidance: Cautious Optimism Built on Video and AI

Looking ahead to 2026, 36Kr issued cautiously optimistic commentary, banking on further growth from video, live streaming and high-growth youth channels while investing in AI-centric verticals and content. Financially, management aims to sustain profitability and healthy cash flow via disciplined cost control, even as it scales AI initiatives and seeks to convert its 36.8 million-strong audience into deeper, more diversified monetization.

36Kr’s latest earnings call painted a picture of a leaner, more profitable platform that has found traction in high-margin formats and AI-enhanced services. Yet with full-year revenue still slightly down and ad budgets vulnerable to the macro backdrop, the company’s next phase will hinge on whether it can convert its audience and product momentum into durable, self-sustaining growth.