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Zhihu, Inc. Class A (HK:2390)
:2390
Hong Kong Market
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Zhihu, Inc. Class A (2390) AI Stock Analysis

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HK:2390

Zhihu, Inc. Class A

(2390)

Rating:65Neutral
Price Target:
HK$13.50
▲(0.52% Upside)
Zhihu, Inc. demonstrates strong technical indicators and improving profitability, which are positive signs for potential investors. However, the company faces significant challenges in revenue growth and cash flow generation, impacting its financial performance score. The valuation is moderate, and while the earnings call showed operational improvements, declining revenues in certain segments remain a concern.
Positive Factors
Profitability Improvement
Achieving consistent non-GAAP profitability indicates improved operational efficiency and cost management, enhancing long-term financial health.
AI Content Expansion
Growth in AI-related content positions Zhihu as a leader in emerging tech trends, potentially attracting more users and advertisers interested in innovative content.
User Engagement Growth
Increased user engagement suggests strong platform stickiness and potential for monetization, supporting sustainable growth in user-driven revenue streams.
Negative Factors
Paid Membership Revenue Decline
Decline in paid membership revenue indicates challenges in subscriber growth, which could hinder recurring revenue streams and long-term profitability.
Vocational Training Revenue Drop
Significant drop in vocational training revenue suggests difficulties in this segment, potentially affecting diversification and overall revenue resilience.
Revenue Decline
A decline in total revenue highlights challenges in maintaining growth, which could impact long-term financial stability and investor confidence.

Zhihu, Inc. Class A (2390) vs. iShares MSCI Hong Kong ETF (EWH)

Zhihu, Inc. Class A Business Overview & Revenue Model

Company DescriptionZhihu, Inc. Class A (2390) operates an online question-and-answer platform in China known as Zhihu. The platform enables users to seek knowledge, share experiences, and engage in discussions across a wide range of topics. Zhihu has evolved into a comprehensive online community offering a mix of user-generated content, expert insights, and commercial offerings, making it a leading knowledge-sharing platform in China.
How the Company Makes MoneyZhihu generates revenue primarily through advertising services, content monetization, and membership services. Advertising services include display ads, native ads, and performance-based ads that leverage Zhihu's large user base. Content monetization involves revenue-sharing arrangements with content creators, where Zhihu takes a percentage of the earnings from paid content such as live courses and premium articles. Membership services provide users with subscription-based access to exclusive content and features. Additionally, Zhihu benefits from partnerships with educational institutions, enterprises, and other entities seeking to utilize its platform for knowledge dissemination and community engagement.

Zhihu, Inc. Class A Earnings Call Summary

Earnings Call Date:Aug 27, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Neutral
Zhihu demonstrated strong profitability and operational efficiency improvements, with notable gains in user engagement and content creation. However, the decline in total revenue and certain segments like vocational training and paid membership indicates ongoing challenges. The highlights and lowlights are fairly balanced, showing both positive momentum in profitability and efficiency but also significant challenges in maintaining revenue growth.
Q2-2025 Updates
Positive Updates
Third Consecutive Quarter of Non-GAAP Profitability
Zhihu posted its third consecutive quarter of non-GAAP profitability, with adjusted net income reaching RMB 91.3 million compared to a loss of RMB 44.6 million in the same period last year.
Gross Margin Expansion
Gross margin expanded to 62.5%, up from 59.6% in the same period of 2024 and 61.8% in the previous quarter.
Increased User Engagement
Average daily user time spent increased by 15% year-over-year, and high-tier creator engagement showed notable gains both sequentially and year-over-year.
Growth in AI-Related Content
Professional AI-related content maintained year-over-year growth of over 45% for 2 consecutive quarters.
Improved Operating Efficiency
Total operating expenses declined by 27.2% year-over-year, supported by technological innovation and tighter cost controls.
Negative Updates
Revenue Decline
Total revenues for the quarter were RMB 716.9 million compared with RMB 933.8 million in the same period of 2024, attributed to ongoing business optimization.
Vocational Training Revenue Drop
Vocational training revenue dropped to RMB 62.1 million, a decline of 34.3% quarter-over-quarter.
Paid Membership Revenue Decline
Paid membership revenue was RMB 402 million, down slightly from RMB 432.7 million in the same period of 2024, due to a decrease in new subscriptions.
Marketing Services Revenue Decline
Marketing services revenue was RMB 222.8 million, down from RMB 344 million in the same period of 2024, despite a sequential growth of 13.1%.
Company Guidance
During the Zhihu Inc. Second Quarter 2025 Financial Results Conference Call, the company provided guidance on several key metrics. Zhihu reported its third consecutive quarter of non-GAAP profitability, with an adjusted net income of RMB 91.3 million, a significant improvement from a loss of RMB 44.6 million in the same period last year. The gross margin increased by approximately 3 percentage points year-over-year. The company highlighted stable Monthly Active Users (MAUs), while daily time spent, core user retention, and high-tier creator engagement all showed notable gains both sequentially and year-over-year. Average daily user time spent exceeded 39 minutes, reflecting a 15% year-over-year increase. Zhihu's marketing services revenue grew 13.1% quarter-over-quarter, reaching RMB 222.8 million, and paid membership revenue was RMB 402 million, with average monthly subscribing members totaling 13.2 million. The vocational training business recorded revenue of RMB 62.1 million, down 34.3% quarter-over-quarter. Additionally, Zhihu made significant progress in reducing low-quality content distribution by more than 98% year-over-year and over 59% sequentially. The company continues to focus on optimizing its product offerings and client mix, enhancing user and creator experience by integrating AI more deeply into the community, and expanding its AI capabilities.

Zhihu, Inc. Class A Financial Statement Overview

Summary
Zhihu, Inc. shows strong revenue growth and a solid equity base, but struggles with achieving profitability and positive cash flows. The company exhibits financial stability with low leverage but faces challenges in converting revenue growth into net income and cash flow, which are critical for long-term sustainability and growth.
Income Statement
60
Neutral
The company shows a consistent pattern of revenue growth, with a notable 210% increase in total revenue from 2019 to 2024. However, profitability remains a challenge, as indicated by negative net income and EBIT margins over the years. The gross profit margin has improved, yet the net profit margin is still negative, reflecting ongoing operational challenges.
Balance Sheet
55
Neutral
The balance sheet highlights a strong equity position with an equity ratio of 72% in 2024, indicating financial stability. However, the company has a history of negative net income, affecting the return on equity. The debt-to-equity ratio is low, suggesting minimal financial leverage, which can be both a strength and an area for potential growth through strategic borrowing.
Cash Flow
50
Neutral
Cash flow analysis reveals persistent negative operating and free cash flows, posing liquidity challenges. Despite significant investing cash inflows in 2022 and 2024, the company has yet to achieve positive free cash flow growth, indicating difficulty in generating cash from its core operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.37B3.60B4.20B3.60B2.96B1.35B
Gross Profit2.09B2.18B2.30B1.81B1.55B757.80M
EBITDA-302.71M-456.19M-1.05B-1.58B-1.37B-583.27M
Net Income-17.05M-171.80M-843.64M-1.58B-1.30B-517.55M
Balance Sheet
Total Assets5.68B5.73B6.80B7.66B8.81B3.76B
Cash, Cash Equivalents and Short-Term Investments4.56B4.86B5.46B6.26B7.21B3.10B
Total Debt128.16M19.13M45.73M96.56M40.52M2.89M
Total Liabilities1.52B1.54B2.09B1.96B2.07B1.01B
Stockholders Equity4.10B4.14B4.60B5.65B6.74B2.75B
Cash Flow
Free Cash Flow0.00-282.92M-424.40M-1.12B-447.67M-246.37M
Operating Cash Flow0.00-280.19M-415.53M-1.11B-440.23M-244.42M
Investing Cash Flow0.002.56B-1.68B3.49B-3.14B430.11M
Financing Cash Flow0.00-403.86M-365.06M-108.35M4.88B9.29M

Zhihu, Inc. Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.43
Price Trends
50DMA
12.36
Positive
100DMA
11.35
Positive
200DMA
10.99
Positive
Market Momentum
MACD
0.33
Negative
RSI
63.13
Neutral
STOCH
87.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2390, the sentiment is Positive. The current price of 13.43 is above the 20-day moving average (MA) of 12.94, above the 50-day MA of 12.36, and above the 200-day MA of 10.99, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 63.13 is Neutral, neither overbought nor oversold. The STOCH value of 87.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2390.

Zhihu, Inc. Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
HK$3.55B22.863.26%-22.45%
60
Neutral
$47.27B4.55-11.27%4.14%1.88%-40.90%
$5.45B298.620.67%
80
Outperform
HK$292.89B10.8510.28%-1.69%42.04%
79
Outperform
HK$316.80B18.0325.22%10.72%17.05%
78
Outperform
HK$283.13B27.6413.99%10.25%84.17%
71
Outperform
HK$23.40B63.6010.70%6.72%0.99%14.41%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2390
Zhihu, Inc. Class A
13.80
5.36
63.51%
CHLLF
China Literature
5.42
2.24
70.44%
HK:9888
Baidu, Inc. Class A
115.10
33.05
40.28%
HK:9898
Weibo Corp Class A
95.45
43.68
84.37%
HK:1024
Kuaishou Technology Class B
75.25
37.35
98.55%
HK:1698
Tencent Music Entertainment Group Class A
99.15
62.12
167.76%

Zhihu, Inc. Class A Corporate Events

Zhihu Inc. Schedules Board Meeting to Review Financial Results
Jul 30, 2025

Zhihu Inc. announced that its board of directors will meet on August 27, 2025, to review and approve the company’s unaudited quarterly and interim financial results for the period ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations. An earnings conference call will be held on the same day to discuss these results, allowing stakeholders to gain further understanding of the company’s performance.

Zhihu, Inc. Grants 6.38 Million RSUs to Employees Under Incentive Plan
Jul 11, 2025

Zhihu, Inc. announced the grant of 6,380,763 Restricted Share Units (RSUs) to 48 eligible employees under its 2022 Share Incentive Plan. This initiative aims to align the interests of employees with shareholders and enhance company value by incentivizing outstanding performance. The RSUs have a vesting period of 36 to 48 months, subject to performance targets, and include a clawback mechanism for termination due to misconduct. This move is designed to motivate, attract, and retain key personnel crucial to the company’s success.

Zhihu Inc. Successfully Concludes Annual General Meeting with All Resolutions Passed
Jun 25, 2025

Zhihu Inc. announced that all resolutions proposed at its Annual General Meeting held on June 25, 2025, were duly passed. The meeting involved voting on various resolutions, including the adoption of audited financial statements and the re-election of directors. The results indicate strong shareholder support, reflecting confidence in the company’s governance and strategic direction.

Zhihu Inc. Announces AGM with Key Resolutions
May 29, 2025

Zhihu Inc. has announced its upcoming Annual General Meeting (AGM) scheduled for June 25, 2025, in Beijing. The meeting will address several key resolutions, including the adoption of the company’s audited financial statements for the year ending December 31, 2024, the re-election of certain directors, and the authorization for directors to manage the issuance of additional Class A ordinary shares. These resolutions are significant for the company’s governance and strategic financial management, potentially impacting its market operations and shareholder interests.

Zhihu Inc. Announces Board of Directors and Their Roles
May 27, 2025

Zhihu Inc. has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement is significant as it outlines the governance structure of the company, which could impact its strategic direction and reassure stakeholders about its leadership stability.

Zhihu Inc. Announces Q1 2025 Financial Results
May 27, 2025

Zhihu Inc. has released its unaudited financial results for the first quarter of 2025, prepared in accordance with U.S. Generally Accepted Accounting Principles. The announcement, made on May 27, 2025, highlights the company’s financial performance for the period ending March 31, 2025, and advises shareholders and potential investors to exercise caution when dealing with the company’s securities.

Zhihu Inc. Announces Board Changes with New Independent Director Appointment
May 27, 2025

Zhihu Inc. announced a change in its board of directors, with Mr. Hanhui Sam Sun resigning as an independent non-executive director and chairman of several board committees, effective May 27, 2025, due to other professional commitments. The company has appointed Dr. Li-Lan Cheng as the new independent non-executive director, bringing extensive experience in financial management and corporate governance from his previous roles in various companies. This change is expected to bring fresh perspectives to Zhihu’s board, potentially impacting its strategic direction and governance practices.

Zhihu Inc. Schedules Board Meeting and Earnings Call for Q1 2025 Results
May 13, 2025

Zhihu Inc. has announced a board meeting scheduled for May 27, 2025, to review and approve the company’s unaudited financial results for the first quarter of 2025. The management will also hold an earnings conference call on the same day, indicating the company’s commitment to transparency and stakeholder engagement.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 28, 2025