Zhihu, Inc. Class A (2390) AI Stock Analysis

• Market Cap: HK$2.80B
• Dividend Yield: N/A
• Average Volume (3M): 145.29K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.51
• Revenue Growth: -23.80%
• EPS Growth: N/A
• Country: HK
• Employees: 1,887
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.21
• Shares Outstanding: 254,416,100
• 10 Day Avg. Volume: 161,950
• 30 Day Avg. Volume: 145,293
• PEG Ratio: 0.19
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.69
• P/FCF Ratio: -8.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$14.11
• Price Target Upside: 58.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: HK$10.50 ▲(18.11% Upside)

Zhihu, Inc. demonstrates strong revenue growth and a solid equity base, but struggles with profitability and cash flow generation, which are critical for long-term sustainability. The technical indicators suggest a bearish trend, with the stock trading below key moving averages and nearing oversold conditions. Valuation is reasonable, but the lack of a dividend yield may deter income-focused investors. The company's efforts to achieve non-GAAP breakeven are promising, but reversing revenue declines remains a challenge.

Positive Factors

Strong Equity Base

A strong equity base provides financial stability and reduces reliance on debt, allowing for strategic investments and growth opportunities.

AI Integration

Enhanced AI integration can improve user engagement and platform efficiency, driving long-term growth and competitive advantage in the tech sector.

Paid Membership Growth

Growth in paid memberships indicates strong user engagement and a reliable revenue stream, supporting long-term financial health and expansion.

Negative Factors

Declining Revenue

A decline in revenue suggests challenges in market demand or competition, potentially impacting future profitability and growth prospects.

Negative Cash Flows

Negative cash flows can strain liquidity, limiting the company's ability to invest in growth initiatives and manage financial obligations effectively.

Profitability Challenges

Ongoing profitability issues hinder the company's ability to generate sustainable earnings, affecting long-term financial stability and investor confidence.

Zhihu, Inc. Class A Business Overview & Revenue Model

Company Description

Zhihu Inc. operates an online content community in the People's Republic of China. Its community allows people to seek inspiration, find solutions, make decisions, and have fun. The company also offers technology, business support, and consulting services; information transmission, software, and information technology services; information and marketing services; vocational training; and internet services, as well as holds audio-visual permit. The company was founded in 2010 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Zhihu generates revenue through several key streams. Primarily, it earns money from premium membership subscriptions that offer users exclusive access to high-quality content and features. Additionally, the company generates income through advertising services, allowing brands to promote their products and services to a targeted audience on the platform. Zhihu also monetizes through content creation partnerships, where it collaborates with creators and experts to produce paid content, further enhancing its offerings. The company has seen growth in its revenue from e-commerce initiatives and online educational services, leveraging its vast user base and established brand reputation to drive sales and partnerships in those areas.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.15B	3.60B	4.20B	3.60B	2.96B	1.35B
Gross Profit	1.98B	2.18B	2.30B	1.81B	1.55B	757.80M
EBITDA	-209.85M	-456.19M	-1.05B	-1.58B	-1.37B	-583.27M
Net Income	138.17M	-171.80M	-843.64M	-1.58B	-1.30B	-517.55M
Balance Sheet
Total Assets	5.75B	5.73B	6.80B	7.66B	8.81B	3.76B
Cash, Cash Equivalents and Short-Term Investments	4.61B	4.86B	5.46B	6.26B	7.21B	3.10B
Total Debt	229.59M	19.13M	45.73M	96.56M	122.66M	2.89M
Total Liabilities	1.54B	1.54B	2.09B	1.96B	2.07B	1.01B
Stockholders Equity	4.14B	4.14B	4.60B	5.65B	6.74B	2.75B
Cash Flow
Free Cash Flow	0.00	-282.92M	-424.40M	-1.12B	-447.67M	-246.37M
Operating Cash Flow	0.00	-280.19M	-415.53M	-1.11B	-440.23M	-244.42M
Investing Cash Flow	0.00	2.56B	-1.68B	3.49B	-3.14B	430.11M
Financing Cash Flow	0.00	-403.86M	-365.06M	-108.35M	4.88B	9.29M

Zhihu, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2390, the sentiment is Negative. The current price of 8.89 is below the 20-day moving average (MA) of 9.59, below the 50-day MA of 10.70, and below the 200-day MA of 11.45, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 28.49 is Positive, neither overbought nor oversold. The STOCH value of 14.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2390.

Zhihu, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1698	73 Outperform	HK$252.99B	24.97	14.50%	0.97%	13.62%	80.52%
1024	71 Outperform	HK$291.72B	15.39	25.67%	―	11.37%	16.74%
9888	63 Neutral	HK$335.25B	11.49	3.29%	―	-2.92%	-57.12%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9898	60 Neutral	HK$20.59B	7.67	12.49%	8.06%	-1.40%	22.37%
2390	53 Neutral	HK$2.80B	18.44	2.39%	―	-23.80%	―
0772	52 Neutral	$43.27B	300.00	0.67%	―	-10.26%	-85.75%

Zhihu, Inc. Class A Corporate Events

Zhihu Inc. Releases Q3 2025 Financial Results

Zhihu Inc. has announced its unaudited financial results for the quarter ending September 30, 2025. The results, prepared according to U.S. GAAP, highlight the company’s financial performance and are published in compliance with U.S. SEC and Hong Kong Stock Exchange regulations. Shareholders and investors are advised to exercise caution when dealing with the company’s securities, as the announcement includes forward-looking statements subject to risks and uncertainties.

Zhihu Inc. Schedules Board Meeting to Review Q3 Financial Results

Zhihu Inc. has announced a board meeting scheduled for November 25, 2025, to consider and approve the company’s unaudited financial results for the third quarter ending September 30, 2025. This meeting will be followed by an earnings conference call on the same day, allowing stakeholders to gain insights into the company’s financial performance and strategic direction.

Zhihu, Inc. Grants Over 1 Million RSUs to Key Employees

Zhihu, Inc. announced the grant of 1,079,805 Restricted Share Units (RSUs) to six eligible employees under its 2022 Share Incentive Plan. This move aims to align the interests of the employees with those of the shareholders and incentivize outstanding performance. The RSUs, representing approximately 0.4% of the total shares, have a vesting period of 36 to 48 months, contingent on performance targets. The initiative is intended to motivate, attract, and retain key personnel crucial to the company’s operations.