Zhihu (ZH) AI Stock Analysis

• Market Cap: $302.08M
• Dividend Yield: N/A
• Average Volume (3M): 240.68K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.93
• Revenue Growth: -23.61%
• EPS Growth: N/A
• Country: US
• Employees: 1,887
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.08
• Shares Outstanding: 79,015,840
• 10 Day Avg. Volume: 291,027
• 30 Day Avg. Volume: 240,677
• PEG Ratio: 0.17
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.65
• P/FCF Ratio: -8.35
• Enterprise Value/Market Cap: -1.97
• Enterprise Value/Revenue: -0.20
• Enterprise Value/Gross Profit: -0.32
• Enterprise Value/Ebitda: -7.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $3.50 ▲(1.45% Upside)

The score is primarily weighed down by weak financial performance, especially continued losses and negative free cash flow despite a relatively solid equity base. Technicals are mixed: the stock has improved near-term trend but appears overbought, limiting upside near term. Valuation is moderate with no dividend support, while the earnings call adds some offsetting positives from cost improvements and AI/membership traction despite revenue and GAAP profit headwinds.

Positive Factors

High gross profit margin

A gross margin above 60% indicates the platform has low incremental content delivery costs and strong monetization on existing traffic. That structural margin provides durable operating leverage: as revenue stabilizes, a large portion can flow to operating profit, aiding sustained path to profitability.

Growing paid membership base

Sequential growth in paid members and meaningful subscription revenue build a recurring, less cyclical income stream. Over months this supports predictable cash inflows, reduces dependence on ad demand swings, and enables product monetization experiments that can sustainably raise ARPU.

AI integration and content quality gains

Rising high-quality and AI-driven content improves user engagement and network effects, reinforcing the platform’s competitive moat. Structural AI adoption can lower content curation costs, boost creator productivity and enable differentiated paid features, supporting long-term monetization.

Negative Factors

Declining revenue trend

A material year‑over‑year revenue decline signals persistent monetization or demand weakness. Over a multi‑month horizon this erodes operating leverage, challenges fixed cost absorption and raises the risk that margin and profitability targets rely on uncertain top‑line recovery.

Negative free cash flow

Continued negative free cash flow constrains investment in product, marketing, and AI initiatives without external funding. Over time this limits strategic flexibility, increases reliance on financing or equity capital, and can slow execution of initiatives needed to restore sustainable operating cash generation.

Ongoing GAAP losses and negative ROE

Widening GAAP losses and negative ROE indicate the company is not currently converting equity into shareholder value. Persisting losses can deplete reserves or require dilutive capital, impede dividend or buyback flexibility, and raise scrutiny on management’s path to sustainable profitability.

Zhihu 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 multiple streams, primarily focusing on advertising, premium subscriptions, and content monetization. The advertising model includes display ads and sponsored content, which allows brands to reach targeted audiences on the platform. Additionally, Zhihu offers a subscription service called 'Zhihu Premium' that provides users with access to exclusive content and features. Content monetization is another significant revenue source, allowing creators to earn income through paid articles and live sessions. Partnerships with educational institutions and content creators also contribute to Zhihu's earnings, enhancing its content offerings and user engagement.

Zhihu Financial Statement Overview

Summary

Revenue has been inconsistent with a recent decline, and profitability remains pressured with negative EBIT and net margins. The balance sheet shows relatively low leverage and a solid equity base, but negative ROE reflects ongoing losses. Cash flow remains a key risk as free cash flow is still negative despite some narrowing in operating cash flow deficits.

Income Statement

Zhihu shows an inconsistent revenue trajectory with a recent decline from 2023 to 2024. The gross profit margin remains robust above 60%, yet negative EBIT and net profit margins indicate ongoing profitability challenges. While there is some improvement in net loss over time, the company faces significant operational efficiency hurdles.

Balance Sheet

Zhihu maintains a solid equity base, with an improving Debt-to-Equity ratio due to low debt levels. However, the Return on Equity remains negative due to persistent losses, indicating that equity is not currently generating shareholder value. The equity ratio shows strong equity in the asset structure, yet profitability remains a concern.

Cash Flow

Although operating cash flow deficits have narrowed, Zhihu's free cash flow remains negative, restraining flexibility. The operating cash flow to net income ratio is not favorable, highlighting cash generation issues. Despite improvements, cash flow management poses significant risks to financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.97B	3.65B	4.20B	3.67B	2.92B	1.28B
Gross Profit	1.85B	2.21B	2.30B	1.84B	1.53B	716.43M
EBITDA	84.51M	-158.63M	-802.70M	-1.57B	-1.26B	-469.75M
Net Income	102.65M	-174.24M	-843.53M	-1.61B	-1.28B	-489.30M
Balance Sheet
Total Assets	5.50B	5.73B	6.80B	7.66B	8.81B	3.76B
Cash, Cash Equivalents and Short-Term Investments	4.37B	4.86B	5.46B	6.26B	7.21B	3.10B
Total Debt	150.71M	19.13M	45.73M	96.56M	122.66M	2.89M
Total Liabilities	1.38B	1.54B	2.09B	1.96B	2.07B	1.01B
Stockholders Equity	4.05B	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 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZH, the sentiment is Negative. The current price of 3.45 is below the 20-day moving average (MA) of 3.71, below the 50-day MA of 3.58, and below the 200-day MA of 4.18, indicating a bearish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 20.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZH.

Zhihu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDDT	72 Outperform	$33.57B	91.10	15.22%	―	69.71%	―
TME	71 Outperform	$23.14B	16.95	14.47%	1.02%	13.86%	80.97%
BIDU	68 Neutral	$51.62B	46.27	3.31%	―	-2.70%	-56.75%
OPRA	67 Neutral	$1.26B	15.49	8.73%	5.47%	30.00%	-9.72%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
WB	60 Neutral	$2.56B	6.05	12.46%	8.13%	-1.29%	22.48%
ZH	49 Neutral	$302.08M	20.83	2.39%	―	-23.61%	―

Zhihu Corporate Events

Zhihu Continues January 2026 Share Buybacks Under Existing Repurchase Mandate

On February 2, 2026, Zhihu Inc. filed a Form 6-K in the United States disclosing several Next Day Disclosure Returns tied to changes in its share capital reported to the Hong Kong Stock Exchange between January 26 and January 30, 2026. The filings detail that, over multiple trading days in January 2026, Zhihu repurchased a series of its Class A ordinary shares, mainly via ADS buybacks on the New York Stock Exchange, including 33,000 ADS (equivalent to 99,000 Class A shares) on January 23, 2026 at prices around US$3.7170 per ADS, under a repurchase mandate approved on June 25, 2025. These transactions, though small in percentage terms relative to Zhihu’s total issued share base of 269,862,884 shares, indicate continued execution of its capital management and share repurchase program, which can signal management’s confidence in the company’s valuation and may provide incremental support to earnings per share and shareholder returns.

The most recent analyst rating on (ZH) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Zhihu stock, see the ZH Stock Forecast page.

Zhihu Continues January 2026 Share Buybacks Under Hong Kong-Approved Repurchase Mandate

In January 2026, Zhihu Inc. reported to the U.S. Securities and Exchange Commission via a Form 6-K that it had filed multiple Hong Kong “Next Day Disclosure Returns” reflecting ongoing share repurchase activity. According to the January 19, 2026 disclosure, Zhihu repurchased a series of Class A ordinary shares for cancellation on various dates between January 2 and January 16, 2026, including 97,122 shares on January 16, 2026, at prices around US$1.18–1.20 per share (with corresponding ADS buybacks on the New York Stock Exchange), under a repurchase mandate approved on June 25, 2025. These buybacks, representing a small fraction of total issued share capital, signal continued execution of Zhihu’s capital management program and may modestly enhance per-share metrics while demonstrating to investors its willingness to return capital and support its share price within the limits of its authorized repurchase mandate.

The most recent analyst rating on (ZH) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Zhihu stock, see the ZH Stock Forecast page.

Zhihu Steps Up NYSE Share Buybacks Under Hong Kong Mandate in Early January 2026

On January 12, 2026, Zhihu Inc. filed a Form 6-K with the U.S. Securities and Exchange Commission summarizing several Hong Kong regulatory disclosures related to its share capital movements and repurchase activities in early January 2026. The filings show that while the total number of issued shares remained unchanged at 254,416,106 Class A ordinary shares (and 269,862,884 total shares including Class B) between January 2 and January 5, 2026, the company continued to execute its share repurchase program on the New York Stock Exchange. Specifically, Zhihu repurchased 33,000 ADSs (equivalent to 99,000 Class A ordinary shares) on January 5, 2026 U.S. time, at a volume‑weighted average price of about US$3.40 per ADS (approximately US$1.13 per underlying share), following a similar 99,000‑share repurchase on January 2, 2026, with all such shares designated for cancellation. As of January 5, 2026, a total of 198,000 shares had been repurchased under the June 25, 2025 mandate, representing around 0.075% of the share base at the mandate date, and the company is subject to a moratorium on issuing new shares or transferring treasury shares until February 4, 2026, signaling an active capital management strategy that modestly tightens share supply and may support shareholder value.

The most recent analyst rating on (ZH) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Zhihu stock, see the ZH Stock Forecast page.

Zhihu Discloses January 2 Share Buyback on NYSE Under Existing Mandate

On January 5, 2026, Zhihu Inc. filed a Form 6-K and a Next Day Disclosure Return detailing a share repurchase conducted on January 2, 2026. The company repurchased 33,000 American depositary shares, equivalent to 99,000 Class A ordinary shares or about 0.037% of its issued share capital as of the share repurchase mandate, on the New York Stock Exchange at prices between US$3.33 and US$3.41 per ADS, for a total consideration of about US$111,178. These shares were repurchased for cancellation under a buyback mandate granted on June 25, 2025, and the company confirmed that the transaction complied with Hong Kong listing rules and applicable regulations on the New York Stock Exchange, signaling an ongoing capital management effort that modestly reduces share count while temporarily limiting new share issuance until early February 2026.

The most recent analyst rating on (ZH) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Zhihu stock, see the ZH Stock Forecast page.

Zhihu Inc. Reports Stable Share Capital for October 2025

Zhihu Inc. has reported no changes in its share capital or issued shares for October 2025, maintaining a stable financial position. The company’s monthly return for equity issuers and Hong Kong Depositary Receipts indicates no movements in securities, suggesting a period of operational stability. This stability in share capital and securities movements reflects Zhihu’s consistent market presence, potentially reassuring stakeholders of its steady operational management.

The most recent analyst rating on (ZH) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Zhihu stock, see the ZH Stock Forecast page.