Zhihu (ZH) AI Stock Analysis

• Market Cap: $301.75M
• Dividend Yield: N/A
• Average Volume (3M): 240.68K
• Price to Earnings (P/E): 25.1
• 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: 1.00
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 0.16
• Enterprise Value/Ebitda: 3.57
• 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: $4.00 ▼(-3.61% Downside)

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

AI Integration Advancements

Advancements in AI integration enhance user engagement and content quality, potentially driving long-term growth and competitive advantage.

Growth in Paid Membership

Increasing paid memberships indicate strong user engagement and a reliable revenue stream, supporting long-term financial stability.

Increase in Daily High-Quality Content Creation

Rising high-quality content creation enhances platform value, attracting more users and advertisers, which can drive sustainable growth.

Negative Factors

Decrease in Total Revenues

Declining revenues suggest challenges in monetization and market competition, potentially impacting long-term financial health.

Increase in GAAP Net Loss

Rising net losses highlight ongoing profitability challenges, which could strain resources and limit future investment capabilities.

CTO Resignation

The CTO's resignation may disrupt technological strategies and innovation, potentially affecting long-term competitive positioning.

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

Zhihu's financial performance is challenged by inconsistent revenue and persistent profitability issues. Despite a strong gross profit margin, negative EBIT and net profit margins highlight ongoing operational inefficiencies. The balance sheet shows a solid equity base, but negative cash flow and profitability remain significant concerns.

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: Positive
• Last Price: 4.15
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZH, the sentiment is Positive. The current price of 4.15 is above the 20-day moving average (MA) of 3.44, above the 50-day MA of 3.71, and below the 200-day MA of 4.19, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 72.26 is Negative, neither overbought nor oversold. The STOCH value of 79.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZH.

Zhihu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDDT	75 Outperform	$46.34B	134.40	15.22%	―	69.71%	―
TME	71 Outperform	$24.82B	17.77	14.47%	1.02%	13.86%	80.97%
BIDU	68 Neutral	$48.45B	48.63	3.31%	―	-2.70%	-56.75%
OPRA	67 Neutral	$1.21B	14.79	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	$2.63B	6.07	12.46%	8.13%	-1.29%	22.48%
ZH	49 Neutral	$301.75M	25.06	2.39%	―	-23.61%	―

Zhihu Corporate Events

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.

Zhihu Inc. Issues New Shares Under Incentive Plans

Zhihu Inc. reported no changes in its authorized share capital for September 2025, maintaining a total of USD 200,000. The company issued 5,291,430 Class A ordinary shares on September 26, 2025, to the Depository for bulk issuance of ADSs, as part of its 2012 and 2022 Share Incentive Plans. This move reflects Zhihu’s ongoing efforts to manage its equity structure and incentivize its workforce, potentially impacting its market positioning and shareholder value.

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.