Zhihu (ZH) AI Stock Analysis

• Market Cap: $310.07M
• Dividend Yield: N/A
• Average Volume (3M): 171.94K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.91
• 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: 84,805,370
• 10 Day Avg. Volume: 242,168
• 30 Day Avg. Volume: 171,939
• PEG Ratio: 0.18
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.66
• P/FCF Ratio: -8.35
• Enterprise Value/Market Cap: -0.58
• Enterprise Value/Revenue: -0.06
• Enterprise Value/Gross Profit: -0.09
• Enterprise Value/Ebitda: 0.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): >-0.01
• Revenue Forecast (FY): $389.33M

• Rating: 48 Neutral
• Price Target: $4.00 ▲(9.29% Upside)

Zhihu's overall stock score reflects significant financial and technical challenges. Persistent profitability issues and bearish technical indicators weigh heavily on the score. While there are positive developments in AI integration and membership growth, these are offset by revenue declines and increased losses, resulting in a cautious outlook.

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 (ZH) is a leading Chinese online question-and-answer platform that facilitates knowledge sharing and community engagement. Founded in 2011, Zhihu allows users to ask questions, provide answers, and share insights across a wide range of topics, including technology, science, culture, and lifestyle. The platform has evolved to include features such as articles, live streaming, and paid content, catering to a diverse audience of knowledge seekers and experts.

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 ongoing profitability issues, despite a strong equity base. The company struggles with negative EBIT and net profit margins, and cash flow management remains a significant risk.

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	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	-216.07M	-459.13M	-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 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 3.66 is below the 20-day moving average (MA) of 4.07, below the 50-day MA of 4.45, and below the 200-day MA of 4.44, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 29.93 is Positive, neither overbought nor oversold. The STOCH value of 30.07 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	75 Outperform	$39.33B	114.32	15.22%	―	69.71%	―
TME	71 Outperform	$25.69B	18.42	14.47%	0.98%	13.86%	80.97%
OPRA	67 Neutral	$1.22B	14.97	8.73%	5.73%	30.00%	-9.72%
BIDU	64 Neutral	$40.20B	36.21	3.10%	―	-2.60%	-59.77%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
WB	60 Neutral	$2.45B	5.70	12.46%	8.25%	-1.29%	22.48%
ZH	48 Neutral	$310.07M	22.28	2.39%	―	-23.61%	―

Zhihu Corporate Events

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.

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.

Zhihu Inc. Announces CTO Resignation

Zhihu Inc. announced the resignation of its Chief Technology Officer, Mr. Bin Sun, effective September 30, 2025, due to personal reasons. The company’s CEO, Mr. Yuan Zhou, expressed gratitude for Mr. Sun’s contributions. This change in leadership may impact Zhihu’s technological strategies and operations, potentially influencing its market positioning and stakeholder relations.

Zhihu Inc. Submits SEC Filing with Next Day Disclosure

On September 29, 2025, Zhihu Inc., a prominent Chinese online content community, submitted a report to the U.S. Securities and Exchange Commission. The filing, which was signed by Chief Financial Officer Han Wang, included a Next Day Disclosure Return, highlighting the company’s ongoing compliance with regulatory requirements.

Zhihu Inc. Releases 2025 Interim Report

Zhihu Inc. has released its 2025 Interim Report as of September 10, 2025, detailing its financial and operational performance for the first half of the year. This report is a key document for stakeholders, providing insights into the company’s current standing and future outlook in the competitive technology sector.

Zhihu Inc. Maintains Stable Share Capital as of August 2025

Zhihu Inc. reported no changes in its share capital for August 2025, maintaining its authorized and registered share capital at USD 200,000. The company also confirmed compliance with all applicable listing rules and regulatory requirements, indicating stable operations and adherence to financial regulations.