Education
About Us
Working with TipRanks
Follow Us
Zhihu (ZH)
NYSE:ZH
Top Page
Zhihu
(NYSE:ZH)
Select Model
Select Model
Rating:53Neutral
Price Target:
$4.50
▲(5.88% Upside)
Zhihu's overall stock score reflects a company with significant financial and technical challenges, offset by positive developments in profitability and user engagement. The strong earnings call performance and moderate valuation provide some optimism, but ongoing revenue and cash flow issues weigh heavily on the score.
Zhihu (ZH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$354.01M
Dividend YieldN/A
Average Volume (3M)316.87K
Price to Earnings (P/E)18.3
Beta (1Y)0.87
Revenue Growth-22.16%
EPS GrowthN/A
CountryUS
Employees1,887
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.12
Shares Outstanding84,805,370
10 Day Avg. Volume224,520
30 Day Avg. Volume316,871
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)0.57
Price to Sales (P/S)0.66
P/FCF Ratio-8.35
Enterprise Value/Market Cap-0.78
Enterprise Value/Revenue-0.09
Enterprise Value/Gross Profit-0.14
Enterprise Value/Ebitda1.28
Forecast
1Y Price Target
$4.50Price Target Upside5.88% Upside
Rating ConsensusHold
Number of Analyst Covering0
Zhihu Business Overview & Revenue Model
Company DescriptionZhihu 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 MoneyZhihu generates revenue through a diversified model primarily centered around advertising, paid memberships, and content-commerce solutions. Advertising forms a significant portion of its income, leveraging its large user base and targeted advertising solutions to attract businesses seeking to reach specific demographics. Paid memberships offer users premium features such as exclusive content, enhanced search capabilities, and an ad-free experience, contributing to a steady subscription revenue stream. Additionally, Zhihu has developed content-commerce solutions, enabling monetization of user-generated content through e-commerce integrations and partnerships, further expanding its revenue potential.
Zhihu Earnings Call Summary
Earnings Call Date:Aug 27, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a positive outlook with significant achievements in profitability and operational efficiency, driven by AI integration and enhanced user engagement. However, the company faces challenges in revenue growth, specifically in marketing services and vocational training.Q2-2025 Updates
Positive Updates
Non-GAAP Profitability Achieved
Zhihu achieved non-GAAP profitability for the third consecutive quarter with an adjusted net income of RMB 91.3 million, compared to a loss of RMB 44.6 million in the same period last year. This highlights the strength of their disciplined operating strategy.
Improved Gross Margin
Gross margin expanded to 62.5% from 59.6% in the same period of 2024 due to improvements in monetization capabilities and operating efficiency.
AI Integration and Content Growth
AI-related content maintained a year-over-year growth of over 45% for two consecutive quarters. The platform is also a launch pad for new AI technologies and products.
Increased Engagement Metrics
Average daily user time spent increased by 15% year-over-year, and core user retention improved significantly both sequentially and year-over-year.
Expansion of AI Capabilities
The company launched a major update to Zhihu Zhida, integrating AI more deeply into user interactions and reducing AI hallucinations in professional domains.
Negative Updates
Revenue Decline
Total revenue decreased to RMB 716.9 million compared to RMB 933.8 million in the same period of 2024 due to ongoing business optimization.
Marketing Services Revenue Drop
Marketing services revenue decreased to RMB 222.8 million from RMB 344 million in the same period of 2024, although the year-over-year decline narrowed.
Vocational Training Revenue Fall
Vocational training revenue fell to RMB 62.1 million from RMB 133.6 million in the same period of 2024, as the focus shifted to high-performing course categories.
Company Guidance
In the second quarter of 2025, Zhihu Inc. reported its third consecutive quarter of non-GAAP profitability, showcasing a significant turnaround from a loss of RMB 44.6 million in the same period last year to an adjusted net income of RMB 91.3 million. This improvement was complemented by a 3 percentage point increase in gross margin year-over-year. The platform saw stable Monthly Active Users (MAUs) from the previous quarter, with notable gains in daily time spent, core user retention, and high-tier creator engagement, both sequentially and year-over-year. Additionally, average daily user time spent exceeded 39 minutes, marking a 15% increase from the prior year. The company also noted a 10% sequential increase in daily high-quality content creation, with AI-related content experiencing over 45% year-over-year growth for two consecutive quarters. Furthermore, paid membership revenue reached RMB 402 million, despite a slight sequential decline, while marketing services revenue grew by 13.1% quarter-over-quarter to RMB 222.8 million. Overall, Zhihu's strategic focus on enhancing user engagement, optimizing content quality, and leveraging AI capabilities appears to be paving the way for sustainable growth and profitability.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 faces significant hurdles in operational efficiency and cash flow management.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.45
Neutral
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.50
Neutral
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.40
Negative
| 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
Negative
4.25
Price Trends
4.84
Negative
4.53
Negative
4.35
Negative
Market Momentum
-0.17
Positive
30.70
Neutral
3.92
Positive
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 4.25 is below the 20-day moving average (MA) of 4.85, below the 50-day MA of 4.84, and below the 200-day MA of 4.35, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 30.70 is Neutral, neither overbought nor oversold. The STOCH value of 3.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZH.
Zhihu Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $39.97B | 11.02 | 10.33% | ― | -1.32% | 42.56% | |
75 Outperform | $30.87B | 24.21 | 14.07% | 0.81% | 10.66% | 84.89% | |
74 Outperform | $1.44B | 20.04 | 8.57% | 4.84% | 29.62% | -19.65% | |
71 Outperform | $36.49B | 164.56 | 10.11% | ― | 69.97% | ― | |
70 Outperform | $2.70B | 7.92 | 10.77% | 7.33% | 1.21% | 14.72% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | $354.01M | 18.28 | 3.27% | ― | -22.16% | ― |
* Communication Services Sector Average
ZH
Zhihu
4.25
0.62
17.08%
BIDU
Baidu
120.01
28.39
30.99%
WB
Weibo
11.18
3.09
38.20%
OPRA
Opera
16.11
1.32
8.92%
TME
Tencent Music Entertainment Group
22.36
10.73
92.26%
RDDT
Reddit Inc Class A
194.95
116.40
148.19%
Zhihu Corporate Events
Zhihu Inc. Issues New Shares Under Incentive Plans
Oct 14, 2025
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
Sep 30, 2025
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
Sep 29, 2025
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
Sep 10, 2025
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
Sep 8, 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.
Zhihu Inc. Reports Stable Share Capital for July 2025
Aug 14, 2025
On August 14, 2025, Zhihu Inc. reported no changes in its share capital for the month ending July 31, 2025, maintaining stability in its authorized and issued shares. The company confirmed compliance with all regulatory requirements related to its securities, indicating a steady operational status without any new share issuances or treasury share movements. This stability in share capital suggests a period of consolidation for Zhihu, potentially impacting investor perceptions and market positioning.
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.