Zhihu (NYSE:ZH) Announces Quarterly Earnings Results

Zhihu (NYSE:ZH) released its quarterly earnings results on Wednesday. The company reported ($0.02) earnings per share (EPS) for the quarter, Zacks reports. Zhihu had a negative net margin of 7.18% and a negative return on equity of 4.82%.

Here are the key takeaways from Zhihu’s conference call:

• Q1 marked a return to profitability on a non-GAAP basis, with adjusted net income of CNY 17.2 million versus an adjusted net loss in Q4 2025. Management said this was supported by gross margin recovery, cost discipline, and better resource allocation.
• Revenue improved sequentially and the year-over-year decline narrowed significantly, driven by stronger performance in paid content and IP operations. The company highlighted that this segment is becoming a larger driver of monetization.
• Paid content and IP operations are being repositioned as a full IP commercialization business, not just membership subscriptions. Zhihu emphasized strong growth in IP partnerships, adaptations into short dramas and comics, and the long-term value of its Yan Yan Gushi content library.
• AI engagement and creator activity remained strong, with average daily time spent per DAU rising to about 42 minutes and high-quality AI-related content growing over 30% year over year. Management said its AI strategy centers on combining trusted community content with open platforms, data products, and AI-powered content formats.
• Zhihu continued aggressive share repurchases, buying back 3.7 million Class A shares in Q1 and reaffirming that buybacks remain a key capital allocation priority. Management also said it does not intend to pursue a “burn cash for growth” strategy, preferring profitable AI initiatives and long-term capability building.

Zhihu Price Performance

Zhihu stock opened at $3.04 on Wednesday. Zhihu has a 1 year low of $2.57 and a 1 year high of $5.55. The firm’s 50 day moving average price is $3.18 and its 200-day moving average price is $3.40. The stock has a market cap of $269.41 million, a P/E ratio of -8.44 and a beta of 0.33.

Institutional Inflows and Outflows

A hedge fund recently bought a new stake in Zhihu stock. Ameriprise Financial Inc. bought a new stake in Zhihu Inc. Sponsored ADR (NYSE:ZH) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 25,006 shares of the company’s stock, valued at approximately $100,000. Institutional investors and hedge funds own 28.92% of the company’s stock.

Analyst Ratings Changes

Several research firms recently issued reports on ZH. Weiss Ratings lowered shares of Zhihu from a “sell (d)” rating to a “sell (d-)” rating in a report on Tuesday, April 21st. Wall Street Zen cut shares of Zhihu from a “hold” rating to a “sell” rating in a research note on Saturday, March 28th. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the company currently has a consensus rating of “Sell”.

About Zhihu

Zhihu is China’s leading online question-and-answer platform, providing a space where users can ask questions, share knowledge, and engage with content across science, technology, business, culture, and lifestyle. Founded in 2011 and headquartered in Beijing, Zhihu has cultivated a community-driven environment that emphasizes credible, in-depth answers from experts, professionals, and enthusiasts.

The company’s core service revolves around its Q&A platform, enabling registered users to post questions and receive comprehensive responses.