Zhihu (ZH) investor relations material

Executive summary

• Achieved third consecutive quarter of non-GAAP profitability, with adjusted net income of RMB91.3 million for Q2 and RMB98.3 million for H1 2025, compared to losses in the prior year.

• Gross margin expanded to 62.5% in Q2 and 62.2% for H1 2025, reflecting improved monetization and operational efficiency.

• Net income reached RMB72.5 million in Q2 and RMB62.4 million for H1 2025, reversing prior year losses.

• User engagement and creator activity improved, with higher daily time spent, stable core user retention, and increased high-tier creator engagement.

• AI integration deepened, positioning the platform as a leading source for professional Chinese-language and AI-related content.

Financial highlights

• Total revenue for Q2 was RMB716.9 million, and RMB1,446.6 million for H1 2025, both reflecting year-over-year declines due to strategic business refinement.

• Gross profit was RMB448.2 million in Q2 and RMB899.3 million for H1 2025.

• Operating expenses declined 27.2% year-over-year in Q2, and loss from operations narrowed by 64.9% for H1 2025.

• Cash and equivalents, term deposits, and short-term investments totaled RMB4,820.8 million as of June 30, 2025.

• Average monthly subscribing members were 13.2 million in Q2 and 13.7 million for H1 2025.

Outlook and guidance

• Focus on deepening user engagement, strengthening high-quality content, and enhancing the commercial ecosystem.

• AI integration and productivity gains expected to continue supporting profitability and long-term growth.

• Paid membership business aims to improve renewal, retention, and ARPU through premium content and longer subscription cycles.

• Vocational training to continue shifting toward a social, knowledge-sharing model, with adjustments nearing completion.

• Full-year non-GAAP profitability is likely, with flexibility to adjust for long-term healthy development.