Zhihu (ZH) investor relations material

Executive summary

• Achieved a strong start in Q1 2026 with sequential revenue growth and a narrowing year-over-year decline, reflecting a healthier business ecosystem and improved monetization.

• User engagement reached new highs, with average daily time spent per DAU at nearly 42 minutes, and average monthly subscribing members reached 13.1 million.

• Accelerated integration of AI across platform operations, enhancing social interactions and content creation.

• High-quality content and professional creator activity surged, especially in AI and specialized domains.

• Gross margin was 59.6%, compared to 61.8% in Q1 2025.

Financial highlights

• Total revenue for Q1 2026 was CNY 651.6 million, down from CNY 729.7 million year-over-year but up sequentially.

• Adjusted net profit (non-GAAP) turned positive at CNY 17.2 million, up 147.2% year-over-year.

• Gross profit was CNY 388.3 million, with gross margin at 59.6%, improving sequentially from 53.6% in Q4 2025.

• Operating expenses decreased 10.4% year-over-year to CNY 451.2 million, with R&D and selling/marketing expenses down 22.4% and 11.1%, respectively.

• Net loss narrowed by 15.6% to CNY 8.5 million year-over-year.

Outlook and guidance

• Management expects accelerated recovery in core businesses and continued traction from AI-related initiatives throughout 2026.

• Focus remains on strengthening operational profitability and leveraging high-quality content, expert network, and AI capabilities for sustainable growth.

• Continued emphasis on high-quality growth, improved efficiency, and disciplined capital allocation.