Zhihu (ZH) investor relations material

Executive summary

• Total revenue for Q2 2026 was CNY 690.1 million, down 3.7% year-over-year but up 5.9% sequentially, with narrowing year-over-year decline.

• Adjusted net loss was CNY 10.3 million, compared to adjusted net income of CNY 91.3 million in Q2 2025.

• Net loss was CNY 37.4 million, compared to net income of CNY 72.5 million in Q2 2025.

• Core business remains stable; paid content and IP operations showed growth, while marketing services are in structural recovery.

• Average monthly subscribing members reached 13.1 million in Q2 2026.

Financial highlights

• Paid content and IP operations revenue reached CNY 425.9 million, up 4.4% year-over-year and 5.9% sequentially.

• Marketing services revenue was CNY 199 million, down 10.7% year-over-year, up 4% sequentially.

• Other revenues declined year-over-year due to vocational training business refinement, but increased 12.7% sequentially.

• Gross profit was CNY 393.4 million, with a gross margin of 57%, down from 62.5% in Q2 2025.

• Total operating expenses decreased by 13% year-over-year to CNY 469.4 million.

Outlook and guidance

• Sequential improvement in Q2 may not continue in the second half; business segments have different rhythms.

• Marketing services may remain affected by client budgets and industry demand; focus will be on R&D and performance advertising.

• Paid content expected to remain stable; IP operations subject to project timing and regulatory changes.

• AI-driven initiatives require further validation and investment before contributing scalable revenue.

• Management emphasized a disciplined approach to resource allocation, focusing on market demand, customer value, and investment returns.