Zhihu (NYSE:ZH) Releases Quarterly Earnings Results

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

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

Shares of NYSE:ZH remained flat at $3.04 during trading hours on Wednesday. 26,369 shares of the company’s stock were exchanged, compared to its average volume of 366,282. Zhihu has a 52 week low of $2.57 and a 52 week high of $5.55. The business’s 50-day moving average is $3.18 and its 200 day moving average is $3.40. The stock has a market cap of $269.68 million, a PE ratio of -8.44 and a beta of 0.33.

Wall Street Analyst Weigh In

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

Hedge Funds Weigh In On Zhihu

A hedge fund recently raised its stake in Zhihu stock. Ameriprise Financial Inc. grew its stake in Zhihu Inc. Sponsored ADR (NYSE:ZH) by 44.3% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 36,088 shares of the company’s stock after buying an additional 11,082 shares during the period. Ameriprise Financial Inc.’s holdings in Zhihu were worth $183,000 at the end of the most recent reporting period. Institutional investors and hedge funds own 28.92% of the company’s stock.

Zhihu Company Profile

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.