Zhihu’s first full-year non-GAAP profit in 2025 was overshadowed by a weak fourth quarter, highlighting how much of its improvement still rests on cost cuts rather than renewed growth.
Fourth-quarter revenue fell to RMB 643.5 million (USD 93.2 million) from RMB 859.2 million (USD 124.4 million) a year earlier, while gross margin narrowed to 53.6% from 62.9%. Adjusted net income swung to a loss of RMB 39.4 million (USD 5.7 million) from a profit of RMB 97.1 million (USD 14.1 million).
For the full year, revenue declined to RMB 2.7 billion (USD 391 million) from RMB 3.6 billion (USD 521.3 million) in 2024. Even so, adjusted net income turned positive at RMB 37.9 million (USD 5.5 million), compared with an adjusted loss of RMB 96.3 million (USD 13.9 million) a year earlier. On a GAAP basis, net loss widened to RMB 195.2 million (USD 28.3 million) from RMB 169 million (USD 24.5 million), suggesting Zhihu has improved efficiency without restoring sustained growth.
The full-year improvement was driven mainly by lower costs. Cost of revenue fell to RMB 1.1 billion (USD 159.3 million) from RMB 1.4 billion (USD 202.7 million) in 2024, while selling and marketing, R&D, and general and administrative expenses also declined. Adjusted operating loss narrowed to RMB 269.2 million (USD 39 million) from RMB 405.4 million (USD 58.7 million).
The fourth quarter showed the limits of that progress. Total operating expenses rose to RMB 608.7 million (USD 88.1 million) from RMB 528.8 million (USD 76.6 million), largely because of a RMB 126.3 million (USD 18.3 million) goodwill impairment tied to earlier acquisitions. Even excluding that charge, the quarter was weaker than the full-year figures suggest. Gross profit fell to RMB 344.8 million (USD 49.9 million) from RMB 540.7 million (USD 78.3 million), and adjusted operating loss widened to RMB 89.3 million (USD 12.9 million) from adjusted operating income of RMB 23.1 million (USD 3.3 million) a year earlier.
Zhihu’s main revenue streams continued to contract:
- Marketing services revenue fell to RMB 234.8 million (USD 34 million) from RMB 315.9 million (USD 45.7 million) a year earlier.
- Paid membership revenue declined to RMB 333.5 million (USD 48.3 million) from RMB 420.2 million (USD 60.9 million).
- Other revenue dropped to RMB 75.2 million (USD 10.9 million) from RMB 123.1 million (USD 17.8 million) as the company continued to adjust its vocational training business.
- Average monthly subscribing members fell to 12.2 million in the fourth quarter from 14.1 million a year earlier and 14.3 million in the third quarter. That decline is significant because membership remains Zhihu’s largest source of revenue.
Company management identified artificial intelligence as a potential growth area. On the call, the company cited average daily time spent of more than 41 minutes in the fourth quarter, a double-digit increase in clickthrough rates for AI-generated answer cards after a December search upgrade, and plans to build expert data services and AI-driven productivity tools linked to IP monetization.
Zhihu has time to test that strategy. It ended 2025 with RMB 4.4 billion (USD 637.2 million) in cash, cash equivalents, term deposits, restricted cash, and short-term investments, down from nearly RMB 4.9 billion (USD 709.6 million) a year earlier. It also said it had repurchased 31.1 million Class A ordinary shares for a total of USD 66.5 million under its existing buyback programs.
The company is not under immediate financing pressure. But until it can stabilize membership and rebuild revenue, its first full-year non-GAAP profit looks more like evidence of tighter cost control than a completed turnaround.
Note: RMB figures are converted to USD at rates of RMB 6.91 = USD 1 based on estimates as of March 26, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.