Zhihu (NYSE:ZH) Issues Earnings Results

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

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 Trading Down 0.1%

Shares of ZH stock opened at $3.04 on Wednesday. The stock has a market capitalization of $269.41 million, a P/E ratio of -8.44 and a beta of 0.33. The firm’s 50 day moving average is $3.18 and its 200 day moving average is $3.40. Zhihu has a 12-month low of $2.57 and a 12-month high of $5.55.

Wall Street Analyst Weigh In

ZH has been the topic of several research reports. Wall Street Zen lowered shares of Zhihu from a “hold” rating to a “sell” rating in a research note on Saturday, March 28th. Weiss Ratings downgraded Zhihu from a “sell (d)” rating to a “sell (d-)” rating in a report on Tuesday, April 21st. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the company currently has a consensus rating of “Sell”.

Hedge Funds Weigh In On Zhihu

An institutional investor recently raised its position in Zhihu stock. Ameriprise Financial Inc. raised its holdings in shares of Zhihu Inc. Sponsored ADR (NYSE:ZH) by 44.3% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund 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 quarter. 28.92% of the stock is currently owned by institutional investors and hedge funds.

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.