Zhihu (NYSE:ZH) Issues Earnings Results

Zhihu (NYSE:ZH) issued its earnings results on Wednesday. The company reported ($0.02) EPS for the quarter, Zacks reports. Zhihu had a negative net margin of 7.25% and a negative return on equity of 4.80%. The firm had revenue of $94.50 million during the quarter.

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 Stock Performance

Shares of ZH opened at $3.09 on Friday. The stock has a 50 day moving average price of $3.19 and a two-hundred day moving average price of $3.38. The firm has a market capitalization of $273.67 million, a P/E ratio of -8.57 and a beta of 0.33. Zhihu has a 52 week low of $2.57 and a 52 week high of $5.55.

Analyst Ratings Changes

A number of brokerages recently commented on ZH. Weiss Ratings lowered Zhihu from a “sell (d)” rating to a “sell (d-)” rating in a research report on Tuesday, April 21st. Wall Street Zen lowered Zhihu from a “hold” rating to a “sell” rating in a research report on Saturday, March 28th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the company presently has a consensus rating of “Sell”.

Institutional Trading of Zhihu

A hedge fund recently bought a new stake in Zhihu stock. Ameriprise Financial Inc. bought a new position in Zhihu Inc. Sponsored ADR (NYSE:ZH) during the second quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 25,006 shares of the company’s stock, valued at approximately $100,000. 28.92% of the stock is owned by institutional investors and hedge funds.

About Zhihu

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.