Zhihu (NYSE:ZH) Releases Quarterly Earnings Results, Misses Expectations By $0.30 EPS

Key Points

• Missed expectations: Zhihu reported Q4 EPS of ($0.38), missing consensus by $0.30, and said revenue came in well below analyst expectations.
• The company achieved its first-ever full-year non-GAAP profit (adjusted net income RMB 37.9M for 2025) and showed sequential recovery in Q4, with marketing services up 24% and modest improvements in paid membership ARPU and renewals.
• Despite a Q4 GAAP net loss of RMB 210.8M driven by a one-time RMB 126.3M goodwill impairment, Zhihu ended the year with RMB 4.5B in cash and repurchased ~47.7M Class A shares (about 6.29% of ordinary shares).

Zhihu (NYSE:ZH - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported ($0.38) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.30), FiscalAI reports. Zhihu had a net margin of 3.41% and a return on equity of 2.42%. The company had revenue of $91.98 million for the quarter, compared to analysts' expectations of $640.41 million.

Here are the key takeaways from Zhihu's conference call:

• Achieved our first-ever full-year non-GAAP profit, with adjusted net income of RMB 37.9 million in 2025 versus an adjusted net loss of RMB 96.3 million in 2024.
• Total Q4 revenue was RMB 643.5 million (down year‑over‑year) but showed a clear sequential recovery—marketing services rose 24% sequentially while paid membership ARPU and renewal rates improved modestly.
• Accelerating AI integration and monetization: the company is building expert data solutions, AI productivity tools, and AI‑driven IP initiatives (including Yanyan Stories and AI comic/drama formats) as new scalable revenue streams.
• Q4 GAAP net loss was RMB 210.8 million, driven in part by a one‑time non‑cash goodwill impairment of RMB 126.3 million that materially increased operating expenses for the quarter.
• Balance sheet and capital allocation actions include RMB 4.5 billion in cash and equivalents as of Dec 31, 2025, and ~47.7 million Class A shares repurchased in 2025 (about 6.29% of issued ordinary shares).

Zhihu Price Performance

Shares of NYSE ZH traded down $0.11 during mid-day trading on Thursday, reaching $2.73. The company's stock had a trading volume of 578,224 shares, compared to its average volume of 408,582. Zhihu has a 52 week low of $2.71 and a 52 week high of $5.55. The stock has a fifty day moving average of $3.40 and a two-hundred day moving average of $3.90. The firm has a market capitalization of $240.32 million, a PE ratio of 17.03 and a beta of 0.26.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on ZH shares. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Zhihu in a report on Monday, December 29th. Wall Street Zen raised Zhihu from a "sell" rating to a "hold" rating in a report on Sunday, December 28th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the company has an average rating of "Sell".

Hedge Funds Weigh In On Zhihu

A hedge fund recently bought a new stake in Zhihu stock. Ameriprise Financial Inc. bought a new stake in shares of Zhihu Inc. Sponsored ADR (NYSE:ZH - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 25,006 shares of the company's stock, valued at approximately $100,000. 28.92% of the stock is currently owned by hedge funds and other institutional investors.

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.

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