# ZH earnings call intelligence

LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/ZH) · [Earnings tab](https://www.lopjlb.com/stock/ZH?tab=earnings)

Updated: 2026-08-26T04:52:00

Quarters analyzed: 8

## Cross-quarter narrative

From mid‑2024 to mid‑2026 Zhihu shifted from a loss‑focused recovery to consistent non‑GAAP profitability, driven by aggressive cost cuts, expanding AI‑powered products and a maturing paid‑membership base. Gross margins improved early (59.6% in Q2 2024) and later stabilized above 60%, while operating expenses fell sharply each quarter. Marketing services, once a drag with double‑digit declines, entered a tentative recovery phase in late‑2025, though the timing remains uncertain. The AI search engine Zhida evolved from a launch to multiple upgrades and broader platform integration, becoming a core growth lever despite monetization ambiguity. Vocational‑training moved from strategic optimization to a profitability target set for 2025, yet revenue continues to contract amid a transition to a knowledge‑sharing model. Share repurchases have been a persistent capital allocation theme, funded by strong cash reserves but raising liquidity concerns. Paid‑membership growth persisted, offset by ARPU pressure and a focus on longer‑life‑cycle users. Overall, the company’s narrative reflects a transition from stabilizing margins to leveraging AI and membership monetization while navigating lingering revenue mix challenges and execution risks.

## Latest CallCard · Q1

Zhihu posted a strong Q1 2026 with positive adjusted profit, sequential revenue growth, expanding AI‑driven IP monetization and disciplined cost cuts, while emphasizing long‑term AI integration and continued share buybacks.

**Guidance:** vague — Management said they expect accelerated recovery of core businesses and continued execution of AI initiatives but gave no specific quantitative guidance

**Tone:** mgmt 0.6 · Q&A pressure 0.4 · divergence 0.2

Prepared remarks highlighted a strong start, recovery in revenues, higher user engagement and AI‑driven growth initiatives

### Demand visibility

Strong user engagement and expanding creator ecosystem

Average daily time per DAU reached ~42 minutes, daily active user coverage of positive interactions grew YoY, cumulative content volume hit 972 million entries and topics rose 15.7% YoY

### Margins / costs

Gross margin improving and operating costs declining

Gross margin was 59.6% versus 61.8% YoY and rose sequentially from 53.6% in Q4; total operating expenses fell 10.4% YoY, with R&D down 22.4% and selling & marketing down 11.1%

### Capital allocation

Disciplined cost management, focused AI investment and ongoing share repurchases

Repurchased 34.8 million shares total, 3.7 million in Q1; AI short dramas, comic dramas and expert data solutions identified as cash‑flow positive AI verticals

### Milestones

- **AI integration across platform** [on_track]: Integrated AI capabilities in content creation, discovery, consumption and community interactions
- **Short‑form drama and comic production** [on_track]: Production capacity and quality remained stable with multiple titles achieving billions of views
- **IP partnership expansion** [on_track]: IP partnerships grew >5× YoY and >2× sequential, validating commercial depth
- **Paid content & IP operations revenue growth** [on_track]: Revenue rose 15.8% sequentially to RMB 402.3 million
- **Tech Bytes product launch** [delivered]: Launched at March Appliance & Electronics World Expo with creator‑led walkthroughs
- **Open platform API hackathon** [delivered]: Hosted first open‑platform based hackathon to enable AI creators
- **Xinzhi Youth Conference attendance** [delivered]: On‑site attendance exceeded 80,000, a historical record
- **Expert data solutions revenue** [new]: Business began generating revenue this quarter

### Fears / risks

- **AI revenue timing**: Uncertainty over when AI‑driven offerings will re‑accelerate growth
- **Macro environment**: Potential headwinds from broader economic conditions
- **Competitive pressure**: Intensifying competition in AI short‑drama and data‑solution markets
- **User growth sustainability**: Reliance on continued increase in DAU time and high‑quality creator activity
- **Content moderation**: Need to filter low‑quality AI‑generated spam, with 250k pieces removed
- **Credit risk**: Increase in allowance for expected credit losses raised G&A expenses
- **Cost of AI investment**: Balancing AI spend with profitability goals
- **IP monetization risk**: Dependence on successful adaptation of IP into multiple formats

### Key quotes

> “average daily time spent per DAU reached nearly 42 minutes”

> “adjusted net profit turned positive in the first quarter of 2026, reaching RMB 17.2 million”

## Quarter one-liners

- **2026 Q1:** Zhihu posted a strong Q1 2026 with positive adjusted profit, sequential revenue growth, expanding AI‑driven IP monetization and disciplined cost cuts, while emphasizing long‑term AI integration and continued share buybacks.
- **2025 Q4:** Zhihu posted its first full‑year non‑GAAP profit, highlighted AI‑driven user engagement gains and a narrowing revenue decline, while pledging disciplined AI‑focused investments and continued share repurchases.
- **2025 Q3:** Zhihu Q3 2025: non-GAAP operating loss narrowed 16.3% YoY; marketing services bottoming out with Q4 sequential growth expected; paid members up 8.1% QoQ to 14.3M; Zhida AI penetration hits 15% (4x YoY); full-year non-GAAP breakeven on track; active share buybacks continue.
- **2025 Q2:** Zhihu posts third straight quarter of non-GAAP profit (RMB 91.3M), revenue RMB 716.9M; marketing services recovery expected H2, paid membership focuses on retention, share buybacks ongoing.
- **2025 Q1:** —
- **2024 Q4:** Zhihu posted its first quarterly profit in Q4 2024, driven by cost cuts, AI‑focused product upgrades and higher‑margin membership, while revenue fell 14% as it pivots away from low‑quality ads.
- **2024 Q3:** Zhihu posted record gross margin, sharply cut costs and narrowed its loss while user engagement and paid membership grew, and it rolled out a new AI‑driven professional search for Zhida, aiming for breakeven in Q1 and vocational‑training profitability by 2025.
- **2024 Q2:** Zhihu Q2 2024: gross margin up 5.8pp to 59.6%, adj net loss narrowed 80% to RMB 44.6M; launched AI search Zhida, paid members +4.7% to 14.7M, marketing services down 16.7% but brand/performance ads up double digits; targeting quarterly profitability in H2.

## Theme arcs

- **Profitability trajectory** (improving): Non‑GAAP profit achieved Q4 2024 and sustained through Q1 2026 after loss narrowing and cost discipline.
- **Gross margin stability** (stable): Margins expanded in 2024, hovered around 61‑62% in 2025‑2026 despite mix shifts.
- **AI product integration** (improving): Zhida launched, upgraded, and expanded across platform, with AI penetration reaching 15% YoY in Q3 2025.
- **Marketing services revenue** (deteriorating): Consistent decline and uncertain recovery; bottoming out expected Q4 2025.
- **Paid membership dynamics** (stable): Subscriber count grew, but ARPU pressure and revenue bottom uncertainty persist.
- **Vocational training profitability** (new): Shift from optimization to explicit profitability target for 2025, yet revenue continues to fall.
- **Share repurchase activity** (stable): Ongoing buybacks each quarter, reducing outstanding shares.

## Guidance path

2024 Q2:maintained → 2024 Q3:maintained → 2024 Q4:vague → 2025 Q1:vague → 2025 Q2:vague → 2025 Q3:maintained → 2025 Q4:vague → 2026 Q1:vague

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