Core Insights - Zhihu reported a revenue of 717 million yuan and an adjusted net profit of 91.3 million yuan for Q2 2025, significantly exceeding market expectations and achieving Non-GAAP profitability for three consecutive quarters [1][2]. Financial Performance - Zhihu's revenue streams include 402 million yuan from paid reading, accounting for 56.1% of total revenue, while marketing services and vocational education contributed 223 million yuan and 62.1 million yuan, representing 31.1% and 8.7% respectively [2]. - The company has maintained a strong cash position with a total of 4.82 billion yuan in cash and cash equivalents, term deposits, restricted funds, and short-term investments as of the end of Q2 [2]. - The adjusted net profit of 91.3 million yuan in Q2 2025 marks a significant improvement from a net loss of 44.6 million yuan in the same period last year, with a gross margin increase of approximately 3 percentage points to 62.5% [3]. Operational Highlights - Zhihu has focused on enhancing its community value through AI applications, leading to significant improvements in user engagement metrics, including daily active user session duration and core user retention rates [2][3]. - The average number of subscription members reached 13.2 million, maintaining an industry-leading position [2]. AI Strategy and Community Engagement - The company emphasizes the integration of AI technology to enhance operational efficiency and user experience, positioning itself as a key platform for AI-related content and expert interactions [3]. - Zhihu has developed a robust expert network with 16 million participants in technology and AI discussions, 3.65 million deep creators, and 150,000 links from research institutions, enterprises, and media [4]. - The platform has seen a more than 10% increase in daily high-quality content generation, with AI-related content growing over 45% year-on-year for two consecutive quarters [4]. AI Capabilities - Zhihu's AI search product, Zhihu Zhidao, has undergone multiple iterations to enhance its capabilities, providing a reliable AI search experience for millions of active users [5]. - Future iterations of Zhihu Zhidao aim to evolve into an AI agent, facilitating a comprehensive productivity tool for users encompassing search, research, learning, and creation [5].

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Performance%20Highlights) Zhihu Inc. achieved its third consecutive quarter of non-GAAP profitability in Q2 2025, driven by improved gross margin and a shift from net loss to net income - Achieved **third consecutive quarter of non-GAAP profitability**[4](index=4&type=chunk) Q2 2025 Key Financial Highlights (YoY) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :-------------------------- | :-------------------- | :-------------------- | :------------- | | Total Revenues | 716.9 | 933.8 | -23.2% | | Gross Margin | 62.5% | 59.6% | +2.9 ppts | | Net Income (GAAP) | 72.5 | (80.6) | Turnaround | | Adjusted Net Income (Non-GAAP) | 91.3 | (44.6) | Turnaround | - Average monthly subscribing members reached **13.2 million** in Q2 2025[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management emphasized refined operational strategies and AI integration driving efficiency, profitability, and a vibrant community with improved user engagement - CEO Yuan Zhou highlighted refined operational strategies and AI integration driving efficiency and **non-GAAP profitability**[4](index=4&type=chunk) - The community remains vibrant with stable user base, improved DAU time spent, core user retention, and creator activity[4](index=4&type=chunk) - CFO Han Wang noted gross margin improved to **62.5%** and **RMB91.3 million** non-GAAP net income, reflecting AI-driven efficiency gains[4](index=4&type=chunk) [Financial Results Overview](index=1&type=section&id=Financial%20Results%20Overview) [Total Revenues](index=1&type=section&id=Total%20Revenues) Total revenues for Q2 2025 decreased by **23.2%** year-over-year, driven by strategic refinements in service offerings Total Revenues (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :----------- | :-------------------- | :-------------------- | :------------- | | Total Revenues | 716.9 | 933.8 | -23.2% | [Gross Profit and Margin](index=1&type=section&id=Gross%20Profit%20and%20Margin) Gross margin expanded significantly to **62.5%** in Q2 2025, driven by reduced cost of revenues and improved efficiency Gross Profit and Margin (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :---------- | :-------------------- | :-------------------- | :------------- | | Gross Profit| 448.2 | 556.5 | -19.5% | | Gross Margin| 62.5% | 59.6% | +2.9 ppts | - Gross margin expansion primarily attributable to monetization enhancements and improvements in **operating efficiency**[10](index=10&type=chunk) [Net Income and Profitability](index=1&type=section&id=Net%20Income%20and%20Profitability) Zhihu achieved a significant profitability turnaround in Q2 2025, reporting net income due to improved efficiency and investment income Net Income (Loss) (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :------------------------- | :-------------------- | :-------------------- | :------------- | | Net Income (GAAP) | 72.5 | (80.6) | Turnaround | | Adjusted Net Income (Non-GAAP) | 91.3 | (44.6) | Turnaround | - Adjusted net income (non-GAAP) was **RMB91.3 million**, a turnaround from **RMB44.6 million** adjusted net loss in Q2 2024[16](index=16&type=chunk) [Earnings Per Share (EPS)](index=3&type=section&id=Earnings%20Per%20Share%20(EPS)) Diluted net income per ADS was **RMB0.88** in Q2 2025, a positive shift from a **RMB0.89** net loss per ADS Diluted Net Income (Loss) Per ADS (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB) | Q2 2024 (RMB) | | :------------------------- | :------------ | :------------ | | Diluted Net Income per ADS | 0.88 | (0.89) | [Revenue Stream Analysis](index=2&type=section&id=Revenue%20Stream%20Analysis) [Marketing Services Revenue](index=2&type=section&id=Marketing%20Services%20Revenue) Marketing services revenue decreased significantly due to strategic refinement of service offerings focused on margin improvement Marketing Services Revenue (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :---------------------- | :-------------------- | :-------------------- | :------------- | | Marketing Services Revenue | 222.8 | 344.0 | -35.2% | - Decrease primarily due to proactive refinement of service offerings to strategically focus on **margin improvement**[7](index=7&type=chunk) [Paid Membership Revenue](index=2&type=section&id=Paid%20Membership%20Revenue) Paid membership revenue saw a slight decrease year-over-year, mainly due to a decline in average monthly subscribing members Paid Membership Revenue (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :--------------------- | :-------------------- | :-------------------- | :------------- | | Paid Membership Revenue | 402.0 | 432.7 | -7.1% | - Slight decrease primarily due to a decline in the number of **average monthly subscribing members**[7](index=7&type=chunk) [Vocational Training Revenue](index=2&type=section&id=Vocational%20Training%20Revenue) Vocational training revenue substantially decreased year-over-year due to strategic refinement of businesses in this segment Vocational Training Revenue (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :------------------------ | :-------------------- | :-------------------- | :------------- | | Vocational Training Revenue | 62.1 | 133.6 | -53.5% | - Decrease primarily due to the **strategic refinement of businesses**[8](index=8&type=chunk) [Other Revenues](index=2&type=section&id=Other%20Revenues) Other revenues demonstrated positive growth, increasing by **27.6%** year-over-year in Q2 2025 Other Revenues (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :----------- | :-------------------- | :-------------------- | :------------- | | Other Revenues | 30.0 | 23.5 | +27.6% | [Cost and Operating Expense Analysis](index=2&type=section&id=Cost%20and%20Operating%20Expense%20Analysis) [Cost of Revenues](index=2&type=section&id=Cost%20of%20Revenues) Cost of revenues decreased by **28.8%** year-over-year, driven by reduced content, operating costs, and improved technological efficiency Cost of Revenues (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :-------------- | :-------------------- | :-------------------- | :------------- | | Cost of Revenues | 268.7 | 377.3 | -28.8% | - Decrease primarily due to reduced content and operating costs, lower personnel expenses, and decreased cloud services costs from **improved technological efficiency**[9](index=9&type=chunk) [Operating Expenses Breakdown](index=2&type=section&id=Operating%20Expenses%20Breakdown) Total operating expenses decreased by **27.2%** year-over-year, reflecting enhanced operational efficiency and disciplined spending Total Operating Expenses (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :------------------- | :-------------------- | :-------------------- | :------------- | | Total Operating Expenses | 539.2 | 740.4 | -27.2% | [Selling and Marketing Expenses](index=2&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses decreased by **21.8%** year-over-year due to disciplined promotional spending and reduced personnel costs Selling and Marketing Expenses (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :------------------------- | :-------------------- | :-------------------- | :------------- | | Selling and Marketing Expenses | 326.3 | 417.0 | -21.8% | - Decrease primarily due to more disciplined promotional spending and a decrease in **personnel-related expenses**[11](index=11&type=chunk) [Research and Development Expenses](index=2&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses decreased by **30.4%** year-over-year, mainly due to improvements in R&D efficiency Research and Development Expenses (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :----------------------------- | :-------------------- | :-------------------- | :------------- | | Research and Development Expenses | 145.7 | 209.3 | -30.4% | - Decrease primarily attributable to improvements in **research and development efficiency**[11](index=11&type=chunk) [General and Administrative Expenses](index=2&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses decreased by **41.1%** year-over-year, driven by lower credit loss allowance and share-based compensation General and Administrative Expenses (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :------------------------------- | :-------------------- | :-------------------- | :------------- | | General and Administrative Expenses | 67.3 | 114.1 | -41.1% | - Decrease primarily attributable to a decline in the allowance for **expected credit losses** and lower **share-based compensation expenses**[12](index=12&type=chunk) [Loss from Operations](index=2&type=section&id=Loss%20from%20Operations) Loss from operations narrowed significantly by **50.5%** (GAAP) and **51.4%** (non-GAAP), reflecting improved efficiency and cost control Loss from Operations (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :------------------------- | :-------------------- | :-------------------- | :------------- | | Loss from Operations (GAAP) | 91.0 | 183.9 | -50.5% | | Adjusted Loss from Operations (Non-GAAP) | 71.5 | 147.1 | -51.4% | [Balance Sheet and Cash Flow Items](index=3&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Items) [Investment Income](index=3&type=section&id=Investment%20Income) Investment income substantially increased in Q2 2025, driven by unrealized gains from re-measuring a private investment Investment Income (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | Change (YoY) | | :--------------- | :-------------------- | :-------------------- | :------------- | | Investment Income | 140.8 | 21.8 | +545.9% | - Increase primarily attributable to unrealized gains from re-measuring the fair value of a **privately held company investment**[15](index=15&type=chunk) [Cash and Cash Equivalents](index=3&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, total liquidity was **RMB4,820.8 million**, a slight decrease from December 31, 2024 Cash and Cash Equivalents, Term Deposits, Restricted Cash and Short-term Investments | Metric | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | | :------------------------------------------------------------------ | :-------------------------------- | :------------------------------------ | | Cash and cash equivalents, term deposits, restricted cash and short-term investments | 4,820.8 | 4,859.0 | [Corporate Information and Disclosures](index=3&type=section&id=Corporate%20Information%20and%20Disclosures) [Share Repurchase Programs](index=3&type=section&id=Share%20Repurchase%20Programs) As of June 30, 2025, **31.1 million** Class A shares were repurchased for **US$66.5 million** under existing programs - As of June 30, 2025, the Company repurchased **31.1 million** Class A ordinary shares for **US$66.5 million**[18](index=18&type=chunk) [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Non-GAAP measures are used to supplement GAAP results, excluding specific non-cash items for clearer operating performance insights - Non-GAAP financial measures supplement GAAP results, including adjusted income/(loss) from operations and adjusted net income/(loss)[19](index=19&type=chunk)[24](index=24&type=chunk) - Non-GAAP measures exclude **share-based compensation expenses**, **amortization of intangible assets**, and **tax effects of non-GAAP adjustments**[24](index=24&type=chunk) - These measures are not defined under U.S. GAAP and should not be considered in isolation or as a substitute for GAAP results[25](index=25&type=chunk) [Key Definitions](index=3&type=section&id=Key%20Definitions) Key definitions clarify 'Monthly subscribing members' as those subscribed in a month and 'Average monthly subscribing members' as their average - Monthly subscribing members refers to those who subscribed for membership packages in a specified month[20](index=20&type=chunk) - Average monthly subscribing members are calculated by averaging monthly subscribing members over a given period[20](index=20&type=chunk) [About Zhihu Inc.](index=4&type=section&id=About%20Zhihu%20Inc.) Zhihu Inc. is a leading Q&A-inspired online content community in China, established in 2010, fostering user engagement - Zhihu Inc. (NYSE: ZH; HKEX: 2390) is a **leading online content community in China**[23](index=23&type=chunk) - Launched in 2010, it is the **largest Q&A-inspired online content community in China**[23](index=23&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Zhihu hosted a conference call on August 27, 2025, for Q2 2025 results, with webcast available on its investor site - Conference call held on **August 27, 2025**, at **7:00 A.M. U.S. Eastern Time** to discuss results[21](index=21&type=chunk) - Pre-registration was required for participants to receive dial-in numbers and a unique access PIN[21](index=21&type=chunk) - A live and archived webcast of the conference call is available on the Company's investor relations website[22](index=22&type=chunk) [Safe Harbor Statement & Contacts](index=5&type=section&id=Safe%20Harbor%20Statement%20%26%20Contacts) The announcement contains forward-looking statements under 'safe harbor' provisions, with contact information for inquiries - Announcement contains forward-looking statements made under the **'safe harbor' provisions** of the U.S. Private Securities Litigation Reform Act of 1995[27](index=27&type=chunk) - Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially[27](index=27&type=chunk) - Investor and media inquiries can be directed to Zhihu Inc. or Christensen Advisory[28](index=28&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Statements of Operations](index=6&type=section&id=Statements%20of%20Operations) Statements of operations detail financial performance for Q2 2025, including revenues, costs, gross profit, and net income/loss Unaudited Condensed Consolidated Statements of Operations (Key Figures for Three Months Ended June 30, 2025) | Metric (RMB thousand) | June 30, 2025 | | :--------------------- | :------------ | | Total revenues | 716,894 | | Cost of revenues | (268,711) | | Gross profit | 448,183 | | Total operating expenses | (539,189) | | Loss from operations | (91,006) | | Investment income | 140,836 | | Net income | 72,480 | | Diluted net income per ADS | 0.88 | Share-based Compensation Expenses (Three Months Ended June 30, 2025) | Category | June 30, 2025 (RMB thousand) | | :--------------------------- | :---------------------------- | | Cost of revenues | 10 | | Selling and marketing expenses | (294) | | Research and development expenses | (870) | | General and administrative expenses | 17,124 | [Balance Sheets](index=8&type=section&id=Balance%20Sheets) Balance sheets present the company's financial position as of December 31, 2024, and June 30, 2025, detailing assets, liabilities, and equity Unaudited Condensed Consolidated Balance Sheets (Key Figures as of June 30, 2025) | Metric (RMB thousand) | June 30, 2025 | | :--------------------- | :------------ | | Total current assets | 5,125,837 | | Total non-current assets | 620,695 | | Total assets | 5,746,532 | | Total current liabilities | 1,473,297 | | Total non-current liabilities | 65,687 | | Total liabilities | 1,538,984 | | Total shareholders' equity | 4,207,548 | [Reconciliations of GAAP and Non-GAAP Results](index=9&type=section&id=Reconciliations%20of%20GAAP%20and%20Non-GAAP%20Results) This section reconciles GAAP to non-GAAP financial measures for Q2 2025, detailing adjustments for compensation, amortization, and tax effects Reconciliation of GAAP to Non-GAAP Results (Three Months Ended June 30, 2025) | Metric (RMB thousand) | June 30, 2025 | | :--------------------- | :------------ | | Loss from operations (GAAP) | (91,006) | | Add: Share-based compensation expenses | 15,970 | | Add: Amortization of intangible assets | 3,490 | | Adjusted loss from operations | (71,546) | | Net income (GAAP) | 72,480 | | Add: Share-based compensation expenses | 15,970 | | Add: Amortization of intangible assets | 3,490 | | Tax effects on non-GAAP adjustments | (600) | | Adjusted net income | 91,340 |

Core Insights - Zhihu reported a revenue of 717 million yuan for Q2 2025, representing a year-on-year decrease of 23% while achieving an adjusted net profit of 91.3 million yuan, marking a turnaround to profitability for three consecutive quarters [1] Revenue Breakdown - The paid reading business contributed 402 million yuan in revenue, accounting for 56.1% of total revenue [1] - Marketing services and vocational education generated revenues of 223 million yuan and 62.1 million yuan, representing 31.1% and 8.7% of total revenue respectively [1] User Engagement - The average monthly subscription membership reached 13.2 million in Q2, with 16 million users participating in discussions on technology and AI topics [1] Management Commentary - Zhihu's founder and CEO, Zhou Yuan, emphasized the integration of artificial intelligence into the product experience, enhancing value for users and creators [1] - The company aims to leverage high-quality content, reliable creators, and AI capabilities to strengthen its competitive advantage and long-term growth potential [1]

Core Viewpoint - Zhihu reported a strong financial performance for Q2 2025, achieving a revenue of 717 million RMB and a non-GAAP net profit of 91.3 million RMB, marking three consecutive quarters of profitability [1][2]. Financial Performance - Zhihu's revenue sources include paid reading contributing 402 million RMB (56.1%), marketing services at 223 million RMB (31.1%), and vocational education at 62.1 million RMB (8.7%) [2]. - The company has maintained a strong cash position with a total of 4.82 billion RMB in cash and equivalents as of the end of Q2 [2]. - The adjusted net profit of 91.3 million RMB in Q2 2025 represents a significant improvement from a net loss of 44.6 million RMB in the same period last year, with a gross margin increase of approximately 3 percentage points to 62.5% [3]. Operational Highlights - Zhihu has focused on enhancing its community value through AI applications, leading to significant improvements in user engagement metrics, including daily active user session duration and core user retention rates [2][3]. - The average number of subscription members reached 13.2 million, maintaining an industry-leading position [2]. AI Strategy and Community Engagement - The company is leveraging AI to strengthen its community's competitive edge, emphasizing the synergy between high-quality content, trusted creators, and AI capabilities [3][4]. - Zhihu has a robust expert network with 16 million participants in technology and AI discussions, and 365,000 deep creators in related topics, contributing to a vibrant ecosystem for professional content [4]. AI Capabilities - Zhihu's AI search product, Zhihu Direct Answer, has undergone multiple iterations to enhance its capabilities, providing a reliable AI search experience for millions of active users [5]. - Future developments for Zhihu Direct Answer include evolving towards an AI agent model, aiming to become a comprehensive productivity tool for users [5].

Core Insights - Zhihu's Q2 2025 financial report shows a revenue of 717 million yuan, a year-on-year decrease of 23%, but an adjusted net profit of 91.3 million yuan, indicating a turnaround from losses [1] Revenue Breakdown - The paid reading business contributed 402 million yuan in revenue, accounting for 56.1% of total revenue [1] - Marketing services and vocational education contributed 223 million yuan and 62.1 million yuan in revenue, representing 31.1% and 8.7% of total revenue respectively [1] User Engagement - The average monthly subscription membership reached 13.2 million in Q2 [1] - There were 16 million participants in discussions related to technology and AI, with 3.65 million deep creators on related topics [1] - The platform had 150,000 ecosystem linkers from research institutions, enterprises, and media, with over 50 million active users engaging with technology and AI content each month [1] Financial Position - As of the end of Q2, Zhihu's total cash and cash equivalents, including time deposits, restricted funds, and short-term investments, amounted to 4.82 billion yuan [1]

Core Viewpoint - Zhihu reported a revenue of 1.447 billion yuan for the first half of 2023, reflecting a year-on-year decline of 23.7%, but achieved an adjusted net profit of 98.28 million yuan, marking a return to profitability [1] Financial Performance - In the second quarter, the company generated revenue of 717 million yuan and an adjusted net profit of 91.3 million yuan, achieving Non-GAAP profitability for three consecutive quarters [1]

Core Insights - Zhihu-W (0239) reported total revenue of 717 million yuan for the second quarter ending June 30, 2025, representing a year-on-year decrease of 23.23% [1] - The company achieved a net profit attributable to shareholders of 72.48 million yuan, compared to a loss of 82.73 million yuan in the same period last year, with basic earnings per share of 0.3 yuan [1] Financial Performance - The CFO highlighted a non-GAAP net profit of 91.3 million yuan for the second quarter, compared to a non-GAAP net loss of 44.6 million yuan in the previous year [1] - Gross margin increased by approximately 3 percentage points year-on-year, reaching 62.5% [1] Strategic Insights - The Chairman emphasized the effectiveness of the refined operational strategy and the integration of artificial intelligence technology, which has enhanced efficiency [1] - The company maintains an active community with stable user base metrics, including significant improvements in daily active user engagement, core user retention rates, and creator activity [1] - Zhihu is positioned as an important platform for AI-related content, product launches, and expert interactions, leveraging high-quality content and reliable creators to strengthen its competitive advantage [1]

Core Insights - Zhihu-W (0239) reported total revenue of 717 million yuan for the second quarter ending June 30, 2025, representing a year-on-year decrease of 23.23% [1] - The company achieved a net profit attributable to shareholders of 72.48 million yuan, compared to a loss of 82.73 million yuan in the same period last year, with basic earnings per share of 0.3 yuan [1] Financial Performance - The CFO highlighted that the company achieved a non-GAAP net profit of 91.3 million yuan in the second quarter, compared to a non-GAAP net loss of 44.6 million yuan in the previous year [1] - Gross margin increased by approximately 3 percentage points year-on-year, reaching 62.5% [1] Strategic Insights - The Chairman emphasized the effectiveness of the refined operational strategy and the integration of artificial intelligence technology, which has enhanced efficiency [1] - The company maintains an active community with stable user base metrics, including increased daily active user engagement, core user retention rates, and creator activity [1] - Zhihu is positioned as an important platform for AI-related content, product launches, and expert interactions, leveraging high-quality content and reliable creators to strengthen its competitive advantage [1]

Core Insights - Zhihu reported a revenue of 717 million yuan for Q2 2025, with paid reading contributing 402 million yuan, accounting for 56.1% of total revenue [1] - The company has achieved adjusted net profit of 91.3 million yuan for the second consecutive quarter, maintaining a trend of profitability since Q4 2024 [1][2] - As of the end of Q2, Zhihu's cash and cash equivalents, along with short-term investments, totaled 4.82 billion yuan [1] Revenue Breakdown - Paid reading business generated 402 million yuan, representing 56.1% of total revenue [1] - Marketing services contributed 223 million yuan, accounting for 31.1% [1] - Vocational education business brought in 6.21 million yuan, making up 8.7% [1] User Engagement and Community Development - Monthly active users remained stable, while daily active user engagement time and core user retention rates showed significant improvement [1][2] - The average number of subscription members reached 13.2 million in Q2 [1] Strategic Focus and Future Outlook - The CEO emphasized the effectiveness of refined operational strategies and the integration of AI technology, which has enhanced efficiency [2] - The company aims to leverage high-quality content, trusted creators, and AI capabilities to strengthen its competitive advantage in the long term [2]

Core Insights - Zhihu reported a total revenue of RMB 716.9 million for Q2 2025, a decrease of approximately 23% compared to RMB 933.8 million in Q2 2024 [1] - The gross margin improved from 59.6% in Q2 2024 to 62.5% in Q2 2025 [1] - The net profit for Q2 2025 was RMB 72.5 million, a significant turnaround from a net loss of RMB 80.6 million in Q2 2024 [1] Revenue Breakdown - Marketing services revenue decreased to RMB 222.8 million in Q2 2025 from RMB 344 million in Q2 2024, attributed to a strategic focus on improving profit margins [1] - Paid membership revenue slightly declined to RMB 402 million in Q2 2025 from RMB 432.7 million in Q2 2024, mainly due to a decrease in average monthly subscribers [1] - Vocational training revenue fell to RMB 62.1 million in Q2 2025 from RMB 133.6 million in Q2 2024, reflecting strategic optimization of Zhihu's business [1] - Other income increased by 27.6% to RMB 30 million in Q2 2025 from RMB 23.5 million in Q2 2024 [1] Subscriber Metrics - The average monthly paid subscribers reached 13.2 million in Q2 2025 [1]