Core Insights - Zhihu's latest financial report indicates a revenue of 659 million yuan for Q3 2025, representing a year-on-year decrease of 22% [1] - The revenue breakdown includes 189 million yuan from marketing services, 386 million yuan from paid memberships, and 83.9 million yuan from other sources [1] - The company reported an adjusted net loss of 21 million yuan for Q3 2025, while the founder and CEO, Zhou Yuan, reaffirmed the goal of achieving profitability for the entire year [1]

Group 1: US Tech Giants Performance - Facebook, Apple, and Google saw stock increases of over 1%, while Amazon, Microsoft, Tesla, and Oracle experienced declines, with Oracle dropping over 4% to its lowest level in more than five months [2] - Nvidia's stock fell by 6.4%, reaching a new low since September 17, with a total market value of $4.15 trillion, down $1 trillion from its historical peak [2] Group 2: Chinese Tech Stocks - Alibaba's stock dropped over 2.7% after initially rising over 4%, reporting Q2 revenue of 247.8 billion RMB and adjusted net profit of 10.35 billion RMB [4] - NIO's stock fell over 4%, reporting Q3 deliveries of 87,071 units, a year-on-year increase of 40.8% and a quarter-on-quarter increase of 20.8% [4] - Zhihu's stock dropped over 10%, reporting Q3 total revenue of 659 million RMB and a net loss of 46.7 million RMB [4] Group 3: Economic Indicators - The US PPI for September showed a year-on-year increase of 2.7%, matching expectations, while core PPI increased by 2.6% year-on-year, slightly below expectations [5] - US retail sales increased by 0.2% month-on-month, below the expected 0.4% [5] Group 4: Oil Market Outlook - A US official indicated that Ukraine has agreed to a conflict resolution with Russia, which may impact oil prices [7] - Morgan Stanley's commodity research head predicts a significant oversupply in the global oil market, with Brent crude oil prices potentially dropping below $60 by 2026 [7]

Core Viewpoint - Zhihu reported a revenue of 659 million yuan for Q3 2025, with a 16.3% year-on-year reduction in non-GAAP operating losses, indicating improved operational efficiency and quality [1][2] Financial Performance - Q3 revenue breakdown: paid reading generated 386 million yuan, marketing services contributed 189 million yuan, and other businesses, including vocational education and consumer goods, added 83.9 million yuan [1] - As of the end of Q3, Zhihu's cash and cash equivalents, along with short-term investments, totaled 4.58 billion yuan, reflecting a strong cash reserve [1] Future Outlook - The management expressed confidence in achieving profitability for the full year of 2025, emphasizing a return to a healthier operational state [2] - Zhihu plans to drive community ecosystem development through the synergy of high-quality content, expert networks, and AI capabilities [2] - The usage penetration of Zhihu's AI application, Zhihu Zhida, has exceeded 15%, nearly quadrupling compared to the same period last year [2] AI Integration - The company aims to integrate AI capabilities into various scenarios, enhancing user experience in search, creation, consumption, and circulation [2] - The founder believes that as AI becomes more powerful, the demand for social capital and high-quality human content will increase, positioning Zhihu as a connection layer in the AI era [3]

Group 1: Company Performance - Best Buy reported Q3 revenue of $9.67 billion, a year-over-year increase of 2.7%, with adjusted diluted EPS of $1.40 compared to $1.26 in the same period last year [1] - RoboSense achieved total revenue of approximately 407 million yuan in Q3, with LiDAR sales volume increasing by 34.0% year-over-year [2] - Alibaba's instant retail business generated revenue of 22.906 billion yuan in Q2 of FY2026, marking a 60% year-over-year growth [3][5] - Xiaomi repurchased 2.5 million shares for over 100 million HKD, with a total of 24 million shares repurchased this month [4] - NIO reported Q3 revenue of 21.79 billion yuan, a 16.7% year-over-year increase, with vehicle deliveries reaching 87,071 units, up 40.8% [8] - Zhihu's Q3 revenue was 659 million yuan, with a non-GAAP operating loss narrowing by 16.3% year-over-year [11] Group 2: Market Developments - Nokia announced its intention to delist from the Paris Stock Exchange, effective December 31, 2025 [2] - The Singapore National AI Program has shifted from using Meta's model to Alibaba's Qwen open-source architecture [13] - The U.S. investment consulting firm predicts that TSMC's market value could surpass Apple's by 2030, driven by AI demand [16] Group 3: New Products and Innovations - Huawei officially launched its first Harmony OS 2-in-1 tablet, the MatePad Edge, starting at 5,999 yuan [15] - Tuya Smart reported Q3 revenue of $82.5 million, marking the ninth consecutive quarter of year-over-year growth [6]

Core Insights - Zhihu reported a total revenue of 658.9 million yuan for the third quarter of 2025, a decrease of 22.02% compared to 845.0 million yuan in the same period of 2024 [1] - The gross margin for the quarter was 61.3%, down from 63.9% in the previous year [1] Revenue Breakdown - Marketing services revenue was 189.4 million yuan, down from 256.6 million yuan year-on-year, attributed to proactive optimization of service product offerings [1] - Paid membership revenue decreased to 385.6 million yuan from 459.4 million yuan, primarily due to a decline in average monthly subscribers, which fell to 14.3 million from 16.5 million [1] - Other revenue was 83.9 million yuan, down from 129.0 million yuan, mainly due to strategic optimization in the vocational training business [1] Cost and Expenses - Cost of revenue decreased by 16.3% to 255.3 million yuan from 304.9 million yuan in the previous year [2] - Total operating expenses decreased by 19.4% to 503.5 million yuan from 624.5 million yuan [2] - Sales and marketing expenses decreased by 14.9% to 330.1 million yuan, driven by more restrained promotional spending and reduced personnel costs [2] - R&D expenses decreased by 36.2% to 114.4 million yuan due to improved efficiency [2] Profitability Metrics - Operating loss for the quarter was 99.8 million yuan, compared to a loss of 84.3 million yuan in the same period last year [2] - Adjusted operating loss narrowed by 16.3% to 73.5 million yuan from 87.8 million yuan [2] - Net loss was 46.7 million yuan, compared to 9.0 million yuan in the previous year [2] - Adjusted net loss was 21.0 million yuan, compared to 13.1 million yuan in the same period last year [2] Strategic Initiatives - The CEO stated that the company is steadily moving towards a full-year adjusted EBITDA breakeven target, with solid progress in structural optimization [2] - The company aims to enhance service products while balancing commercialization and community health, leveraging high-quality content and expert networks [2] Cash Position - As of September 30, 2025, the company had cash and cash equivalents, along with short-term investments, totaling 4.5832 billion yuan, down from 4.8590 billion yuan as of December 31, 2024 [2] Share Buyback - Zhihu repurchased 31.1 million shares of Class A common stock at a total cost of 66.5 million USD under its existing share repurchase program [3]

Core Insights - Zhihu reported a revenue of 659 million yuan for Q3 2025, with a non-GAAP operating loss narrowing by 16.3% year-on-year, indicating a potential for achieving profitability for the full year 2025 [1][2] Revenue Structure - The revenue structure optimization led to paid reading contributing 386 million yuan, accounting for 58.5% of total revenue; marketing services generated 189 million yuan, making up 28.7%; and other businesses, including vocational education and consumer goods, contributed 83.9 million yuan, representing 12.8% [1] User Engagement and Growth - User engagement metrics showed steady improvement, with average monthly subscription members reaching 14.3 million, an increase of 8.1% quarter-on-quarter, reflecting Zhihu's strong position in the industry [2] Strategic Focus - The company is investing in innovative business areas, particularly in AI and paid reading, to enhance community ecology and commercial revenue, with a focus on integrating online literature with the film and short drama industries [2] Leadership Statements - The CEO emphasized the progress towards achieving breakeven for the year, highlighting the balance between commercialization and community health, while the CFO noted effective cost management and operational efficiency improvements [2]

Zhihu (NYSE:ZH) Q3 2025 Earnings Call November 25, 2025 06:00 AM ET Company ParticipantsYolanda Liu - Director of Investor RelationsWang Han - CFOZhou Yuan - CEOVictor Zhou - AI AgentVichy Wei - VP of Research TeamConference Call ParticipantsNone - AnalystDaisy Chen - AnalystOperatorLadies and gentlemen, thank you for standing by, and welcome to the Zhihu Q3 2025 Financial Results Conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a quest ...

Financial Data and Key Metrics Changes - In Q3 2025, the company achieved total revenues of RMB 658.9 million, a decrease from RMB 845 million in the same period of 2024, indicating a narrowing year-over-year decline for the third consecutive quarter [20][21] - The non-GAAP operating loss narrowed by 16.3% year-over-year, reflecting improved operational efficiency and disciplined cost management [4][20] - The GAAP net loss for Q3 was RMB 46.7 million compared to RMB 9 million in the same period of 2024, while the adjusted net loss on a non-GAAP basis was RMB 21 million compared to RMB 13.1 million in the same period of 2024 [23][24] Business Line Data and Key Metrics Changes - Marketing services revenue was RMB 189.4 million, with the year-over-year decrease narrowing, indicating the bottoming out of the adjustment cycle [10][21] - Paid membership revenue reached RMB 386 million, with average monthly paid members increasing by 8.1% sequentially to 14.3 million [14][21] - Other revenues were RMB 839 million, primarily due to the strategic refinement of the vocational training business, which has been reclassified into other revenues [22][24] Market Data and Key Metrics Changes - The daily creation of high-quality content increased by over 25% year-over-year, with professional AI-focused content up by more than 30% compared to the same period last year [6][7] - The user base remains stable, with MAUs showing modest growth and average daily user time spent delivering double-digit year-over-year growth for six consecutive quarters [36][37] Company Strategy and Development Direction - The company aims to achieve non-GAAP break-even on a full-year basis, focusing on structural optimization, service refinement, and balancing commercialization with community health [4][20] - The integration of AI capabilities is a core strategy, with plans to enhance user experience through AI-powered tools and features [30][39] - The company is committed to maintaining a healthy ecosystem by investing in trustworthy content and expert networks while cracking down on low-quality content [35][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year profitability in 2025, with Q3 and Q4 being used to fine-tune operations and make targeted investments [46][50] - The company is optimistic about the recovery of its marketing services and expects sequential growth starting in Q4 [47][50] - Management emphasized the importance of real human interactions and trusted content in the AI era, positioning the company as a connection layer for users [42][43] Other Important Information - The company repurchased 31.1 million Class A ordinary shares for an aggregate value of $66.5 million, reflecting confidence in its valuation and future prospects [24][54] - The Yanyan Story initiative has successfully generated significant engagement and international interest, showcasing the potential for Chinese digital literature [15][16] Q&A Session Summary Question: Update on AI progress and integration with the Zhihu community - Management reported that the penetration rate of Zhihu Zhida exceeded 15%, reflecting strong user endorsement of the AI+ community strategy [28][29] Question: Status of Zhihu's user ecosystem and future product design - Management indicated that the community ecosystem is healthy, focusing on content quality and user structure, with continuous improvements in user engagement and trust [34][36] Question: Progress of adjustments in each business line and outlook on profitability - Management confirmed that marketing services revenue is expected to recover sequentially, while the paid membership segment is still in transition [44][46] Question: Shareholder return plan and progress - Management highlighted the company's active buyback program, expressing confidence in reaching profitability and maintaining shareholder value [54]

Core Insights - Zhihu reported a revenue of 659 million yuan for Q3 2025, with a 16.3% year-on-year reduction in non-GAAP operating losses, indicating improved operational efficiency and cost structure optimization [1] - The company is steadily progressing towards its goal of achieving profitability for the full year of 2025 while maintaining a balance between steady growth and long-term investments [1] Revenue Structure - The revenue breakdown for Q3 shows that paid reading generated 386 million yuan, accounting for 58.5% of total revenue; marketing services contributed 189 million yuan, or 28.7%; and other businesses, including vocational education and consumer goods, brought in 83.9 million yuan, making up 12.8% [1] - Zhihu has achieved non-GAAP profitability for three consecutive quarters since Q4 2024, which supports its goal of a healthier operational state and improved efficiency [1] User Engagement and Community Value - The core value and advantages of Zhihu's trusted community have been further solidified, with high-quality content emerging, particularly in science, technology, and AI, enhancing its professional influence [2] - Key user metrics, including monthly active users, daily active users, usage duration, and core user retention, have shown steady improvement, with the average number of subscription members reaching 14.3 million, an 8.1% quarter-on-quarter increase [2] Innovation and Future Growth - Zhihu is continuously investing in innovative business models to enhance its positive impact on community ecology and commercial revenue [2] - In the AI sector, Zhihu is iterating on its Zhihu Direct Answer feature to accelerate positive community cycles while strengthening the integration of professional content and expert networks [2] Leadership Insights - The founder and CEO of Zhihu stated that the company is making solid progress towards its goal of achieving breakeven for the year, with structural optimization measures yielding better balance between commercialization and community health [3] - The CFO highlighted a 16.3% year-on-year reduction in non-GAAP operating losses, reflecting effective cost management and operational efficiency, while emphasizing the focus on sustainable, high-quality growth [3]

Core Insights - Zhihu reported a revenue of 659 million yuan for Q3 2025, with a non-GAAP operating loss narrowing by 16.3% year-on-year [1] Revenue Breakdown - The paid reading business contributed 386 million yuan in revenue, accounting for 58.5% of total revenue [2] - Marketing services revenue reached 189 million yuan, making up 28.7% of total revenue [2] - Other businesses, including vocational education and consumer goods, contributed 83.9 million yuan, representing 12.8% of total revenue [2]