Globenewswireยท2025-11-25 08:55Core Viewpoint - Zhihu Inc. is on track to achieve full-year non-GAAP breakeven, with significant progress in structural optimization and user engagement, while focusing on monetization resilience and new revenue models through content quality and AI capabilities [2][3][8]. Financial Performance - Total revenues for Q3 2025 were RMB 658.9 million (US$ 92.6 million), a decrease from RMB 845.0 million in Q3 2024, reflecting a year-over-year decline of approximately 22% [3][9]. - Marketing services revenue decreased to RMB 189.4 million (US$ 26.6 million) from RMB 256.6 million in the same period of 2024, primarily due to service offering refinements [3][4]. - Paid membership revenue fell to RMB 385.6 million (US$ 54.2 million) from RMB 459.4 million in Q3 2024, attributed to a decline in average monthly subscribing members [4][9]. - Other revenues decreased to RMB 83.9 million (US$ 11.8 million) from RMB 129.0 million in Q3 2024, mainly due to strategic changes in the vocational training business [4]. Cost Management - Cost of revenues decreased by 16.3% to RMB 255.3 million (US$ 35.9 million) from RMB 304.9 million in Q3 2024, driven by reduced content and operating costs [5]. - Total operating expenses decreased by 19.4% to RMB 503.5 million (US$ 70.7 million) from RMB 624.5 million in the same period of 2024 [6]. - Selling and marketing expenses decreased by 14.9% to RMB 330.1 million (US$ 46.4 million) from RMB 388.0 million in Q3 2024, reflecting more disciplined promotional spending [6][7]. - Research and development expenses decreased by 36.2% to RMB 114.4 million (US$ 16.1 million) from RMB 179.3 million in Q3 2024, indicating improved efficiency [7]. Profitability Metrics - Gross profit for Q3 2025 was RMB 403.6 million (US$ 56.7 million), with a gross margin of 61.3%, down from 63.9% in Q3 2024 [5][9]. - Loss from operations was RMB 99.8 million (US$ 14.0 million), compared to RMB 84.3 million in Q3 2024 [7][9]. - Adjusted loss from operations (non-GAAP) narrowed by 16.3% to RMB 73.5 million (US$ 10.3 million) from RMB 87.8 million in the same period of 2024 [8][9]. - Net loss for Q3 2025 was RMB 46.7 million (US$ 6.6 million), compared to RMB 9.0 million in Q3 2024 [8][9]. Cash Position and Share Repurchase - As of September 30, 2025, the company had cash and cash equivalents totaling RMB 4,583.2 million (US$ 643.8 million), down from RMB 4,859.0 million as of December 31, 2024 [11]. - The company repurchased 31.1 million Class A ordinary shares for a total price of US$ 66.5 million under its existing share repurchase programs [12].