Financial Modeling Prep·2025-11-26 11:03Core Insights - Zhihu Inc. is a leading online content community in China, similar to Quora, providing a platform for knowledge sharing despite facing competition from Baidu and Tencent [1] Financial Performance - Zhihu reported an earnings per share (EPS) of -$0.08 for Q3 2025, missing the estimated EPS of $0.18 [2][6] - The actual revenue for Q3 2025 was $92.53 million, significantly below expectations and down from $116 million in the same period of 2024 [3][6] - The gross margin decreased to 61.3% from 63.9% year-over-year [3] - The company experienced a net loss of $6.6 million, an increase from the $1.2 million loss in Q3 2024, with an adjusted net loss of $3 million compared to $1.8 million last year [3][6] Management Outlook - CEO Yuan Zhou expressed optimism about achieving a full-year non-GAAP breakeven, citing solid progress during the quarter [4] - The average number of monthly subscribing members reached 14.3 million, indicating a strong user base [4][6] Financial Metrics - Zhihu has a price-to-sales ratio of 0.66 and a negative enterprise value to sales ratio of -0.28, indicating a unique financial situation [5] - The debt-to-equity ratio is low at 0.055, suggesting conservative debt use [5] - The company maintains a strong liquidity position with a current ratio of 3.48 [5]