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]

Group 1: Financial Performance - In Q2 2025, the total revenue of the company was 717 million RMB, a decrease of approximately 23% compared to 934 million RMB in the same period of 2024 [1] - The gross margin improved from 59.6% in 2024 to 62.5% in 2025 [1] - The net profit for Q2 2025 was 72.5 million RMB, compared to a net loss of 80.6 million RMB in Q2 2024 [1] Group 2: Adjusted Profitability - The adjusted net profit (non-GAAP) for Q2 2025 was 91.3 million RMB, while in Q2 2024, it was an adjusted net loss of 44.6 million RMB [1] - For the first half of 2025, the net profit was 62 million RMB, down from 246 million RMB in the same period of 2024 [1] - The adjusted net profit for the first half of 2025 was 98 million RMB, compared to an adjusted net loss of 180 million RMB in the previous year [1] Group 3: Revenue Sources - The largest revenue source in the first half of 2025 was paid memberships, generating 820 million RMB, down 7.1% from 882 million RMB in 2024 [2] - The average monthly subscription members decreased to 13.7 million in the first half of 2025, down from 14.7 million in 2024, a decline of 6.7% [2] - Marketing services revenue fell to 420 million RMB, a significant drop of approximately 37.8% from 675 million RMB in 2024 [2] Group 4: Cost Management - The company's cost of revenue decreased by 31.1% to 547 million RMB [3] - Sales and marketing expenses were reduced by 27.7% to 647 million RMB [3] - Research and development expenses decreased by 29.3% to 288 million RMB, while general and administrative expenses fell by 47.6% to 109 million RMB [3]

Core Financial Data - Total revenue for Q2 2025 was RMB 717 million, a year-on-year decrease of 23.2% from RMB 934 million in the same period last year [2] - Net profit reached RMB 72.5 million, compared to a net loss of RMB 80.6 million in the same period last year, marking a successful turnaround [2] - Adjusted net profit (non-GAAP) was RMB 91.3 million, up from an adjusted net loss of RMB 44.6 million in the previous year [2] - Gross margin improved to 62.5%, an increase of 2.9 percentage points from 59.6% in the same period last year [2] Revenue Breakdown by Segment - Marketing services revenue was RMB 223 million, a year-on-year decline of 35.2% [2] - Paid membership revenue totaled RMB 402 million, a slight decrease of 7.1% year-on-year [2] - Vocational training revenue significantly dropped to RMB 62.1 million, down 53.5% year-on-year [2] - Average monthly subscription members reached 13.2 million [2] Operational Efficiency - Total operating expenses were RMB 539 million, a year-on-year decrease of 27.2% [2] - Operating loss narrowed to RMB 91 million, a 50.5% improvement compared to a loss of RMB 184 million in the same period last year [2] Management Commentary - The company achieved non-GAAP profitability for the third consecutive quarter, reflecting the effectiveness of its refined operational strategies and the efficiency gains from the integration of AI technology [1]