Core Viewpoint - Zhihu Inc. reported its third consecutive quarter of non-GAAP profitability, driven by refined operational strategies and AI integration, which enhanced user and creator engagement [3][4]. Financial Performance - Total revenues for Q2 2025 were RMB 716.9 million (US$ 100.1 million), a decrease from RMB 933.8 million in Q2 2024 [4][8]. - Non-GAAP net income reached RMB 91.3 million (US$ 12.8 million), compared to a non-GAAP net loss of RMB 44.6 million in the same period last year [3][12]. - Gross margin improved to 62.5%, up from 59.6% year-over-year, reflecting better monetization and operational efficiency [7][8]. Revenue Breakdown - Marketing services revenue was RMB 222.8 million (US$ 31.1 million), down from RMB 344.0 million in Q2 2024, due to strategic service refinements [4]. - Paid membership revenue decreased slightly to RMB 402.0 million (US$ 56.1 million) from RMB 432.7 million in the same period last year, attributed to a decline in average monthly subscribing members [5]. - Vocational training revenue fell to RMB 62.1 million (US$ 8.7 million) from RMB 133.6 million in Q2 2024, also due to strategic business refinements [5]. Cost Management - Cost of revenues decreased by 28.8% to RMB 268.7 million (US$ 37.5 million) from RMB 377.3 million in Q2 2024, driven by reduced content and operating costs [6]. - Total operating expenses decreased by 27.2% to RMB 539.2 million (US$ 75.3 million) from RMB 740.4 million in the same period last year [7][10]. Investment and Cash Position - As of June 30, 2025, the company had cash and cash equivalents totaling RMB 4,820.8 million (US$ 673.0 million), slightly down from RMB 4,859.0 million at the end of 2024 [13]. - The company repurchased 31.1 million Class A ordinary shares for a total of US$ 66.5 million under its existing share repurchase programs [14].