Zhihu Inc Financials
Zhihu Inc (ZH) reported $393.1M in revenue for fiscal year 2025, down 20.3% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 5 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Zhihu is funding a long cost reset with a cash-heavy balance sheet while its revenue base keeps shrinking.
Over the last two years, revenue contracted sharply while gross margin stayed near60.0% , which suggests the pressure is more about lost scale or mix than a collapse in product-level economics. SG&A fell to$36.0M , yet operating margin still worsened to-18.5% , showing cost cuts are not keeping up with the smaller sales base.
Zhihu is not capital-intensive: capex was only
The company still has a liquidity cushion. Cash and equivalents of
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Zhihu Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Zhihu Inc has an operating margin of -18.4%, meaning the company loses $18 on every $100 of revenue. This results in a profitability score of 29/100. This is down from -13.4% the prior year.
Zhihu Inc's revenue declined 20.3% year-over-year, from $493.0M to $393.1M. This contraction results in a growth score of 6/100.
Zhihu Inc carries a low D/E ratio of 0.35, meaning only $0.35 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 66/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 3.73, Zhihu Inc holds $3.73 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 84/100.
Zhihu Inc's operations used $52.0M of cash, and capex of $189K added to the outflow, for a free cash flow shortfall of $52.2M. This results in a cash flow score of 15/100.
Zhihu Inc posts a -5.1% return on equity (ROE), meaning it loses $5 for every $100 of shareholders' equity. This results in a returns score of 33/100. This is down from -4.1% the prior year.
Zhihu Inc scores -0.56, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($275.0M) relative to total liabilities ($188.2M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Zhihu Inc passes 1 of 7 computable financial strength tests (2 of the nine could not be computed from available data). No profitability signals pass, all 1 leverage/liquidity signals pass, neither operating efficiency signal passes.
Zhihu Inc reported a net loss of $27.9M while operations used $52.0M of cash. With neither figure positive, the ratio between the two carries no quality signal.
Key Financial Metrics
Earnings & Revenue
Zhihu Inc generated $393.1M in revenue in fiscal year 2025. This represents a decrease of 20.3% from the prior year.
Zhihu Inc's EBITDA was -$69.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 11.0% from the prior year.
Zhihu Inc reported -$27.9M in net income in fiscal year 2025. This represents a decrease of 20.5% from the prior year.
Zhihu Inc earned -$0.11 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 22.2% from the prior year.
Cash & Balance Sheet
Zhihu Inc recorded an outflow of $52.2M in free cash flow in fiscal year 2025, representing a cash shortfall after capex. This represents a decrease of 34.6% from the prior year.
Zhihu Inc held $481.8M in cash as of fiscal year 2025; long-term debt is not reported for that period.
Not reported for fiscal year 2025.
Margins & Returns
Zhihu Inc's gross margin was 59.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.7 percentage points from the prior year.
Zhihu Inc's operating margin was -18.4% in fiscal year 2025, reflecting core business profitability. This is down 5.1 percentage points from the prior year.
Zhihu Inc's net profit margin was -7.1% in fiscal year 2025, showing the share of revenue converted to profit. This is down 2.4 percentage points from the prior year.
Zhihu Inc's ROE was -5.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 1.0 percentage points from the prior year.
Capital Allocation
Zhihu Inc invested $75.1M in research and development in fiscal year 2025. This represents a decrease of 25.2% from the prior year.
Zhihu Inc spent $23.9M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 56.5% from the prior year.
Zhihu Inc invested $189K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 49.5% from the prior year.
ZH Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 |
|---|---|---|---|---|---|
| Revenue | $393.1M-20.3% | $493.0M-16.6% | $591.4M+13.2% | $522.7M+12.6% | $464.4M |
| Cost of Revenue | $157.5M-18.9% | $194.3M-27.5% | $268.0M+2.9% | $260.5M+18.1% | $220.5M |
| Gross Profit | $235.6M-21.1% | $298.8M-7.6% | $323.4M+23.4% | $262.1M+7.5% | $243.8M |
| R&D Expenses | $75.1M-25.2% | $100.4M-21.0% | $127.0M+14.7% | $110.7M+13.8% | $97.2M |
| SG&A Expenses | $36.0M-20.5% | $45.2M-23.3% | $58.9M-34.6% | $90.2M-16.8% | $108.3M |
| Operating Income | -$72.5M-10.1% | -$65.9M+56.4% | -$151.0M+35.1% | -$232.5M-6.5% | -$218.2M |
| Income Tax | $3.1M+340.9% | -$1.3M-177.2% | $1.7M-18.9% | $2.1M+140.7% | $854K |
| Net Income | -$27.9M-20.5% | -$23.1M+80.4% | -$118.2M+48.3% | -$228.8M-12.3% | -$203.8M |
| EPS (Diluted) | -$0.11-22.2% | -$0.09+77.5% | -$0.40+46.7% | -$0.75+21.9% | -$0.96 |
Not reported in any period shown, so not listed: Interest Expense.
ZH Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 |
|---|---|---|---|---|---|
| Total Assets | $742.3M-5.5% | $785.4M-17.9% | $957.1M-13.8% | $1.1B-19.7% | $1.4B |
| Current Assets | $676.7M-9.9% | $751.4M-16.4% | $898.3M-15.4% | $1.1B-18.9% | $1.3B |
| Cash & Equivalents | $481.8M-12.1% | $547.9M+84.7% | $296.7M-54.8% | $656.2M+93.8% | $338.5M |
| Accounts Receivable | $51.2M-11.2% | $57.6M-38.4% | $93.6M-22.6% | $121.0M-7.3% | $130.5M |
| Goodwill | N/A | $17.3M-35.7% | $26.9M+46.9% | $18.3M+58.5% | $11.6M |
| Total Liabilities | $188.2M-10.7% | $210.6M-28.6% | $294.9M+3.7% | $284.5M-12.3% | $324.4M |
| Current Liabilities | $181.4M-13.2% | $208.9M-23.8% | $274.0M+3.6% | $264.6M-11.2% | $297.8M |
| Total Equity | $544.0M-4.0% | $566.6M-12.5% | $647.9M-21.0% | $819.7M-22.4% | $1.1B |
| Retained Earnings | -$1.3B-6.6% | -$1.2B+0.8% | -$1.2B-7.6% | -$1.1B-15.7% | -$985.6M |
Not reported in any period shown, so not listed: Inventory, Long-Term Debt.
ZH Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 |
|---|---|---|---|---|---|
| Operating Cash Flow | -$52.0M-35.5% | -$38.4M+34.4% | -$58.5M+63.8% | -$161.7M-134.0% | -$69.1M |
| Capital Expenditures | $189K-49.5% | $374K-68.7% | $1.2M+1050.0% | $104K-91.1% | $1.2M |
| Free Cash Flow | -$52.2M-34.6% | -$38.8M+35.1% | -$59.7M+63.1% | -$161.8M-130.3% | -$70.3M |
| Investing Cash Flow | -$16.6M-104.7% | $351.1M+248.3% | -$236.8M-146.8% | $506.1M+202.8% | -$492.2M |
| Financing Cash Flow | -$18.8M+66.0% | -$55.3M-7.6% | -$51.4M-227.3% | -$15.7M-102.1% | $765.2M |
| Share Buybacks | $23.9M-56.5% | $54.9M+5.5% | $52.1M+180.6% | $18.6M | N/A |
Not reported in any period shown, so not listed: Dividends Paid.
ZH Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 |
|---|---|---|---|---|---|
| Gross Margin | 59.9%-0.7pp | 60.6%+5.9pp | 54.7%+4.5pp | 50.2%-2.3pp | 52.5% |
| Operating Margin | -18.4%-5.1pp | -13.4%+12.2pp | -25.5%+18.9pp | -44.5%+2.5pp | -47.0% |
| Net Margin | -7.1%-2.4pp | -4.7%+15.3pp | -20.0%+23.8pp | -43.8%+0.1pp | -43.9% |
| Return on Equity | -5.1%-1.0pp | -4.1%+14.2pp | -18.3%+9.7pp | -27.9%-8.6pp | -19.3% |
| Return on Assets | -3.8%-0.8pp | -2.9%+9.4pp | -12.3%+8.3pp | -20.6%-5.9pp | -14.8% |
| Current Ratio | 3.73+0.1x | 3.60+0.3x | 3.28-0.7x | 4.01-0.4x | 4.39 |
| Debt-to-Equity | 0.350.0x | 0.37-0.1x | 0.46+0.1x | 0.350.0x | 0.31 |
| FCF Margin | -13.3%-5.4pp | -7.9%+2.2pp | -10.1%+20.8pp | -30.9%-15.8pp | -15.1% |
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Where Zhihu Inc Ranks
Frequently Asked Questions
What is Zhihu Inc's annual revenue?
Zhihu Inc (ZH) reported $393.1M in total revenue for fiscal year 2025. This represents a -20.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Zhihu Inc's revenue growing?
Zhihu Inc (ZH) revenue declined by 20.3% year-over-year, from $493.0M to $393.1M in fiscal year 2025.
Is Zhihu Inc profitable?
No, Zhihu Inc (ZH) reported a net income of -$27.9M in fiscal year 2025, with a net profit margin of -7.1%.
What is Zhihu Inc's EBITDA?
Zhihu Inc (ZH) had EBITDA of -$69.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Zhihu Inc's gross margin?
Zhihu Inc (ZH) had a gross margin of 59.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Zhihu Inc's operating margin?
Zhihu Inc (ZH) had an operating margin of -18.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Zhihu Inc's net profit margin?
Zhihu Inc (ZH) had a net profit margin of -7.1% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Zhihu Inc's return on equity (ROE)?
Zhihu Inc (ZH) has a return on equity of -5.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Zhihu Inc's free cash flow?
Zhihu Inc (ZH) recorded an outflow of $52.2M in free cash flow during fiscal year 2025. This represents a -34.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Zhihu Inc's operating cash flow?
Zhihu Inc (ZH) recorded an outflow of $52.0M in operating cash flow during fiscal year 2025, representing cash used by core business activities.
What are Zhihu Inc's total assets?
Zhihu Inc (ZH) had $742.3M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Zhihu Inc's capital expenditures?
Zhihu Inc (ZH) invested $189K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Zhihu Inc spend on research and development?
Zhihu Inc (ZH) invested $75.1M in research and development during fiscal year 2025.
What is Zhihu Inc's current ratio?
Zhihu Inc (ZH) had a current ratio of 3.73 as of fiscal year 2025, which is generally considered healthy.
What is Zhihu Inc's debt-to-equity ratio?
Zhihu Inc (ZH) had a debt-to-equity ratio of 0.35 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Zhihu Inc's return on assets (ROA)?
Zhihu Inc (ZH) had a return on assets of -3.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Zhihu Inc's cash runway?
Based on fiscal year 2025 data, Zhihu Inc (ZH) had $481.8M in cash against an annual operating cash burn of $52.0M. This gives an estimated cash runway of approximately 111 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Zhihu Inc's Altman Z-Score?
Zhihu Inc (ZH) has an Altman Z-Score of -0.56, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Zhihu Inc's Piotroski F-Score?
Zhihu Inc (ZH) has a Piotroski F-Score of 1 out of 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Zhihu Inc's earnings high quality?
Zhihu Inc (ZH) reported a net loss of $27.9M while operations used $52.0M of cash. With neither figure positive, the ratio between the two carries no quality signal. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Zhihu Inc?
Zhihu Inc (ZH) scores 39 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.