Zhihu Inc. Reports Unaudited Second Quarter 2026 Financial Results
Rhea-AI Summary
Zhihu (NYSE: ZH; HKEX: 2390) reported unaudited results for the quarter ended June 30, 2026. Total revenues were RMB690.1 million, down from RMB716.9 million a year earlier but up 5.9% quarter‑over‑quarter. Gross margin fell to 57.0% from 62.5%, as cost of revenues increased mainly due to higher content‑related costs.
Marketing services revenue declined to RMB199.0 million, while paid content and IP operations revenue rose to RMB425.9 million. Other revenues decreased to RMB65.2 million. Total operating expenses dropped 13.0% year over year to RMB469.4 million, reflecting lower selling and marketing, R&D, and G&A expenses. Loss from operations narrowed to RMB75.9 million, and adjusted loss from operations to RMB48.7 million.
Net result swung to a RMB37.4 million net loss, versus net income of RMB72.5 million a year earlier, largely due to lower investment income. Adjusted net loss was RMB10.3 million. Zhihu held RMB4,423.8 million in cash, term deposits, restricted cash and short‑term investments, and had repurchased 41.3 million Class A shares for US$77.9 million cumulatively, including 6.5 million shares for US$7.2 million in the quarter.
Positive
- Total operating expenses down 13.0% YoY to RMB469.4 million
- Loss from operations narrowed 16.6% YoY to RMB75.9 million
- Adjusted loss from operations (non‑GAAP) narrowed 32.0% YoY to RMB48.7 million
- Paid content and IP operations revenue grew YoY to RMB425.9 million
- Strong liquidity with RMB4,423.8 million in cash, deposits, restricted cash and short‑term investments as of June 30, 2026
- Share repurchases of 41.3 million Class A shares for US$77.9 million to date, including 6.5 million shares for US$7.2 million in Q2 2026
Negative
- Total revenues declined YoY to RMB690.1 million from RMB716.9 million
- Gross margin compressed to 57.0% from 62.5% a year earlier
- Net income turned to a RMB37.4 million net loss from RMB72.5 million profit
- Adjusted net income turned to a RMB10.3 million adjusted net loss from RMB91.3 million
- Marketing services revenue decreased YoY to RMB199.0 million
- Other revenues fell YoY to RMB65.2 million, partly from vocational training refinement
News Explained
Zhihu revised its revenue presentation: since the first quarter of 2026, paid membership and IP operations are combined, with IP revenue moved from “other”; vocational training has been included in “other” since the third quarter of 2025, and comparison periods were retrospectively reclassified.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 03 | 1Q26 earnings report | Positive | -0.3% | Adjusted net income increased year over year despite lower revenue and a reported net loss. |
| Mar 25 | FY25 earnings report | Negative | -6.3% | Annual revenue declined and the company reported a full-year net loss with goodwill impairment. |
| Nov 25 | 3Q25 earnings report | Negative | -7.7% | Revenue declined, adjusted net loss continued, and reported net loss widened year over year. |
| Aug 27 | 2Q25 earnings report | Positive | +5.8% | The company reported net income, improved gross margin, and lower operating expenses. |
| May 27 | 1Q25 earnings report | Positive | +1.8% | Adjusted net income turned positive while gross margin expanded and net loss narrowed. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings reactions aligned with the announcement direction in four of five events; the average move was -1.34%.
Key Terms
non-gaap financial
fair value financial
restricted cash financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
BEIJING, China, Aug. 26, 2026 (GLOBE NEWSWIRE) -- Zhihu Inc. (“Zhihu” or the “Company”) (NYSE: ZH; HKEX: 2390), a leading online content community in China, today announced its unaudited financial results for the quarter ended June 30, 2026.
Second Quarter 2026 Highlights
- Total revenues were RMB690.1 million (US
$101.7 million ), compared with RMB716.9 million in the same period of 2025. - Gross margin was
57.0% , compared with62.5% in the same period of 2025. - Net loss was RMB37.4 million (US
$5.5 million ), compared with a net income of RMB72.5 million in the same period of 2025. - Adjusted net loss (non-GAAP)[1] was RMB10.3 million (US
$1.5 million ), compared with an adjusted net income of RMB91.3 million in the same period of 2025. - Average monthly subscribing members[2] were 13.1 million in the second quarter of 2026.
“During the second quarter, Zhihu’s authentic, professional, and trustworthy community remained resilient, with stable engagement depth among our core users and continued growth in high-quality content and professional creators,” said Mr. Yuan Zhou, chairman and chief executive officer of Zhihu. “AI is increasingly becoming a new medium connecting users with content, enabling Zhihu’s long-established content, IP and expert capabilities to extend into a broader range of use cases and commercial applications. Our new businesses remain at the commercial validation stage. We will allocate resources based on genuine market demand, customer value and investment returns, while working to stabilize our core businesses and prudently assessing the sustainability of new business opportunities.”
“During the second quarter, our total revenues increased by
Second Quarter 2026 Financial Results
Total revenues were RMB690.1 million (US
Marketing services revenue was RMB199.0 million (US
Paid content and IP operations revenue[3] was RMB425.9 million (US
Other revenues[3][4] were RMB65.2 million (US
Cost of revenues was RMB296.7 million (US
Gross profit was RMB393.4 million (US
Total operating expenses decreased by
Selling and marketing expenses decreased by
Research and development expenses decreased by
General and administrative expenses decreased by
Loss from operations narrowed by
Adjusted loss from operations (non-GAAP)[1] narrowed by
Investment income was RMB16.4 million (US
Net loss was RMB37.4 million (US
Adjusted net loss (non-GAAP)[1] was RMB10.3 million (US
Diluted net loss per American depositary share (“ADS”) was RMB0.49 (US
Cash and cash equivalents, term deposits, restricted cash and short-term investments
As of June 30, 2026, the Company had cash and cash equivalents, current and non-current term deposits, restricted cash and short-term investments of RMB4,423.8 million (US
Share Repurchase Programs
As of June 30, 2026, the Company had repurchased an aggregate of 41.3 million Class A ordinary shares (including Class A ordinary shares underlying the ADSs) for a total consideration of US
[1] Adjusted loss from operations and adjusted net income/(loss) are non-GAAP financial measures. For more information on the non-GAAP financial measures, please see the section “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.
[2] Monthly subscribing members refers to the number of members who subscribed for our membership packages in a specified month. Average monthly subscribing members for a period is calculated by dividing the sum of monthly subscribing members for each month during the specified period by the number of months in such period.
[3] Starting from the first quarter of 2026, the Company reported revenues generated from paid membership and IP operations collectively as “paid content and IP operations revenue” to better present its business and results of operations in line with its overall strategy. Revenues generated from IP operations, which were formerly included in “other revenues,” consist primarily of copyrights licensing and content distribution. Revenues for the applicable comparison periods have been retrospectively reclassified.
[4] Starting from the third quarter of 2025, the Company simplified its revenue stream by reclassifying vocational training into “others” to align with its overall strategy. Revenues for the applicable comparison periods have been retrospectively reclassified.
Conference Call
The Company's management will host a conference call at 7:00 A.M. U.S. Eastern Time on Wednesday, August 26, 2026 (7:00 P.M. Beijing/Hong Kong Time on Wednesday, August 26, 2026) to discuss the results.
All participants wishing to join the conference call must pre-register online using the link provided below. Once the pre-registration has been completed, each participant will receive a set of dial-in numbers and a unique access PIN which can be used to join the conference call.
Registration Link:
https://register-conf.media-server.com/register/BI3c94fe2d0990465dab12836827011f11
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.zhihu.com.
About Zhihu Inc.
Zhihu Inc. (NYSE: ZH; HKEX: 2390) is a leading online content community where people come to find solutions, make decisions, seek inspiration, and have fun. Since the initial launch in 2010, Zhihu has grown into the largest Q&A-inspired online content community in China. For more information, please visit https://ir.zhihu.com.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP financial measures, such as adjusted loss from operations and adjusted net income/(loss), to supplement the review and assessment of its operating performance. The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses, amortization and impairment of intangible assets resulting from business acquisitions, impairment of goodwill and the tax effects of the non-GAAP adjustments, which are non-cash expenses. The Company believes that the non-GAAP financial measures facilitate comparisons of operating performance from period to period and company to company by adjusting for potential impacts of items, which the Company’s management considers to be indicative of its operating performance. The Company believes that the non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company’s consolidated results of operations in the same manner as they help the Company’s management.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The presentation of the non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. The use of the non-GAAP financial measures has limitations as an analytical tool, and investors should not consider them in isolation from or as a substitute for analysis of our results of operations or financial condition as reported under U.S. GAAP. For more information on the non-GAAP financial measures, please see the tables captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at a rate of RMB6.7851 to US
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
For investor and media inquiries, please contact:
Zhihu Inc.
Email: ir@zhihu.com
Christensen Advisory
Roger Hu
Tel: +86-10-5900-1548
Email: zhihu@christensencomms.com
| ZHIHU INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (All amounts in thousands, except share, ADS, per share data and per ADS data) | ||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
| June 30, 2025 | March 31, 2026 | June 30, 2026 | June 30, 2025 | June 30, 2026 | ||||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
| Revenues: | ||||||||||||||||||||
| Marketing services | 222,778 | 191,413 | 198,991 | 29,328 | 419,737 | 390,404 | 57,538 | |||||||||||||
| Paid content and IP operations | 408,159 | 402,322 | 425,938 | 62,775 | 829,034 | 828,260 | 122,070 | |||||||||||||
| Others | 85,957 | 57,831 | 65,192 | 9,608 | 197,788 | 123,023 | 18,131 | |||||||||||||
| Total revenues | 716,894 | 651,566 | 690,121 | 101,711 | 1,446,559 | 1,341,687 | 197,739 | |||||||||||||
| Cost of revenues | (268,711 | ) | (263,235 | ) | (296,689 | ) | (43,727 | ) | (547,272 | ) | (559,924 | ) | (82,523 | ) | ||||||
| Gross profit | 448,183 | 388,331 | 393,432 | 57,984 | 899,287 | 781,763 | 115,216 | |||||||||||||
| Selling and marketing expenses | (326,255 | ) | (285,146 | ) | (308,740 | ) | (45,503 | ) | (646,887 | ) | (593,886 | ) | (87,528 | ) | ||||||
| Research and development expenses | (145,683 | ) | (110,065 | ) | (108,615 | ) | (16,008 | ) | (287,549 | ) | (218,680 | ) | (32,229 | ) | ||||||
| General and administrative expenses | (67,251 | ) | (56,005 | ) | (51,995 | ) | (7,663 | ) | (108,460 | ) | (108,000 | ) | (15,917 | ) | ||||||
| Total operating expenses | (539,189 | ) | (451,216 | ) | (469,350 | ) | (69,174 | ) | (1,042,896 | ) | (920,566 | ) | (135,674 | ) | ||||||
| Loss from operations | (91,006 | ) | (62,885 | ) | (75,918 | ) | (11,190 | ) | (143,609 | ) | (138,803 | ) | (20,458 | ) | ||||||
| Other income/(expenses): | ||||||||||||||||||||
| Investment income | 140,836 | 28,594 | 16,390 | 2,416 | 160,185 | 44,984 | 6,630 | |||||||||||||
| Interest income | 20,247 | 15,608 | 14,696 | 2,166 | 40,857 | 30,304 | 4,466 | |||||||||||||
| Exchange losses | (38 | ) | (90 | ) | (89 | ) | (13 | ) | (134 | ) | (179 | ) | (26 | ) | ||||||
| Others, net | 31,120 | 11,856 | 4,164 | 614 | 33,519 | 16,020 | 2,361 | |||||||||||||
| Income/(Loss) before income tax | 101,159 | (6,917 | ) | (40,757 | ) | (6,007 | ) | 90,818 | (47,674 | ) | (7,027 | ) | ||||||||
| Income tax (expenses)/benefits | (28,679 | ) | (1,610 | ) | 3,366 | 496 | (28,446 | ) | 1,756 | 259 | ||||||||||
| Net income/(loss) | 72,480 | (8,527 | ) | (37,391 | ) | (5,511 | ) | 62,372 | (45,918 | ) | (6,768 | ) | ||||||||
| Net loss/(income) attributable to noncontrolling interests | 2 | 23 | (31 | ) | (5 | ) | 16 | (8 | ) | (1 | ) | |||||||||
| Net income/(loss) attributable to Zhihu Inc.’s shareholders | 72,482 | (8,504 | ) | (37,422 | ) | (5,516 | ) | 62,388 | (45,926 | ) | (6,769 | ) | ||||||||
| Net income/(loss) per share | ||||||||||||||||||||
| Basic | 0.30 | (0.04 | ) | (0.16 | ) | (0.02 | ) | 0.26 | (0.20 | ) | (0.03 | ) | ||||||||
| Diluted | 0.29 | (0.04 | ) | (0.16 | ) | (0.02 | ) | 0.25 | (0.20 | ) | (0.03 | ) | ||||||||
| Net income/(loss) per ADS (One ADS represents three Class A ordinary shares) | ||||||||||||||||||||
| Basic | 0.90 | (0.11 | ) | (0.49 | ) | (0.07 | ) | 0.77 | (0.60 | ) | (0.09 | ) | ||||||||
| Diluted | 0.88 | (0.11 | ) | (0.49 | ) | (0.07 | ) | 0.76 | (0.60 | ) | (0.09 | ) | ||||||||
| Weighted average number of ordinary shares outstanding | ||||||||||||||||||||
| Basic | 240,762,092 | 231,674,268 | 229,444,473 | 229,444,473 | 242,622,911 | 230,570,312 | 230,570,312 | |||||||||||||
| Diluted | 245,755,672 | 231,674,268 | 229,444,473 | 229,444,473 | 247,329,829 | 230,570,312 | 230,570,312 | |||||||||||||
| ZHIHU INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) (All amounts in thousands, except share, ADS, per share data and per ADS data) | ||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
| June 30, 2025 | March 31, 2026 | June 30, 2026 | June 30, 2025 | June 30, 2026 | ||||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
| Share-based compensation expenses included in: | ||||||||||||||||||||
| Cost of revenues | 10 | 386 | 358 | 53 | (862 | ) | 744 | 110 | ||||||||||||
| Selling and marketing expenses | (294 | ) | (271 | ) | (297 | ) | (44 | ) | (32 | ) | (568 | ) | (84 | ) | ||||||
| Research and development expenses | (870 | ) | 7,158 | 7,505 | 1,106 | (1,469 | ) | 14,663 | 2,161 | |||||||||||
| General and administrative expenses | 17,124 | 17,005 | 18,170 | 2,678 | 32,491 | 35,175 | 5,184 | |||||||||||||
| ZHIHU INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands) | |||||
| As of December 31, 2025 | As of June 30, 2026 | ||||
| RMB | RMB | US$ | |||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 3,369,154 | 2,917,986 | 430,058 | ||
| Term deposits | 30,000 | 372,436 | 54,890 | ||
| Short-term investments | 840,938 | 1,014,212 | 149,476 | ||
| Restricted cash | 1,078 | 9,155 | 1,349 | ||
| Trade receivables | 357,998 | 407,727 | 60,092 | ||
| Amounts due from related parties | 25,570 | 16,541 | 2,438 | ||
| Prepayments and other current assets | 107,265 | 111,293 | 16,403 | ||
| Total current assets | 4,732,003 | 4,849,350 | 714,706 | ||
| Non-current assets: | |||||
| Property and equipment, net | 5,349 | 3,468 | 511 | ||
| Intangible assets, net | 29,588 | 26,232 | 3,866 | ||
| Long-term investments, net | 158,480 | 27,760 | 4,091 | ||
| Term deposits | 210,000 | 110,000 | 16,212 | ||
| Right-of-use assets | 42,063 | 27,365 | 4,033 | ||
| Other non-current assets | 13,391 | 9,363 | 1,380 | ||
| Total non-current assets | 458,871 | 204,188 | 30,093 | ||
| Total assets | 5,190,874 | 5,053,538 | 744,799 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable and accrued liabilities | 681,307 | 702,167 | 103,487 | ||
| Salary and welfare payables | 188,038 | 115,254 | 16,986 | ||
| Taxes payables | 16,285 | 29,037 | 4,280 | ||
| Contract liabilities | 186,034 | 208,350 | 30,707 | ||
| Amounts due to related parties | 16,135 | 8,909 | 1,313 | ||
| Short term lease liabilities | 21,382 | 17,899 | 2,638 | ||
| Short-term borrowings | 35,000 | 104,058 | 15,336 | ||
| Other current liabilities | 124,233 | 112,904 | 16,640 | ||
| Total current liabilities | 1,268,414 | 1,298,578 | 191,387 | ||
| Non-current liabilities: | |||||
| Long term lease liabilities | 15,592 | 5,214 | 768 | ||
| Deferred tax liabilities | 27,174 | 6,116 | 901 | ||
| Other non-current liabilities | 4,650 | 6,340 | 935 | ||
| Total non-current liabilities | 47,416 | 17,670 | 2,604 | ||
| Total liabilities | 1,315,830 | 1,316,248 | 193,991 | ||
| Total Zhihu Inc.’s shareholders’ equity | 3,804,136 | 3,663,427 | 539,922 | ||
| Noncontrolling interests | 70,908 | 73,863 | 10,886 | ||
| Total shareholders’ equity | 3,875,044 | 3,737,290 | 550,808 | ||
| Total liabilities and shareholders’ equity | 5,190,874 | 5,053,538 | 744,799 | ||
| ZHIHU INC. UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (All amounts in thousands) | ||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
| June 30, 2025 | March 31, 2026 | June 30, 2026 | June 30, 2025 | June 30, 2026 | ||||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
| Loss from operations | (91,006 | ) | (62,885 | ) | (75,918 | ) | (11,190 | ) | (143,609 | ) | (138,803 | ) | (20,458 | ) | ||||||
| Add: | ||||||||||||||||||||
| Share-based compensation expenses | 15,970 | 24,278 | 25,736 | 3,793 | 30,128 | 50,014 | 7,371 | |||||||||||||
| Amortization and impairment of intangible assets resulting from business acquisitions | 3,490 | 1,510 | 1,510 | 223 | 6,980 | 3,020 | 445 | |||||||||||||
| Adjusted loss from operations | (71,546 | ) | (37,097 | ) | (48,672 | ) | (7,174 | ) | (106,501 | ) | (85,769 | ) | (12,642 | ) | ||||||
| Net income/(loss) | 72,480 | (8,527 | ) | (37,391 | ) | (5,511 | ) | 62,372 | (45,918 | ) | (6,768 | ) | ||||||||
| Add: | ||||||||||||||||||||
| Share-based compensation expenses | 15,970 | 24,278 | 25,736 | 3,793 | 30,128 | 50,014 | 7,371 | |||||||||||||
| Amortization and impairment of intangible assets resulting from business acquisitions | 3,490 | 1,510 | 1,510 | 223 | 6,980 | 3,020 | 445 | |||||||||||||
| Tax effects on non-GAAP adjustments | (600 | ) | (105 | ) | (105 | ) | (15 | ) | (1,200 | ) | (210 | ) | (31 | ) | ||||||
| Adjusted net income/(loss) | 91,340 | 17,156 | (10,250 | ) | (1,510 | ) | 98,280 | 6,906 | 1,017 | |||||||||||
