Zhihu FY2025 Revenue Drops 23.6% While Net Loss Widens to RMB195 Million

Zhihu reported FY2025 revenue of RMB2.75 billion (US$393.10 million), down 23.6 % from FY2024, according to its Form 20-F filed with the U.S. SEC.

Marketing services revenue declined 32.3 % to RMB843.93 million, representing 30.7 % of total revenue. Paid membership revenue fell 12.7 % to RMB1.54 billion but remained the largest contributor at 56.0 %. Revenue from other services, mainly vocational training and e-commerce, dropped 37.9 % to RMB366.13 million.

Gross profit decreased 24.4 % year-on-year to RMB1.65 billion, with gross margin edging down to 59.9 % from 60.6 %. Operating expenses fell 19.0 % to RMB2.16 billion, yet the company recorded a goodwill impairment of RMB126.34 million linked to earlier acquisitions.

As a result, Zhihu posted an operating loss of RMB507.29 million and a net loss attributable to shareholders of RMB192.90 million, compared with a RMB171.80 million loss in FY2024. The annual effective tax rate shifted to a 12.5 % expense from a 5.3 % benefit a year earlier.

Cash, cash equivalents, term deposits, short-term investments and restricted cash totaled RMB4.54 billion (US$636.54 million) at year-end. Net cash used in operating activities was RMB363.61 million, compared with RMB280.19 million in FY2024.

Selling and marketing spending contracted 21.7 % to RMB1.25 billion; research and development expenses declined 28.3 % to RMB525.00 million; and general and administrative expenses dropped 23.9 % to RMB251.42 million.

During the year Zhihu repurchased 16.64 million Class A ordinary shares for RMB167.06 million and cancelled RMB126.34 million of goodwill after impairment testing. Outstanding share buyback authorization stands at 13.09 million Class A ordinary shares as of year-end.

The company’s board comprises seven directors, with four standing committees—Audit, Compensation, Nomination and Corporate Governance—overseeing operations. The Audit Committee confirmed the effectiveness of internal controls; PricewaterhouseCoopers Zhong Tian LLP issued an unqualified opinion on FY2025 financials.