Zhihu (ZH) AI Stock Analysis

• Market Cap: $454.99M
• Dividend Yield: N/A
• Average Volume (3M): 411.13K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.84
• Revenue Growth: -22.16%
• EPS Growth: N/A
• Country: US
• Employees: 1,887
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.12
• Shares Outstanding: 82,519,170
• 10 Day Avg. Volume: 408,478
• 30 Day Avg. Volume: 411,131
• PEG Ratio: 0.18
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.66
• P/FCF Ratio: -8.35
• Enterprise Value/Market Cap: -0.61
• Enterprise Value/Revenue: -0.08
• Enterprise Value/Gross Profit: -0.13
• Enterprise Value/Ebitda: 0.58
• 1Y Price Target: $5.00
• Price Target Upside: -4.21% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $5.00 ▼(-4.21% Downside)

Zhihu's overall stock score reflects a mixed outlook. The most significant factor is the company's financial performance challenges, particularly in profitability and cash flow management. However, positive technical indicators and a strong earnings call, highlighting profitability and AI-driven growth, provide a counterbalance. The valuation is moderate, with no dividend yield to attract income-focused investors.

Zhihu Business Overview & Revenue Model

Company Description

Zhihu (ZH) is a leading online content community in China, primarily operating within the digital media and technology sectors. Founded in 2010, the platform serves as a comprehensive question-and-answer website where users engage in discussions, share knowledge, and explore a wide array of topics. Zhihu's core offerings include user-generated content in the form of questions, answers, articles, and multimedia content, all of which foster an environment of communal learning and expertise sharing.

How the Company Makes Money

Zhihu generates revenue through a diversified model primarily centered around advertising, paid memberships, and content-commerce solutions. Advertising forms a significant portion of its income, leveraging its large user base and targeted advertising solutions to attract businesses seeking to reach specific demographics. Paid memberships offer users premium features such as exclusive content, enhanced search capabilities, and an ad-free experience, contributing to a steady subscription revenue stream. Additionally, Zhihu has developed content-commerce solutions, enabling monetization of user-generated content through e-commerce integrations and partnerships, further expanding its revenue potential.

Zhihu Financial Statement Overview

Summary

Zhihu's financial performance is challenged by inconsistent revenue and ongoing profitability issues, despite a strong equity base. The company faces significant hurdles in operational efficiency and cash flow management.

Income Statement

Zhihu shows an inconsistent revenue trajectory with a recent decline from 2023 to 2024. The gross profit margin remains robust above 60%, yet negative EBIT and net profit margins indicate ongoing profitability challenges. While there is some improvement in net loss over time, the company faces significant operational efficiency hurdles.

Balance Sheet

Zhihu maintains a solid equity base, with an improving Debt-to-Equity ratio due to low debt levels. However, the Return on Equity remains negative due to persistent losses, indicating that equity is not currently generating shareholder value. The equity ratio shows strong equity in the asset structure, yet profitability remains a concern.

Cash Flow

Although operating cash flow deficits have narrowed, Zhihu's free cash flow remains negative, restraining flexibility. The operating cash flow to net income ratio is not favorable, highlighting cash generation issues. Despite improvements, cash flow management poses significant risks to financial stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.60B	4.20B	3.60B	2.96B	1.35B
Gross Profit	2.18B	2.30B	1.81B	1.55B	757.80M
EBITDA	-459.13M	-1.05B	-1.58B	-1.37B	-583.27M
Net Income	-171.80M	-843.64M	-1.58B	-1.30B	-517.55M
Balance Sheet
Total Assets	5.73B	6.80B	7.66B	8.81B	3.76B
Cash, Cash Equivalents and Short-Term Investments	4.86B	5.46B	6.26B	7.21B	3.10B
Total Debt	19.13M	45.73M	96.56M	40.52M	2.89M
Total Liabilities	1.54B	2.09B	1.96B	2.07B	1.01B
Stockholders Equity	4.14B	4.60B	5.65B	6.74B	2.75B
Cash Flow
Free Cash Flow	-282.92M	-424.40M	-1.12B	-447.67M	-246.37M
Operating Cash Flow	-280.19M	-415.53M	-1.11B	-440.23M	-244.42M
Investing Cash Flow	2.56B	-1.68B	3.49B	-3.14B	430.11M
Financing Cash Flow	-403.86M	-365.06M	-108.35M	4.88B	9.29M

Zhihu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZH, the sentiment is Positive. The current price of 5.22 is above the 20-day moving average (MA) of 5.06, above the 50-day MA of 4.74, and above the 200-day MA of 4.26, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 57.99 is Neutral, neither overbought nor oversold. The STOCH value of 32.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZH.

Zhihu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	75 Outperform	1.72B	23.41	8.43%	4.07%	29.62%	-19.65%
WB	74 Outperform	3.03B	8.51	8.64%	6.55%	1.21%	14.72%
EVER	74 Outperform	862.80M	19.03	27.34%	―	92.91%	―
FVRR	73 Outperform	923.45M	52.75	4.49%	―	12.60%	64.81%
ZH	63 Neutral	$454.99M	21.16	3.27%	―	-22.16%	―
JOYY	59 Neutral	3.16B	-27.78	-3.10%	4.58%	-7.07%	-150.40%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Zhihu Corporate Events

Zhihu Inc. Releases 2025 Interim Report

Zhihu Inc. has released its 2025 Interim Report as of September 10, 2025, detailing its financial and operational performance for the first half of the year. This report is a key document for stakeholders, providing insights into the company’s current standing and future outlook in the competitive technology sector.

Zhihu Inc. Maintains Stable Share Capital as of August 2025

Zhihu Inc. reported no changes in its share capital for August 2025, maintaining its authorized and registered share capital at USD 200,000. The company also confirmed compliance with all applicable listing rules and regulatory requirements, indicating stable operations and adherence to financial regulations.

Zhihu Inc. Reports Stable Share Capital for July 2025

On August 14, 2025, Zhihu Inc. reported no changes in its share capital for the month ending July 31, 2025, maintaining stability in its authorized and issued shares. The company confirmed compliance with all regulatory requirements related to its securities, indicating a steady operational status without any new share issuances or treasury share movements. This stability in share capital suggests a period of consolidation for Zhihu, potentially impacting investor perceptions and market positioning.

Zhihu Inc. Reports Stable Share Capital for June 2025

Zhihu Inc. reported no changes in its share capital for the month ending June 30, 2025, as per its latest filing with the Hong Kong Exchanges and Clearing Limited. The company maintained its authorized share capital at USD 200,000, with no increase or decrease in issued or treasury shares. This stability in share capital suggests a period of operational steadiness for Zhihu, potentially reassuring stakeholders about the company’s financial health and strategic direction.