Zhihu’s paid content and intellectual property operation returned to year-over-year growth during the second quarter of 2026 even as weakness elsewhere pushed total revenue lower and the company swung from profit to loss.
Total revenue fell approximately 4% to RMB690.1 million, or $101.7 million, from RMB716.9 million.
Paid content and IP operations revenue, however, increased approximately 4% to RMB425.9 million, or $62.8 million, from RMB408.2 million, driven primarily by growth in IP operations.
Marketing services revenue declined to RMB199 million from RMB222.8 million as Zhihu continued refining that business.
Other revenue decreased to RMB65.2 million from RMB86 million, primarily because of changes to its vocational training operation.
Gross profit fell to RMB393.4 million from RMB448.2 million, and gross margin contracted to 57% from 62.5% as content-related costs increased.
Zhihu reported a net loss of RMB37.4 million, or $5.5 million, compared with net income of RMB72.5 million a year earlier.
Adjusted net loss was RMB10.3 million, or $1.5 million, versus adjusted net income of RMB91.3 million.
The company continued lowering its cost base. Total operating expenses declined 13%, while R&D spending fell 25.4% to RMB108.6 million.
Average monthly subscribing members totaled 13.1 million.
Zhihu is also looking to monetize its content and expert network through AI-based applications. Management said its expert data solutions have begun validating an end-to-end commercial process spanning customer requirements through scaled delivery.
The company repurchased 6.5 million Class A shares during Q2 for $7.2 million. Cumulative repurchases under its programs reached 41.3 million shares for $77.9 million.
KEY QUOTES:
“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.”
Yuan Zhou, Chairman and Chief Executive Officer of Zhihu
