Zhihu Grows Paid Content Revenue 15.8% and Holds RMB4.5B Cash
ZH•Zhihu reported sequential revenue growth of 15.8% in paid content and IP operations and saw average daily user engagement rise to about 42 minutes, while maintaining RMB4.5 billion in cash. However, Q1 revenue fell from RMB729.7 million to RMB651.6 million year-on-year and gross margin dipped to 59.6%.
1. Financial Results
Zhihu’s Q1 revenue declined 10.7% year-on-year to RMB651.6 million from RMB729.7 million, with gross margin slipping to 59.6% from 61.8%. Operating expenses totaled RMB451.2 million despite a year-over-year decrease, while R&D spending fell 22.4%, raising questions about future innovation capacity.
2. User Engagement and AI Integration
Average daily time spent per active user increased to approximately 42 minutes, reflecting stronger engagement. Sequentially, revenue from paid content and IP operations rose 15.8%, driven by robust IP activity, and the company integrated AI features across its platform to enhance social interactions and streamline content creation.
3. Cash Position and Strategic Outlook
As of March 31, 2026, Zhihu held RMB4.5 billion in cash and equivalents, providing financial flexibility. Management plans to build a high-quality community data platform and open API for creators, balancing sustained community investment with product simplification amid competitive and macro challenges.
