Zhihu Inc. (NYSE: ZH; HKEX: 2390), China's leading online content community, saw its stock surge 7.38% in intraday trading on Tuesday following the release of its first quarter 2025 financial results and the announcement of changes to its board of directors.

The company reported its first-ever first-quarter non-GAAP net income since its IPO, marking a significant turnaround from the same period last year. Zhihu achieved an adjusted net income of RMB6.9 million (US$1.0 million) in Q1 2025, compared to an adjusted net loss of RMB135.7 million in Q1 2024. This profitability was achieved despite a year-over-year decrease in total revenues, highlighting the company's success in improving operational efficiency and gross margins. The gross margin expanded to 61.8% from 56.6% in the same period of 2024.

Additionally, Zhihu announced the appointment of Dr. Li-Lan Cheng as an independent director and the resignation of Mr. Hanhui Sam Sun from the board. Dr. Cheng, who brings extensive experience in finance and corporate governance, will serve as the chairman of the audit committee and as a member of several other key committees. This change in leadership, coupled with the company's improved financial performance, appears to have boosted investor confidence in Zhihu's future prospects.