Shares of Zhihu Inc. (NYSE: ZH), the leading online content community in China, plummeted 8.58% in Tuesday's trading session following the release of its third-quarter 2025 financial results. The company reported widening losses and a significant decline in revenues, disappointing investors and triggering a sell-off.

For the quarter ended September 30, 2025, Zhihu reported total revenues of RMB658.9 million (US$92.6 million), representing a substantial decrease of 22% from RMB845.0 million in the same period of 2024. The company's net loss expanded to RMB46.7 million (US$6.6 million), compared with a net loss of RMB9.0 million in the third quarter of 2024. This deterioration in financial performance appears to be the primary driver behind the stock's plunge.

Despite management's assurances of progress towards full-year non-GAAP breakeven and ongoing optimization initiatives, investors seem unconvinced by Zhihu's near-term prospects. The company faces challenges in its core business segments, with marketing services revenue declining by 26.2% to RMB189.4 million and paid membership revenue dropping by 16.1% to RMB385.6 million year-over-year. These figures suggest Zhihu is struggling to maintain its growth trajectory in a competitive Chinese internet landscape, leading to the significant stock price decline observed in the market.