Summary: Zhihu will release its second-quarter 2025 financial report before the US stock market opens on August 27th. Zhihu's "slimming down profits" has resulted in two consecutive quarters of profitability, but the harsh reality is that its growth momentum is drying up. Faced with the unsustainability of this frugal profit model, what are the chances of Zhihu's bet on AI succeeding?

First Quarter Performance Review

In the first quarter of 2025, Zhihu achieved total revenue of RMB 730 million, with gross profit margin increasing to 61.8% from 56.6% in the same period of 2024. Its net loss was RMB 10.1 million, a 93.9% year-over-year reduction, resulting in a basic net loss per share of RMB 0.04. Zhihu Chairman and CEO Zhou Yuan stated that the company achieved non-GAAP net profit in the first quarter for the first time since its IPO, continuing its profitable momentum from the fourth quarter.

Second Quarter Outlook

According to Bloomberg data, analysts generally expect Zhihu to report second-quarter revenue of 733 million yuan and adjusted earnings per share of -0.09 yuan.

Key Points: Is the Content Moat Under Attack? Will AI Help Break Through?

The report shows that Zhihu's professional content is cited by AI assistants at a rate of 29.9%, the highest in the industry. This also demonstrates its unique value—as large models devour internet content, Zhihu's in-depth discussions become scarce "high-quality fodder."

Zhihu's future growth opportunities appear to lie in its all-in investment in AI strategy. Zhihu is shifting from a knowledge community to a "technical hub" for AI practitioners, building a new triangle of "high-quality content x expert network x AI capabilities."

In interpreting its performance, investors should focus on three key areas:

The risk of large models backlashing. Behind the 29.9% citation rate lies the concern that professional content is being freely "fed" to AI companies. While Zhihu has experimented with traceability mechanisms, its ability to capture value remains weak.

Video platforms are facing cross-border competition. Bilibili has risen as a "learning platform" with its popular science videos, while Douyin and Kuaishou continue to compete for user time. Zhihu's vacillation between its text-based genes and its video-based strategy exposes its transformation difficulties.

The community's tone is diluting. The early elite atmosphere has been diluted by mass adoption, and high-quality answerers have left. Despite the launch of a creator certification program, emotionally charged content continues to erode the platform's professional foundation.

For Zhihu at this stage, AI is both a key factor in its breakthrough, but it can also become a fragile dam that is eroded by the technological torrent.

Investment News

On July 30, Fidelity International, a renowned global investment firm, announced that as of July 25, Fidelity Funds had significantly increased its holdings in Zhihu-W (02390), increasing its stake from 4.576 million common shares at the end of March this year to 12.489 million common shares, and its ownership stake increased from 1.83% to 5.01%. This marks the third time Fidelity International has increased its stake in Zhihu-W since the end of 2024.