Zhihu Inc. (ZH), a Chinese online content community, on Wednesday reported second-quarter results returning to profit, backed by higher investment income from gains of a private-company investment, despite weak revenues.
ZH shares are currently trading 0.43% higher at $4.65 on the NYSE.
In the second quarter, net profit attributable to shareholders swung back to RMB72.48 million or $10.12 million from a loss of RMB82.74 million a year ago.
The company reversed to earnings per share of RMB 0.29 or $0.04 from loss per share of RMB 0.30 in the prior year.
On American Depository share basis, earnings were RMB0.88 or $0.12 per ADS, compared to loss per ADS of RMB 0.89.
Adjusted net income was RMB91.34 million or $12.75 million, compared to loss of RMB44.60 million in the prior year.
Income before income tax was RMB101.16 million or $14.12 million, compared to a loss of RMB87.66 million a year ago.
Gross margin improved to 62.5% in the second quarter of 2025 from 59.6% a year ago.
Investment income increased to RMB140.8 million or $19.7 million from RMB21.8 million a year ago. The increase was mainly from gains in fair-valuing a private-company investment due to observable price changes in the second quarter, as stated by the company.
Total revenue, meanwhile, declined to RMB716.89 million or $100.08 million from RMB933.81 million a year ago.
The slip in revenue was primarily due to ongoing refinement of service offerings and a decline in monthly subscribing members.
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