Zhihu (NYSE:ZH) reported Q1 2026 revenue of C¥651.6 million, with a basic EPS loss of C¥0.11 and a quarterly net income loss of C¥8.5 million. Over the trailing twelve months, revenue totaled C¥2.7 billion and the EPS loss stood at C¥2.42. The company has seen quarterly revenue move between C¥643.5 million and C¥859.2 million since Q4 2024, with basic EPS shifting from a profit of C¥1.01 in Q4 2024 to a loss of C¥2.66 in Q4 2025, followed by the latest quarter’s narrower loss. As a result, this season’s focus is on how effectively Zhihu is managing losses and protecting margins while working through uneven profitability.

See our full analysis for Zhihu.

With the headline numbers on the table, the next step is to see how this earnings report aligns with widely held narratives about Zhihu’s growth, profitability, and long-term potential.

Losses Narrow To C¥8.5 Million

• Net income loss narrowed to C¥8.5 million in Q1 2026 compared with losses of C¥208.6 million in Q4 2025 and C¥46.7 million in Q3 2025, while trailing twelve month losses sat at C¥191.3 million.
• Bulls point to Zhihu cutting losses by an annualized 41.6% over five years, yet
  • trailing twelve month EPS is still a loss of C¥2.42 and forecasts in the provided data indicate the company is expected to stay unprofitable over the next three years, so the path to breakeven is not reflected in current numbers,
  • and Q1 2026 remains in the red despite cost work, which means the bullish focus on eventual margin improvement is not yet backed by reported profitability.

Consistent loss reduction without a clear route to profits yet is exactly what bullish investors are debating, and the full bull case sets out how they think this gap could close over time 🐂 Zhihu Bull Case.

Revenue At C¥2.7 Billion LTM

• Over the last twelve months, Zhihu generated C¥2.7 billion in revenue, with periodical revenue moving between C¥643.5 million and C¥859.2 million since Q4 2024, while the reported 4.8% annual revenue growth rate over the last year trails the cited 12.1% US market growth.
• Bears argue that slower top line growth and ongoing losses can cap earnings recovery because
  • revenue in recent quarters stepped down from C¥859.2 million in Q4 2024 to C¥651.6 million in Q1 2026, which fits the cautious view that the business is still in an adjustment phase,
  • and the same data set expects Zhihu to remain unprofitable over the next three years, which lines up with the bearish claim that heavier AI and content investment could keep net margins negative.

If you want to see how skeptics connect this softer growth and ongoing losses to their thesis, the detailed bear narrative lays that out in full 🐻 Zhihu Bear Case.

P/S Of 0.6x Versus Peers

• At a share price of US$3.09, Zhihu trades on a P/S of 0.6x compared with the cited peer average of 0.9x and industry average of 1.0x, and the stock price sits well below the stated DCF fair value of US$6.84 per share.
• Supporters of the bullish valuation angle highlight this discount, yet
  • trailing twelve month net income is a loss of C¥191.3 million and EPS over that period is a loss of C¥2.42, so the lower P/S is attached to a business that has not produced positive earnings in the last year,
  • and forecasts in the provided data still show no expected return to profitability within three years, which means any thesis built around re rating from current multiples must work with an unprofitable base for now.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Zhihu on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Given the mix of optimism and caution in this report, it makes sense to look through the full data yourself and decide quickly where you stand. Then weigh both the upside and the concerns by checking the 2 key rewards and 1 important warning sign.

See What Else Is Out There

Zhihu is still reporting losses with a C¥191.3 million trailing twelve month net loss, softer recent revenue, and no profitability expected in the provided three year outlook.

If that mix of ongoing losses and modest revenue performance feels uncomfortable, you may wish to shift your attention to companies with stronger earnings support by checking the 47 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.