Goldman Sachs expects Zhihu's total revenue in the fourth quarter to decline by 26% year-on-year, with a Non-GAAP net loss of 38 million RMB

Goldman Sachs published a research report indicating that due to a decline in the number of Zhihu-W (02390.HK) members and vocational training, the company is expected to see a 26% year-on-year decrease in total revenue for the fourth quarter of this year, with a projected Non-GAAP net loss of RMB 38 million.

As for 2026, the bank anticipates a 10% year-on-year decline in total revenue, considering the ongoing adjustments in Zhihu's membership services and vocational training, and expects a Non-GAAP net profit of approximately RMB 6 million, roughly achieving breakeven.

Goldman Sachs has lowered its revenue forecast for Zhihu for 2025 to 2027 by 9% to 29%, while raising the Non-GAAP net profit margin forecast for 2025 by 6.5 percentage points to reflect the performance in the third quarter. Additionally, considering the increase in business growth investments, it has lowered the Non-GAAP net profit margin forecast for 2026 to 2027 by 4.2 percentage points.

The bank maintains a "Neutral" rating on Zhihu, with the target price for H shares reduced from RMB 12.6 to RMB 11.5, while the target price for Zhihu (ZH.US) in the US stock market has been lowered from USD 4.7 to USD 4.3