Why Did Zhihu Inc. Shares Soar 10.63%?

Zhihu Inc. (NYSE: ZH) shares surged 10.63% in pre-market trading on March 26, 2025, driven by the company's latest financial performance report.

Zhihu Inc. reported its unaudited fourth quarter and fiscal year 2024 financial results, revealing a significant turnaround in profitability. The company posted a net income of RMB 86.4 million, or approximately $11.8 million, in the fourth quarter, a stark contrast to the net loss of RMB 103.1 million recorded in the same period last year. This shift to profitability, despite lower revenues, has been a key driver of investor optimism.

Analysts have noted that Zhihu's strategic initiatives and cost-cutting measures have played a crucial role in achieving this financial milestone. The company's focus on enhancing user engagement and monetization strategies has also contributed to its improved financial health. Investors are closely monitoring Zhihu's future performance, anticipating continued growth and profitability in the coming quarters.