Shares of Zhihu Inc. (NYSE: ZH), the leading online content community in China, tumbled 7.21% in pre-market trading on Tuesday following the release of its third-quarter 2025 financial results. The company reported widening losses and a significant decline in revenues, disappointing investors and triggering a sell-off.

For the quarter ended September 30, 2025, Zhihu reported total revenues of RMB658.9 million (US$92.6 million), representing a substantial decrease from RMB845.0 million in the same period of 2024. The company's net loss expanded to RMB46.7 million (US$6.6 million), compared with a net loss of RMB9.0 million in the third quarter of 2024. This deterioration in financial performance appears to be the primary driver behind the stock's pre-market plunge.

Despite management's assurances of progress towards full-year non-GAAP breakeven and ongoing optimization initiatives, investors seem unconvinced by Zhihu's near-term prospects. The company faces challenges in its core business segments, with marketing services revenue declining to RMB189.4 million from RMB256.6 million year-over-year, and paid membership revenue dropping to RMB385.6 million from RMB459.4 million. These figures suggest Zhihu is struggling to maintain its growth trajectory in a competitive Chinese internet landscape.