Zhihu Inc. Sponsored ADR
ZH Communication Services Internet Content & Information
Zhihu Inc. Sponsored ADR’s revenue for fiscal 2025 (year ended December 2025) was $393.1 million, down 20.3% from fiscal 2024. In the quarter to June 2026, revenue grew 1.63%, EPS fell 153.9%, free cash flow grew 68.1% and total debt rose 99.5%, each against the same quarter a year earlier.
Follow ZH
Zhihu Inc. Sponsored ADR (ZH) Altman Z-score
Zhihu Inc. Sponsored ADR's Altman Z-score for fiscal 2025 is −0.60, in the distress zone (below 1.81).
Altman Z-score, annual
Embed this chart
Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | −0.60 | (0.53) |
| FY2024 | −0.07 | (0.29) |
| FY2023 | 0.23 | (0.65) |
| FY2022 | 0.88 | (3.74) |
| FY2021 | 4.62 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.67 | — | 0.80 | |
| Retained earnings / total assets | (1.75) | — | −2.45 | |
| EBIT / total assets | (0.10) | — | −0.32 | |
| Market value of equity / total liabilities | 1.39 | — | 0.84 | |
| Sales / total assets | 0.53 | — | 0.53 | |
| Altman Z-score | Distress zone | −0.60 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.12 | ||
Z and Z″ put Zhihu Inc. Sponsored ADR in different zones: distress zone by Z, grey zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| PERI Perion Network Ltd compare | 2.2× |
| FVRR Fiverr International compare | 1.8× |
| ZIP ZipRecruiter, Inc. compare | 1.6× |
| SSTK Shutterstock, Inc. compare | 1.5× |
| ANGI Angi Inc. compare | 1.2× |
| DOYU DouYu International Holdings Limited Sponsored ADR compare | 0.9× |
| DIBS 1stdibs.com, Inc. compare | 0.6× |
| ZH Zhihu Inc. Sponsored ADR | −0.6× |
| GIBO GIBO Holdings Limited compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets