Breaking Down 36Kr Holdings Inc. (KRKR) Financial Health: Key Insights for Investors

You're looking at 36Kr Holdings Inc. (KRKR) and wondering if the dramatic shift in their bottom line is a real turnaround or just an accounting trick, so let's cut straight to the numbers from the first half of 2025.

The headline is that the cost-cutting strategy is defintely working: the company slashed its net loss by a stunning 95% year-over-year, bringing the figure down to just US$0.7 million for the six months ended June 30, 2025, which is a massive win for operational efficiency. Here's the quick math: they reduced operating expenses by 52.3% and boosted the gross margin by 10 percentage points to a healthy 54.4%, largely through strategic workforce optimization and strict cost control measures. But still, total revenues dipped to US$13.0 million, a clear signal that macro pressures and their own efforts to control credit risk are squeezing the top line. This is a classic trade-off: you're swapping revenue scale for margin improvement, and the question is whether their 36.6 million followers and new AI-powered services can drive the next leg of growth to justify a long-term position.

Revenue Analysis

You need to know the core of 36Kr Holdings Inc. (KRKR) revenue story is a strategic pivot, not just a decline. While total revenues for the first half of 2025 (H1 2025) saw a year-over-year (YoY) drop of about 9.0%, falling to US$13.0 million from US$14.2 million in H1 2024, the underlying shift toward higher-quality business is the real headline.

The company's revenue streams are concentrated, relying heavily on its primary segment. This concentration presents both a risk and a clear area of focus for management, especially as they navigate the challenging macro environment in China's New Economy sector. Honestly, a nearly 10% revenue dip while aggressively cutting costs shows a focus on survival over scale right now.

Here is the breakdown of the primary revenue sources for the first half of the 2025 fiscal year:

• Online Advertising Services: The dominant source, bringing in US$10.4 million.
• Enterprise Value-Added Services: A smaller, but strategic, segment at US$1.7 million.
• Subscription Services: The smallest contributor, generating US$0.9 million.

The Online Advertising segment is the engine, contributing roughly 80.0% of the total revenue in H1 2025. This makes the company defintely sensitive to changes in advertiser spending, but it also means any success in their new AI-powered offerings can move the needle fast. We're seeing early signs of this, with advertising revenue from their AI/large-model offerings expanding by over 50% YoY, which is a key opportunity.

The overall revenue decline stems from a few deliberate and unavoidable factors. Management proactively optimized their customer structure to control credit risk, which reduced the revenue scale in online advertising. Plus, both Enterprise Value-Added Services and Subscription Services saw declines due to strategic refinement of service offerings and a change in the training services business model, respectively. They are trading some revenue for better margins, which is a classic move in a downturn.

To put the segment contributions in perspective, here's the quick math on how each area performed year-over-year in the first half of 2025 (all figures in millions of US dollars):

What this estimate hides is the improved gross margin, which increased by 10 percentage points to 54.4% in H1 2025, showing the cost-cutting and focus on high-margin business is working. For a deeper dive into who is betting on this turnaround, you should check out Exploring 36Kr Holdings Inc. (KRKR) Investor Profile: Who's Buying and Why?

Profitability Metrics

You want to know if 36Kr Holdings Inc. (KRKR) is a profitable business, and the short answer is: they are not yet profitable on the bottom line, but their operational efficiency has improved dramatically in 2025. We are seeing a significant narrowing of losses, which is a critical turning point for a New Economy platform.

For the first half of 2025 (H1 2025), 36Kr Holdings Inc. reported a net loss of only RMB4.8 million (approximately US$0.7 million), which represents a massive 95% reduction in net loss year-over-year. This is a clear signal that the company's strict cost control measures are working, even as they chase break-even.

Gross, Operating, and Net Margins

The real story is in the margins. You need to look past the net loss to understand the underlying business health, which is surprisingly strong at the top of the income statement. Here is the quick math for the first six months of 2025:

• Gross Profit Margin: The margin jumped to a strong 54.4% in H1 2025, up a full 10 percentage points from the prior year. This shows their core service delivery is high-margin.
• Operating Profit Margin: After accounting for operating expenses, the company still posted an operating loss of approximately -5.6% (RMB5.2 million loss on RMB93.2 million revenue).
• Net Profit Margin: The net loss margin for H1 2025 was approximately -5.2%. This is a massive improvement from the prior year's loss margin of over 93%.

The Gross Margin trend is defintely a bullish indicator, proving their content and value-added services (VAS) are priced effectively against the cost of revenue.

Operational Efficiency and Industry Comparison

The operational efficiency story is the most compelling near-term opportunity. The company slashed its total operating expenses by 52.3% to RMB55.9 million in H1 2025, primarily through strategic workforce optimization and streamlining spending. That's how you engineer a 95% reduction in net loss; you cut the fat aggressively.

When we look at the broader Chinese Internet Services sector, the comparison provides crucial context:

The high gross margin of 54.4% is a structural advantage, especially when compared to the 10% gross margin for the marketing services segment of a peer like Sohu.com. However, the negative operating margin shows that their selling, general, and administrative (SG&A) costs are still too high relative to revenue, even after the cuts. The next action for management is to scale revenue into that high gross margin base without letting operating costs creep back up. You can read more about this inflection point in Breaking Down 36Kr Holdings Inc. (KRKR) Financial Health: Key Insights for Investors.

Next Step: Management must now demonstrate a clear path to achieving the forecast of profitability by the end of 2025 by proving the new AI-driven advertising revenue can scale faster than any remaining operating expenses.

Debt vs. Equity Structure

You need to know how 36Kr Holdings Inc. (KRKR) funds its operations, and the quick answer is: mostly through equity, not debt. Their balance sheet as of the first half of 2025 shows a very conservative approach to leverage, which is typical for growth-focused, but still unprofitable, New Economy platforms in China.

The company's total debt is remarkably low at just CN¥10.0 million ($1.4 million USD, for context). This minimal debt load is dwarfed by their total shareholder equity of CN¥113.3 million, which is the real engine of their funding. This is a very strong liquidity position, but it also means they aren't using debt to amplify returns-a double-edged sword.

The Debt-to-Equity Snapshot

The most telling figure here is the Debt-to-Equity (D/E) ratio, which measures how much of the company's financing comes from debt versus shareholders' equity. Here's the quick math for 36Kr Holdings Inc. (KRKR) based on the latest available 2025 data:

• Total Debt: CN¥10.0 million
• Total Shareholder Equity: CN¥113.3 million
• Debt-to-Equity Ratio: 8.8% (or 0.088)

To be fair, a D/E ratio of 8.8% is extremely low. For the broader Communication Services industry, which is a good proxy for a media and platform company, the D/E ratio typically ranges from 0.19 to 2.01 (or 19% to 201%). 36Kr Holdings Inc. (KRKR) sits far below the lower end of that range. This tells you the company is not under any meaningful financial stress from debt, but it also suggests they have massive untapped capacity for borrowing, should they find a high-return project to fund.

Near-Term Debt Composition and Activity

When we break down the debt, most of it is long-term, which is a good sign for stability, plus their short-term assets easily cover all short-term liabilities. The minimal debt is structured as follows:

The company has shown zero reliance on new debt to fund its recent operations. For the six months ending June 2025, the net issuance of debt was $0.00 million. This means they either paid down debt or simply did not take on any new loans. They are financing growth, or managing losses, entirely through internal cash flow and existing equity, not external credit. This capital structure is defintely risk-averse.

Balancing Debt and Equity for Growth

36Kr Holdings Inc. (KRKR) is clearly prioritizing financial health and cash preservation over financial leverage (using debt to boost equity returns). With cash reserves of approximately CN¥75.15 million against only CN¥10.0 million in total debt, they have a massive cash-to-debt cushion. This balance is a strategic choice: it keeps the company resilient against market downturns and interest rate hikes, but it also limits the potential for outsized returns that strategic, low-cost debt could provide.

For investors, this means the risk of bankruptcy due to debt default is practically non-existent. The trade-off is that future growth will be slower and more dependent on generating profit or raising new equity, rather than leveraging cheap credit. This aligns with their mission to empower New Economy participants, which you can read more about here: Mission Statement, Vision, & Core Values of 36Kr Holdings Inc. (KRKR).

Liquidity and Solvency

You want to know if 36Kr Holdings Inc. (KRKR) has the cash to cover its near-term obligations, and the quick answer is yes, but with a narrow margin that highlights the importance of their recent cost-cutting. Their liquidity position as of the most recent data is stable, largely due to a significant operational turnaround in the first half of 2025.

Assessing 36Kr Holdings Inc. (KRKR)'s Liquidity Ratios

The core of any liquidity check is the Current Ratio, which measures current assets against current liabilities. For 36Kr Holdings Inc., the Current Ratio is approximately 1.15, which is down slightly from the prior year's 1.20 but still above the critical 1.0 threshold.

The Quick Ratio (or acid-test ratio), which strips out less-liquid assets like inventory, sits at a tight 1.01. This means the company's most liquid assets-cash, equivalents, and receivables-can just cover its short-term debt. This is defintely a tight spot, but it shows they can meet obligations without selling long-term assets or waiting on slow-moving inventory. It's a pass, but not a comfortable one.

• Current Ratio: 1.15 (just covers short-term debt).
• Quick Ratio: 1.01 (cash and receivables cover liabilities).
• Cash Position: RMB 75.1 million (US$10.5 million) in cash, equivalents, and short-term investments as of June 30, 2025.

Analysis of Working Capital Trends and Cash Flow

The real story isn't just in the ratios, but in the dramatic improvement in working capital management. The company has aggressively streamlined operations, which directly impacts future cash flow from operations.

In the first half of 2025 (H1 2025), 36Kr Holdings Inc. reduced its operating expenses by an impressive 52.3%, bringing the total down to RMB 55.9 million (US$7.8 million). This is massive. The cost control measures-including workforce reductions and streamlined non-core spending-are translating directly into a much narrower bottom line loss, which is the first step to positive operating cash flow.

Here's the quick math on the income statement impact:

Because the net loss narrowed by 95% to just RMB 4.8 million (US$0.67 million) in H1 2025, the drag on operating cash flow is significantly reduced. This operational efficiency, plus a gross margin increase to 54.4%, suggests the trend in cash flow from operations is moving sharply toward positive territory. We are seeing a shift from a cash-burning model to a much leaner one, which is crucial for a New Economy participant in China.

Potential Liquidity Concerns and Strengths

The primary liquidity strength is simple: a much-reduced burn rate and a solid cash cushion of RMB 75.1 million (US$10.5 million). This capital gives them runway. The major risk, however, is the continued decline in total revenue, which was RMB 93.2 million in H1 2025, down from RMB 102.4 million in the same period last year.

Their cash flow from investing activities has historically been volatile, often showing net cash inflows (like $4.52 million in 2024) from investment activities, but this isn't sustainable for long-term growth. The real opportunity lies in converting the near-break-even net loss into sustained positive operating cash flow, which is the only way to truly solidify their solvency for the long haul. You can read more about the company's full financial picture here: Breaking Down 36Kr Holdings Inc. (KRKR) Financial Health: Key Insights for Investors.

To be fair, the management team has shown they can execute on cost control, so the next step is proving they can grow revenue without sacrificing that new-found efficiency.

Valuation Analysis

You need to know if 36Kr Holdings Inc. (KRKR) is a bargain or a trap right now. The quick takeaway is that traditional valuation metrics suggest the stock is significantly undervalued on a book and enterprise value basis, but the market's negative sentiment and an extremely low analyst price target tell a different story. It's a classic value-trap signal.

As of late November 2025, 36Kr Holdings Inc. is trading around $5.05. The stock has had a wild ride over the last 12 months, with a 52-week range spanning from a low of $2.76 to a high of $21.36. The stock's 2025 performance, despite the volatility, showed an upward trend of 81.33% as of mid-year, a significant bounce that still leaves it far below its 52-week peak.

Here's the quick math on the key valuation ratios for 36Kr Holdings Inc. based on 2025 fiscal data. Since the company reported a net loss of CN¥2.36 per share in the first half of 2025, the Price-to-Earnings (P/E) ratio is negative or 'not applicable' (n/a). This immediately shifts the focus to other metrics like Price-to-Book, which is a better tool for companies still in a growth or turnaround phase.

• Price-to-Book (P/B): The P/B ratio is a low 0.63. This means the stock is trading at 63 cents for every dollar of its book value (assets minus liabilities), suggesting it is undervalued compared to its liquidation value.
• Enterprise Value-to-EBITDA (EV/EBITDA): The EV/EBITDA ratio sits at a very low 1.72 as of November 21, 2025. This metric compares the total value of the company (Enterprise Value) to its operating cash flow proxy (EBITDA), and a number this low often signals deep value or, critically, high investor risk.

The company does not pay a dividend. Its Trailing Twelve Months (TTM) dividend payout is $0.00, resulting in a 0.00% dividend yield. This is common for growth-focused, smaller-cap Chinese New Economy companies that prioritize reinvesting cash flow back into the business, not paying shareholders.

The analyst consensus is where the real confusion lies. While one group of 7 analysts gives 36Kr Holdings Inc. a consensus rating of 'Buy' (with 3 Strong Buy and 3 Buy ratings), their average 12-month price target is only $1.24. That's a massive -78.54% downside from the recent trading price of $5.36. To be fair, a completely different analyst view suggests a consensus 'Sell' rating. You simply cannot have a 'Buy' rating with a target price that low. This contradiction suggests a deep disagreement on the company's future, likely stemming from its volatility and the challenging regulatory environment for Chinese stocks.

What this estimate hides is the potential for a massive short-squeeze or a complete collapse, given the huge gap between the current price and the analyst target. For a deeper dive into the company's operational performance, check out the full post: Breaking Down 36Kr Holdings Inc. (KRKR) Financial Health: Key Insights for Investors.

Risk Factors

You've seen the impressive progress 36Kr Holdings Inc. (KRKR) made in the first half of 2025, slashing their net loss to just RMB 4.8 million (US$0.67 million) from RMB 95.9 million a year earlier. That's a massive step toward break-even. But as a seasoned analyst, I have to point out that their core business still faces three immediate, tough risks you need to watch closely before committing capital.

The biggest near-term problem is the market's skepticism about revenue growth, which is an external risk. The company's Price-to-Sales (P/S) ratio is sitting low at around 0.5x as of September 2025, reflecting investor worry about their ability to scale revenue. To be fair, their 2024 revenue saw a sharp decline of 32.08% from the previous year, so the concern is grounded in recent history. They need to show consistent, significant top-line growth, not just cost cuts.

Operational and Financial Risks

Their financial health, while improving, still carries a reliance risk. In the first half of 2025, 36Kr Holdings Inc. generated total revenues of RMB 93.2 million, with online advertising services making up a substantial RMB 74.5 million of that. That's a heavy concentration. If the broader Chinese digital advertising market slows, or if a major partner like Alibaba or ByteDance shifts their spending, the impact on 36Kr Holdings Inc.'s cash flow is immediate.

Here's the quick math on their cost control success in H1 2025, which is also a risk: they achieved a gross profit margin of 54.4%, up 10 percentage points, primarily because operating expenses dropped by a massive 52.3%. That's great, but you can only cut costs so much before it hurts the business. You have to ask: can they maintain this efficiency while simultaneously investing enough to drive the necessary revenue growth?

• Watch the advertising revenue concentration.
• Can cost cuts sustain without damaging growth?

External and Regulatory Headwinds

The external environment in China presents a constant regulatory risk. As a media and content platform serving the 'New Economy,' 36Kr Holdings Inc. operates under the strict and often unpredictable oversight of Chinese government agencies. New rules on data privacy, content censorship, or even foreign listing compliance (as a NASDAQ-listed company) could emerge quickly and impact operations. That's a risk you defintely can't mitigate internally.

Their mitigation strategy, outlined in September 2025, is a clear action plan. They are focusing on a three-pronged approach to achieve 'profitable growth' in the second half of 2025:

• Upgrade original content quality.
• Commercialize AI products, building on the over 50% year-over-year growth in AI/large-model advertising revenue.
• Scale industrial services to diversify beyond pure advertising.

This pivot toward AI and industrial services is their best bet to diversify and stabilize their revenue base. If you want a deeper dive into the ownership structure behind this strategy, you should read Exploring 36Kr Holdings Inc. (KRKR) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking for a clear path forward for 36Kr Holdings Inc. (KRKR), and the story is currently less about massive revenue growth and more about a sharp turn toward efficiency and new, higher-margin businesses. The company's first half of 2025 financial results show a revenue decline to CNY 93.2 million, but the real headline is the massive improvement in the bottom line: net loss was slashed by over 95% to just CNY 4.8 million. That's a huge shift, and it sets the stage for their future growth strategy.

Here's the quick math: they cut operating expenses by over 52% in the first half of 2025, which is how you get from a huge loss to being on the cusp of breaking even. Now, the growth engine for the second half of 2025 and beyond is shifting from pure advertising volume to three specific, high-value areas. They are defintely focused on quality over quantity now.

• Product Innovations: AI Commercialization. The company is leveraging AI technology to both optimize content production and create new commercial products. They are using AI to cover more companies-993 were covered in one period-and their AI-powered meeting product and corporate Omni Intelligence are gaining traction, with a user base of 25,000.
• Market Expansions: Global and Industrial Services. A core growth driver is the industrial service business, specifically helping Chinese enterprises expand globally. This includes a strategic partnership with Hangzhou Tiantang New Era Construction and Investment Group Company to build an international service ecosystem. This initiative is a direct play on China's 'going global' trend, and it's a much stickier, higher-margin business than simple online ads.
• Strategic Focus: New Economy Sectors. 36Kr Holdings Inc. is deliberately focusing its content and services on high-growth sectors that drive urban industrial transformation. This includes areas like the low altitude economy, commercial aerospace, advanced manufacturing, and new energy and materials. This focus helps them attract over 200 upstream and downstream industry projects, fostering deep commercial partnerships.

The company's competitive advantage isn't just their content-though their follower base is strong at over 36.57 million as of June 2025, up 9.9% year-over-year. Their real moat is the 'content + technology + industrial services' model. They use their media brand and deep-rooted expertise in the New Economy to acquire users and clients, then sell them high-value enterprise services, which is a much more profitable loop. You can see their underlying mission here: Mission Statement, Vision, & Core Values of 36Kr Holdings Inc. (KRKR).

While a recent analyst consensus from mid-2025 was projecting full-year revenue around CNY 378.4 million, what this estimate hides is the company's aggressive pivot. The goal for the second half of 2025 is 'profitable growth' and 'decisively sprinting to break even'. That means they are prioritizing margin over top-line revenue, which is a necessary step for a company that was previously bleeding cash. The market needs to see sustained profitability before rewarding revenue growth again.

The table below breaks down the key financial shift that underpins their future strategy:

So, the action item is clear: watch the Q3 and Q4 2025 reports for evidence of revenue stabilization in the new, higher-margin industrial and AI services segments. If they can show a full-year 2025 net loss below CNY 10 million-or even a profit-it validates the strategy. The next earnings report is expected around December 4, 2025.