36Kr Holdings (KRKR) 2025: 57.7% Gross Margin Marks Profitability Turnaround Amid AI and Live Streaming Growth
36Kr achieved a major profitability milestone in 2025, driven by margin expansion and cost discipline alongside AI and live streaming commercialization. The company’s diversified content ecosystem and strategic partnerships underpin a cautious yet optimistic outlook for sustained growth despite macroeconomic headwinds.
Summary
- Profitability Milestone: 36Kr reversed multi-year losses to post net income through margin gains and cost control.
- Content and Commercialization Expansion: AI-driven products and live streaming fueled new client acquisition and revenue diversification.
- Strategic Caution: Management signals measured optimism amid macro challenges, emphasizing client stability and innovation.
Business Overview
36Kr Holdings is a Chinese digital media and business services company focused on serving New Economy participants through content creation, online advertising, enterprise value-added services, and subscription offerings. The company monetizes its extensive content ecosystem and platform reach by providing advertising and marketing solutions, industry events, and subscription-based research and training services.
Performance Analysis
In 2025, 36Kr delivered a significant financial turnaround, reporting net income of RMB11.4 million (US$1.6 million) compared with a net loss of RMB140.8 million in 2024. This was underpinned by a 9.1 percentage point expansion in gross profit margin to 57.7%, reflecting a strategic shift towards higher-margin brand advertising services and rigorous cost controls. Total revenues were RMB227.9 million (US$32.6 million), slightly down from RMB231.1 million in the prior year, indicating revenue stability amid market headwinds.
Segment performance was mixed but highlighted growth in key areas: online advertising services remained stable with a slight 0.5% decline for the full year, while enterprise value-added services grew 1.2%, driven by innovative marketing solutions and strategic sales efforts. Subscription services declined 14.2%, reflecting a deliberate pivot away from lower-margin training services and refinement of the customer base. Cost of revenues fell 18.8% to RMB96.4 million, supporting the margin expansion, while operating expenses were cut by 36.1% to RMB121.5 million, showcasing disciplined expense management.
- Margin Expansion Levers: Focus on brand advertising and high-margin businesses drove gross margin from 48.6% to 57.7% year-over-year.
- Operational Efficiency: Operating expenses declined sharply, notably a 54.5% reduction in general and administrative costs, reflecting workforce optimization.
- Revenue Mix Shift: Growth in AI-related advertising and live streaming offset declines in traditional subscription services.
The financial results demonstrate 36Kr’s successful execution of its strategic transition towards sustainable profitability and growth in emerging digital formats despite a challenging macroeconomic environment.
Executive Commentary
"In 2025, we achieved a key breakthrough by turning profitable while maintaining stable revenue performance. These achievements were driven by our continued integration of content innovation, commercialization breakthroughs, and technological applications."
Da Gangfeng, Chairman and CEO
"We significantly increased our gross margin by 9.1 percentage points for the full year and cut operating expenses by 36%. We will continue to optimize cost structure and improve operating efficiency to maintain stable cash flow and profitability."
Xiang Li, Chief Financial Officer
Strategic Positioning
1. Content Ecosystem Diversification and Expansion
36Kr has expanded its content distribution across multiple platforms including Weibo, Xiaohongshu, Zhihu, Douyin, and Bilibili, reaching over 36.8 million followers by year-end. The company’s content spans text, graphics, short and long-form video, audio, and live streaming formats, with flagship channels like 36Kr Pro and verticals targeting AI, tech, and consumer lifestyle. This multi-format, multi-channel strategy enhances user engagement and broadens audience demographics, providing a strong foundation for monetization.
2. Commercialization of AI and Live Streaming
AI-related services and live streaming have become significant growth drivers. Live streaming revenue surged nearly 40% year-over-year, supported by new client additions exceeding 50%. The company launched AI-focused programs such as AI Insider and leveraged major tech events like the World AI Conference to boost visibility. AI-powered content production tools and AI review platforms enhance operational efficiency and client engagement, positioning 36Kr as a pioneer in AI-enabled media commercialization.
3. Strategic Partnerships and Industry Services
36Kr strengthened its enterprise value-added services through collaborations with government entities and industry organizations, exemplified by a three-year partnership with Hangzhou Tiantang New Area for corporate service ecosystem development. The company’s industry-focused IP events and summits, including WISE and AI Partner Summit, attracted significant attention and fostered deep client relationships, supporting incremental revenue and enhancing brand equity.
4. Cost Discipline and Organizational Optimization
The company’s aggressive cost control measures led to a 36% reduction in operating expenses for the year. Workforce restructuring, streamlined marketing spend, and reduced administrative overheads contributed to improved profitability without sacrificing growth initiatives in key areas like R&D and content innovation.
5. Focused Growth Amid Macroeconomic Caution
Management maintains a cautiously optimistic outlook for 2026, highlighting stable relationships with legacy clients and expanding new customers in AI and digital media. Despite a challenging advertising environment, 36Kr plans to invest further in original content production, live streaming formats, and AI applications to sustain growth momentum and resilience.
Key Considerations
2025 marked a strategic inflection point for 36Kr, balancing growth, profitability, and innovation amid external pressures.
- Margin Improvement as Profitability Catalyst: Strategic focus on high-margin brand advertising and cost efficiency drove the company's first net income in years.
- AI and Live Streaming as Growth Engines: Rapid adoption of AI-powered content and video monetization expanded client base and revenue streams.
- Subscription Model Transition: Declining subscription revenues reflect a deliberate shift away from less profitable training services towards scalable digital advertising and enterprise solutions.
- Robust Content Distribution Network: Broad multi-channel presence amplifies reach and engagement, critical for client acquisition and retention.
- Operational Resilience Amid Market Challenges: Stable legacy client spending and cautious new customer growth underpin revenue stability despite macroeconomic headwinds.
Risks
36Kr faces risks from the macroeconomic environment impacting advertising budgets and client spending. Continued declines in subscription services may pressure revenue diversification. Execution risks exist in scaling AI applications and live streaming monetization effectively. Regulatory changes in digital media and data privacy could pose operational challenges.
Forward Outlook
For the next quarter and full year 2026, management projects cautious growth with a focus on:
- Continued investment in live streaming and video content creation to drive client engagement and revenue.
- Expansion of AI-enabled products and services across content and enterprise segments.
Management emphasized ongoing cost optimization and operational efficiency to sustain profitability and cash flow stability, while leveraging core content strengths to explore further commercialization breakthroughs.
Takeaways
36Kr’s 2025 results reflect a successful strategic pivot from loss-making to profitable operations, driven by a sharper focus on high-margin digital advertising and innovative content monetization.
- Profitability Achieved Through Margin and Cost Focus: The company’s 9.1 percentage point gross margin expansion and 36% operating expense reduction demonstrate disciplined execution and financial health improvement.
- AI and Live Streaming Fuel Growth and Client Acquisition: Rapid growth in these segments signals 36Kr’s ability to capitalize on emerging digital trends and diversify revenue beyond traditional advertising.
- Future Growth Hinges on Content Innovation and Market Adaptation: Sustained investment in multi-format content and AI applications, coupled with cautious market engagement, will be critical to navigating macro uncertainties and maintaining momentum.
Conclusion
36Kr’s 2025 earnings underscore a pivotal turnaround, marked by profitability and strategic repositioning around AI and live streaming. While macroeconomic headwinds persist, the company’s diversified content ecosystem and disciplined cost management provide a solid platform for sustainable growth and value creation.
Industry Read-Through
36Kr’s results highlight the growing importance of AI integration and live streaming in digital media monetization across China’s New Economy sector. The company’s margin expansion amid revenue stability suggests that media companies can achieve profitability by focusing on high-margin digital advertising and innovative content formats. Other players should watch 36Kr’s approach to content ecosystem diversification and strategic partnerships as a blueprint for balancing growth with operational discipline in a challenging macro environment.