36Kr Holdings H1FY26 net profit rises to RMB15.4m as AI ad revenue jumps 39%
36Kr Holdings reported a net profit of RMB15.4 million in H1FY26, up from a loss in the prior year, driven by a 34% revenue jump. AI clients now comprise 40% of new customers, boosting advertising revenue by 39%. The company maintained strong liquidity with RMB124.2 million in cash.
*this image is generated using AI for illustrative purposes only.
36Kr Holdings Inc. (NASDAQ: KRKR) turned a profit in the first half of 2026, delivering a net income of RMB15.4 million (US$2.3 million) compared to a net loss of RMB4.8 million in the corresponding period of 2025. The company achieved this turnaround while expanding total revenues by 33.7% to RMB124.6 million (US$18.4 million), marking its second consecutive half-year of profitability.
The financial improvement was underpinned by robust growth in its core advertising business and disciplined cost management. Gross profit surged 63.1% year-over-year to RMB82.7 million, lifting the gross margin by 12 percentage points to 66.4% from 54.4% in the prior year period. This margin expansion occurred despite a slight 1.4% decrease in cost of revenues to RMB41.9 million, reflecting strict cost control measures and an improved revenue mix.
Revenue Breakdown
Online advertising services remained the primary growth engine, contributing the majority of the top-line increase.
| Segment | H1FY26 Revenue | H1FY25 Revenue | YoY Change |
|---|---|---|---|
| Online advertising services | RMB103.5 million | RMB74.5 million | +38.9% |
| Enterprise value-added services | RMB15.3 million | RMB12.2 million | +25.4% |
| Subscription services | RMB5.8 million | RMB6.4 million | -9.4% |
| Total Revenues | RMB124.6 million | RMB93.2 million | +33.7% |
The 38.9% rise in online advertising revenues was attributed to surging demand from the AI sector for the company’s advertising solutions. Management highlighted that AI-related clients, including those in foundation models and robotics, comprised approximately 40% of new customers in the period. Short video commercialization also achieved a breakthrough, with revenue approximately doubling year-over-year. Enterprise value-added services saw healthy growth of 25.4%, driven by refined service offerings aimed at margin improvement. Conversely, subscription services revenues declined to RMB5.8 million from RMB6.4 million, due to a strategic shift in customer composition within that segment.
Operating Expenses and Profitability
Operating expenses rose modestly by 6.6% to RMB59.6 million, lagging significantly behind revenue growth. Sales and marketing expenses remained flat year-over-year at RMB29.2 million, indicating a disciplined approach to sales spending. General and administrative expenses increased 20.5% to RMB24.1 million, primarily related to higher allowances for doubtful accounts and payroll-related expenses. Research and development expenses stayed flat at RMB6.4 million.
Other expenses recorded a loss of RMB7.7 million, a shift from RMB0.4 million of other income in the prior year, mainly due to an increase in long-term investment losses. Despite this drag, the company generated a Non-GAAP adjusted net income of RMB15.4 million, compared to a Non-GAAP adjusted net loss of RMB4.7 million in H1FY25.
Balance Sheet and Liquidity
As of June 30, 2026, 36Kr Holdings maintained a strong liquidity position with RMB124.2 million (US$18.3 million) in cash and cash equivalents, restricted cash, and short-term investments. This represents a 6.9% increase from RMB116.1 million as of December 31, 2025, driven by positive cash inflows from operating activities.
What the Numbers Show
A key analytical observation is the divergence between customer count growth and average revenue per customer in the advertising segment. While the number of online advertising end customers jumped 80% from 226 to 407, the average revenue per customer fell 23% from RMB329,700 to RMB254,400. This suggests the revenue growth was driven by volume acquisition of smaller or mid-tier clients rather than expansion within existing large accounts. Meanwhile, enterprise value-added services showed stability in monetization, with average revenue per customer remaining nearly flat at RMB250,600 despite a 24% increase in customer count.
Mr. Dagang Feng, Chairman and CEO, noted that the company continued to strengthen its content ecosystem and extend its omni-channel distribution matrix. The number of followers across various social media platforms stood at 36.5 million as of June 30, 2026, essentially flat compared to 36.6 million a year earlier. Looking ahead, management plans to deepen its presence in frontier industries and technology verticals to capture opportunities in the AI era.
How sustainable is the 66.4% gross margin expansion given the shift toward smaller, mid-tier AI clients with lower average revenue per customer?
What specific strategies will 36Kr employ to increase wallet share among its rapidly growing base of 407 online advertising customers to counteract the 23% drop in average revenue per user?
Will the company's disciplined flat spending on sales and marketing hinder future customer acquisition as competition for AI-sector advertising budgets intensifies?
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