Kingsoft Cloud (KC) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 24.2% year-over-year to RMB 2.35 billion, driven by strong AI business momentum and ecosystem partnerships.

• AI-related billings surged over 120% year-over-year to RMB 728 million, now 44.8%–45% of public cloud revenue.

• Revenue from Xiaomi and Kingsoft ecosystem customers rose about 70% year-over-year to RMB 629 million, contributing 27% of total revenue.

• Management reaffirmed commitment to AI investment and sustainable business development.

Financial highlights

• Public cloud revenue reached RMB 1.63 billion, up 32% year-over-year; enterprise cloud revenue was RMB 724 million, up 10%.

• Adjusted gross profit was RMB 350.6 million, up 8.4% year-over-year; adjusted gross margin was 14.9%, down from 17.0%–17.1% a year ago.

• Adjusted EBITDA reached RMB 406 million, a 570.1% year-over-year increase; adjusted EBITDA margin improved to 17.3%.

• Net loss widened to RMB 456.9 million from RMB 353.7 million a year ago, mainly due to higher credit loss and interest expenses.

• Cash and cash equivalents stood at RMB 5,464.1 million as of June 30, 2025, mainly from equity offering and prepayments.

Outlook and guidance

• Second half revenue growth expected to be stronger than the first half.

• Enterprise cloud revenue growth anticipated to accelerate in the second half due to seasonality and strong demand from public services, healthcare, and financial sectors.

• Gross margin expected to stabilize at current levels as new procurement models are adopted.

• Management expressed confidence in continued AI-related investment and high-quality, sustainable growth.