Kingsoft Cloud (KC) Q3 2025 earnings summary

Executive summary

• Achieved accelerated revenue growth and enhanced profitability in Q3 2025, with adjusted operating and net profit turning positive, driven by AI and Intelligent Computing Cloud services.

• Strategic investments in AI infrastructure, technology upgrades, and ecosystem partnerships, especially with Xiaomi and Kingsoft, significantly contributed to revenue expansion.

• AI and cloud convergence fueled rapid expansion in intelligent computing and enterprise cloud integration.

Financial highlights

• Q3 2025 revenue reached RMB 2.48 billion, up 31.4% year-over-year, with public cloud revenue up 49.1% to RMB 1.75 billion.

• Intelligent Computing Cloud gross billings grew 122% year-over-year to RMB 782 million, accounting for 45% of public cloud revenue.

• Adjusted gross profit was RMB 393 million, up 28% year-over-year; adjusted operating profit turned positive at RMB 15.36 million.

• Adjusted net profit reached RMB 28.73 million, a turnaround from a RMB 236.7 million loss last year.

• Adjusted EBITDA margin improved to 33.4%, aided by non-recurring other income.

• Cash and cash equivalents stood at RMB 3,954.5 million as of September 30, 2025.

Outlook and guidance

• Confident in continued AI-driven demand growth, especially in robotics and API services for internet companies.

• Expect future margin improvement as inference demand grows, which typically carries higher margins than training.

• EBITDA margin projected to remain above 20% for the year, with normalization expected after one-time income effects.

• Budget process for next year underway; detailed guidance to be provided after finalization.