Kingsoft (3888) Q1 2025 earnings summary

Executive summary

• Group revenue for Q1 2025 reached RMB 2.34 billion, up 9% year-over-year, with office software/services up 6% and online games/others up 14% year-over-year.

• Profit attributable to owners was RMB 284 million, nearly flat year-over-year but down 38% sequentially.

• Kingsoft Office Group focused on user growth, AI integration, and global expansion, while the gaming business advanced its Premium Game Strategy and diversified genres.

• WPS Office monthly active devices reached 647 million, up 8% year-over-year; accumulated paying subscribers grew 17% to 41.7 million.

Financial highlights

• Gross profit increased 10% year-over-year to RMB 1,119 million, with gross margin at 82%.

• Office software and services revenue rose 6% year-over-year to RMB 1,301 million; online games and others increased 40% year-over-year to RMB 1,037 million.

• R&D costs rose 16% year-over-year to RMB 827.9 million, reflecting higher AI and personnel expenses.

• Net cash used in operating activities was RMB 102 million; cash resources stood at RMB 26 billion as of March 31, 2025.

• Gearing ratio improved to 24% from 26% at year-end 2024.

Outlook and guidance

• Continued focus on AI collaboration, global expansion, and R&D investment in office productivity.

• Gaming to deepen flagship IP ecosystem and prioritize emerging genres like anime and sci-fi.

• Mecha Break scheduled for release in July, with official announcement in June.