Kingsoft (3888) Q3 2025 earnings summary

Executive summary

• Total revenue for Q3 2025 was RMB 2.419 billion, down 17% year-on-year but up 5% quarter-on-quarter, with office software and services contributing 63% and online games 37%.

• Office software and services revenue grew 26% year-on-year and 12% quarter-on-quarter, driven by WPS software, WPS 365, and individual business growth.

• Online games and others revenue declined 47% year-on-year and 6% quarter-on-quarter due to lower contributions from existing games, partially offset by new launches.

• Strategic focus on AI collaboration and internationalization, with core businesses advancing in product and market reach.

Financial highlights

• Operating profit for Q3 2025 was RMB 276.8 million, down 76% year-on-year and 28% quarter-on-quarter.

• Profit attributable to owners was RMB 213 million, down from RMB 413 million a year ago and RMB 532 million last quarter.

• Gross profit was RMB 1,944 million, down 21% year-on-year, with a gross margin of 80%.

• Net cash generated from operating activities was RMB 494 million for the quarter.

• Basic and diluted EPS were RMB 0.15, down over 48% year-on-year and over 60% quarter-on-quarter.

Outlook and guidance

• Continued commitment to AI collaboration and internationalization, aiming to meet needs from individuals to enterprises.

• Online games to focus on high-quality content and global publishing, leveraging classic franchises and new genres.

• Management confident in sustaining office software growth, especially in AI and enterprise segments.