Kingsoft (3888) Q4 2025 earnings summary

Executive summary

• Total revenue for 2025 was CNY 9.68 billion (RMB9,682.9 million), down 6% year-over-year, with office software and services up 16% and online games and others down 28%.

• Profit attributable to owners rose 29% year-over-year to RMB2,004.4 million, with basic EPS up 26%.

• Office business saw robust growth driven by AI integration, international expansion, and product upgrades, while gaming faced declines from existing titles but gained momentum from new releases.

• Goose Goose Duck, launched in early 2026, surpassed 30 million new users and stabilized at 3 million DAU, exceeding expectations and providing new growth for the gaming segment.

• Gross profit margin decreased by two percentage points to 81%.

Financial highlights

• Q4 2025 revenue was CNY 2.68 billion, down 6% year-over-year but up 8% sequentially; office software and services contributed 67%, online games and others 33%.

• Q4 office software and services revenue rose 50% year-over-year to CNY 1.75 billion; online games and others fell 33% to CNY 868 million.

• Operating profit dropped 51% to RMB1,775.1 million; operating profit before share-based compensation fell 47%.

• Net profit attributable to owners for Q4 was CNY 975 million, more than doubling year-over-year.

• Net cash from operating activities was RMB2,291.6 million, down from RMB4,587.2 million in 2024.

Outlook and guidance

• Plans to deepen AI agent technology in office scenarios, strengthen WPS 365 as an intelligent collaboration platform, and accelerate global expansion.

• Online games will focus on premium content, global publishing, and nurturing new genres for sustainable growth.

• Goose Goose Duck, launched in early 2026, surpassed 30 million new users, signaling growth potential.