Kuaishou Technology (1024) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 13.1% year-over-year to RMB35.0 billion, with adjusted net profit up 20.1% to RMB5.6 billion and adjusted EBITDA up 21.6% to RMB7.7 billion, marking record highs in operational and financial metrics.

• Average DAUs reached 409 million, MAUs 715 million, and average daily time spent per DAU was 127 minutes, reflecting strong user engagement.

• Kling AI 2.1 and Kling Lab launched, driving over RMB250 million in Q2 revenue and expanding application scenarios.

• Board declared a special dividend of HK$0.46 per share (approx. HK$2.0 billion) for the first time since listing, and continued share repurchases totaling 38.8 million shares (~HK$1.92 billion).

Financial highlights

• Q2 2025 revenue: RMB35.0 billion (+13.1% YoY); gross profit: RMB19.5 billion (+13.8% YoY, 55.7% margin); adjusted net profit: RMB5.6 billion (+20.1% YoY, 16.0% margin); adjusted EBITDA: RMB7.7 billion (+21.6% YoY, 22.0% margin).

• Operating profit for Q2 was RMB5.3 billion (15.1% margin, +35.4% YoY); net profit was RMB4.9 billion (+23.7% YoY).

• Cash and equivalents stood at RMB12.3 billion as of June 30, 2025; total available funds were RMB101.9 billion.

• Earnings per share (Q2 2025): Basic RMB1.15, Diluted RMB1.13.

Outlook and guidance

• Continued strong investment in AI, technology commercialization, and ecosystem synergies to drive high-quality growth and operational efficiency.

• Full-year adjusted net margin expected to remain stable in 2025, with AI investments impacting margin by 1%-2%.

• Kling AI's full-year revenue and CapEx expected to double initial targets.

• Quarterly and yearly GMV disclosure to end in 2026, shifting focus to broader operational indicators.