Kuaishou Technology (1024) Q3 2025 earnings summary

Executive summary

• Achieved record-high 416 million average DAUs in Q3 2025, with 134 minutes average daily time spent per DAU, and 731 million average MAUs, reflecting strong user engagement and growth year-over-year.

• Q3 2025 revenue rose 14.2% year-over-year to RMB35.6 billion, with gross profit up 14.9% to RMB19.4 billion and operating profit up 69.9% to RMB5.3 billion.

• Adjusted net profit increased 26.3% year-over-year to RMB5.0 billion, with an adjusted net margin of 14%.

• AI-driven business expansion, especially Kling AI, contributed over RMB300 million in Q3 2025 revenue, establishing a global leadership position in video generation models.

• E-commerce GMV grew 15.2% year-over-year to RMB385.0 billion, and live streaming revenue increased 2.5% to RMB9.6 billion.

Financial highlights

• Q3 2025 revenue: RMB35.6 billion (+14.2% YoY); gross profit margin: 54.7%, up 0.4 percentage points year-over-year.

• Adjusted net profit margin: 14.0% in Q3 2025; operating profit increased 69.9% YoY to RMB5.3 billion.

• Online marketing services revenue up 14.0% YoY to RMB20.1 billion; live streaming revenue up 2.5% YoY to RMB9.6 billion; other services (including e-commerce and Kling AI) up 41.3% YoY.

• E-commerce GMV rose 15.2% YoY to RMB385 billion.

• Cash and equivalents totaled RMB106.6 billion as of September 30, 2025.

Outlook and guidance

• Continued investment in AI, especially Kling AI and large model technology, to drive future growth and operational efficiency.

• E-commerce and online marketing services anticipated to sustain high growth, supported by AI-driven efficiency and product innovation.

• Expect full-year 2025 CapEx to increase in the mid to high double digits year-over-year due to AI investments.

• Confident in continued improvement in full-year adjusted operating margin despite higher AI-related spending.

• Kling AI's full-year 2025 revenue expected to reach $140 million, more than double the initial target.