Kingsoft Cloud: Q4 Total Revenue RMB 2.761 Billion, YoY Growth 23.7%

Kingsoft Cloud Announces Q4 2025 Total Revenue of RMB 2.761 billion, Up 23.7% Year-over-Year. Among them, Public Cloud Service Revenue was RMB 1.902 billion, up 34.9%. Industry Cloud Service Revenue was RMB 859 million, up 4.5%.

Kingsoft Cloud Holdings Limited delivered an impressive full-year 2025 performance. Total annual revenue reached RMB 9.559 billion (approximately $1.367 billion), a 22.8% increase year-over-year, officially crossing the RMB 10 billion revenue threshold. The core growth engine came from the explosive growth of intelligent computing cloud business — public cloud service revenue surged 32.5% YoY to RMB 6.633 billion, with intelligent computing cloud revenue alone reaching RMB 2.962 billion, becoming the main driver of annual performance.

Profitability improvement is the most noteworthy signal in this financial report. Full-year net loss narrowed significantly from RMB 1.979 billion in 2024 to RMB 944 million, a 52.3% reduction. Excluding non-cash items such as equity incentives, non-GAAP EBITDA jumped from RMB 639 million in 2024 to RMB 2.336 billion, an increase of 265.7%, with EBITDA profit margin expanding sharply from 8.2% to 24.4%. This indicates that as the scale of intelligent computing cloud business is realized, the company’s operating leverage is rapidly emerging.

Meanwhile, the company significantly increased cash reserves through two rounds of capital market operations. In April 2025, follow-on offerings of American Depositary Shares and Hong Kong stocks were completed; in June, a targeted issuance to Kingsoft Software was completed; and in October, a placement of Hong Kong stocks was again completed. The three financings raised a total net amount of over HKD 4 billion. As of December 31, 2025, cash and cash equivalents reached RMB 6.018 billion, a 127.2% increase from the beginning of the year, providing ample resources for future expansion. Despite this, the company has not declared a final dividend, indicating that growth investment remains a priority.

Public Cloud: Intelligent Computing Cloud Becomes Core Growth Driver

Public cloud performance was the biggest highlight of the year. Revenue increased from RMB 5.007 billion in 2024 to RMB 6.633 billion, a 32.5% growth. The intelligent computing cloud business (GPU cloud services for AI model training and inference) contributed RMB 2.962 billion, becoming the main growth driver for public cloud.

On the product side, Kingsoft Cloud launched the “Xingliu Platform” — an all-in-one AI training and inference management platform supporting the full lifecycle from model development and training to inference, with APIs for high concurrency inference and multi-model management. This layout aims to capture the demand for computing power brought by the large-scale deployment of “Agentic AI” era models.

Industry Cloud: Slow Growth, Structural Adjustments Continue

Industry cloud service revenue was RMB 2.925 billion, up only 5.3% YoY, significantly lower than public cloud growth. In terms of revenue recognition structure, one-time project revenue (recognized at a specific point in time) decreased sharply from RMB 537 million in 2024 to RMB 300 million, while subscription-based revenue recognized over time increased from RMB 2.240 billion to RMB 2.625 billion, indicating improved revenue quality.

In operating costs, fulfillment costs (mainly hardware delivery) plummeted 68.7% from RMB 236 million to RMB 74 million, reflecting the company’s proactive reduction of low-margin hardware integration projects and shift toward software and service-oriented, high-quality revenue structures.

Gross Margin Under Pressure: Depreciation as Main Cause

Although gross profit increased by 12.1% YoY to RMB 1.503 billion, gross margin declined from 17.2% to 15.7%. Non-GAAP gross margin also fell from 17.4% to 16.1%.

Management attributed the pressure to rapidly rising depreciation costs — in 2025, depreciation and amortization expenses reached RMB 2.322 billion, nearly doubling from RMB 1.090 billion in 2024, mainly due to depreciation from large-scale procurement of new servers for intelligent computing cloud business. As of December 31, 2025, the company owned approximately 101,500 servers, with net property and equipment increasing from RMB 4.63 billion at the start of the year to RMB 10.095 billion. Short-term depreciation pressure is unlikely to ease, making gross margin trends an important market indicator.

Operating Expenses: Impairment Write-offs Disappear, Equity Incentives Rise Rapidly

Total operating expenses in 2025 were RMB 2.276 billion, a significant decrease of 26.1% YoY. The most notable change was the reversal of RMB 920 million in long-term asset impairment provisions recognized in 2024, which contributed to narrowing operating loss from RMB 1.739 billion in 2024 to RMB 773 million in 2025.

However, the rapid increase in equity incentive expenses warrants attention. Total equity incentive expenses for the year reached RMB 447 million, nearly doubling from RMB 214 million in 2024. This expense is spread across sales, marketing, administrative, and other items, and is a key reason for the large discrepancy between non-GAAP and GAAP metrics.

R&D expenses slightly decreased to RMB 810 million (from RMB 846 million in 2024), mainly due to reduced personnel-related costs, with R&D staff reaching 1,120 at the end of the period.

Cash Flow and Capital Expenditure: Significant Improvement in Operating Cash Generation

Net cash flow from operating activities was RMB 3.801 billion, a substantial leap from RMB 628 million in 2024, confirming that EBITDA improvements have genuinely translated into cash generation capacity.

In terms of capital expenditure, total capex (including some paid through third-party funding) was RMB 4.994 billion in 2025, up 21.1%, continuing to tilt toward intelligent computing cloud infrastructure. Net outflows from investing activities were RMB 4.530 billion, while net inflows from financing activities were RMB 4.183 billion — despite large-scale expansion investments, the company still relies on external financing to maintain capital balance. The asset-liability ratio slightly improved from 68.7% to 65.2%, but overall leverage remains high.

Post-Reporting Period: Acquisition of 50% Stake in Wangxin Technology from Xunlei

On March 3, 2026, the company’s subsidiary Wuhan Kingsoft Cloud, together with related party Xinghan Zhilian, acquired a 50% stake in Wangxin Technology from Shenzhen Xunlei, for a total consideration of RMB 125 million (Wuhan Kingsoft Cloud acquired 20% for RMB 50 million, Xinghan Zhilian acquired 30% for RMB 75 million). Wangxin Technology has long engaged in distributed cloud computing and edge computing businesses. This acquisition may aim to supplement edge computing capacity for AI inference, and market attention will continue to follow subsequent integration developments.

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