WPS drives 60% of revenue—will Kingsoft Software break out of “game dependence”?

Ask AI · How can WPS AI become the key engine behind Kingsoft Software’s profit rebound?

On March 25, Kingsoft Software officially released its annual performance report for the period ended December 31, 2025.

At a time when the technology industry is generally facing the dual pressures of growth and efficiency, Kingsoft Software delivered a clearly defined answer: the group’s full-year revenue came in at 9.68B yuan, down slightly year over year by 6%; but attributable net profit rose against the trend by 29%, reaching 2B yuan.

This financial scissors spread of “revenue down, profit up” cannot be simply explained by cost reduction and efficiency gains. Analysis shows that Kingsoft Software’s internal business structure is undergoing a profound gear shift.

Specifically, its traditional businesses represented by games may be in a product cycle adjustment period, while the office software and services business centered on WPS has, driven by AI and SaaS (software as a service), firmly established absolute dominance in the group’s fundamental business.

According to the financial report, in 2025 Kingsoft Software’s office software and services revenue reached 5.93B yuan, representing a steady and healthy growth of 16%. If you compare this figure with the group’s total revenue of 9.68B yuan, it’s not hard to see that the office business’s share of the overall pie has already exceeded 61%.

This means that the core logic supporting Kingsoft Software’s 29% profit surge is precisely coming from this portion of core assets that are high-margin, high-certainty, and in a growth channel.

When overall revenue is pushed downward by other business segments, office software not only plays the role of a “stabilizer,” but also becomes the group’s main engine for improving profitability.

To explore the momentum behind the 16% growth in the office business, it’s clear that Kingsoft’s strategy has taken effect on both the consumer (C-end) and enterprise (B-end) sides.

First, on the individual user side, WPS AI has made the leap from an attention-grabbing tool to a powerful driver of paid upgrades.

In recent years, personal office subscription growth had at one point faced concerns that penetration rates might reach their ceiling. But the 2025 financial report sent a positive signal: WPS AI’s continuous upgrades have successfully broken through the previous growth ceiling.

The introduction of AI features not only increases the product’s depth of use, but more importantly provides users with a strong reason to “upgrade to membership,” directly driving the expansion of the scale of individual paid users and the increase in average revenue per user (ARPPU). This indicates that users are willing to pay for AI technology that truly improves productivity.

Second, on the government and enterprise side, WPS 365, as a productivity platform for organizational customers, continues to deepen and expand its offering. Combined with the release of demand for digital transformation across government and enterprises, government and enterprise orders have increased steadily, forming a two-wheel growth driver together with the consumer business.

As digital transformation in government and enterprises deepens and the wave of localization and replacement in office software accelerates, Kingsoft Software’s B-end layout is entering a harvest period. As an office productivity platform for organizations, the SaaS-based service model of WPS 365 not only strengthens customer stickiness, but also makes the revenue model healthier and more sustainable.

The “increase in government and enterprise orders for software business” mentioned in the financial report directly reflects the depth of its market expansion in the B-end.

Since the office business surged 16%, the gap created by the total revenue decline of 6% clearly comes from the drag on another pillar—online games and other businesses.

By working backward from the financial report data, in 2025 Kingsoft Software’s non-office business, mainly games, generated revenue of about 3.75B yuan. Compared with 2024, this segment saw a sharp drop of nearly 30% in revenue, directly pulling down the group’s overall revenue scale.

Overall, Kingsoft Software’s performance in 2025 was a high-quality contraction and expansion at the same time.

The decline in total revenue objectively reflects the company’s growing pains across its diversified businesses—especially as the era of battles within existing demand, where growth pressure for non-office businesses is becoming apparent; but the sharp rebound in profits against the trend has become evidence that management is focusing resources and improving commercial efficiency.

At the current point, the logic of how the capital market values Kingsoft Software may need to be re-anchored. It is increasingly resembling a pure “AI + SaaS” company.

Looking ahead, Kingsoft Software still needs to answer several key questions.

First, after the first wave of “try-it-out” paid conversion dividends brought by WPS AI is released, how can it maintain technology iteration to sustain long-term high retention;

Second, amid technological pressure from global giants such as Microsoft Copilot, and amid the fierce competition as domestic large-model vendors all move into building B-end applications, how will WPS 365 defend and expand its moat in the government and enterprise market;

Third, how to smooth out revenue volatility caused by the non-office business, so that the group can return to a healthy track of “both revenue and profit growing.”

Kingsoft’s 2025 proves that AI can indeed make money. And its 2026 will face even more brutal efficiency competition.