Kingsoft Cloud Holdings Limited reported third‑quarter 2025 results that marked a significant turnaround for the cloud‑service provider. Total revenue rose to RMB 2.48 billion (US$348.1 million), a 31.4% year‑over‑year increase that exceeded consensus estimates of RMB 2.47 billion. Earnings per share moved from a projected loss of RMB 0.94 to a breakeven of RMB 0.00, a beat of roughly RMB 0.94 per share that lifted the company from a loss to a neutral position.
The growth was driven by a 49.1% jump in public‑cloud services revenue, which reached RMB 1.752 billion, and a 120% surge in AI‑business gross billings, which climbed to RMB 782.4 million. The strategic partnership with Xiaomi also contributed to an 83.8% rise in revenue from the Xiaomi‑Kingsoft ecosystem, underscoring the company’s focus on AI‑powered cloud solutions.
Profitability improved markedly: adjusted operating profit turned positive at RMB 15.4 million for the first time, and adjusted net profit reached RMB 28.7 million. Non‑GAAP EBITDA climbed to RMB 826.6 million, and adjusted gross profit increased 27.6% to RMB 392.6 million. The adjusted EBITDA margin expanded to 33.4%, while the overall gross margin eased to 15.4% due to higher costs associated with AI infrastructure deployment.
Cash and cash equivalents fell to RMB 3.95 billion from RMB 5.46 billion, a decline driven by capital expenditures on computing‑power equipment and debt repayment. The cash drawdown highlights the capital intensity of the company’s AI‑driven expansion strategy.
CEO Tao Zou praised the company’s “high‑quality and sustainable development strategy,” noting that the quarter’s accelerated revenue growth and enhanced profitability reflected the success of the company’s strategic priorities. CFO Yi Li emphasized the 31.4% revenue acceleration and the 120% growth in AI gross billings, framing the results as evidence of the company’s ability to scale its core cloud and AI services.
Investors reacted cautiously to the results. While the earnings beat and revenue growth were positive signals, the slight miss against some analyst estimates and the notable reduction in cash reserves tempered enthusiasm, indicating that market participants are weighing the company’s capital‑intensive growth path against its recent profitability gains.
The earnings release signals a pivotal shift for Kingsoft Cloud: the company has moved from a loss to a positive operating margin, driven by AI and public‑cloud demand, but the ongoing investment in infrastructure and the resulting cash drawdown suggest that the near‑term outlook will require careful monitoring of capital deployment and cash flow generation.
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