Kingsoft Cloud (KC) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of RMB 2.76 billion in Q4 2025, up 24% year-over-year, driven by explosive AI demand and strong ecosystem partnerships.

• Public Cloud Services revenue rose 35% to RMB 1.9 billion; AI business gross billing reached RMB 926 million, up 95% year-over-year, contributing nearly half of Public Cloud revenue.

• Profitability improved with adjusted gross margin at 17.1% and adjusted operating margin at 2.0% for the quarter; operating level profitability achieved for two consecutive quarters.

• Adjusted EBITDA profit reached RMB 785.2 million in Q4, up 118.3% year-over-year, with margin improvement due to cost and expense control.

• Xiaomi and Kingsoft ecosystem revenue grew 63% year-over-year to RMB 804 million, accounting for 29% of total revenue; external customers contributed around 70% of total revenue.

Financial highlights

• Q4 2025 total revenue: RMB 2,761.4 million (+23.7% YoY); Public Cloud: RMB 1,902.4 million (+34.9% YoY); Enterprise Cloud: RMB 859 million (+18% QoQ).

• Adjusted gross margin: 17.1% in Q4, down from 19.2% last year.

• Adjusted EBITDA margin reached 28.4% in Q4, up from 16.1% last year.

• Adjusted operating profit was RMB 55 million (2% margin), up 124% year-over-year.

• Full year 2025 revenue: RMB 9,759 million (+23% YoY); Public Cloud: RMB 6,634 million (+33% YoY); Enterprise Cloud: RMB 2,925 million (+5% YoY).

Outlook and guidance

• 2026 CapEx expected to exceed RMB 10 billion, with about half covered by customer prepayments; incremental resources to be leased to preserve balance sheet flexibility.

• Growth rate and EBITDA margin expected to accelerate in 2026, driven by strong AI demand, especially from external customers.

• Management expects continued strong demand for intelligent computing and AI services in 2026.

• Focus remains on AI-driven strategy, infrastructure investment, and operating efficiency.

• Positioned to capture opportunities as AI reshapes industries.