Kingsoft Cloud Holdings Ltd. ( (KC) ) has released its Q2 earnings. Here is a breakdown of the information Kingsoft Cloud Holdings Ltd. presented to its investors.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Kingsoft Cloud Holdings Limited is a prominent cloud service provider in China, offering a wide range of cloud solutions across various industries with a strong focus on AI technology. The company recently reported a significant increase in its second-quarter 2025 earnings, with total revenue rising by 24.2% year-over-year to RMB2,349.2 million. A major contributor to this growth was the AI segment, which saw a 120% increase in gross billing, highlighting the company’s strategic focus on AI-driven solutions. Additionally, revenue from public cloud services surged by 31.7% year-over-year, reaching RMB1,625.3 million, driven by the growing demand for AI services.
The financial report also highlighted a notable improvement in Kingsoft Cloud’s adjusted EBITDA, which increased by 570.1% year-over-year, reflecting an optimized revenue structure and effective cost management. Despite this, the company faced challenges with a net loss of RMB456.9 million, primarily due to increased credit loss expenses and interest expenses related to server acquisitions. The company’s gross profit increased by 6.4% to RMB338.9 million, although the gross margin slightly decreased due to higher server costs and upfront customer costs.
Kingsoft Cloud’s strategic partnership with Xiaomi continues to be fruitful, with a 69.5% year-over-year revenue growth from ecosystem customers. This partnership, along with the company’s robust AI investments, underscores its commitment to high-quality and sustainable business development. The company also announced a change in its senior management, appointing Ms. Yi Li as the Chief Financial Officer, bringing extensive financial management experience to the role.
Looking ahead, Kingsoft Cloud remains confident in its growth trajectory, driven by its focus on AI technology and strategic partnerships. The company is poised to continue leveraging its cloud infrastructure and innovative solutions to meet the increasing demands of the cloud service market in China.