Kingsoft Cloud Holdings Ltd. ((KC)) has held its Q3 earnings call. Read on for the main highlights of the call.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
The recent earnings call for Kingsoft Cloud Holdings Ltd. showcased a positive sentiment, underpinned by substantial revenue growth across various segments and improved profitability metrics. The company is experiencing expansion driven by strategic investments and partnerships, although there are some increased costs related to infrastructure and amortization.
Strong Revenue Growth
The third quarter of 2025 saw Kingsoft Cloud’s overall revenue reach RMB 2,480 million, marking a significant year-over-year growth rate of 31%. This growth rate is an acceleration from the previous quarter’s 24%, highlighting the company’s robust financial performance.
Significant Public Cloud Revenue Increase
Public cloud revenue experienced a remarkable increase of 49% year-over-year, reaching RMB 1,750 million. This substantial growth underscores the company’s strong position in the public cloud market and its ability to capture increasing demand.
Intelligent Computing Cloud Growth
The intelligent computing cloud segment reported gross billings of RMB 782 million, reflecting an impressive year-over-year growth of 122%. This growth indicates the company’s successful expansion and adoption of intelligent computing solutions.
Xiaomi and Kingsoft Ecosystem Contribution
Revenue from the Xiaomi and Kingsoft ecosystem surged by 84% year-over-year, contributing RMB 691 million. This highlights the strategic importance of partnerships and ecosystem synergies in driving revenue growth.
Profitability Improvements
Kingsoft Cloud reported an adjusted gross profit increase of 28% year-over-year to RMB 393 million. Notably, the adjusted net profit recorded a positive figure of RMB 28.73 million for the first time, marking a significant milestone in the company’s profitability journey.
Investment in AI Infrastructure
The company successfully raised HKD 2,800 million through equity financing, with 8% of the funds allocated for AI infrastructure investment. This strategic investment is aimed at supporting future growth and innovation in AI-driven solutions.
High Costs and Expenses
The total cost of revenues increased by 33% year-over-year, primarily due to infrastructure investments necessary to support the growth of the intelligent cloud business. This reflects the company’s commitment to expanding its technological capabilities despite the associated costs.
Operational Challenges
Depreciation and amortization costs rose significantly from RMB 297.5 million in Q3 2024 to RMB 649.7 million in Q3 2025, impacting profit margins. This increase highlights the operational challenges the company faces as it scales its infrastructure.
Forward-Looking Guidance
Kingsoft Cloud provided optimistic forward-looking guidance during the earnings call. The company anticipates sustained demand and further revenue growth in the coming quarters, driven by continued investment in AI infrastructure and strategic growth in the intelligent cloud sector. The positive trajectory in financial metrics and operational performance is expected to persist.
In summary, Kingsoft Cloud Holdings Ltd.’s earnings call reflected a positive outlook with substantial revenue growth and improved profitability. Despite facing challenges related to increased costs, the company is strategically investing in AI infrastructure and leveraging partnerships to drive future expansion. The forward-looking guidance suggests continued momentum and growth in the upcoming quarters.