Kingsoft Cloud Holdings (KC) AI Stock Analysis

• Market Cap: $3.80B
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.89
• Revenue Growth: 24.03%
• EPS Growth: 55.58%
• Country: US
• Employees: 12,335
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.00
• Shares Outstanding: 302,119,000
• 10 Day Avg. Volume: 2,260,556
• 30 Day Avg. Volume: 1,620,192
• PEG Ratio: 0.83
• Price to Book (P/B): 3.63
• Price to Sales (P/S): 2.41
• P/FCF Ratio: -6.14
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 3.06
• Enterprise Value/Ebitda: 2.98
• 1Y Price Target: $20.13
• Price Target Upside: 61.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.54
• Revenue Forecast (FY): $1.34B

• Rating: 51 Neutral
• Price Target: $12.00 ▼(-3.61% Downside)

Kingsoft Cloud Holdings' overall stock score is primarily influenced by its financial performance challenges, including lack of profitability and cash flow issues. However, the positive sentiment from the latest earnings call, highlighting significant revenue growth and improved profitability metrics, provides a counterbalance. The technical analysis and valuation scores reflect ongoing market and financial challenges, keeping the overall score moderate.

Positive Factors

Revenue Growth

The strong revenue growth, particularly in public cloud and AI segments, indicates a robust market position and expanding service adoption, which is crucial for long-term success.

AI Business Expansion

The rapid expansion of AI business highlights Kingsoft Cloud's strategic focus on high-growth areas, which can drive future revenue and market competitiveness.

Ecosystem Partnerships

Strong ecosystem partnerships enhance service offerings and customer reach, supporting sustained growth and competitive advantage in the cloud market.

Negative Factors

Profitability Challenges

Persistent negative margins and returns indicate ongoing difficulties in achieving profitability, which could impact long-term financial health and investment appeal.

Cash Flow Issues

Negative cash flow and declining free cash flow growth rate suggest challenges in cash generation, potentially limiting operational flexibility and growth investments.

Chip Supply Chain Uncertainty

Geopolitical tensions affecting chip supply could disrupt operations and increase costs, posing risks to long-term supply chain stability and profitability.

Kingsoft Cloud Holdings Business Overview & Revenue Model

Company Description

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations in China. The company offers public cloud services to customers in various verticals, including game, video, AI, e-commerce, education, and mobile internet; and enterprise cloud services to customers in financial service, public service, and healthcare businesses. The company was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Kingsoft Cloud generates revenue through a variety of streams centered around its cloud services. The primary revenue model is subscription-based, where customers pay for the usage of cloud resources such as computing power, storage, and network services. Additionally, the company offers value-added services, including data security solutions, AI and machine learning platforms, and migration services, which further enhance its revenue potential. Key partnerships with technology giants and enterprises also contribute to its earnings by expanding its customer base and enhancing service offerings. Moreover, the growing demand for digital transformation in industries such as e-commerce, gaming, and finance provides a significant growth opportunity for Kingsoft Cloud, bolstering its revenue generation capabilities.

Kingsoft Cloud Holdings Financial Statement Overview

Summary

Kingsoft Cloud Holdings faces several financial challenges across its income statement, balance sheet, and cash flow. While there is some positive revenue growth, profitability remains elusive, and the company is heavily leveraged. Cash flow issues further exacerbate the financial strain, with negative free cash flow and low cash conversion efficiency. The company needs to address its profitability and cash management to improve its financial health.

Income Statement

Kingsoft Cloud Holdings shows a mixed performance in its income statement. The company has achieved a positive revenue growth rate of 7.02% in the TTM, indicating some recovery in sales. However, profitability remains a significant concern with negative net profit margins and EBIT margins, reflecting ongoing operational challenges. The gross profit margin has improved slightly but remains low, suggesting cost management issues. Overall, while there is some revenue growth, the lack of profitability is a major weakness.

Balance Sheet

The balance sheet of Kingsoft Cloud Holdings reveals a moderate financial position. The debt-to-equity ratio has increased to 1.30 in the TTM, indicating higher leverage and potential risk. Return on equity remains negative, highlighting ongoing losses. However, the equity ratio is relatively stable, suggesting that the company still maintains a reasonable level of equity compared to its assets. The increased leverage poses a risk, but the company has managed to maintain its equity base.

Cash Flow

Cash flow analysis shows significant challenges for Kingsoft Cloud Holdings. The free cash flow growth rate is negative, and the company is experiencing negative free cash flow, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is low, suggesting inefficiencies in converting income to cash. The negative free cash flow to net income ratio further highlights cash management issues. Overall, the cash flow situation is concerning, with limited cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.02B	7.79B	7.05B	8.32B	8.94B	6.22B
Gross Profit	1.46B	1.34B	850.17M	267.39M	277.22M	326.35M
EBITDA	1.50B	-487.77M	-1.08B	-1.39B	-659.72M	-169.99M
Net Income	-970.97M	-1.97B	-2.18B	-2.70B	-1.57B	-909.73M
Balance Sheet
Total Assets	25.65B	17.59B	15.07B	17.32B	21.08B	11.96B
Cash, Cash Equivalents and Short-Term Investments	3.95B	2.74B	2.26B	4.67B	6.71B	6.12B
Total Debt	8.75B	5.20B	1.72B	1.35B	1.62B	612.27M
Total Liabilities	18.58B	12.09B	7.82B	7.73B	9.59B	3.69B
Stockholders Equity	6.74B	5.17B	6.89B	8.80B	10.60B	8.24B
Cash Flow
Free Cash Flow	-343.44M	-3.05B	-2.13B	-1.25B	-1.44B	-1.88B
Operating Cash Flow	3.33B	628.42M	-169.07M	188.97M	-708.87M	-290.43M
Investing Cash Flow	-5.44B	-3.62B	-673.19M	-32.87M	-421.62M	-4.31B
Financing Cash Flow	4.47B	3.26B	-227.85M	-1.15B	2.21B	6.12B

Kingsoft Cloud Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KC, the sentiment is Positive. The current price of 12.45 is above the 20-day moving average (MA) of 12.08, below the 50-day MA of 13.46, and below the 200-day MA of 14.14, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 49.41 is Neutral, neither overbought nor oversold. The STOCH value of 78.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KC.

Kingsoft Cloud Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YOU	79 Outperform	$4.76B	18.73	130.93%	2.40%	17.83%	118.70%
BILL	69 Neutral	$4.96B	-181.80	0.30%	―	11.63%	50.72%
OS	62 Neutral	$4.96B	―	-20.63%	―	24.19%	58.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ZETA	60 Neutral	$4.34B	―	-3.92%	―	35.87%	85.20%
GBTG	58 Neutral	$4.03B	343.75	0.76%	―	5.71%	―
KC	51 Neutral	$3.80B	-23.79	-15.88%	―	24.03%	55.58%

Kingsoft Cloud Holdings Corporate Events

Kingsoft Cloud Reports October 2025 Share Capital Movements

On November 6, 2025, Kingsoft Cloud Holdings Limited reported to The Stock Exchange of Hong Kong Limited the movements in its authorized share capital and issued shares for October 2025. The company saw an increase in its issued shares by 338 million, bringing the total to over 4.5 billion shares. This development reflects the company’s strategic financial maneuvers to enhance its market positioning and potentially attract more investors.

Kingsoft Cloud Announces Upcoming Board Meeting and Earnings Call

Kingsoft Cloud Holdings Limited announced that its board of directors will meet on November 19, 2025, to consider and approve the unaudited third quarterly results for the period ending September 30, 2025. The company will also hold an earnings conference call on the same day to discuss these results, providing stakeholders with insights into its financial performance.

Kingsoft Cloud Reports Stable Share Capital for September 2025

On October 8, 2025, Kingsoft Cloud Holdings Limited submitted a monthly return form to The Stock Exchange of Hong Kong Limited, detailing the movements in their authorized share capital and issued shares for September 2025. The report indicated no changes in the number of authorized or issued shares, maintaining a total of 40 billion authorized shares and approximately 4.19 billion issued shares. This stability in share capital suggests a steady operational phase for the company, with no immediate implications for stakeholders.

Kingsoft Cloud Releases 2025 Interim Report Highlighting Strategic Initiatives

On September 26, 2025, Kingsoft Cloud Holdings Limited released its 2025 Interim Report, detailing its financial performance and strategic initiatives for the first half of the year. The report, filed with the U.S. Securities and Exchange Commission, underscores the company’s ongoing commitment to enhancing its cloud services and expanding its market presence, which is crucial for maintaining its competitive edge in the rapidly evolving cloud computing sector.

Kingsoft Cloud Reports Stable Share Capital for August 2025

On September 8, 2025, Kingsoft Cloud Holdings Limited submitted a revised monthly return form to The Stock Exchange of Hong Kong Limited, detailing the movements in its authorized share capital and issued shares for August 2025. The report indicates that there were no changes in the number of authorized or issued shares during the month. This stability in share capital may suggest a period of consolidation for the company, potentially impacting its market strategy and stakeholder interests.

Kingsoft Cloud Reports Stable Share Capital for August 2025

On September 4, 2025, Kingsoft Cloud Holdings Limited submitted a monthly return form to The Stock Exchange of Hong Kong Limited, detailing movements in its authorized share capital and issued shares for August 2025. The report highlighted that there were no changes in the total number of authorized or issued shares during the month, maintaining a balance of 40 billion authorized shares and over 4.19 billion issued shares. Additionally, the exercise of share options under the 2013 Share Option Scheme resulted in an increase of 2,332,440 issued shares, raising USD 173,113.75. This update reflects the company’s stable share capital structure and ongoing commitment to transparency in its financial operations.