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Kingsoft Cloud Holdings (KC)
NASDAQ:KC
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Kingsoft Cloud Holdings
(NASDAQ:KC)
Rating:51Neutral
Price Target:
$13.50
▼(-2.88% Downside)
Kingsoft Cloud Holdings (KC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.22B
Dividend YieldN/A
Average Volume (3M)1.77M
Price to Earnings (P/E)―
Beta (1Y)1.88
Revenue Growth20.42%
EPS Growth-9.39%
CountryUS
Employees12,335
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.23
Shares Outstanding279,585,660
10 Day Avg. Volume2,047,176
30 Day Avg. Volume1,769,547
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit2.50
Enterprise Value/Ebitda-3.97
Forecast
1Y Price Target
$15.88Price Target Upside14.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Kingsoft Cloud Holdings Business Overview & Revenue Model
Company DescriptionKingsoft 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 MoneyKingsoft Cloud Holdings generates revenue primarily through the provision of its cloud services, which include computing, storage, and networking solutions. The company's key revenue streams are its public cloud services, which are commonly used by businesses to scale their operations without investing in physical IT infrastructure, and its enterprise cloud services, which offer customized cloud solutions for specific industries. Additionally, Kingsoft Cloud benefits from strategic partnerships with technology companies and industry collaborations that enhance its service offerings and market penetration. The company also capitalizes on the growing demand for digital transformation across various sectors, which drives the adoption of its cloud services.
Kingsoft Cloud Holdings Earnings Call Summary
Earnings Call Date:Aug 20, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth driven by AI and ecosystem partnerships, alongside notable challenges in maintaining gross margins and potential future chip supply issues.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Q2 revenue reached RMB 2.35 billion, representing a year-over-year growth of 24%, with public cloud revenue increasing by 32% to RMB 1.63 billion.
AI Business Expansion
AI gross billings reached RMB 728 million, marking a year-over-year increase of over 120% and a quarter-over-quarter growth of 39%, accounting for 45% of public cloud revenue.
Xiaomi and Kingsoft Ecosystem Success
Revenue from Xiaomi and Kingsoft ecosystem reached RMB 629 million, up 70% year-over-year, contributing 27% to total revenue.
Enterprise Cloud Growth
Revenue from enterprise cloud services reached RMB 724 million, showing a year-over-year increase of 10%.
Non-GAAP EBITDA Improvement
Non-GAAP EBITDA profit was RMB 406 million, a 5.7x increase from the same quarter last year, with a margin of 73%.
Negative Updates
Increased Costs Impacting Gross Margin
Adjusted gross margin was negatively impacted by higher costs of service and upfront costs for AI business, declining to 17% compared to 17% in the previous year.
Operating Loss
Adjusted operating loss was RMB 166 million, slightly improved from the previous year but increased compared to the last quarter.
Chip Supply Chain Uncertainty
Potential future supply issues for domestic chips due to geopolitical tensions, which may impact long-term supply-demand balance.
Company Guidance
During the Kingsoft Cloud Second Quarter 2025 Earnings Conference Call, the company reported a Q2 revenue of RMB 2.35 billion, marking a 24% year-over-year growth. Public cloud revenue surged by 32% to RMB 1.63 billion, while enterprise cloud revenue increased by 10% to RMB 724 million. AI gross billings reached RMB 728 million with a 120% year-over-year rise, accounting for 45% of public cloud revenue. The Xiaomi and Kingsoft ecosystem contributed RMB 629 million in revenue, a 70% increase from the previous year, comprising 27% of total revenue. The company outlined its strategic focus on AI, technological enhancements, and ecosystem partnerships to sustain growth. Despite some impact on the gross profit margin due to shifts in procurement models, the overall financial outlook for the second half of the year remains positive with expectations for stronger growth compared to the first half.Kingsoft Cloud Holdings Financial Statement Overview
Summary
Kingsoft Cloud Holdings shows moderate financial stability with improving gross profit margins and positive operating cash flow. However, persistent net losses and negative free cash flow indicate ongoing profitability and cash management challenges. Rising debt levels also pose a risk.Income Statement
Despite a recent increase in gross profit margin to 17.2% from 12.1% the previous year, Kingsoft Cloud Holdings faces challenges with negative EBIT and net profit margins, indicating ongoing operational inefficiencies. Revenue growth has been inconsistent, with a decline of 13.2% in 2022 followed by a recovery of 10.5% in 2023. These factors contribute to a moderate income statement score.45
Neutral
Balance Sheet
The company's balance sheet shows a stable equity ratio of 29.4%, reflecting a solid capital structure. However, the debt-to-equity ratio has increased, signaling rising financial leverage. Return on equity remains negative due to persistent net losses, which highlights profitability concerns. Overall, the balance sheet is relatively stable but with some risk factors.60
Neutral
Cash Flow
Kingsoft Cloud Holdings has shown improvement in operating cash flow, turning positive in 2023, indicating better cash management. However, free cash flow remains negative, albeit improved from prior years. The operating cash flow to net income ratio suggests cash generation is better than reported earnings, but continued negative free cash flow poses concerns for financial sustainability.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.98B | 7.79B | 7.05B | 8.18B | 9.06B | 6.58B |
| Gross Profit | 1.37B | 1.34B | 850.17M | 429.54M | 351.29M | 356.98M |
| EBITDA | -859.25M | 443.80M | -1.08B | -1.37B | -776.06M | -388.83M |
| Net Income | -1.92B | -1.97B | -2.18B | -2.69B | -1.59B | -962.20M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 17.59B | 15.07B | 17.32B | 21.08B | 11.96B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 2.74B | 2.26B | 4.67B | 6.71B | 6.12B |
| Total Debt | 0.00 | 5.20B | 1.72B | 1.35B | 1.62B | 612.27M |
| Total Liabilities | 0.00 | 12.09B | 7.82B | 7.73B | 9.59B | 3.72B |
| Stockholders Equity | 5.01B | 5.17B | 6.89B | 8.80B | 10.60B | 8.24B |
Cash Flow | ||||||
| Free Cash Flow | -3.15B | -3.05B | -2.13B | -1.25B | -1.44B | -1.88B |
| Operating Cash Flow | 531.37M | 628.42M | -169.07M | 188.97M | -708.87M | -290.43M |
| Investing Cash Flow | -2.94B | -3.62B | -673.19M | -32.87M | -421.62M | -4.31B |
| Financing Cash Flow | 2.69B | 3.26B | -227.85M | -1.15B | 2.21B | 6.12B |
Kingsoft Cloud Holdings Technical Analysis
Neutral
13.90
Price Trends
13.75
Positive
13.34
Positive
12.90
Positive
Market Momentum
0.16
Negative
48.60
Neutral
75.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KC, the sentiment is Neutral. The current price of 13.9 is below the 20-day moving average (MA) of 14.01, above the 50-day MA of 13.75, and above the 200-day MA of 12.90, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 75.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KC.
Kingsoft Cloud Holdings Risk Analysis
Kingsoft Cloud Holdings disclosed 98 risk factors in its most recent earnings report. Kingsoft Cloud Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kingsoft Cloud Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.83B | 19.45 | 128.70% | 2.08% | 19.85% | 135.66% | |
71 Outperform | $3.47B | 39.32 | 5.22% | ― | -0.54% | 626.94% | |
71 Outperform | $4.72B | 482.28 | 0.59% | ― | 13.36% | ― | |
67 Neutral | $3.93B | ― | -5.23% | ― | 19.78% | 47.51% | |
62 Neutral | $3.44B | ― | -83.36% | ― | 9.84% | 13.74% | |
61 Neutral | $35.45B | 8.20 | -10.60% | 1.91% | 8.56% | -9.51% | |
51 Neutral | $4.22B | ― | -31.02% | ― | 20.42% | -9.39% |
* Technology Sector Average
Performance Comparison
KC
Kingsoft Cloud Holdings
13.90
11.75
546.51%
BILL
Bill.com Holdings
46.73
-7.96
-14.55%
GTM
ZoomInfo Technologies
10.29
0.47
4.79%
ASAN
Asana
13.92
1.31
10.39%
YOU
Clear Secure
35.83
6.85
23.64%
FRSH
Freshworks
13.16
1.61
13.94%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.