Kingsoft Cloud Holdings (KC)
NASDAQ:KC
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Kingsoft Cloud Holdings
(NASDAQ:KC)
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Rating:56Neutral
Price Target:
$17.00
▼(-6.64% Downside)
Action:ReiteratedDate:04/26/26
The score is held back primarily by weak financial quality (still unprofitable with negative free cash flow) and limited valuation support (negative P/E, no dividend). These are partly offset by improving fundamentals discussed on the earnings call (accelerating growth and better quarterly profitability) and a constructive technical trend with price above key moving averages.
Positive Factors
AI and public cloud revenue acceleration
Rapid AI monetization and strong public cloud growth reflect a structural shift in demand toward cloud-native AI services. A roughly 50% AI share of recent public-cloud billings indicates product-market fit, diversified revenue streams, and a durable growth engine as enterprises scale AI workloads over years.
Negative Factors
Persistent GAAP losses and negative FCF
Ongoing GAAP losses and negative free cash flow constrain the firm's ability to self-fund large infrastructure spending and lengthen the path to sustainable profitability. This increases reliance on external financing, customer prepayments, or leasing and raises execution and dilution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
AI and public cloud revenue acceleration
Rapid AI monetization and strong public cloud growth reflect a structural shift in demand toward cloud-native AI services. A roughly 50% AI share of recent public-cloud billings indicates product-market fit, diversified revenue streams, and a durable growth engine as enterprises scale AI workloads over years.
Read all positive factors
Kingsoft Cloud Holdings (KC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.41B
Dividend YieldN/A
Average Volume (3M)1.54M
Price to Earnings (P/E)―
Beta (1Y)1.82
Revenue Growth23.05%
EPS Growth56.65%
CountryUS
Employees12,335
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.09
Shares Outstanding302,119,000
10 Day Avg. Volume1,313,147
30 Day Avg. Volume1,544,354
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)2.12
Price to Sales (P/S)2.13
P/FCF Ratio-21.03
Enterprise Value/Market Cap6.97
Enterprise Value/Revenue3.24
Enterprise Value/Gross Profit20.62
Enterprise Value/Ebitda15.61
Forecast
1Y Price Target
$17.30Price Target Upside-5.00% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-2.55
Revenue Forecast (FY)$12.26B
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; an...
How the Company Makes Money
Kingsoft Cloud primarily makes money by selling cloud services to customers under usage-based and contract-based arrangements. Its main revenue streams generally include: (1) Public cloud services, where customers consume standardized cloud produc...
Kingsoft Cloud Holdings Earnings Call Summary
Earnings Call Date:Mar 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial narrative: record quarterly revenue, very strong AI billing growth (+95% YoY), expanded public cloud revenue (+35% YoY), improving quarter-level profitability (positive adjusted operating profit and strong EBITDA) and a solid cash position with an explicit plan to scale CapEx in 2026. However, the company faces meaningful challenges: high related-party concentration with ecosystem partners, rising infrastructure and depreciation costs that compressed full-year gross margin, and some clarity issues in reported margin figures. Management is addressing these by expanding external customer traction, leveraging prepayments and leasing to fund CapEx, and pushing product/technical upgrades. Overall, the positive drivers (revenue growth, AI monetization, improving quarterly profitability and cash strength) outweigh the identified risks, though the concentration and cost pressures warrant monitoring.Positive Updates
Record Quarterly Revenue
Total revenue for Q4 FY2025 reached RMB 2,761 million, a year-over-year increase of 24%, representing a historical high quarterly revenue for the company.
Negative Updates
High Related-Party / Ecosystem Concentration Risk
Revenue from Xiaomi and Kingsoft ecosystem partners reached RMB 804 million in the quarter (up 63% year-over-year), accounting for 29% of total quarterly revenue. Management disclosed related-party transactions with Xiaomi and ecosystem partners reached 94% of net annual [metric], indicating material concentration and potential governance/related-party risk.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly Revenue
Total revenue for Q4 FY2025 reached RMB 2,761 million, a year-over-year increase of 24%, representing a historical high quarterly revenue for the company.
Read all positive updates
Company Guidance
Guidance: Kingsoft Cloud expects 2026 capital expenditure to exceed RMB 10 billion, with roughly 50% of CapEx targeted to be covered by customer prepayments and the remainder funded via four channels (proceeds from 2025 financing, customer operating receipts, strategic prepayments, and committed bank credit facilities) and increased use of short‑ and long‑term leases to limit upfront cash needs; management said there are no planned equity financings and highlighted RMB 6,018 million in cash and cash equivalents to support AI investment while they manage liquidity and operating efficiency. Management also guided that revenue growth should accelerate in 2026 and the EBITDA rate should improve; for context, FY2025 revenue was RMB 9,559 million (+23% YoY), Q4 revenue was RMB 2,761 million (+24% YoY), public cloud revenue for FY2025 was RMB 6,634 million (+33% YoY) with Q4 public cloud at RMB 1,902 million (+35% YoY), Q4 AI gross billing was RMB 926 million (+95% YoY, ~49% of Q4 public cloud), Q4 adjusted operating profit was RMB 55 million (2% margin), Q4 non‑GAAP EBITDA was RMB 785 million (28% margin) and FY2025 adjusted EBITDA was RMB 2,336 million (24% margin).Kingsoft Cloud Holdings Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
55
Neutral
Cash Flow
44
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.30B | 7.79B | 7.05B | 8.32B | 8.94B |
| Gross Profit | 1.46B | 1.34B | 850.17M | 267.39M | 277.22M |
| EBITDA | 1.66B | -487.77M | -1.08B | -1.39B | -659.72M |
| Net Income | -910.74M | -1.97B | -2.18B | -2.70B | -1.57B |
Balance Sheet | |||||
| Total Assets | 26.75B | 17.59B | 15.07B | 17.32B | 21.08B |
| Cash, Cash Equivalents and Short-Term Investments | 6.12B | 2.74B | 2.26B | 4.67B | 6.71B |
| Total Debt | 6.47B | 5.20B | 1.72B | 1.35B | 1.62B |
| Total Liabilities | 17.43B | 12.09B | 7.82B | 7.73B | 9.59B |
| Stockholders Equity | 9.32B | 5.17B | 6.89B | 8.80B | 10.60B |
Cash Flow | |||||
| Free Cash Flow | -941.34M | -3.05B | -2.13B | -1.25B | -1.44B |
| Operating Cash Flow | 3.80B | 628.42M | -169.07M | 188.97M | -708.87M |
| Investing Cash Flow | -4.53B | -3.62B | -673.19M | -32.87M | -421.62M |
| Financing Cash Flow | 4.18B | 3.26B | -227.85M | -1.15B | 2.21B |
Kingsoft Cloud Holdings Technical Analysis
Positive
18.21
Price Trends
13.93
Positive
12.91
Positive
13.42
Positive
Market Momentum
1.00
Negative
73.99
Negative
90.73
Negative
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 18.21 is above the 20-day moving average (MA) of 14.76, above the 50-day MA of 13.93, and above the 200-day MA of 13.42, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 73.99 is Negative, neither overbought nor oversold. The STOCH value of 90.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.14B | 27.21 | 77.38% | 2.11% | 16.91% | -36.34% | |
74 Outperform | $4.50B | -143.66 | -4.43% | ― | 29.72% | 63.53% | |
63 Neutral | $3.76B | -533.32 | -0.63% | ― | 11.84% | -130.23% | |
63 Neutral | $3.07B | 36.75 | 7.99% | ― | 12.17% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $4.41B | -21.74 | -13.37% | ― | 23.05% | 56.65% |
* Technology Sector Average
KC
Kingsoft Cloud Holdings
15.07
-0.16
-1.05%
BILL
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38.00
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-16.11%
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5.86
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-14.83%
ZETA
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18.42
4.74
34.65%
YOU
Clear Secure
53.39
28.72
116.43%
Kingsoft Cloud Holdings Corporate Events
Kingsoft Cloud Raises Xiaomi Transaction Caps and Extends Cooperation Frameworks
Apr 24, 2026
Kingsoft Cloud said it is revising the annual caps on cloud services it provides to Xiaomi under a 2024 framework agreement covering January 1, 2025 to December 31, 2027. The adjustment, driven by faster-than-expected business growth and rising de...
Kingsoft Cloud Files Form 6-K, Releases 2025 Annual and ESG Reports
Apr 23, 2026
On April 23, 2026, Kingsoft Cloud Holdings Limited filed a Form 6-K with the U.S. Securities and Exchange Commission as a foreign private issuer. The filing indicates the company continues to report under Form 20-F, underscoring its ongoing compli...
Kingsoft Cloud Files 2025 Annual Reports and Unveils New ESG Strategy
Apr 23, 2026
On April 23, 2026, Kingsoft Cloud Holdings filed its annual report on Form 20‑F for the fiscal year ended December 31, 2025 with the U.S. Securities and Exchange Commission and simultaneously released its Hong Kong annual report. The filings...
Kingsoft Cloud Reports Stable Share Capital and Public Float in March 2026 Hong Kong Filing
Apr 9, 2026
On April 9, 2026, Kingsoft Cloud reported to the Hong Kong Stock Exchange that its authorised share capital remained unchanged in March 2026 at 40 billion ordinary shares with a par value of US$0.001 each, amounting to US$40 million. The company a...
Kingsoft Cloud Narrows 2025 Losses as Revenue Jumps and Governance Overhaul Proposed
Mar 25, 2026
Kingsoft Cloud released its unaudited preliminary results for the year ended December 31, 2025, showing revenue rising 22.8% year-on-year to RMB 9.56 billion while gross profit increased 12.1% to RMB 1.50 billion. The company significantly narrowe...
Kingsoft Cloud Posts Strong 2025 AI-Driven Growth and Higher Margins Despite Net Loss
Mar 25, 2026
Kingsoft Cloud reported unaudited results for the fourth quarter and fiscal year ended December 31, 2025, highlighting rapid AI-led growth and improving profitability metrics. The company’s AI business gross billing grew 95% year over year i...
Kingsoft Cloud Reports No Share Capital Changes in February 2026 Filing
Mar 5, 2026
Kingsoft Cloud Holdings disclosed that its authorized share capital and issued share count remained unchanged in February 2026, according to a monthly return filed with the Hong Kong Stock Exchange and furnished to the U.S. Securities and Exchange...
Kingsoft Cloud Raises Caps on Connected Property and Lease Deals for 2026–2027
Mar 2, 2026
On March 2, 2026, Kingsoft Cloud announced it had revised the annual caps for certain continuing connected transactions under its 2024 Kingsoft Framework Agreement with its major shareholder Kingsoft Corporation. The changes, driven by higher futu...
Kingsoft Cloud Reports No Share Capital Changes in January 2026 Hong Kong Filing
Feb 5, 2026
On February 5, 2026, Kingsoft Cloud Holdings Limited reported to the U.S. Securities and Exchange Commission that it had filed its monthly return for the month ended January 31, 2026 with the Hong Kong Stock Exchange, detailing movements in its sh...
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.