Kingsoft Cloud Holdings Ltd. (KC)
NASDAQ:KC
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Kingsoft Cloud Holdings
(NASDAQ:KC)
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Rating:60Neutral
Price Target:
$14.00
▼(-5.60% Downside)
Action:UpgradedDate:01/28/26
The score is held back primarily by weak financial quality (ongoing losses, higher leverage, and negative free cash flow). Offsetting this are strong technical momentum and a positive earnings-call narrative showing accelerating growth and improving adjusted profitability, while valuation remains mixed due to a negative P/E and no dividend support.
Positive Factors
Rapid intelligent computing cloud growth
122% YoY growth in intelligent computing gross billings signals structural demand for AI and specialized compute services. Sustained expansion in this segment can build higher-utilization infrastructure, deepen customer relationships, and create cross-sell opportunities that support durable revenue growth over coming quarters.
Negative Factors
Negative free cash flow and weak cash conversion
Persistent negative free cash flow and poor cash conversion constrain financial flexibility and raise the likelihood of recurrent external funding. Over a 2-6 month horizon this limits ability to self-fund capex or absorb cost shocks, increasing refinancing or dilution risk as growth requires continued investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid intelligent computing cloud growth
122% YoY growth in intelligent computing gross billings signals structural demand for AI and specialized compute services. Sustained expansion in this segment can build higher-utilization infrastructure, deepen customer relationships, and create cross-sell opportunities that support durable revenue growth over coming quarters.
Read all positive factors
Kingsoft Cloud Holdings (KC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.57B
Dividend YieldN/A
Average Volume (3M)1.52M
Price to Earnings (P/E)―
Beta (1Y)1.81
Revenue Growth24.26%
EPS Growth55.58%
CountryUS
Employees12,335
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.09
Shares Outstanding302,119,000
10 Day Avg. Volume1,042,731
30 Day Avg. Volume1,519,994
Financial Highlights & Ratios
PEG Ratio0.83
Price to Book (P/B)3.63
Price to Sales (P/S)2.41
P/FCF Ratio-6.14
Enterprise Value/Market Cap6.64
Enterprise Value/Revenue3.36
Enterprise Value/Gross Profit20.70
Enterprise Value/Ebitda20.15
Forecast
1Y Price Target
$17.30Price Target Upside16.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-2.56
Revenue Forecast (FY)$12.16B
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 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 s...
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
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
40
Negative
| 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 | 3.33B | -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
Positive
14.83
Price Trends
13.54
Positive
12.61
Positive
13.29
Positive
Market Momentum
0.24
Negative
58.90
Neutral
64.67
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 14.83 is above the 20-day moving average (MA) of 13.90, above the 50-day MA of 13.54, and above the 200-day MA of 13.29, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 58.90 is Neutral, neither overbought nor oversold. The STOCH value of 64.67 is Neutral, 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 | $6.53B | 27.21 | 77.38% | 2.11% | 17.83% | 118.70% | |
69 Neutral | $3.74B | ― | -4.43% | ― | 35.87% | 85.20% | |
69 Neutral | $6.04B | -66.55 | -10.89% | ― | 24.19% | 58.84% | |
63 Neutral | $3.58B | -533.32 | -0.63% | ― | 11.63% | 50.72% | |
63 Neutral | $2.94B | 36.75 | 7.99% | ― | 5.71% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $4.57B | ― | -13.37% | ― | 24.26% | 55.58% |
* Technology Sector Average
KC
Kingsoft Cloud Holdings
14.83
2.18
17.23%
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Kingsoft Cloud Holdings Corporate Events
Kingsoft Cloud Reports No Change in Share Capital for December 2025 in Hong Kong Filing
Jan 7, 2026
On January 7, 2026, Kingsoft Cloud Holdings filed a Form 6-K in the United States and submitted a corresponding monthly return to the Hong Kong Stock Exchange detailing movements in its share capital for the month ended December 31, 2025. The fili...
Kingsoft Cloud Reports Stable Share Capital for November 2025
Dec 4, 2025
On December 4, 2025, Kingsoft Cloud Holdings Limited submitted a monthly return form to the Hong Kong Stock Exchange, detailing the movements in its authorized share capital and issued shares for November 2025. The report indicated no changes in t...
Kingsoft Cloud Reports October 2025 Share Capital Movements
Nov 6, 2025
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 mill...
Kingsoft Cloud Announces Upcoming Board Meeting and Earnings Call
Nov 4, 2025
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 co...
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.