tiprankstipranks
Trending News
More News >
Kingsoft Cloud Holdings (KC)
NASDAQ:KC
Advertisement

Kingsoft Cloud Holdings (KC) AI Stock Analysis

Compare
803 Followers

Top Page

KC

Kingsoft Cloud Holdings

(NASDAQ:KC)

Select Model
Select Model
Select Model
Neutral 48 (OpenAI - 4o)
Rating:48Neutral
Price Target:
$12.50
▼(-0.79% Downside)
Kingsoft Cloud Holdings' overall stock score is primarily impacted by its challenging financial performance, with persistent profitability and cash flow issues. Technical analysis indicates bearish momentum, further weighing on the score. Valuation concerns with a negative P/E ratio and no dividend yield also contribute negatively. However, the earnings call provides a positive outlook with strong revenue growth driven by AI and ecosystem partnerships, partially offsetting the negative factors.

Kingsoft Cloud Holdings (KC) vs. SPDR S&P 500 ETF (SPY)

Kingsoft Cloud Holdings Business Overview & Revenue Model

Company DescriptionKingsoft Cloud Holdings (KC) is a leading cloud service provider based in China, offering a comprehensive suite of cloud computing solutions across various sectors. The company operates primarily in the cloud infrastructure and cloud services sectors, providing products such as cloud storage, cloud hosting, and data analytics. With a focus on serving businesses of all sizes, Kingsoft Cloud aims to deliver scalable, efficient, and secure cloud solutions to facilitate digital transformation and innovation.
How the Company Makes MoneyKingsoft 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 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. The rising debt levels warrant cautious optimism as the company navigates its financial restructuring efforts.
Income Statement
45
Neutral
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.
Balance Sheet
50
Neutral
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.
Cash Flow
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.44B7.79B7.05B8.18B9.06B6.58B
Gross Profit1.39B1.34B850.17M429.54M351.29M356.98M
EBITDA165.56M443.80M-1.08B-1.37B-956.79M-449.21M
Net Income-2.03B-1.97B-2.18B-2.66B-1.59B-962.20M
Balance Sheet
Total Assets24.83B17.59B15.07B17.32B21.08B11.96B
Cash, Cash Equivalents and Short-Term Investments5.46B2.74B2.26B4.67B6.71B6.12B
Total Debt5.63B5.20B1.72B1.35B1.62B612.27M
Total Liabilities17.77B12.09B7.82B7.73B9.59B3.72B
Stockholders Equity6.72B5.17B6.89B8.80B10.60B8.24B
Cash Flow
Free Cash Flow-1.83B-3.05B-2.13B-1.25B-1.44B-1.88B
Operating Cash Flow1.84B628.42M-169.07M188.97M-708.87M-290.43M
Investing Cash Flow-3.17B-3.62B-673.19M-32.87M-421.62M-4.31B
Financing Cash Flow4.72B3.26B-227.85M-1.15B2.21B6.12B

Kingsoft Cloud Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price12.60
Price Trends
50DMA
14.55
Negative
100DMA
14.01
Negative
200DMA
14.23
Negative
Market Momentum
MACD
-0.54
Negative
RSI
40.50
Neutral
STOCH
41.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KC, the sentiment is Negative. The current price of 12.6 is below the 20-day moving average (MA) of 13.25, below the 50-day MA of 14.55, and below the 200-day MA of 14.23, indicating a bearish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 41.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
$4.05B16.33128.70%2.53%19.85%135.66%
$5.05B0.59%13.36%
$4.59B-88.48%24.72%-3760.98%
$3.77B-4.72%3.61%-44.99%
$37.18B12.37-10.20%1.83%8.50%-7.62%
$4.28B-8.21%40.60%79.56%
$3.80B-31.02%20.42%-9.39%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KC
Kingsoft Cloud Holdings
12.60
9.83
354.87%
BILL
Bill.com Holdings
49.66
-8.70
-14.91%
GBTG
Global Business Travel Group
7.86
0.18
2.34%
ZETA
Zeta Global Holdings Corp
17.99
-9.43
-34.39%
YOU
Clear Secure
30.47
-3.33
-9.85%
OS
Onestream, Inc. Class A
18.89
-10.21
-35.09%

Kingsoft Cloud Holdings Corporate Events

Kingsoft Cloud Reports Stable Share Capital for September 2025
Oct 8, 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
Sep 26, 2025

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
Sep 8, 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
Sep 4, 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.

Kingsoft Cloud Reports Increased Revenue but Wider Losses in H1 2025
Aug 20, 2025

Kingsoft Cloud Holdings Limited announced its unaudited interim consolidated results for the six months ended June 30, 2025, showing a revenue increase of 17.8% compared to the same period in 2024. Despite the revenue growth, the company reported a net loss of RMB 772,973,000, marking a 7.8% increase in net loss year-on-year. The results reflect ongoing challenges in achieving profitability, although the company continues to expand its market presence.

Kingsoft Cloud Reports Strong Q2 2025 Financial Results with AI-Driven Growth
Aug 20, 2025

On August 20, 2025, Kingsoft Cloud Holdings Limited announced its unaudited financial results for the second quarter of 2025, revealing a 24.2% year-over-year revenue increase to RMB2,349.2 million. The growth was driven by a significant rise in AI-related business, which saw a 120% increase in gross billing. Despite a decrease in gross margin due to higher server costs, the company achieved a substantial 570.1% increase in adjusted EBITDA profit, highlighting its optimized revenue structure and cost control measures.

Kingsoft Cloud to Announce Q2 2025 Financial Results on August 20
Aug 7, 2025

Kingsoft Cloud Holdings Limited announced that it will release its unaudited financial results for the second quarter of 2025 on August 20, 2025. The announcement includes plans for an earnings conference call on the same day, which will provide insights into the company’s financial performance and strategic direction. This upcoming release is significant for stakeholders as it will offer a detailed view of the company’s operational and financial health during the specified period.

Kingsoft Cloud Reports Stable Share Capital for July 2025
Aug 6, 2025

Kingsoft Cloud Holdings Limited submitted a monthly return form to The Stock Exchange of Hong Kong Limited on August 6, 2025, detailing the movements in its authorized share capital and issued shares for July 2025. The report indicates that there were no changes in the number of authorized or issued shares during this period, maintaining a stable position in its equity structure. This stability in share capital movements suggests a period of operational consistency for the company, which may reassure stakeholders about its current financial health and strategic direction.

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.Date of analysis: Oct 19, 2025