Kingsoft Cloud Holdings (KC) AI Stock Analysis

• Market Cap: $3.83B
• Dividend Yield: N/A
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• Revenue Growth: 24.26%
• 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: 1,419,351
• 30 Day Avg. Volume: 1,131,021
• 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: 7.31
• Enterprise Value/Revenue: 3.10
• Enterprise Value/Gross Profit: 19.11
• Enterprise Value/Ebitda: 18.61
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $14.00 ▲(18.04% Upside)

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.

Public cloud revenue acceleration

A 49% YoY increase in public cloud revenue demonstrates stronger market adoption and scaling of core platform services. Durable public-cloud growth typically reflects recurring consumption, enterprise contracts and network effects that improve competitive positioning and revenue predictability over multiple quarters.

Successful equity raise to fund AI infrastructure

Raising substantial equity capital provides liquidity to fund strategic AI infrastructure without immediate operating cash drain. Dedicated funding for AI builds capacity and credibility in a high-growth segment, enabling scale and product differentiation while limiting short-term leverage pressure from capex-funded expansion.

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.

Elevated leverage (debt-to-equity 1.30)

A debt-to-equity ratio near 1.3 raises fixed financing costs and reduces resilience to revenue swings. Higher leverage limits strategic optionality for additional investment or M&A, increases interest burden, and can amplify downside risk if growth or margins underperform over the medium term.

Rising depreciation/amortization pressuring GAAP margins

Sharp increases in depreciation and amortization reflect heavy recent capex and asset capitalization, which depress GAAP margins and can mask operational profitability trends. Elevated non-cash charges raise breakeven thresholds and extend the time before investments translate into sustained net income improvements.

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

Revenue is growing (TTM +7.02%), but profitability remains weak with negative net and EBIT margins. Leverage is elevated (debt-to-equity 1.30) and cash generation is concerning with negative free cash flow and weak cash conversion, limiting financial flexibility.

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	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

• Technical Analysis Sentiment: Negative
• Last Price: 11.86
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 11.86 is below the 20-day moving average (MA) of 12.63, below the 50-day MA of 11.88, and below the 200-day MA of 13.16, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 35.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KC.

Kingsoft Cloud Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YOU	73 Outperform	$4.23B	16.60	130.93%	2.11%	17.83%	118.70%
ZETA	70 Outperform	$4.27B	-149.61	-3.92%	―	35.87%	85.20%
BILL	64 Neutral	$3.73B	-136.62	0.30%	―	11.63%	50.72%
OS	64 Neutral	$5.69B	-49.70	-20.63%	―	24.19%	58.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GBTG	61 Neutral	$3.15B	268.30	0.76%	―	5.71%	―
KC	60 Neutral	$3.83B	-23.16	-15.88%	―	24.26%	55.58%

Kingsoft Cloud Holdings Corporate Events

Kingsoft Cloud Reports No Change in Share Capital for December 2025 in Hong Kong Filing

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 filing shows that the company’s authorized share capital remained unchanged at 40 billion ordinary shares with a par value of US$0.001, and its issued share capital was steady at about 4.53 billion shares, with no treasury shares and no net increase or decrease in issued shares during December. The disclosure also confirms only minor movements related to legacy share option and share award schemes, with no new grants under the older 2013 plans, indicating a stable capital structure and compliance with Hong Kong listing and regulatory requirements without any dilution for existing shareholders in that period.

The most recent analyst rating on (KC) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Kingsoft Cloud Holdings stock, see the KC Stock Forecast page.

Kingsoft Cloud Reports Stable Share Capital for November 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 the number of authorized or issued shares, maintaining a total of 40 billion authorized shares and over 4.5 billion issued shares. This stability in share capital suggests a period of consolidation for the company, potentially impacting investor perceptions and market positioning.

The most recent analyst rating on (KC) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Kingsoft Cloud Holdings stock, see the KC Stock Forecast page.

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.

The most recent analyst rating on (KC) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Kingsoft Cloud Holdings stock, see the KC Stock Forecast page.

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.

The most recent analyst rating on (KC) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Kingsoft Cloud Holdings stock, see the KC Stock Forecast page.