Kingsoft Cloud beats Q2 expectations on strong core business despite decline in online games

Published 20/08/2025, 14:30
 Kingsoft Cloud beats Q2 expectations on strong core business despite decline in online games

HONG KONG - Kingsoft Cloud Holdings Limited (NASDAQ:KC) reported better-than-expected second-quarter results, with significant improvement in its bottom line. The cloud service provider’s shares fell 0.95% after reporting financial results.

For the second quarter, Kingsoft Cloud posted a loss of RMB0.11 per share, substantially better than the analyst estimate of a RMB0.97 loss. Revenue reached RMB2.35 billion, surpassing the consensus estimate of RMB2.2 billion.

The company’s performance reflects its continued focus on core businesses, with office software and services showing particular strength. Revenue from this segment increased 14% YoY to RMB1,355.7 million, while the online games and others business saw a 26% YoY decline to RMB951.8 million, primarily due to a high comparison base from the same period last year.

"In the second quarter, we advanced core businesses steadily in line with established strategy and firmly positioned for the future," said Mr. Jun Lei, Chairman of the Company. "Kingsoft Office focused on ’AI, collaboration, and internationalization’, continued to strengthen the allocation of R&D resources in related fields."

Total (EPA:TTEF) revenue for the second quarter amounted to RMB2,307.4 million, representing a 7% YoY decrease. Despite this decline, the company made significant progress with its AI initiatives, launching WPS AI 3.0 and the native Office intelligent agent ’WPS Lingxi’ during the quarter.

The online games business continued to develop its flagship IPs and expand into new game genres. The company’s self-developed sci-fi mech game Mecha BREAK commenced its global public beta in July, topping Steam’s lists for both "Most Played" and "Trending Games" on launch day.

Looking ahead, Kingsoft plans to increase R&D investments in AI and collaboration while continuing to cultivate its gaming IP franchise and advance global expansion efforts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.