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BEIJING - On Wednesday, Kingsoft Cloud Holdings Limited (NASDAQ:KC) reported third quarter earnings that beat analyst expectations, with revenue growing 31.4% year-over-year to RMB2.48 billion ($348.1 million), slightly above the consensus estimate of RMB2.47 billion. The company posted breakeven earnings per share, significantly better than the analyst estimate of a RMB0.94 loss.
The company’s shares slipped 1.20% in pre-market trading following the results despite the earnings beat.
The strong performance was primarily driven by the company’s public cloud services segment, which surged 49.1% YoY to RMB1.75 billion ($246.1 million). Kingsoft Cloud’s AI business was particularly impressive, with gross billings reaching RMB782.4 million, representing approximately 120% YoY growth.
For the first time, Kingsoft Cloud achieved adjusted operating profit of RMB15.4 million, compared with a loss of RMB140.2 million in the same quarter last year. The company also reported adjusted net profit of RMB28.7 million, a significant improvement from the adjusted net loss of RMB236.7 million in the year-ago period.
"We are very pleased to see our High Quality and Sustainable Development Strategy continued to deliver," said Mr. Tao Zou, Chief Executive Officer of Kingsoft Cloud. "This quarter, we achieved accelerated revenue growth and enhanced profitability, with both adjusted operating profit and adjusted net profit delivering a quarterly turnaround."
The company’s strategic collaboration with the Xiaomi-Kingsoft ecosystem showed strong momentum, with revenue contribution from the ecosystem increasing 83.8% YoY to RMB690.8 million. Adjusted EBITDA profit reached RMB826.6 million, up 345.9% from the same period last year, with an adjusted EBITDA margin of 33.4%.
Kingsoft Cloud’s cash and cash equivalents stood at RMB3.95 billion ($555.5 million) as of September 30, 2025, down from RMB5.46 billion at the end of the previous quarter, primarily due to capital expenditure for computing power equipment and debt repayment.
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