Kingsoft Cloud Holdings Stock Earnings Reports

Key takeaways for investors: Kingsoft Cloud reported Q2 2025 revenue of RMB 2.35 billion, up 24% year-over-year, driven by strong public cloud growth (RMB 1.63 billion, +32% YoY). AI-related business is a major growth engine: AI gross billings reached RMB 728 million (+120% YoY; +39% QoQ) and represented ~45% of public cloud revenue. The company says it has built an intelligent computing cloud business nearly equal in scale to its basic cloud business. Revenue from the Xiaomi and Kingsoft ecosystem was RMB 629 million (+70% YoY), representing 27% of total revenue and 40% of first-half 2025 revenue tied to ecosystem-related products. Enterprise cloud revenue was RMB 724 million (+10% YoY), with demand accelerating in public services, healthcare and finance. Management expects stronger revenue in H2 2025 versus H1 2025. Cost and margin dynamics: adjusted gross profit rose modestly but adjusted gross margin has been pressured by higher AI-related costs, leasing of compute resources and upfront customer costs; management expects margins to stabilize near current levels. Profitability improvement: non-GAAP EBITDA was RMB 406 million (up ~5.7x YoY) with a non-GAAP EBITDA margin of ~73%, driven by AI revenue mix and cost controls. CapEx and liquidity: full-year CapEx target is ~RMB 10 billion with ~RMB 5 billion spent in H1; Q2 capex (including leased assets) was disclosed and the company has RMB 464.1 million in cash and equivalents. Supply-chain: management is balancing self-owned, profit-sharing/lease and agent procurement models and is working with domestic and overseas chip suppliers; no material supply issues currently, but management is cautious about potential long-term supply constraints if AI demand surges. Execution risks include margin pressure from AI infrastructure investments, reliance on ecosystem customers (Xiaomi contribution concentrated), and uncertainty in chip/supply availability.