Kingsoft Cloud Sees 24% YoY Revenue Growth in Q2 2025, AI Gross Billing Surges Over 120%

Kingsoft Cloud Holdings Ltd reported Q2 2025 total revenue of RMB2.35 billion, a 24% YoY increase. Public cloud revenue rose 32% YoY to RMB1.63 billion, driven by a 120% YoY surge in AI gross billing to RMB728 million. Enterprise cloud revenue grew 10% YoY to RMB724 million. Adjusted gross profit increased 8.4% YoY to RMB350.6 million, and non-GAAP EBITDA profit rose 507.1% YoY to RMB406 million. Cash and cash equivalents stood at RMB5,464.1 million as of June 30, 2025.

Kingsoft Cloud Holdings Ltd (NASDAQ: KC) has released its Q2 2025 financial report, highlighting robust growth across various revenue segments. The company reported total revenue of RMB2.35 billion, a 24% year-over-year (YoY) increase, driven by significant growth in public cloud and AI-related services.

Public cloud revenue rose 32% YoY to RMB1.63 billion, driven by a 120% YoY surge in AI gross billing to RMB728 million. Enterprise cloud revenue grew 10% YoY to RMB724 million. Adjusted gross profit increased 8.4% YoY to RMB350.6 million, while non-GAAP EBITDA profit rose 507.1% YoY to RMB406 million. The company's cash and cash equivalents stood at RMB5,464.1 million as of June 30, 2025 [1].

Revenue from the Xiaomi and Kingsoft Ecosystem grew by 70% YoY to RMB629 million, accounting for 27% of total revenue. The company's integration of AI technology with practical applications in public services, healthcare, and financial services has enhanced its market position [1].

However, the company faced challenges, including a decrease in adjusted gross margin to 14.9% in Q2 2025, primarily due to higher service costs and upfront costs for certain customers. Adjusted operating loss increased compared to the previous quarter, primarily due to credit loss from pre-payments to server providers [1].

The company expects stronger revenue growth in the second half of this year compared to the first half. It is also delivering larger clusters for Xiaomi's computing power demand. The market demand for AI remains strong, with some players investing heavily in model training while others focus on inference computing power [1].

Kingsoft Cloud Holdings Ltd's stock has seen a decline in estimates over the past 90 days, with full-year 2025 revenue estimates decreasing from $10.56 billion to $10.06 billion, and earnings estimates decreasing from -$0.25 per share to -$1.97 per share [2].

References:
[1] https://finance.yahoo.com/news/kingsoft-cloud-holdings-ltd-kc-070639058.html
[2] https://finance.yahoo.com/news/kingsoft-cloud-holdings-ltd-hkse-131627845.html