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KC

Kingsoft Cloud Holdings Limited

KC

Kingsoft Cloud Holdings Limited • NASDAQ
$12.36 ▼ -0.72% (-0.09)
Market Cap $3.21 B
52w High $22.26
52w Low $7.17
Dividend Yield 0%
P/E -23.32
Volume 503.82K
Outstanding Shares 259.84M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $2.465B ▲ $523.42M ▼ $-4.596M ▲ -0.186% ▲ $-0.017 ▲ $811.109M ▲
Q2-2025 $2.327B ▲ $659.477M ▲ $-453.091M ▼ -19.473% ▼ $-1.8 ▼ $258.673M ▲
Q1-2025 $1.966B ▼ $551.449M ▲ $-313.325M ▼ -15.936% ▼ $-1.26 ▼ $197.55M ▼
Q4-2024 $2.266B ▲ $476.642M ▼ $-199.962M ▲ -8.824% ▲ $-0.79 ▲ $237.135M ▲
Q3-2024 $1.844B $515.821M $-1.034B -56.064% $-4.35 $-620.527M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $3.955B ▼ $25.652B ▲ $18.578B ▲ $6.742B ▲
Q2-2025 $5.464B ▲ $24.83B ▲ $17.77B ▲ $6.724B ▲
Q1-2025 $2.383B ▼ $19.721B ▲ $14.376B ▲ $5.01B ▼
Q4-2024 $2.739B ▲ $17.593B ▲ $12.087B ▲ $5.168B ▼
Q3-2024 $1.618B $16.697B $11.125B $5.23B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-4.62M ▲ $1.717B ▲ $-2.724B ▼ $-433.81M ▼ $-1.467B ▼ $1.717B ▲
Q2-2025 $-457.465M ▼ $1.46B ▲ $-887.832M ▼ $2.553B ▲ $3.131B ▲ $1.46B ▲
Q1-2025 $-313.926M ▼ $-418.39M ▼ $-490.393M ▲ $549.998M ▼ $-343.757M ▼ $-418.39M ▲
Q4-2024 $-196.959M ▼ $570.222M ▲ $-1.338B ▼ $1.803B ▲ $1.02B ▲ $-3.102B ▼
Q3-2024 $0 $228.364M $-458.621M $-183.39M $-386.015M $228.364M

Revenue by Products

Product Q3-2022Q4-2022
Enterprise Cloud Services
Enterprise Cloud Services
 $620.00M ▲$2.20Bn ▲
Other Services
Other Services
 $0 ▲$0 ▲
Public cloud service
Public cloud service
 $1.35Bn ▲$0 ▼

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown over the longer term, but with a noticeable mid‑period slowdown and then a modest recovery in the most recent year. The most encouraging shift is in profitability quality: gross profit has increased steadily, suggesting better pricing, a higher‑margin mix, or improved cost control, even without returning to the earlier revenue peak. Despite that, the company still runs at a clear operating loss, and net losses remain sizable. That means the business model is not yet self‑funding through earnings. There is progress, however: operating losses have narrowed versus the worst year, and EBITDA has flipped from negative to positive, which points to better underlying unit economics before non‑cash costs and some overheads. Overall, the trend is toward improvement, but the income statement still shows a company in the transition phase from growth-at-any-cost to more disciplined, margin‑aware growth.

Balance Sheet

Balance Sheet The balance sheet shows a business that has invested heavily and absorbed several years of losses. Total assets are substantial but have moved up and down over time, reflecting investment cycles and possible restructuring. Cash remains meaningful but not abundant relative to the ongoing losses and investment needs. A key change is leverage: debt has risen sharply in the most recent year, while shareholders’ equity has steadily eroded as losses accumulated. This combination — more debt and less equity — means the balance sheet is now more stretched and more sensitive to funding costs and business setbacks than it was a few years ago. There is still an equity cushion, but it is clearly thinner, and financial flexibility is more constrained than earlier in the company’s public life.

Cash Flow

Cash Flow Cash flow tells a mixed but improving story. Operating cash flow has moved from consistently negative or barely breakeven to clearly positive in the latest year. That is an important milestone: the core business, after years of build‑out, is finally generating cash from operations rather than consistently consuming it. At the same time, free cash flow is still clearly negative. The reason is continued heavy capital spending, which actually increased again in the latest year. In other words, the business is using the cash it now generates — plus external funding — to keep investing in infrastructure and capacity. This can support future growth and service quality, but it prolongs the period of cash burn and raises the importance of access to capital markets and careful investment discipline.

Competitive Edge

Competitive Edge Kingsoft Cloud operates in a very crowded and aggressively competitive Chinese cloud market, dominated by much larger players. Instead of trying to match them on every front, it has chosen to specialize in certain industries like gaming, video streaming, healthcare, and finance. This focus gives it a reputation for tailored solutions, low latency, and compliance in regulated sectors, which can foster sticky customer relationships. Its close ties with Kingsoft Group and Xiaomi are a major strength, providing a built‑in ecosystem of demand and collaboration opportunities, particularly in devices, apps, and emerging areas like connected hardware. Another advantage is its relative neutrality: as an independent cloud provider, it can be more acceptable to customers who do not want to rely solely on a direct competitor’s cloud. However, the company still faces strong headwinds from larger cloud providers with deeper pockets, broader platforms, and the ability to cut prices aggressively. Its moat is therefore more about niche depth and partnerships than about scale, and it will need to keep proving its value to defend margins and win high‑quality workloads.

Innovation and R&D

Innovation and R&D The company is clearly leaning into innovation as its main lever. It has focused R&D on industry‑specific clouds, advanced content delivery, and tools that meet demanding needs in gaming, streaming, healthcare, and finance. This vertical specialization is a key part of its differentiation. On the technology side, it is investing heavily in artificial intelligence and big data — including infrastructure for training and running large models, as well as tools that manage data from ingestion to analysis. Its work on serverless databases, container platforms, and large‑model training services positions it well for customers that want modern, cloud‑native architectures without building everything in‑house. These innovation efforts are costly and contribute to the ongoing losses, but they also help move the business toward higher‑margin, more defensible services rather than commodity cloud capacity. The challenge will be converting these capabilities into durable, profitable revenue while managing R&D spending at a sustainable level.

Summary

Overall, Kingsoft Cloud looks like a cloud provider in the middle of a strategic transition: moving from broad, capital‑intensive growth toward more focused, higher‑margin, AI‑driven and industry‑specific services. Financially, revenue has been uneven but is stabilizing, margins are improving, and core operations have finally turned cash‑generative — all positive signs. At the same time, the company is still loss‑making, free cash flow remains negative due to continued heavy investment, and the balance sheet has become more leveraged with a thinner equity cushion. Strategically, its strengths lie in deep vertical expertise, strong relationships with Kingsoft and Xiaomi, and a clear push into AI and cloud‑native technologies. Its main risks center on intense competition from much larger cloud players, ongoing cash burn, and reliance on external funding to support its investment program. In short, this is an evolving story: operational quality and technology positioning are improving, but the path to durable profitability and a more resilient balance sheet remains the key uncertainty to watch.

NEWS

November 19, 2025 · 6:54 AM UTC

Kingsoft Cloud Announces Unaudited Third Quarter 2025 Financial Results

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September 23, 2025 · 8:50 AM UTC

Kingsoft Cloud Announces Pricing of Upsized HK$2,802 Million Offering of New Shares

Read more