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Mar 31

Kingsoft Cloud Q1 2025 Earnings Report

Kingsoft Cloud reported Q1 2025 results with revenue and adjusted EBITDA growth driven by strong AI business performance.

Key Takeaways

Kingsoft Cloud posted $271.5 million in revenue for Q1 2025 with a net loss of $43.6 million. The company saw strong year-over-year growth in AI-related revenue, although seasonal impacts affected sequential results. Adjusted EBITDA improved significantly as AI demand expanded.

Revenue reached $271.5 million, up 10.9% YoY.

Net loss narrowed to $43.6 million from $54.4 million a year ago.

AI gross billing jumped 228% YoY to $72.4 million.

Adjusted EBITDA came in at $43.9 million with a 16.2% margin.

Total Revenue
$271M
Previous year: $247M
+9.9%
EPS
-$0.11
Previous year: -$0.12
-8.3%
Gross Margin
16.2%
Non-GAAP EBITDA
$43.9M
Non-GAAP Operating Profit
-$7.69M
Gross Profit
$43.9M
Previous year: $40.8M
+7.5%
Cash and Equivalents
$320M
Previous year: $289M
+10.6%
Total Assets
$2.72B
Previous year: $2.21B
+23.1%

Kingsoft Cloud

Kingsoft Cloud

Kingsoft Cloud Revenue by Segment

Forward Guidance

Kingsoft Cloud remains optimistic on AI-driven growth but faces seasonal and cost-related pressures.

Positive Outlook

  • AI infrastructure investment continues to gain traction.
  • Strong growth in public cloud driven by AI demand.
  • Adjusted EBITDA margin improved YoY.
  • Continued revenue contribution from Xiaomi and Kingsoft Ecosystem.
  • Improved procurement cost controls helped gross profit.

Challenges Ahead

  • Sequential revenue decline due to seasonal impacts.
  • Enterprise cloud revenue fell 25% QoQ.
  • Net loss remains significant despite improvements.
  • Increased depreciation and amortization from AI hardware investment.
  • Rising operating expenses from share-based compensation and R&D hiring.

Revenue & Expenses

Visualization of income flow from segment revenue to net income