Kingsoft Cloud Holdings Limited (NASDAQ:KC) delivered third-quarter results on Wednesday that surpassed Wall Street expectations, with revenue jumping 31.4% year-over-year to RMB2.48 billion ($348.1 million). The figure edged past the consensus estimate of RMB2.47 billion. Earnings per share came in at breakeven, a sharp improvement from analysts’ projected loss of RMB0.94.
Despite the beat, shares of Kingsoft Cloud dipped 1.20% in pre-market trading.
Growth in the public cloud segment continued to be the primary engine for performance, with revenue soaring 49.1% from a year earlier to RMB1.75 billion ($246.1 million). The company’s AI operations stood out as well, producing gross billings of RMB782.4 million — an increase of roughly 120% YoY.
The quarter marked a significant financial milestone: Kingsoft Cloud posted its first-ever adjusted operating profit, reaching RMB15.4 million compared with a loss of RMB140.2 million a year ago. Adjusted net profit also swung positive to RMB28.7 million, versus an adjusted net loss of RMB236.7 million in the prior-year 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 also benefited from deepening ties within the Xiaomi-Kingsoft ecosystem. Revenue from this ecosystem climbed 83.8% YoY to RMB690.8 million. Adjusted EBITDA surged 345.9% to RMB826.6 million, resulting in a margin of 33.4%.
As of September 30, 2025, Kingsoft Cloud held RMB3.95 billion ($555.5 million) in cash and cash equivalents, down from RMB5.46 billion in the previous quarter. The company attributed the decline mainly to investments in computing power infrastructure and debt repayment.