Text by Wang Miaowei, Design by Gu Qingqing, Produced by Networld

On November 19, Kingsoft Cloud released its third-quarter report for 2025.

The report shows that Kingsoft Cloud's total revenue for the third quarter reached 2.478 billion yuan, up 31.4% year-on-year and 5.5% sequentially. Gross profit was approximately 381 million yuan, up 25.6% year-on-year.

Net loss was 7.847 million yuan, narrowing by 99.26% year-on-year. Non-GAAP net profit was 28.7 million yuan, turning from a loss to a profit year-on-year.

This marks that, driven by the continuous implementation of its AI strategy, Kingsoft Cloud has not only accelerated revenue growth but also completed a crucial leap from scale expansion to profit realization.

As the sole strategic cloud platform within the Xiaomi-Kingsoft ecosystem, Kingsoft Cloud has precisely positioned itself amid the surge in AI computing demand. In the third quarter, Kingsoft Cloud's intelligent computing cloud billing revenue surged nearly 120% year-on-year, while public cloud revenue jumped 49% year-on-year. Revenue from the Xiaomi-Kingsoft ecosystem soared 84% year-on-year.

Behind these figures lies Kingsoft Cloud's technological upgrades underpinned by a dual-wheel drive of basic cloud and intelligent computing cloud services, its deep penetration into industries such as government, healthcare, and finance, and the vivid practice of AI technology moving from laboratories to industrial implementation.

For the cloud computing industry, Kingsoft Cloud's profitability breakthrough not only validates the commercial value of AI cloud services but also provides a replicable growth path for independent cloud service providers.

01

Profitability Turning Point Arrives as Scheduled, with Comprehensive Upgrade in Growth Quality

The most core highlight of Kingsoft Cloud's third-quarter financial report is undoubtedly the substantive breakthrough in profitability.

From a financial perspective, Kingsoft Cloud's adjusted net profit in the third quarter turned positive for the first time, reaching 28.73 million yuan, compared to a net loss of 237 million yuan in the same period last year. Adjusted operating profit turned from a loss of 140 million yuan last year to a profit of 15.36 million yuan, with an adjusted operating profit margin of 0.6%.

This set of data outlines a clear profitability path: while revenue scale continues to expand, profitability improves simultaneously, achieving a healthy development trend of "growth in both volume and profit."

The core driver of profitability improvement is the continuous optimization of the business structure. As the main revenue contributor, Kingsoft Cloud's public cloud business achieved revenue of 1.752 billion yuan in the third quarter, up 49.1% year-on-year and 7.8% sequentially.

Among them, the intelligent computing cloud business emerged as the strongest growth engine, with billing revenue reaching 782 million yuan, up approximately 120% year-on-year, accounting for a high 45% of public cloud revenue.

The explosive growth of the intelligent computing cloud business not only brought higher revenue growth but also continuously optimized the company's profit structure due to its high-value-added nature.

The industry cloud business demonstrated a solid foundation. In the third quarter, Kingsoft Cloud's industry cloud revenue was 726 million yuan, remaining generally stable while achieving year-on-year and sequential growth.

More importantly, the quality of industry cloud customers continued to improve, with a high proportion of long-term customers and steadily enhancing project profitability. This business combination of "high-growth public cloud + stable industry cloud" provided solid support for the company's profitability.

In terms of cash position, as of the end of the third quarter, Kingsoft Cloud still had 3.955 billion yuan in cash and cash equivalents, providing strong financial support for subsequent computing infrastructure investments, technological R&D, and business expansion.

02

AI Full-Stack Capabilities Unleashed, with Computing Services Becoming the Core Growth Engine

Kingsoft Cloud's outstanding performance in the third quarter is essentially a comprehensive realization of its AI strategy.

Kingsoft Cloud has comprehensively upgraded its basic cloud and intelligent computing cloud services around artificial intelligence, building full-stack AI technology capabilities. It has not only met the massive computing demand within and outside its ecosystem but also achieved breakthrough implementations in multiple industries.

At the basic cloud level, Kingsoft Cloud continues to iterate its hardware products, providing solid support for AI scenarios. In the third quarter, Kingsoft Cloud launched the Cloud Server X6F, supporting high-performance file storage to meet the needs of model training, high-performance computing, and other scenarios requiring high-throughput, low-latency massive file read and write.

To address customers' diversified cloud usage needs, Kingsoft Cloud introduced the StarCloud Zone and StarSea Intelligent Computing Zone, offering high-performance, lightweight computing services.

To further adapt to AI scenarios, file storage added the KPFS-P2 type, supporting a maximum throughput capacity of 400MB/s/TiB, fully meeting the data processing needs during large model training and inference.

Technological breakthroughs at the intelligent computing cloud level were even more significant. Kingsoft Cloud's StarStream platform launched model API services, providing highly available, easy-to-integrate model invocation and management capabilities, successfully serving commercial customers.

The platform also introduced model online services, data annotation modules, and dataset marketplaces. The model online services added multiple open-source models with automatic scaling capabilities, providing a highly available platform base for model inference services. The data annotation modules and dataset marketplaces supported the entire data flow process for AI customers.

These product upgrades have extended Kingsoft Cloud's intelligent computing services from mere computing power provision to full-link services including model management and data processing.

Technological upgrades directly translated into market competitiveness. In the third quarter, Kingsoft Cloud successfully supported the large-scale inference computing demand of leading customers in the internet industry and achieved business expansion in the artificial intelligence sector. Behind the nearly 120% year-on-year growth in intelligent computing cloud billing revenue was the simultaneous increase in customer usage within and outside the ecosystem.

Especially against the backdrop of accelerated AI layout (AI layout means AI strategic layout ) within the Xiaomi-Kingsoft ecosystem, Kingsoft Cloud, as the core computing base, has undertaken a large amount of AI computing demand from within the ecosystem. The rapid growth of this business segment has become an important pillar of the company's performance.

The construction of this AI full-stack capability has also enabled Kingsoft Cloud to form differentiated advantages in the fiercely competitive market.

Compared to other cloud service providers, Kingsoft Cloud's AI services are closer to practical application scenarios, covering the full link from basic computing power to upper-layer model services, and providing customers with one-stop solutions. This is also the key reason for its rapid customer acquisition and revenue explosion.

03

Ecosystem Synergy, with AI Implementation Scenarios Blooming Across Industries

If technological upgrades represent Kingsoft Cloud's "internal strength" for growth, then ecosystem synergy and industry deep dive are its "external strength" in transforming technological advantages into market outcomes.

In the third quarter, while consolidating its ecosystem synergy advantages, Kingsoft Cloud achieved breakthrough AI implementations in multiple industries such as government, healthcare, finance, and energy, enabling AI technology to truly empower the real economy.

The advantages of ecosystem synergy continued to amplify. As the sole strategic cloud platform within the Xiaomi-Kingsoft ecosystem, Kingsoft Cloud's synergistic effects with the ecosystem further highlighted in the third quarter. Revenue from the Xiaomi-Kingsoft ecosystem reached 691 million yuan in the third quarter, up 83.8% year-on-year, with its proportion of total revenue rising to 28%.

From January to September 2025, revenue from this ecosystem totaled 1.82 billion yuan. With Xiaomi's in-depth layout (strategic layout ) in AI, the massive computing demand generated by its automotive, smart home, and office software businesses is all supported by Kingsoft Cloud.

This deeply bonded ecosystem relationship not only provides Kingsoft Cloud with a stable and rapidly growing revenue source but also enables it to quickly obtain real-world scenario demands during AI technology iterations, feeding back into technological R&D.

Continuous breakthroughs in the government and state-owned cloud market. Kingsoft Cloud has focused on industry large models, data element markets, office collaboration, and other key scenarios, with Beijing, Wuhan, and Zhuhai as its strongholds.

In the third quarter, Kingsoft Cloud not only continued to serve long-term customers such as the Beijing Government Cloud and Zhuhai Government Cloud but also made new progress in the Shanghai State-Owned Assets Cloud project, providing end-to-end technical services covering basic software, business systems, and operation and maintenance.

The implementation of these projects not only demonstrates Kingsoft Cloud's technical strength and service capabilities in the government cloud sector but also accumulates valuable experience for nationwide replication and promotion.

Significant AI application effects in the digital health sector. Kingsoft Cloud has penetrated AI technology in the healthcare sector around the "five major models," building a scalable implementation system.

In the third quarter, Kingsoft Cloud assisted Wuhan Union Hospital in establishing a sustainable data management and value release mechanism, helping the hospital achieve Level 3 (Steady) in DCMM management maturity. It also successfully won the AI project bid for Guangdong Provincial Traditional Chinese Medicine Hospital, constructing individualized nutritional intervention applications through AI technology, achieving a deep fusion of traditional Chinese medicine theory and artificial intelligence, and validating the practical value of AI in improving patients' quality of life and disease control rates at the clinical level.

These cases prove that AI technology applications in the healthcare sector can not only enhance hospital management efficiency but also directly benefit patients, possessing broad commercialization prospects.

Deepening cooperation in the enterprise services sector. Kingsoft Cloud reached a cooperation agreement with a clean energy service provider, relying on its digital capabilities of AI and big data-driven regional cloud platforms and rich experience in "construction + operation" integration to build a green energy operation platform. It also advanced the second phase of cooperation on the credit report automation project with a major state-owned bank, continuously improving the intelligent level of credit management and risk control around end-to-end AI applications.

These collaborations indicate that Kingsoft Cloud's AI solutions have been recognized by leading customers in traditional industries such as energy and finance, with rapidly increasing industry penetration.

Summary

Kingsoft Cloud Achieves Profitability Breakthrough in Q3

Kingsoft Cloud's financial report for the third quarter of 2025 presents a comprehensive positive answer of "accelerated growth, profitability breakthrough, and scenario implementation."

This achievement is supported by three core pillars: first, the continuous upgrade of AI full-stack technology capabilities, with comprehensive optimizations from basic cloud hardware to intelligent computing cloud platforms, building differentiated competitive advantages;

second, the deep synergy with the Xiaomi-Kingsoft ecosystem, bringing stable and rapidly growing revenue sources and forming unique ecological barriers;

third, the deep dive into industry scenarios, achieving AI implementations in multiple sectors such as government, healthcare, finance, and energy, transforming technological advantages into tangible commercial value.

For the cloud computing industry, Kingsoft Cloud's profitability breakthrough holds significant industry implications. It proves that independent cloud service providers can achieve breakthroughs in a market dominated by giants by focusing on the AI sector, deepening ecosystem synergy, and diving into vertical industries. It also validates the commercial feasibility and immense development potential of AI cloud services.

As AI technology penetration continues to rise across industries, computing demand will maintain rapid growth. Leveraging its established technological, ecological, and customer base advantages, Kingsoft Cloud is poised to continue benefiting from this era of dividend (dividends).