Revenue growth remains resilient at 23.7% year-over-year, though profitability is hampered by a stubbornly low 16.9% gross margin that reflects intense competitive pricing pressures.
| Sales/Revenue | 9.56B | 7.79B | 7.05B | 8.18B | 9.06B | 6.58B | 3.96B | 2.22B |
| Revenue Growth % | 22.78% | 10.47% | -13.85% | -9.72% | 37.76% | 66.25% | 78.36% | - |
| Cost of Goods Sold | 8.06B | 6.44B | 6.2B | 7.75B | 8.71B | 6.22B | 3.95B | 2.42B |
| COGS % of Revenue | 84.27% | 82.78% | 87.94% | 94.75% | 96.12% | 94.57% | 99.81% | 109.03% |
| Gross Profit | 1.5B | 1.34B | 850.17M | 429.54M | 351.29M | 356.98M | 7.71M | -200.39M |
| Gross Margin % | 15.73% | 17.22% | 12.06% | 5.25% | 3.88% | 5.43% | 0.19% | -9.03% |
| Gross Profit Growth % | 12.12% | 57.72% | 97.93% | 22.28% | -1.6% | 4530.73% | 103.85% | - |
| Operating Expenses | 2.03B | 2.17B | 2.2B | 2.66B | 2.08B | 1.56B | 1.15B | 779.03M |
| OpEx % of Revenue | 21.25% | 27.83% | 31.28% | 32.49% | 22.91% | 23.78% | 29.1% | 35.12% |
| Selling, General & Admin | 1.12B | 854.06M | 863.73M | 1.21B | 1.01B | 757.22M | 494.15M | 338.52M |
| SG&A % of Revenue | 11.68% | 10.97% | 12.26% | 14.84% | 11.1% | 11.51% | 12.49% | 15.26% |
| Research & Development | 810.3M | 845.99M | 784.81M | 971.22M | 1.04B | 775.13M | 595.17M | 440.52M |
| R&D % of Revenue | 8.48% | 10.87% | 11.14% | 11.87% | 11.52% | 11.78% | 15.04% | 19.86% |
| Other Operating Expenses | 103.91M | 466.55M | 556.15M | 472.66M | 26.18M | 31.88M | 61.92M | 0 |
| Operating Income | -527.37M | -825.67M | -1.35B | -2.23B | -1.72B | -1.21B | -1.14B | -979.42M |
| Operating Margin % | -5.52% | -10.61% | -19.22% | -27.24% | -19.03% | -18.35% | -28.9% | -44.15% |
| Operating Income Growth % | 36.13% | 39.04% | 39.22% | -29.22% | -42.84% | -5.57% | -16.76% | - |
| EBITDA | 1.95B | 437.42M | -414.04M | -1.07B | -868.85M | -449.21M | -538.95M | -567.07M |
| EBITDA Margin % | 20.43% | 5.62% | -5.88% | -13.09% | -9.59% | -6.83% | -13.62% | -25.56% |
| EBITDA Growth % | 346.48% | 205.65% | 61.34% | -23.26% | -93.42% | 16.65% | 4.96% | - |
| D&A (Non-Cash Add-back) | 2.48B | 1.26B | 940.48M | 1.16B | 855.6M | 758.04M | 604.58M | 412.35M |
| EBIT | -449.85M | -1.75B | -2.02B | -2.53B | -1.52B | -937.84M | -1.1B | -957.98M |
| Net Interest Income | -405.82M | -205.57M | -67.61M | -58.07M | 19.64M | 63.97M | 73.49M | 80.7M |
| Interest Income | 78.66M | 27.39M | 78.4M | 82.16M | 71.01M | 72.91M | 78.4M | 121.04M |
| Interest Expense | 484.48M | 232.96M | 146.01M | 140.23M | 51.37M | 8.94M | 4.91M | 40.34M |
| Other Income/Expense | -420.52M | -1.15B | -811.17M | -435.51M | 148.44M | 259.96M | 41.34M | -17.39M |
| Pretax Income | -947.89M | -1.98B | -2.17B | -2.66B | -1.58B | -947.29M | -1.1B | -996.81M |
| Pretax Margin % | -9.92% | -25.44% | -30.73% | -32.57% | -17.39% | -14.4% | -27.86% | -44.94% |
| Income Tax | -4.2M | -1.52M | 17.96M | 24.47M | 15.74M | 14.9M | 9M | 9.63M |
| Effective Tax Rate % | 0.44% | 0.08% | -0.83% | -0.92% | -1% | -1.57% | -0.82% | -0.97% |
| Net Income | -936.25M | -1.97B | -2.18B | -2.66B | -1.59B | -962.26M | -1.11B | -1.01B |
| Net Margin % | -9.79% | -25.26% | -30.88% | -32.5% | -17.53% | -14.63% | -28.09% | -45.37% |
| Net Income Growth % | 52.39% | 9.63% | 18.13% | -67.32% | -65.1% | 13.4% | -10.41% | - |
| Net Income (Continuing) | -943.69M | -1.98B | -2.18B | -2.69B | -1.59B | -962.2M | -1.11B | -1.01B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -3.99M | 337.28M | 355.75M | 782.48M | 888.47M | 61K | 0 | 0 |
| EPS (Diluted) | -3.30 | -8.10 | -9.15 | -10.95 | -6.90 | -6.15 | -19.65 | -33.23 |
| EPS Growth % | 59.26% | 11.48% | 16.44% | -58.7% | -12.2% | 68.7% | 40.87% | - |
| EPS (Basic) | -3.30 | -8.10 | -9.15 | -10.95 | -6.90 | -6.15 | -19.65 | -33.23 |
| Diluted Shares Outstanding | 273.8M | 245.09M | 238.41M | 242.8M | 230.6M | 160.86M | 59.6M | 53.16M |
| Basic Shares Outstanding | 273.8M | 245.09M | 238.41M | 242.8M | 230.6M | 157.62M | 57.05M | 30.59M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Persistent Operating Margin Deficit
According to the most recent quarterly filings, Kingsoft Cloud achieved a 23.7% year-over-year revenue increase, signaling that the company is successfully capturing market share despite intense competition within the Chinese cloud infrastructure sector and ongoing macroeconomic headwinds that have pressured broader domestic technology spending patterns.
The acceleration in top-line growth suggests that the company's neutrality-based value proposition continues to resonate with enterprise clients seeking alternatives to larger, ecosystem-integrated hyperscalers. Investors should monitor whether this growth trajectory is sustainable or if it remains heavily reliant on low-margin, high-bandwidth public cloud services that offer limited long-term pricing power.
As reported in financial statements, the company's gross margin remains stubbornly anchored at 16.9%, reflecting the high cost of infrastructure and bandwidth that characterizes the commodity-heavy public cloud market, which prevents the firm from achieving the scale-driven margin expansion seen in more mature software-as-a-service business models.
The inability to significantly expand gross margins suggests that Kingsoft Cloud lacks the necessary pricing power to offset the high depreciation and IDC costs inherent in its current business mix. Without a meaningful shift toward higher-margin enterprise PaaS or SaaS offerings, the company may continue to struggle with achieving sustainable GAAP profitability.
Based on the latest income statement data, the company's operating margin reached 6.5% in 2025Q4, marking a notable departure from historical losses, yet this improvement appears heavily influenced by volatile SG&A fluctuations rather than a consistent, structural reduction in the underlying cost of revenue and administrative overhead.
While the recent positive operating income is a constructive development, the historical trend of deep operating losses suggests that the company has yet to demonstrate true operating leverage. Analysts should investigate whether the recent efficiency gains are sustainable or if they represent temporary cost-cutting measures that could impact future growth capacity.
As indicated by the reported figures, the company's net income remains highly erratic, with significant quarterly swings that are often disconnected from top-line performance, suggesting that non-operating items and accounting adjustments continue to play a disproportionate role in the bottom-line results presented to shareholders.
The presence of substantial stock-based compensation and irregular SG&A patterns warrants caution, as these items can mask the true underlying cash-generating capability of the core cloud business. Investors should look past the headline net income to evaluate whether the company is making genuine progress toward self-sustaining operational cash flow.
A critical assessment of the company's income statement suggests that the current growth rate may be masking a race-to-the-bottom pricing environment, where the firm is forced to sacrifice long-term margin potential to maintain its competitive standing against larger, better-capitalized hyperscalers in the Chinese cloud market.
Short-sellers may focus on the persistent reliance on low-margin public cloud revenue, which leaves the company vulnerable to any further commoditization of compute and storage services. If the company cannot successfully pivot its revenue mix toward higher-value enterprise solutions, the current valuation may be difficult to justify based on fundamental earnings power.
Quick answers to the most common questions about buying KC stock.
For fiscal year 2025, Kingsoft Cloud Holdings Limited (KC) reported total revenue of $9.56B. This represents a 330.9% increase compared to $2.22B in 2018.
Kingsoft Cloud Holdings Limited (KC) reported a net loss of $936.3M for the fiscal year ending 2025.
Kingsoft Cloud Holdings Limited (KC) reported an operating income of $-527.4M, resulting in an operating profit margin of -5.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Kingsoft Cloud Holdings Limited (KC) generated $1.50B in gross profit for the year, representing a gross profit margin of 15.7%. This demonstrates the company's core pricing power and production efficiency.