Kingsoft reports Q3 2025 profit halves despite quarterly revenue rise

Kingsoft Corporation announced a 17% year-on-year decrease in total revenue, reaching RMB2,419.2m for Q3 2025, though this represents a 5% increase quarter-on-quarter. Profit attributable to owners of the parent significantly dropped by 48% year-on-year and 60% quarter-on-quarter, landing at RMB213.1m. Operating profit also saw a substantial decline of 76% year-on-year to RMB276.8m.

The office software and services business showed strength, with revenue increasing by 26% year-on-year to RMB1,521.3m. This growth was attributed to WPS software, WPS 365, and individual WPS businesses. In contrast, the online games and others business experienced a 47% year-on-year revenue decrease to RMB897.9m, primarily due to lower contributions from existing games.

R&D costs increased by 4% year-on-year to RMB899.5m, driven by investments in AI and collaboration products. Selling and distribution expenses rose by 55% year-on-year to RMB564.4m, reflecting higher promotional activities for online games. The group's gearing ratio improved, falling to 16% from 26% as of December 31, 2024.