Kingsoft Cloud Announces Unaudited Third Quarter 2025 Financial Results

BEIJING, Nov. 19, 2025 /PRNewswire/ -- Kingsoft Cloud Holdings Limited ("Kingsoft Cloud" or the "Company") (NASDAQ: KC and HKEX: 3896), a leading cloud service provider in China, today announced its unaudited financial results for the third quarter ended September 30, 2025.

Mr. Tao Zou, Chief Executive Officer of Kingsoft Cloud, commented, "We are very pleased to see our High Quality and Sustainable Development Strategy continued to deliver. This quarter, we achieved accelerated revenue growth and enhanced profitability, with both adjusted operating profit and adjusted net profit delivering a quarterly turnaround. The convergence of AI and cloud services has brought us tremendous market opportunities. We have not only rapidly advanced the expansion of intelligent computing in public cloud, but also proactively laid out the strategic foundation of in-depth integration of AI and industries in enterprise cloud. Furthermore, our strategic collaboration with Xiaomi-Kingsoft ecosystem continued to soar this quarter, as revenue contribution from the ecosystem surging 83.8% year-on-year to RMB690.8 million. We are excited and optimistic about rapid adoption of AI across our ecosystem and diverse verticals, which will unlock immense AI-enabled growth opportunities ahead of us."

Ms. Yi Li, Chief Financial Officer of Kingsoft Cloud, added, "Our revenue growth accelerated to 31.4% year-over-year, achieving RMB2,478.0 million for the third quarter. Among which, revenue from public cloud services increased significantly by 49.1% year-over-year to RMB1,752.3 million. The gross billing of AI business achieved RMB782.4 million this quarter, representing a year-over-year growth rate around 120%. Our adjusted gross profit was RMB392.6 million, which increased by 27.6% year-over-year and 12.0% quarter-over-quarter. Our adjusted EBITDA profit achieved RMB826.6 million, increased by 345.9% year-over-year. Our adjusted EBITDA margin of 33.4%, increased by 23.6 percentage points year-over-year, which was mainly due to the improvements in cost and expenses control, as well as non-recurring other income realized in this quarter. Notably, we achieved adjusted operating profit turnaround to reach positive RMB15.4 million, compared with negative RMB140.2 million in the same quarter last year and negative RMB166.4 million last quarter. Adjusted net profit for the first time turned profitable at RMB28.7 million, compared with adjusted net loss of RMB236.7 million in the same quarter last year."

Third Quarter 2025 Financial Results

Total Revenues reached RMB2,478.0 million (US$348.1 [ 1] million), increased by 31.4% year-over-year from RMB1,885.6 million in the same quarter of 2024 and increased by 5.5% quarter-over-quarter from RMB2,349.2 million in the second quarter of 2025. The increase was mainly due to the expanded revenue from AI related customers, with AI infrastructure and products keep upgrading.

[1] This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.1190 to US$1.00, the noon buying rate in effect on September 30, 2025 as certified for customs purposes by the Federal Reserve Bank of New York.

Revenues from public cloud services were RMB1,752.3 million (US$246.1 million), significantly increased by 49.1% from RMB1,175.5 million in the same quarter of 2024 and increased by 7.8% from RMB1,625.3 million last quarter. The year-over-year increase was mainly due to the growth of AI demands, as the AI gross billing reached RMB782.4 million (US$109.9 million), while other public cloud services remained decent growth along with the AI technology boost.

Revenues from enterprise cloud services were RMB725.7 million (US$101.9 million), compared with RMB710.0 million in the same quarter of 2024 and RMB723.9 million last quarter.

Other revenues were nil this quarter.

Cost of revenues was RMB2,097.1 million (US$294.6 million), representing an increase of 32.5% from RMB1,582.2 million in the same quarter of 2024, which was mainly due to our investment into AI computing resources. IDC costs increased by 15.1% year-over-year from RMB673.8 million to RMB775.7 million (US$109.0 million) this quarter. The increase was mainly due to the purchase of racks, which serve the expanding AI business, as well as the basic computing and storage cloud demands brought by AI business. Depreciation and amortization costs increased from RMB297.5 million in the same quarter of 2024 to RMB649.7 million (US$91.3 million) this quarter. The increase was mainly due to the depreciation of newly acquired and leased servers, and network equipment which were mainly allocated to AI business. Solution development and services costs increased by 19.4% year-over-year from RMB499.0 million in the same quarter of 2024 to RMB595.9 million (US$83.7 million) this quarter. The increase was mainly due to the solution personnel expansion. Fulfillment costs and other costs were RMB5.2 million (US$0.7 million) and RMB70.6 million (US$9.9 million) this quarter.

Gross profit was RMB380.9 million (US$53.5 million), representing an increase of 25.6% from RMB303.4 million in the same quarter of 2024. The increase was mainly due to the expansion of our revenue scale, especially the intelligent computing services. Gross margin was 15.4%, compared with 16.1% in the same period in 2024. The decrease was mainly due to the higher cost of servers along with the expansion of AI business, as we balanced the procurement way of both self-procurement and leasing. Non-GAAP gross profit [2] was RMB392.6 million (US$55.1 million), compared with RMB307.6 million in the same period in 2024. Non-GAAP gross margin [ 2] was 15.8%, compared with 16.3% in the same period in 2024.

Total operating expenses were RMB526.2 million (US$73.9 million), decreased by 63.6% from RMB1,447.1 million in the same quarter last year and 21.0% from RMB665.8 million last quarter. Among which:

Selling and marketing expenses were RMB152.2 million (US$21.4 million), increased by 25.6% from RMB121.1 million in the same period in 2024 and 15.3% from RMB132.0 million last quarter. The increase was mainly due to the increase of personnel costs and share-based compensation.

General and administrative expenses were RMB174.4 million (US$24.5 million), increased by 2.3% from RMB170.4 million in the same period in 2024 and decreased by 48.6% from RMB339.6 million last quarter. The year-over-year increase was mainly due to the increase in share-based compensation and the sequential decrease was mainly due to the decrease in credit loss expenses.

[2] Non-GAAP gross profit is defined as gross profit excluding share-based compensation allocated in the cost of revenues and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release.

Research and development expenses were RMB199.6 million (US$28.0 million), decreased by 15.4% from RMB235.9 million in the same period in 2024 and increased by 2.8% from RMB194.3 million last quarter. The year-over-year decrease was mainly due to the decrease in personnel costs and share-based compensation.

Operating loss was RMB145.3 million (US$20.4 million), compared with RMB1,143.8 million in the same quarter of 2024 and RMB327.0 million last quarter. It was mainly due to the reverse of credit loss and no additional impairment loss of long-lived assets this quarter. Non-GAAP operating profit [ 3] was RMB15.4 million (US$2.2 million), compared with operating loss of RMB140.2 million in the same quarter last year and operating loss of RMB166.4 million last quarter.

Net loss was RMB7.8 million (US$1.1 million), compared with net loss of RMB1,061.1 million in the same quarter of 2024 and RMB456.9 million last quarter. The improvement was mainly due to the narrow down of operating loss and the increase in non-recurring subsidy in other income. Non-GAAP net profit [ 4] was RMB28.7 million (US$4.0 million), compared with non-GAAP net loss of RMB236.7 million in the same quarter of 2024 and RMB300.5 million last quarter.

Non-GAAP EBITDA [5] was RMB826.6 million (US$116.1 million), increased by 345.9% from RMB185.4 million in the same quarter of 2024 and 103.6% from RMB406.0 million last quarter. Non-GAAP EBITDA margin was 33.4%, compared with 9.8% in the same quarter of 2024 and 17.3% in the previous quarter. The increase was mainly due to the expansion of AI businesses with higher margin, as well as the improvements of net profit.

Basic and diluted net loss per share was RMB0.00 (US$0.00), compared with RMB0.29 in the same quarter of 2024 and RMB0.11 last quarter.

Cash and cash equivalents were RMB3,954.5 million (US$555.5 million) as of September 30, 2025, compared with RMB5,464.1 million as of June 30, 2025. The decrease was mainly due to the capital expenditure to purchase computing power equipment and repayment of debt.

Outstanding ordinary shares were 4,120,847,722 as of September 30, 2025, equivalent to about 274,723,181 ADSs.

Conference Call Information

Kingsoft Cloud's management will host an earnings conference call on Wednesday, November 19, 2025 at 7:15 am, U.S. Eastern Time (8:15 pm, Beijing/Hong Kong Time on the same day).

[3] Non-GAAP operating (loss) profit is defined as operating loss excluding share-based compensation, impairment of long-lived assets and amortization of intangible assets and we define Non-GAAP operating (loss) profit margin as Non-GAAP operating (loss) profit as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release.

[4] Non-GAAP net (loss) profit is defined as net loss excluding share-based compensation, foreign exchange (gain) loss and impairment of long-lived assets, and we define Non-GAAP net (loss) profit margin as Non-GAAP net (loss) profit as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release.

[5] Non-GAAP EBITDA is defined as Non-GAAP net (loss) profit excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release.

Participants can register for the conference call by navigating to https://register-conf.media-server.com/register/BIc28eb3aabf504060b173cc1dbba23325. Once preregistration has been completed, participants will receive dial-in numbers, direct event passcode, and a unique access PIN.

To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your PIN, and you will join the conference instantly.

Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website at http://ir.ksyun.com.

Use of Non-GAAP Financial Measures

The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). In evaluating our business, we consider and use certain non-GAAP measures, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating (loss) profit, Non-GAAP operating (loss) profit margin, Non-GAAP EBITDA, Non-GAAP EBITDA margin, Non-GAAP net (loss) profit and Non-GAAP net (loss) profit margin, as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define Non-GAAP gross profit as gross profit excluding share-based compensation allocated in the cost of revenues, and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. We define Non-GAAP operating (loss) profit as operating loss excluding share-based compensation, impairment of long-lived assets and amortization of intangible assets and we define Non-GAAP operating (loss) profit margin as Non-GAAP operating (loss) profit as a percentage of revenues. We define Non-GAAP net (loss) profit as net loss excluding share-based compensation, foreign exchange (gain) loss and impairment of long-lived assets, and we define Non-GAAP net (loss) profit margin as Non-GAAP net (loss) profit as a percentage of revenues. We define Non-GAAP EBITDA as Non-GAAP net (loss) profit excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of these non-GAAP measures facilitates investors' assessment of our operating performance.

These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

We compensate for these limitations by reconciling these non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

Exchange Rate Information

This press release contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from RMB to U.S. dollars, in this press release, were made at a rate of RMB7.1190 to US$1.00, the noon buying rate in effect on September 30, 2025 as certified for customs purposes by the Federal Reserve Bank of New York.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the Business Outlook, and quotations from management in this announcement, as well as Kingsoft Cloud's strategic and operational plans, contain forward-looking statements. Kingsoft Cloud may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Kingsoft Cloud's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Kingsoft Cloud's goals and strategies; Kingsoft Cloud's future business development, results of operations and financial condition; relevant government policies and regulations relating to Kingsoft Cloud's business and industry; the expected growth of the cloud service market in China; the expectation regarding the rate at which to gain customers, especially Premium Customers; Kingsoft Cloud's ability to monetize the customer base; fluctuations in general economic and business conditions in China; and the economy in China and elsewhere generally; China's political or social conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Kingsoft Cloud's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Kingsoft Cloud does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About Kingsoft Cloud Holdings Limited

Kingsoft Cloud Holdings Limited (NASDAQ: KC and HKEX: 3896) is a leading cloud service provider in China. With extensive cloud infrastructure, cutting-edge cloud-native products based on vigorous cloud technology research and development capabilities, well-architected industry-specific solutions and end-to-end fulfillment and deployment, Kingsoft Cloud offers comprehensive, reliable and trusted cloud service to customers in strategically selected verticals.

For more information, please visit: http://ir.ksyun.com.

For investor and media inquiries, please contact:

Kingsoft Cloud Holdings Limited

Nicole Shan

Tel: +86 (10) 6292-7777 Ext. 6300

Email: ksc-ir@kingsoft.com

KINGSOFT CLOUD HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands)

Dec 31,

2024

Sep 30,

2025

Sep 30,

2025

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

2,648,764

3,954,528

555,489

Restricted cash

81,337

95,725

13,446

Accounts receivable, net

1,468,663

2,358,126

331,244

Short-term investments

90,422

—

Prepayments and other assets

2,233,074

2,544,116

357,370

Amounts due from related parties

318,526

672,242

94,429

Total current assets

6,840,786

9,624,737

1,351,978

Non-current assets:

Property and equipment, net

4,630,052

10,334,992

1,451,748

Intangible assets, net

694,880

574,680

80,725

Goodwill

4,605,724

646,962

Prepayments and other assets

449,983

172,880

24,285

Equity investments

234,182

230,305

32,351

Operating lease right-of-use assets

137,047

109,092

15,324

Total non-current assets

10,751,868

16,027,673

2,251,395

Total assets

17,592,654

25,652,410

3,603,373

LIABILITIES, NON-CONTROLLING

INTERESTS AND SHAREHOLDERS'

EQUITY

Current liabilities:

Accounts payable

1,877,004

2,316,930

325,457

Accrued expenses and other current liabilities

3,341,990

3,523,726

494,974

Short-term borrowings

2,225,765

3,397,319

477,219

Income tax payable

69,219

86,901

12,207

Amounts due to related parties

1,584,199

937,630

131,708

Current operating lease liabilities

61,258

34,684

4,872

Total current liabilities

9,159,435

10,297,190

1,446,437

Non-current liabilities:

Long-term borrowings

1,660,584

2,792,396

392,246

Amounts due to related parties

309,612

2,467,501

346,608

Deferred tax liabilities

101,677

70,539

9,909

Other liabilities

790,271

2,889,047

405,822

Non-current operating lease liabilities

65,755

60,863

8,549

Total non-current liabilities

2,927,899

8,280,346

1,163,134

Total liabilities

12,087,334

18,577,536

2,609,571

Shareholders' equity:

Ordinary shares

25,689

28,483

4,001

Treasury shares

(105,478)

(54,875)

(7,708)

Additional paid-in capital

18,940,885

21,293,147

2,991,031

Statutory reserves funds

32,001

4,495

Accumulated deficit

(14,291,957)

(15,067,968)

(2,116,585)

Accumulated other comprehensive income

566,900

511,638

71,869

Total Kingsoft Cloud Holdings Limited

shareholders' equity

5,168,040

6,742,426

947,103

Non-controlling interests

337,280

332,448

46,699

Total equity

5,505,320

7,074,874

993,802

Total liabilities, non-controlling interests

and shareholders' equity

17,592,654

25,652,410

3,603,373

KINGSOFT CLOUD HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(All amounts in thousands, except for share and per share data)

Three Months Ended

Nine Months Ended

Sep 30,

2024

Mar 31,

2025

Jun 30,

2025

Sep 30,

2025

Sep 30,

2025

Sep 30,

2024

Sep 30,

2025

Sep 30,

2025

RMB

US$

RMB

US$

Revenues:

Public cloud services

1,175,535

1,353,479

1,625,309

1,752,326

246,148

3,597,447

4,731,114

664,576

Enterprise cloud services

710,039

616,498

723,918

725,702

101,939

1,955,439

2,066,118

290,226

Others

152

Total revenues

1,885,574

1,969,977

2,349,227

2,478,028

348,087

5,553,038

6,797,232

954,802

Cost of revenues

(1,582,220)

(1,651,671)

(2,010,370)

(2,097,133)

(294,583)

(4,638,084)

(5,759,174)

(808,986)

Gross profit

303,354

318,306

338,857

380,895

53,504

914,954

1,038,058

145,816

Operating expenses:

Selling and marketing expenses

(121,117)

(144,338)

(131,996)

(152,158)

(21,374)

(363,577)

(428,492)

(60,190)

General and administrative expenses

(170,374)

(181,999)

(339,563)

(174,368)

(24,493)

(655,318)

(695,930)

(97,757)

Research and development expenses

(235,912)

(226,170)

(194,285)

(199,644)

(28,044)

(671,834)

(620,099)

(87,105)

Impairment of long-lived assets

(919,724)

Total operating expenses

(1,447,127)

(552,507)

(665,844)

(526,170)

(73,911)

(2,610,453)

(1,744,521)

(245,052)

Operating loss

(1,143,773)

(234,201)

(326,987)

(145,275)

(20,407)

(1,695,499)

(706,463)

(99,236)

Interest income

4,517

4,946

11,520

25,354

3,561

22,832

41,820

5,874

Interest expense

(57,404)

(82,897)

(124,669)

(137,067)

(19,254)

(167,884)

(344,633)

(48,410)

Foreign exchange gain (loss)

135,777

9,051

(39,526)

80,357

11,288

86,041

49,882

7,007

Other gain (loss), net

6,046

3,244

1,620

(8,026)

(1,127)

(9,990)

(3,162)

(444)

Other income (expense), net

4,433

(7,012)

23,522

174,460

24,506

(11,718)

190,970

26,825

Loss before income taxes

(1,050,404)

(306,869)

(454,520)

(10,197)

(1,433)

(1,776,218)

(771,586)

(108,384)

Income tax (expense) benefit

(10,662)

(9,241)

(2,343)

2,350

330

(2,182)

(9,234)

(1,297)

Net loss

(1,061,066)

(316,110)

(456,863)

(7,847)

(1,103)

(1,778,400)

(780,820)

(109,681)

Less: net (loss) profit attributable to

non-controlling interests

(3,931)

(2,184)

602

(3,227)

(453)

(8,679)

(4,809)

(676)

Net loss attributable to Kingsoft

Cloud Holdings Limited

(1,057,135)

(313,926)

(457,465)

(4,620)

(650)

(1,769,721)

(776,011)

(109,005)

Net loss per share:

Basic and diluted

(0.29)

(0.08)

(0.11)

(0.00)

(0.49)

(0.20)

(0.03)

Shares used in the net loss per

share computation:

Basic and diluted

3,655,882,906

3,728,092,123

4,009,119,198

4,137,454,159

3,640,406,551

3,959,721,321

Other comprehensive (loss) income,

net of tax of nil:

Foreign currency translation

adjustments

(112,296)

7,744

43,174

(106,203)

(14,918)

(92,122)

(55,285)

(7,766)

Comprehensive loss

(1,173,362)

(308,366)

(413,689)

(114,050)

(16,021)

(1,870,522)

(836,105)

(117,447)

Less: Comprehensive (loss) income

attributable to non-controlling

interests

(3,900)

(2,200)

606

(3,238)

(455)

(8,717)

(4,832)

(679)

Comprehensive loss attributable to

Kingsoft Cloud Holdings Limited

shareholders

(1,169,462)

(306,166)

(414,295)

(110,812)

(15,566)

(1,861,805)

(831,273)

(116,768)

KINGSOFT CLOUD HOLDINGS LIMITED

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for percentage)

Three Months Ended

Nine Months Ended

Sep 30,

2024

Mar 31,

2025

Jun 30,

2025

Sep 30,

2025

Sep 30,

2025

Sep 30,

2024

Sep 30,

2025

Sep 30,

2025

RMB

US$

RMB

US$

Gross profit

303,354

318,306

338,857

380,895

53,504

914,954

1,038,058

145,816

Adjustments:

– Share-based compensation expenses (allocated in cost of

revenues)

4,252

9,365

11,712

11,672

1,640

15,142

32,749

4,600

Adjusted gross profit (Non-GAAP Financial Measure)

307,606

327,671

350,569

392,567

55,144

930,096

1,070,807

150,416

KINGSOFT CLOUD HOLDINGS LIMITED

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for percentage)

Three Months Ended

Nine Months Ended

Sep 30,

2024

Mar 31,

2025

Jun 30,

2025

Sep 30,

2025

Sep 30,

2024

Sep 30,

2025

Gross margin

16.1 %

16.2 %

14.4 %

15.4 %

16.5 %

15.3 %

Adjusted gross margin (Non-GAAP Financial

Measure)

16.3 %

16.6 %

14.9 %

15.8 %

16.7 %

15.8 %

KINGSOFT CLOUD HOLDINGS LIMITED

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for percentage)

Three Months Ended

Nine Months Ended

Sep 30,

2024

Mar 31,

2025

Jun 30,

2025

Sep 30,

2025

Sep 30,

2025

Sep 30,

2024

Sep 30,

2025

Sep 30,

2025

RMB

US$

RMB

US$

Net Loss

(1,061,066)

(316,110)

(456,863)

(7,847)

(1,103)

(1,778,400)

(780,820)

(109,681)

Adjustments:

– Share-based compensation expenses

40,423

134,611

116,856

116,937

16,426

189,667

368,404

51,749

– Foreign exchange (gain) loss

(135,777)

(9,051)

39,526

(80,357)

(11,288)

(86,041)

(49,882)

(7,007)

– Impairment of long-lived assets

919,724

Adjusted net (loss) profit (Non-GAAP Financial Measure)

(236,696)

(190,550)

(300,481)

28,733

4,035

(755,050)

(462,298)

(64,939)

Adjustments:

– Interest income

(4,517)

(4,946)

(11,520)

(25,354)

(3,561)

(22,832)

(41,820)

(5,874)

– Interest expense

57,404

82,897

124,669

137,067

19,254

167,884

344,633

48,410

– Income tax expense (benefit)

10,662

9,241

2,343

(2,350)

(330)

2,182

9,234

1,297

– Depreciation and amortization

358,540

421,901

591,021

688,501

96,713

886,990

1,701,423

238,997

Adjusted EBITDA (Non-GAAP Financial Measure)

185,393

318,543

406,032

826,597

116,111

279,174

1,551,172

217,891

– Gain on disposal of property and equipment

(10,667)

(2,110)

(5,708)

(21,763)

(3,057)

(34,488)

(29,581)

(4,155)

Excluding gain on disposal of property and equipment,

normalized Adjusted EBITDA

174,726

316,433

400,324

804,834

113,054

244,686

1,521,591

213,736

KINGSOFT CLOUD HOLDINGS LIMITED

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for percentage)

Three Months Ended

Nine Months Ended

Sep 30,

2024

Mar 31,

2025

Jun 30,

2025

Sep 30,

2025

Sep 30,

2025

Sep 30,

2024

Sep 30,

2025

Sep 30,

2025

RMB

US$

RMB

US$

Operating loss

(1,143,773)

(234,201)

(326,987)

(145,275)

(20,407)

(1,695,499)

(706,463)

(99,236)

Adjustments:

– Share-based compensation expenses

40,423

134,611

116,856

116,937

16,426

189,667

368,404

51,749

– Impairment of long-lived assets

919,724

– Amortization of intangible assets

43,460

43,781

43,751

43,702

6,139

130,392

131,234

18,434

Adjusted operating (loss) profit (Non-GAAP Financial

Measure)

(140,166)

(55,809)

(166,380)

15,364

2,158

(455,716)

(206,825)

(29,053)

– Gain on disposal of property and equipment

(10,667)

(2,110)

(5,708)

(21,763)

(3,057)

(34,488)

(29,581)

(4,155)

Excluding gain on disposal of property and equipment,

normalized Adjusted operating loss

(150,833)

(57,919)

(172,088)

(6,399)

(899)

(490,204)

(236,406)

(33,208)

KINGSOFT CLOUD HOLDINGS LIMITED

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for percentage)

Three Months Ended

Nine Months Ended

Sep 30,

2024

Mar 31,

2025

Jun 30,

2025

Sep 30,

2025

Sep 30,

2024

Sep 30,

2025

Net loss margin

-56.3 %

-16.0 %

-19.4 %

-0.3 %

-32.0 %

-11.5 %

Adjusted net (loss) profit margin (Non-GAAP Financial Measure)

-12.6 %

-9.7 %

-12.8 %

1.2 %

-13.6 %

-6.8 %

Adjusted EBITDA margin (Non-GAAP Financial Measure)

9.8 %

16.2 %

17.3 %

33.4 %

5.0 %

22.8 %

Normalized Adjusted EBITDA margin

9.3 %

16.1 %

17.0 %

32.5 %

4.4 %

22.4 %

Adjusted operating (loss) profit margin (Non-GAAP Financial

Measure)

-7.4 %

-2.8 %

-7.1 %

0.6 %

-8.2 %

-3.0 %

Normalized Adjusted operating loss margin

-8.0 %

-2.9 %

-7.3 %

-0.3 %

-8.8 %

-3.5 %

KINGSOFT CLOUD HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(All amounts in thousands)

Three Months Ended

Sep 30,

2024

Sep 30,

2025

Sep 30,

2025

RMB

US$

Net cash generated from operating activities

228,364

1,716,658

241,138

Net cash used in investing activities

(458,621)

(2,723,833)

(382,615)

Net cash used in financing activities

(183,390)

(433,810)

(60,937)

Effect of exchange rate changes on cash, cash

equivalents and restricted cash

27,632

(25,890)

(3,637)

Net decrease in cash, cash equivalents and

restricted cash

(386,015)

(1,466,875)

(206,051)

Cash, cash equivalents and restricted cash at

beginning of period

2,096,404

5,517,128

774,986

Cash, cash equivalents and restricted cash at end

of period

1,710,389

4,050,253

568,935

SOURCE Kingsoft Cloud Holdings Limited