Q1 2026 Kingsoft Cloud Holdings Ltd Earnings Call Transcript
Key Points
- Kingsoft Cloud Holdings Ltd (KC) reported a total revenue of RMB2.7 billion for Q1 2026, marking a year-over-year growth of 37.2%.
- Public cloud revenue reached RMB2.0 billion, a year-over-year increase of 47.5%.
- AI cloud gross billings increased by 90.1% year-over-year, accounting for over half of public cloud revenue for the first time.
- Revenue from the Xiaomi and Kingsoft ecosystem grew by 68.9% year-over-year, contributing significantly to total revenue.
- Adjusted EBITDA was RMB748 million, representing a year-over-year increase of 134.7%, with a margin improvement of 11.4 percentage points.
- Adjusted gross margin decreased from 70% last quarter to 30% this quarter, primarily due to higher server costs and upfront costs for future revenue-generating activities.
- Total cost of revenues increased by 43% year-over-year, driven by investments in AI computing resources.
- Depreciation and amortization costs rose significantly due to newly acquired and leased servers and network equipment.
- Adjusted operating loss increased by 7% from the same period last year, despite revenue growth.
- The company faces supply chain restrictions, which limit its ability to meet the strong demand for AI services.
Good morning, ladies and gentlemen, and thank you for standing by for Kingsoft Cloudâs first-quarter 2026 earnings conference call. (Operator Instructions)
As a reminder, todayâs conference call is being recorded. I will now turn the meeting over to your host for todayâs call, Mr. Wayne Wang, Investor Relations of Kingsoft Cloud. Please proceed, Wayne.
Thank you, operator. Hello, everyone. Thank you for joining us today. Kingsoft Cloudâs first quarter 2026 earnings release was just built earlier today and is available on our website at ir.ksyun.com, as well as on PR Newswire services. On the call today from Kingsoft Cloud, we have our Chairman and CEO, Mr. Tao Zou; CFO, Ms. Yi Li; Senior Vice President, Mr. Tao Liu; Senior Vice President, Mr. Kaiyan Tian; Vice President, Mr. Wang Zhenzheng; and Joint Company Secretary, Mr. Bo Tian.
Mr. Joe will discuss our business strategies, operations, and other company highlights, followed by Ms. Li, who will discuss the financial
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