Kingsoft Cloud Q2 Revenue Up 30.8% YoY, AI Cloud Business Accounts for 56% of Public Cloud Revenue
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Kingsoft Cloud posted Q2 revenue of $452.75 million, up 30.8% year-over-year, with AI cloud billings surging 82% to account for over half of public cloud revenue — AI has crossed from narrative to the company's single largest revenue driver.
What are the headline numbers?
Q2 revenue hit $452.75 million, up 30.8% year-over-year, beating consensus by roughly $4.17 million.
GAAP EPS came in at $0.00 — sounds flat, but it beat expectations by $0.12. This means → the Street expected a loss; the company essentially broke even.
In plain terms = revenue grew nearly a third, and the beat, while modest, signals the loss era may be ending.
How dominant is the AI cloud business now?
Total AI cloud billings jumped 82% year-over-year, now accounting for 56% of public cloud revenue.
This means → AI is no longer a "future story" — it is the majority revenue source inside the public cloud segment, today.
In plain terms = more than half the public-cloud pie now comes from AI, and that half is still growing fast.
How much did profitability improve?
Adjusted gross profit rose 34.6% to RMB 471.7 million; adjusted gross margin reached 15.4%, up from the prior quarter.
Non-GAAP EBITDA — earnings before interest, taxes, depreciation, and amortization, a common gauge of real cash-generating power — reached RMB 1.1005 billion (~$162.2 million), more than doubling from RMB 406 million a year ago.
Non-GAAP EBITDA margin: 17.3% (year-ago) → 27.6% (prior quarter) → 35.8% (this quarter). This means → for every dollar earned, roughly 36 cents stay in the business, up from 17 cents a year ago — profitability is accelerating quarter by quarter.
Is there enough cash to keep spending?
Cash and equivalents stood at RMB 4.6743 billion (~$688.9 million) as of June 30, 2026.
Six months earlier the figure was RMB 6.018 billion — a drawdown of RMB 1.34 billion in half a year. This reflects heavy capital expenditure on AI infrastructure steadily draining liquidity.
In plain terms = the company is earning more, but spending fast too; whether the cash pile can sustain ongoing AI capex is the key variable to watch over the next few quarters.
Content is for reference only, not financial advice.