Kingsoft Corporation Ltd

For Q4 2025, revenue was RMB 2.618 billion, down 6% year over year and up 8% quarter over quarter. Office software and services revenue rose 30% year over year to RMB 1.750 billion, while online games and others revenue fell 33% year over year to RMB 868 million. Gross profit was RMB 2.148 billion, down 8% year over year, and gross margin was 82%, down 2 percentage points year over year and up 2 points quarter over quarter. Profit attributable to owners of the parent was RMB 975 million, or RMB 1.026 billion excluding share-based compensation, and the non-share-based-compensation net margin was 39%. For full-year 2025, revenue was RMB 9.683 billion, down 6% year over year; office software and services revenue was RMB 5.929 billion, up 16%; online games and others revenue was RMB 3.754 billion, down 28%; gross margin was 81%, down 2 points; operating profit before share-based compensation was RMB 2.072 billion, down 47%; and profit attributable to owners of the parent was RMB 2.004 billion. Management did not give numeric next-quarter or full-year guidance, but said it will deepen AI agent applications across office scenarios, accelerate internationalization, and in games focus on premium content, global publishing, and new genres. Goose Goose Duck is expected to be monetized gradually through stable operation and version upgrades, while Starsand Island is targeting a second-half 2026 official launch.

CEO Tao Zou said Kingsoft is focused on technology empowerment, with office software centered on AI collaboration and internationalization and gaming focused on classic wuxia IP plus new genres and global markets. He described a dual-track strategy in office: upgrading existing WPS products with AI and exploring agent-native office workflows through WPS Lingxi and WPS 365. In games, he said Goose Goose Duck, Angry Birds titles, and Starsand Island are helping broaden the portfolio, while the company aims for long-term value creation through innovation and commercial expansion.

Acting CFO Li Yi highlighted that Q4 revenue was RMB 2.618 billion, with office software and services accounting for 67% and games 33%. She said gross profit was RMB 2.148 billion and gross margin 82%, while R&D rose 30% year over year to RMB 953 million due to headcount and AI-related spending, and selling and distribution expenses rose 36% year over year to RMB 462 million on higher marketing. She also noted RMB 819 million in net other gains in Q4 mainly from a deemed disposal gain on Kingsoft Cloud, RMB 27 billion in cash resources at year-end, RMB 2.292 billion in operating cash flow for 2025, and RMB 342 million in capex.

Analysts pressed on gaming strategy after Tao Zou became CEO of Xishanju, asking about strategic changes, AI use in development, and Goose Goose Duck monetization. Management said the near-term priority is to stabilize Goose Goose Duck, improve user quality and versions, and then gradually explore commercialization; for Seasun, it plans to preserve core products like JX3, cut or shrink non-strategic projects, and use AI to change content creation and production workflows. On AI for WPS, management argued AI will not ‘eat software’ but is reshaping software into a more capable, more interactive layer; enterprise customers mainly want industry-specific AI use cases, so Kingsoft is now moving from broad experimentation to deeper work in selected industries and scenarios. On Xiaomi’s MiMo, management said Kingsoft is not competing as a model company, but Xiaomi’s progress should strengthen the broader AI ecosystem around Kingsoft’s products.