Why Kingsoft Cloud (KC) Is Up 7.8% After Reporting Narrowed Losses and Revenue Growth in Q3

• Kingsoft Cloud Holdings announced its third quarter 2025 earnings, reporting revenue of CNY 2,478.03 million and a net loss of CNY 4.62 million, reflecting meaningful year-over-year improvements.
• A significant rise in borrow rates and investor interest accompanied the results, highlighting how the company's narrowing losses have put its ongoing business transformation under the spotlight.
• We'll examine how Kingsoft Cloud Holdings' reduced net loss and rising revenue signal progress toward financial stability within its investment narrative.

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Kingsoft Cloud Holdings Investment Narrative Recap

To be a shareholder in Kingsoft Cloud Holdings, you must trust in the company's potential to drive cloud revenue growth through AI integration, industry partnerships, and strategic expansion, even as margin pressure and unprofitability persist. The Q3 2025 earnings showed rising revenues and sharply reduced net losses, which may boost confidence in ongoing transformation, but do not materially lessen near-term concerns about cash outflows and margin headwinds as the company invests heavily in infrastructure. Persistent economic pressures and client concentration remain primary risks to any immediate turnaround.

The most relevant recent announcement is the completion of a substantial equity offering in October 2025, which raised over HKD 2.8 billion through new share issuance. Fresh capital provides short-term financial headroom as Kingsoft Cloud narrows losses and funds its AI and cloud expansion, but also increases dilution and underscores continued dependence on external financing to sustain growth catalysts.

In contrast, investors should not overlook the potential impact of ongoing heavy capital expenditures on Kingsoft Cloud's...

Read the full narrative on Kingsoft Cloud Holdings (it's free!)

Kingsoft Cloud Holdings' outlook anticipates CN¥14.1 billion in revenue and CN¥900.5 million in earnings by 2028. This scenario assumes an 18.8% annual revenue growth rate and a CN¥2.9 billion improvement in earnings from the current CN¥-2.0 billion.

Uncover how Kingsoft Cloud Holdings' forecasts yield a $18.04 fair value, a 45% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community place Kingsoft Cloud’s fair value between CN¥4.88 and CN¥24.32, capturing wide-ranging outlooks. While some see opportunity, ongoing margin pressure and heavy cash requirements could weigh on operational flexibility, explore their opinions for different angles on the company’s story.

Explore 6 other fair value estimates on Kingsoft Cloud Holdings - why the stock might be worth as much as 95% more than the current price!

Build Your Own Kingsoft Cloud Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Kingsoft Cloud Holdings research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Kingsoft Cloud Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Kingsoft Cloud Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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