Kuaishou Technology (1024) investor relations material

Executive summary

• Q2 2026 revenues rose 1.4% year-over-year to RMB 35.5 billion, with adjusted net profit at RMB 3.9 billion and an adjusted net margin of 11%, driven by online marketing and Kling AI's over 200% revenue surge.

• Average DAUs reached 412 million, with MAUs at 797.3 million, reflecting strong user engagement for the eighth consecutive quarter.

• Kling AI's commercialization accelerated, launching native 4K video output and new models, and completing an independent financing round.

• AI integration deepened across content, marketing, and e-commerce, enhancing operational efficiency and user experience.

Financial highlights

• Q2 2026 gross profit was RMB 18.3 billion, with a gross margin of 51.6% (down from 55.7% year-over-year); adjusted EBITDA was RMB 7.1 billion.

• Online marketing services revenue increased 4.4% year-over-year to RMB 20.6 billion; other services, including Kling AI, rose 18.5% to RMB 6.2 billion.

• Live streaming revenue reached RMB 8.7 billion, down 13.5% year-over-year.

• Cash and equivalents totaled RMB 121.3 billion as of June 30, 2026; net cash from operating activities was RMB 5.9 billion.

• For H1 2026, revenues grew 2.4% year-over-year to RMB 69.3 billion; adjusted net profit was RMB 7.3 billion.

Outlook and guidance

• Management remains cautious about the short-term outlook due to macroeconomic headwinds, industry competition, and heavy AI investment.

• The company will maintain a long-term focus on AI-driven growth, prudent financial discipline, and cost efficiency.

• E-commerce marketing service revenue and commission income expected to face pressure in the second half, but structural opportunities remain.