Kingsoft (3888) Q4 2025 earnings summary

Executive summary

• 2025 revenue was CNY 9.68 billion, down 6% year-over-year, with office software and services up 16% and online games and others down 28%.

• Profit attributable to owners rose 29% year-over-year to CNY 2,004.4 million, with basic EPS up 26%.

• Office business saw robust growth driven by AI integration, international expansion, and product upgrades, while gaming faced declines from legacy titles but gained momentum from new releases.

• Goose Goose Duck, launched in early 2026, surpassed 30 million new users and stabilized at 3 million DAU, exceeding expectations and providing new growth momentum.

• Gross profit margin decreased by two percentage points to 81%.

Financial highlights

• Q4 revenue was CNY 2.68 billion, down 6% year-over-year but up 8% sequentially; office software and services contributed 67%, online games and others 33%.

• Office software and services revenue reached CNY 5,928.7 million, up 16% year-over-year.

• Online games and others revenue fell to CNY 3,754.1 million, down 28% year-over-year.

• Q4 profit attributable to owners was CNY 975 million, more than double the prior year.

• Operating profit dropped 51% to CNY 1,775.1 million; operating profit before share-based compensation fell 47%.

Outlook and guidance

• Office business will deepen AI agent technology adoption, strengthen WPS 365 as an intelligent collaboration platform, and accelerate global expansion.

• Online games will focus on premium content, global publishing, and leveraging classic IPs while nurturing new genres for sustainable growth.

• Goose Goose Duck, launched in early 2026, surpassed 30 million new users, signaling growth potential.