Kuaishou Technology (1024) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 3.4% year-over-year to RMB 33.7 billion, driven by online marketing and Kling AI, with Kling AI revenue exceeding RMB 650 million and up over 300% year-over-year.

• Adjusted net profit was RMB 3.4 billion, with an adjusted net margin of 10%.

• Profit for the period declined 27% year-over-year to RMB 2.9 billion.

• Kling AI maintained global leadership in multi-modal video generation and rapid monetization growth.

Financial highlights

• Total revenue: RMB 33.7 billion, up 3.4% year-over-year.

• Online marketing services revenue: RMB 19.6 billion, up 9.3% year-over-year.

• Revenue from other services (e-commerce and Kling AI): RMB 5.6 billion, up 15.9% year-over-year.

• Live streaming revenue: RMB 8.5 billion, down 13.5% year-over-year.

• Gross profit: RMB 17.2 billion; gross margin: 51.2% (down from 54.6% last year).

• Operating profit: RMB 3.6 billion, down 15.6% year-over-year; operating margin at 10.7%.

• Adjusted EBITDA: RMB 6.2 billion, down 3.2% year-over-year.

• Basic EPS: RMB 0.67, down from RMB 0.93 year-over-year.

• Cash and equivalents: RMB 117.7 billion as of March 31, 2026.

• Net cash from operating activities: RMB 3.1 billion.

Outlook and guidance

• Continued prioritization of AI investment and user needs to reinforce competitive edge and long-term value.

• CapEx guidance for 2026 remains at approximately RMB 26 billion, with most spending in H1.

• Expectation to maintain positive free cash flow for the full year despite high CapEx.

• Total shareholder returns in 2026, including dividends and repurchases, expected to increase, with a yield around 4%.

• E-commerce and online marketing expected to benefit from AI-driven operational improvements.