Kuaishou Technology (1024) Q1 2026 earnings summary

Executive summary

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

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

• Profit for the period declined 27% YoY to RMB 2.9 billion, reflecting increased AI investments and costs.

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

Financial highlights

• Total revenue grew 3.4% YoY to RMB 33.7 billion, with online marketing services revenue up 9.3% YoY to RMB 19.6 billion.

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

• Live streaming revenue was RMB 8.5 billion, down 13.5% YoY.

• Gross profit was RMB 17.2 billion, with a gross margin of 51.2% (down from 54.6% YoY).

• Adjusted EBITDA was RMB 6.2 billion, down 3.2% YoY.

Outlook and guidance

• CapEx for 2026 expected at approximately RMB 26 billion, with most incurred in H1.

• Shareholder returns, including dividends and repurchases, expected to increase YoY, with a yield around 4%.

• Positive free cash flow targeted for the full year, even with high CapEx.

• Continued investment in AI and omni-domain traffic synergy, with Kling AI as a key growth driver.