Kunlun Tech Co (300418) Q4 2025 earnings summary

Executive summary

• Achieved total revenue of ¥8.20 billion in 2025, up 44.78% year-over-year, driven by rapid growth in overseas AI and content businesses.

• Overseas revenue reached ¥7.72 billion, up 49.91% year-over-year, with Opera browser platform revenue at $615 million, up 27.92%.

• AI short drama and platform business monthly gross billings neared $36 million, with ARR exceeding $400 million.

• Reported net loss attributable to shareholders of ¥1.59 billion, mainly due to increased R&D and sales expenses.

• Significant investments in AGI and AIGC led to key technology breakthroughs and global leadership in AI models.

Financial highlights

• Revenue: ¥8.20 billion, up 44.78% year-over-year.

• Net loss attributable to shareholders: ¥1.59 billion, similar to prior year.

• Operating cash flow: -¥736 million, down from +¥290 million last year.

• Gross margin for internet business: 68.41%.

• R&D expenses: ¥1.68 billion, up 8.6% year-over-year; sales expenses: ¥4.18 billion, up 81.53%.

• Basic and diluted EPS: -¥1.28.

• Total assets: ¥20.23 billion; net assets: ¥13.19 billion.

Outlook and guidance

• Will continue to focus on AGI and AIGC, accelerating product innovation and commercialization.

• Plans to enhance global AI ecosystem, expand open-source model influence, and deepen industry collaborations.

• 2026 strategy includes strengthening core AI models and applications, improving monetization efficiency, and expanding user base.