21 Nov 2025
Kuaishou’s 3QFY25 revenue was up by 14.2% YoY to Rmb35.6bn, mainly due to i) 14% YoY increase in online marketing services to Rmb20.1bn, driven by the use of AI technology to upgrade marketing product solutions; ii) 2.5% YoY increase in live streaming biz to Rmb9.6bn on continuously diversifying high-quality content; and iii) 41% YoY increase in other services to Rmb5.9bn on the growth of its e-commerce biz and Kling AI biz. GPM slightly up by 0.3ppt YoY to 54.7% on lower D&A and lower bandwidth expenses and serve custody costs. Selling expense ratio dropped from 33.3% in 3Q24 to 29.3% in 3Q25 due to improved operating efficiency. Admin cost down 14% YoY to Rmb688m due to decrease in employee benefit expenses, while R&D cost up by 18% YoY to Rmb3.7bn due to increased investments in AI. As a result, after excluding one off items such as share-based compensation expenses and FV investment changes, 3Q25 adj NP was up by 26.2% to Rmb5.0bn.