Kuaishou Technology reported a 1.4% increase in total revenue for the second quarter of 2026, reaching 35.5 billion yuan, while adjusted net profit held at 3.9 billion yuan with an 11% margin. The group’s net profit stood at 3.2 billion yuan, down from 3.9 billion in the prior-year period. Gross profit declined to 18.3 billion yuan from 19.5 billion, reflecting a gross margin of 51.6%, a drop from 55.7% a year earlier.
Cost of revenue rose 10.7% to 17.2 billion yuan, outpacing revenue growth. The core commercial business grew 7.4% year-over-year, with online marketing services up 4.4% to 20.6 billion yuan. Revenue from other services, including e-commerce and Kling AI, increased 18.5% to 6.2 billion yuan, while live streaming contributed 8.7 billion yuan.
Cash and liquid assets totaled 121.3 billion yuan as of June 30, with free cash flow remaining positive. The company’s Kling AI segment generated over 850 million yuan in revenue, more than tripling from the prior year and capturing an estimated $150 billion global video generation market opportunity. Spending on AI-generated content and video marketing rose over 70% year-over-year, while internal AI adoption reached 92% of employees by June, with AI code contributions accounting for 60% of R&D engineers’ work.
User engagement metrics showed average daily active users on the Kuaishou app at 412 million, up from 405 million in the prior quarter. Monthly active users reached 797 million, with private messaging among mutual followers growing over 15% year-over-year. The company’s World Cup fan campaign generated 68.2 billion impressions and 360 million cumulative livestream views.
Shares of Kuaishou fell 4.01% to close at 37.80 Hong Kong dollars, extending declines from a 52-week high of 92.60. The stock has traded between 37.42 and 37.80 in recent sessions, with InvestingPro rating its financial health as "good" at 2.88.
Chief Executive Cheng Yixiao highlighted the company’s AI-driven growth, stating that Kling AI’s revenue exceeded 850 million yuan in the quarter, reinforcing its position as a leader in global AI video commercialization. He added that Kuaishou remains focused on leveraging AI to enhance business operations and expand application boundaries in partnership with ecosystem players.
