KINGSOFT CLOUD (03896) adjusted gross profit of 350 million yuan in Q1, a year-on-year increase of 7.2%

KINGSOFT CLOUD (03896) announced its first-quarter performance in 2026, with total revenue reaching approximately 2.704 billion yuan, an increase of 37.2% year-on-year. Adjusted gross profit reached 350 million yuan, an increase of 7.2% year-on-year. EBITDA under non-GAAP reached 747.5 million yuan, an increase of 134.69% year-on-year. Net cash flow from operating activities is approximately 534 million yuan, significantly positive. Among them, the revenue from public cloud services was approximately 1.996 billion yuan, an increase of 47.5% year-on-year and 4.9% quarter-on-quarter, mainly driven by the growth in demand for artificial intelligence leading to overall revenue growth. Industry cloud service revenue was approximately 707 million yuan, an increase of 14.7% year-on-year. Mr. Zou Tao, Chairman and CEO of KINGSOFT CLOUD, said, "We continue to promote the 'high-quality sustainable development' strategy, with billable revenue from our smart cloud business increasing by 90% year-on-year, accounting for over half of the public cloud revenue for the first time. As we continue to invest in infrastructure, hone our capabilities, and strengthen our customer base inside and outside the ecosystem, from computing power to vertical solutions, we are excited about the broad opportunities brought by the new era." Ms. Li Yi, CFO of KINGSOFT CLOUD, added, "Our performance in this quarter was strong, with total revenue reaching 2.7037 billion yuan, an increase of 37.2% year-on-year. Despite facing challenges in the overall supply chain, our adjusted gross profit still reached 351.4 million yuan, an increase of 7.2% year-on-year. Our adjusted EBITDA profit margin was 27.6%, an increase of 11.4 percentage points year-on-year, consistent with the growth trend of our smart cloud business. With strong demand in various industries, we are firmly increasing our investment in infrastructure, with a total capital expenditure and leased assets obtained in the first quarter reaching 3 billion yuan, and we expect to continue to invest throughout the year to further expand our business."