Kuaishou Technology reported unaudited results for the three months to 31 March 2026, highlighting modest top-line expansion, margin pressure, and accelerating monetisation from its Kling AI business.

Revenue and Profitability • Total revenue rose 3.40% year on year to RMB 33.72 billion, led by a 9.3% increase in online marketing services to RMB 19.64 billion (58.3% of total). • Live-streaming revenue fell 13.5% to RMB 8.49 billion, while the “other services” line—driven mainly by e-commerce and Kling AI—grew 15.9% to RMB 5.58 billion. • Gross profit slipped 3.1% to RMB 17.25 billion as gross margin narrowed to 51.2% (Q1 2025: 54.6%) amid higher revenue-sharing, bandwidth and depreciation costs. • Operating profit declined 15.6% to RMB 3.60 billion; operating margin eased to 10.7% (Q1 2025: 13.1%). • Net profit attributable to shareholders dropped 27.0% to RMB 2.90 billion. On a non-IFRS basis, adjusted net profit fell 26.3% to RMB 3.37 billion, and adjusted EBITDA slipped 3.2% to RMB 6.23 billion.

Segment Performance • Domestic operations generated RMB 32.55 billion in revenue, up 4.0%, but operating profit contracted 28.8% to RMB 3.09 billion. • Overseas revenue declined 11.6% to RMB 1.16 billion, moving to a RMB 31 million operating loss from a RMB 28 million profit a year earlier.

Key Operating Metrics • Average daily active users on Kuaishou App grew to 412.7 million (Q1 2025: 408.0 million). • Monthly active users reached 771.7 million, up 8.4%. • Online marketing services revenue per DAU increased 7.9% to RMB 47.6.

Business Highlights • Kling AI, positioned as Kuaishou’s “second growth curve,” posted revenue exceeding RMB 0.65 billion, surging more than 300% year on year and reaching an annualised run-rate of roughly USD 0.50 billion. • AI-driven tools such as the Kling AI 3.0 multimodal model and Universal Auto X placement solution supported advertiser spending and e-commerce conversion, contributing an estimated 3-4% uplift to domestic online marketing revenue. • E-commerce initiatives—including the Voyage Initiative for brand onboarding and AI-enabled search and live-stream enhancements—boosted active marketing merchants by 38.0% and brand-merchant ad spend by 42.0%. • Live-streaming revenue softness reflected Kuaishou’s focus on ecosystem health; AI gifts such as the “AI Universe” series reached 1.10 million units sent in the quarter. • Overseas business in Brazil maintained stable DAUs and improved e-commerce GMV, supported by AI-powered content and localised advertising.

Cash Flow and Balance Sheet • Operating cash flow totalled RMB 3.13 billion; free cash was outweighed by RMB 23.96 billion used in investing, largely for property, equipment and financial assets. • Financing inflows of RMB 21.14 billion—mainly from new USD and RMB senior notes and bank loans—raised total borrowings to RMB 27.66 billion (31 Dec 2025: RMB 13.07 billion). • Cash and cash equivalents edged up to RMB 11.41 billion; total available funds stood at RMB 117.70 billion.

Capital Management • Between January and April 2026 the company repurchased 17.96 million Class B shares for HKD 854.31 million and cancelled 28.23 million previously repurchased shares. Concurrently, 33.96 million Class A shares were converted to Class B shares.

Expenses • Selling and marketing expenses rose 4.4% to RMB 10.33 billion, equivalent to 30.6% of revenue. • R&D investment increased 9.8% to RMB 3.62 billion, reflecting continued AI initiatives. • Administrative expenses declined 7.5% to RMB 0.77 billion.

Governance and Compliance The board reported full compliance with Hong Kong’s Corporate Governance Code except for the separation of chairman and CEO roles, both held by co-founder Cheng Yixiao since October 2023.

No other material events were disclosed after 31 March 2026.