Kuaishou Q2 2026 Revenue Up 1.4%, Profit Falls, Kling AI Revenue Surges Over 200%

Kuaishou Technology released its second-quarter 2026 results. Total revenue for the quarter was RMB 35.535 billion, up 1.4% year on year. Profit attributable to shareholders was RMB 3.146 billion, down 36.08% year on year; adjusted net profit was RMB 3.913 billion, down 30.35%. Core commercial revenue, which includes online marketing services and other services primarily comprising e-commerce and Kling AI, grew 7.4% year on year. For the first half, profit attributable to shareholders was RMB 6.049 billion, down 32.03% year on year; adjusted net profit was RMB 7.287 billion, down 28.5%. The board resolved not to distribute an interim dividend.

Online marketing services revenue was RMB 20.64 billion, up 4.4% year on year. Live streaming revenue was RMB 8.69 billion, down 13.5% year on year. Other services revenue was RMB 6.21 billion, up 18.5% year on year, of which Kling AI generated over RMB 850 million in revenue, up more than 200% year on year. Kuaishou app average daily active users reached 412 million, up 0.83% year on year; average monthly active users reached 797.3 million. Average online marketing services revenue per daily active user rose to RMB 50.1 from RMB 48.3 in the same period of 2025.

Research and development expenses were RMB 4.58 billion, up 34.7% year on year. Cost of sales increased 10.7% year on year to RMB 17.2 billion, and gross margin fell to 51.6% from 55.7% in the same period of 2025. Operating profit was RMB 3.76 billion, down 29% year on year. Domestic segment operating profit fell to RMB 3.73 billion from RMB 5.4 billion; the overseas segment recorded an operating loss of RMB 25 million, with revenue down 9.3% year on year. Adjusted EBITDA decreased 7.7% year on year to RMB 7.12 billion. As of June 30, 2026, total available funds were RMB 121.3 billion, up from RMB 117.7 billion at the end of the previous quarter.

Kling AI's commercialization continued to advance. On July 2, 2026, Beijing Kling Intelligent Technology Co. , Ltd. signed a capital increase agreement with certain investors to obtain up to USD 3 billion in external funding. After the related restructuring is completed, Beijing Kling's financial results will continue to be consolidated into the group's financial statements. In the second quarter of 2026, Kling AI launched a video generation model supporting native 4K output and the Kling 3.0 Turbo model, and introduced MCP and CLI interfaces. Two advertising films generated by Kling AI won one Silver Lion and two Bronze Lions at the 2026 Cannes Lions International Festival of Creativity.

As of the latest practicable date, Kuaishou had repurchased a cumulative 43.3 million Class B shares for approximately HK$1.97 billion. In the second quarter of 2026, the AI code contribution rate reached 60%, and more than 92% of employees used the company's self-developed AI agent products.