While total revenue saw a modest year-over-year increase of 1.4%, reaching RMB35.5 billion, the company faced significant pressure on its bottom line due to rising operational expenses. Research and development spending climbed to RMB4.58 billion for the quarter, underscoring the firm's commitment to its Kling AI model series and infrastructure. Despite the profit contraction, daily active users grew slightly to 412.3 million, while monthly active users reached 797.3 million, an 11.5% increase over 2025 levels.
Kuaishou Profit Dips as AI Investment Costs Mount
Kuaishou Technology reported an adjusted net profit of RMB3.9 billion for the second quarter of 2026, a decline from the RMB5.6 billion recorded during the same period last year. The results reflect the company’s aggressive push into artificial intelligence and a complex, highly competitive macroeconomic environment.
Commercialization efforts remain anchored by online marketing, which accounted for 58.1% of revenue. Kling AI has emerged as a critical growth driver, generating over RMB850 million in revenue—a 200% surge compared to the previous year. CEO Cheng Yixiao noted that the integration of AI tools across content creation and e-commerce remains the central strategy to maintain long-term competitiveness. Meanwhile, the company continues to manage its capital through active share repurchases, with HKD1.97 billion spent on buybacks since the start of the year.
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