KUAISHOU-W (1024) will release its latest quarterly earnings report on November 19, 2025, with the market focusing on the company's growth momentum and profitability in marketing services and AI business.
Market Forecast
The market consensus expectations for KUAISHOU-WR in Q3 are: total revenue of approximately CNY 35.29 billion, a year-over-year increase of 13.96%; adjusted EPS of approximately CNY 1.115, a year-over-year increase of 26.90%.
Review of Last Quarter
In Q2, KUAISHOU-WR achieved revenue of CNY 35.046 billion, a year-over-year increase of 13.14%; gross profit margin of 55.65%, improved year-over-year; adjusted net profit of CNY 5.62 billion, a year-over-year increase of 20.1%, and declared the first special dividend of HKD 0.46 per share, totaling approximately HKD 2 billion. E-commerce GMV grew by 17.6% year-over-year to CNY 358.9 billion, and daily active users increased by 3.4% year-over-year to 409 million, both reaching all-time highs. Kuaishou's full-year revenue for 2025 is expected to double compared to the beginning of the year target.
This Quarter's Outlook
Deepening Application of AI Generation and Marketing Efficiency
In the last quarter, KUAISHOU-WR implemented "end-to-end generative" recommendation and AIGC marketing material generation, using large language models for content understanding and generative recall, which improved material click-through rate and boosted online marketing services revenue. If the company continues this strategy this quarter, it is expected to further improve advertising conversion and customer ROI, maintaining steady growth in marketing services.
With the launch of digital human live broadcasts and industry solutions (such as the "dual live broadcast rooms" in the clothing industry) last quarter, AIGC capabilities are expected to continue to spread to more industry scenarios, reducing material and operation costs, and increasing customer budget investment willingness, supporting the dual-driven growth of advertising and e-commerce.
Potential constraints include industry competition and macro consumption pace. If rational adjustments occur on the investment side or customer budgets tighten temporarily, growth may be affected. The company needs to keep optimizing the generative bidding and long-cycle value traction strategies to ensure sustained improvement in unit budget conversion efficiency.
Enhanced Synergy Between E-commerce and Local Life
In the last quarter, the company emphasized AI capabilities in "multimodal understanding," "image and video generation" in e-commerce, driving conversion efficiency of product cards and short video scenarios to increase by more than 10%, laying a foundation for e-commerce GMV and related revenue growth this quarter.
Local life scenarios have integrated OneRec recommendation, significantly driving GMV growth. If the supply and recommendation matching are continuously optimized in geography and category dimensions, there is still room for improvement in local life order density and user transaction frequency this quarter.
In the industry aspect, there is high-intensity competition in instant retail and local life this year. The platform needs to balance between subsidies and efficiency. KUAISHOU-WR could benefit more from profit stability by enhancing AI efficiency instead of high cash consumption. However, if intensified competition leads to rising expenses, the profit margin might face short-term pressure.
Continuous Advancement of Kuaishou's AI Commercialization
Management indicated in the last quarter's earnings call that the main paying groups for Kuaishou's AI are professional creators and industrial users and proposed a path extending into industries like game development and professional film production. If product capabilities (such as "AI Canvas") and industry solutions continue to iterate this quarter, paying penetration rates and ARPU are expected to improve.
Deeper cooperation with game and film studios will bring more replicable commercialization cases and mid-to-high price subscription/project-based revenue, further solidifying the growth of the "other services" segment.
It is important to note the industry cycle and the pace of developing paid habits for large model commercialization. If users’ acceptance of high-priced subscriptions and business delivery capabilities do not advance synchronously, the revenue release may be more gradual.
Analyst Opinions
In the past six months, there has been rising attention on KUAISHOU-WR's "earnings" and "performance," with institutional discussions focusing on the fundamental resilience of the Hong Kong internet sector and AI implementation progress. Following KUAISHOU-WR's Q2 earnings report, some institutions have listed it as one of the recommended targets in the Chinese internet sector, emphasizing its advantages in marketing services, AI applications, and e-commerce ecosystems. The market is paying more attention to the short-term profit margin impact of the AI and local life competition landscape, and the progress on AIGC and generative recommendation, with an overall attitude tending to track fundamental changes before making a target price adjustment judgment.