China short video platform Kuaishou Q2 profit hit by higher costs, revenue inches up

Kuaishou Technology

19/08/2026 09:41

Overview
China short video platform's Q2 revenue rose 1.4% yr/yr to RMB 35.5 bln
Q2 net income attributable fell 36% yr/yr
Adjusted net profit dropped 30% yr/yr amid macroeconomic and industry competition

Outlook
Kuaishou Technology did not provide specific guidance for the current quarter or full year

Result Drivers
USER GROWTH - Average daily active users on Kuaishou App increased to 412.3 mln in Q2
MARKETING SERVICES - Online marketing services revenue per DAU rose to RMB 50.1 in Q2, with total revenue up 4.4% yr/yr to RMB20.6 bln
COSTS JUMP – Cost of revenues rose 10.7% yr/yr, mainly due to higher revenue-sharing costs and related taxes; R&D expenses rose 34.7% due to increased AI investment, including training expenditures

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
RMB 35.54 bln
 
Q2 Net Income Attributable
 
RMB 3.15 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 31 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Kuaishou Technology is HK$69.00, about 75.2% above its August 18 closing price of HK$39.38
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Aug 18 - China's Baidu Q2 revenue falls amid pressure on online marketing business
Aug 18 - China's iQIYI Q2 net loss widens on higher income tax expense
Aug 18 - China's Weimob H1 loss widens, hit by share-based compensation and tax

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)