Kuaishou’s artificial intelligence strategy is showing early signs of commercial payoff. The Chinese tech firm reported RMB 150 million (USD 21 million) in revenue from Kling AI in the first quarter of 2025, as its upgraded video generation product gained traction among content creators, advertisers, animators, and game developers. Nearly 70% of Kling’s Q1 revenue came from consumer subscriptions, with a growing base of independent creators and professional users driving up average spend.
The company also posted its first-ever overseas operating profit, buoyed by strong growth in Brazil. Combined with steady domestic performance in e-commerce and live streaming, Kuaishou generated total revenue of RMB 32.6 billion (USD 4.6 billion), up 10.9% year-on-year. Adjusted net profit rose to RMB 4.6 billion (USD 644 million), yielding a 14% adjusted net margin. Daily active users on the Kuaishou app reached a record 408 million.
Kuaishou’s momentum suggests it has made headway in shaping a second growth curve built on AI applications and international expansion. “We’re confident that by being focused on long-term technology investment and delivering real user value, we will be able to rise above short-term cycles,” said Cheng Yixiao, the company’s co-founder and CEO, during the earnings call.
Launched globally in April, Kling 2.0 introduced a multimodal editing system that lets users combine images, video, voice, and motion prompts. Upgrades in motion quality and semantic responsiveness have also drawn in creators looking for more precise control over the video generation process.
Corporate adoption is expanding as well. More than 10,000 companies, including firms in film production and smart devices, are reportedly using Kling’s APIs. The company is also cultivating its AI ecosystem through programs offering funding and IP incubation to emerging creators.
Future versions of Kling are expected to broaden its user base by offering different cost-performance tiers. While Kuaishou plans to scale AI-related investments this year, CFO Jin Bing noted that Kling’s high-margin subscription model and scalable architecture will limit the impact on group profitability to around 1–2%.
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Beyond AI, Kuaishou’s overseas business is entering a new phase. International revenue grew 32.7% year-on-year to RMB 1.3 billion (USD 182 million), led by Brazil. The company credited increased user engagement and local content partnerships with driving retention. A sponsorship deal with Brazilian variety show Big Brother Brasil 25 helped boost brand visibility in the market. E-commerce order volumes also rose, underpinned by product localization and disciplined ROI management.
The profitability milestone marks a shift for Kuaishou, which had been absorbing heavy losses overseas until recently. Management attributed the turnaround to gains in customer acquisition efficiency and ad monetization.
AI integration has also deepened across the platform. Large model capabilities now support user recommendations, ad material production, and customer service functions. In Q1, daily ad spend on AI-generated marketing content averaged RMB 30 million (USD 4.2 million).
AI tools also played a key role in e-commerce, helping merchants streamline operations through automated live streaming clips, smart product suggestions, and conversational bots. These enhancements contributed to a 15.4% year-on-year increase in gross merchandise volume, which totaled RMB 332.3 billion (USD 46.5 billion).
Live streaming revenue climbed 14.4%, supported by partnerships with talent agencies and a strong content pipeline. Revenue from local services more than doubled, with most of the growth coming from lower-tier Chinese cities.
Despite its optimistic outlook, Kuaishou is taking a measured approach to expansion. AI deployments remain ROI-driven, and the company continues to balance growth with cost discipline. R&D spending rose 16% to RMB 3.3 billion (USD 462 million), while operating cash flow remained positive at RMB 3.3 billion.
The company repurchased shares worth HKD 1.4 billion (USD 178.6 million) in Q1, underscoring its confidence in long-term prospects. As Kuaishou deepens its investment in AI and international markets, its evolving results point to a defensible, multi-pillar business model, one that’s increasingly buffered from the volatility of China’s advertising economy.