On the same day that OpenAI revealed it was discontinuing its video generation model Sora, Kuaishou unveiled its financial results for the fourth quarter and full year of 2025. In Q4 2025, Kuaishou’s total revenue soared to RMB 39.6 billion, marking an 11.8% year-on-year increase, while adjusted net profit climbed to RMB 5.5 billion, up 16.2% from the previous year. For the entire year, total revenue reached RMB 142.8 billion, a 12.5% year-on-year rise, with adjusted net profit hitting RMB 20.6 billion, up 16.5% year-on-year, and the adjusted net profit margin expanding to 14.5%.

Drilling down into specific business segments, revenue from online marketing services and e-commerce saw growth, whereas revenue from the live streaming business experienced a decline in the fourth quarter. Kling AI, in particular, generated RMB 340 million in revenue during Q4, with monthly revenue surpassing $20 million in December. This translates to an annualized recurring revenue (ARR) of $240 million, a global user base exceeding 60 million, and a cumulative total of over 600 million videos generated. The CEO of Kuaishou has set an ambitious target for Kling, expecting its revenue to more than double year-on-year in the current year.

Meanwhile, Kuaishou’s CFO has projected that the group’s capital expenditures (Capex) will reach RMB 26 billion in 2026. However, despite the growth in the AI business, traditional business segments are underperforming, prompting Kuaishou to carefully consider how to balance long-term profitability. Additionally, both ByteDance’s Seedance and Kuaishou’s Kling AI are showing promising development. Although the industry’s technology and products are not yet fully mature, recent model updates have had a positive impact on their performance.