---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/dolphin/post/43482610.md"
description: "First Take on Kuaishou 2Q26: Q2 was soft. Headline results were broadly in line, but core sub-segments disappointed.On their own, the prints are unlikely to lift a valuation that has been correcting. The focus shifts to management’s growth outlook for Kolin, especially amid intensifying competition in video models and frequent rival launches.1) Kolin delivered high growth as guided: Q2 Kolin revenue exceeded RMB 850 mn, up over 30% QoQ.With MiniMax H3 launched in early Aug and drawing some traction, and major platforms stepping up investment in multimodal models, Kolin’s growth visibility will likely diminish. Management needs to provide key operating metrics and articulate the strategic path forward.2) Legacy biz remains under pressure, with small uplifts from new initiatives.Incremental innovation helps, but scale is still limited.(1) Ads missed: Q2 ad growth was ~4% YoY vs. the prior ~6% expectation.Growth has decelerated for three straight quarters, partly due to weaker ecosystem traffic (MAU still added 26 mn net, but ad-relevant DAU fell 1 mn net, suggesting a short-lived traffic push). It also reflects a soft consumption backdrop (e-commerce stopped disclosing GMV, and based on Q1 guidance growth is low; with reverse traffic subsidies in e-commerce, domestic-cycle ads are likely flat YoY or low-single-digit).Short dramas provided some incremental demand (Q2 short-drama ad spend +100%), but the share is small and competition is intense.Layer on high comps in H2, a near-term reacceleration looks unlikely.(2) Live-streaming continued to decline: Q2 live-streaming revenue fell 13.5%.It remains pressured by regulatory clean-ups and industry headwinds, and was in line with expectations.(3) E-commerce & others: Other revenue excluding Kolin was RMB 5.4 bn, +7% YoY, above guidance for flat YoY.The release did not detail specific drivers. Dolphin Research suspects shoppable boosts during CBA broadcasts (CBA rights signed in Mar, with embedded shopping entry points in CBA streams selling sports-related merchandise), plus revenue from online concerts launched in Apr; the call should clarify.3) Core profit missed: Core OP (GP minus the three opex lines, excluding other gains) was RMB 2.9 bn, down 38% YoY, below market expectations, mainly on a 35% surge in R&D.GPM was in line, flat QoQ and lower YoY, driven by Kolin compute investments and a higher mix of IAA short dramas with lower margins. S&M and G&A tightened in Q2.Adj. net profit was RMB 3.9 bn with an 11% margin, down 30% YoY and in line.4) Capex vs. shareholder returns: Q2 Capex was RMB 5.9 bn; management guided RMB 26 bn for FY26, with 1H totaling RMB 18 bn, consistent with front-loaded compute purchases concentrating Capex in 1H.Shareholder returns stepped up in Q2: HKD 880 mn spent repurchasing 19.6 mn shares at an Avg. price of HKD 45. Based on last quarter’s guidance, FY26 returns will exceed FY25’s HKD 5 bn; on top of a HKD 3 bn dividend, special dividends and buybacks imply a >4% yield. $KUAISHOU-W(01024.HK)"
datetime: "2026-08-19T10:34:41.000Z"
locales:
  - [en](https://longbridge.com/en/dolphin/post/43482610.md)
  - [zh-CN](https://longbridge.com/zh-CN/dolphin/post/43482610.md)
  - [zh-HK](https://longbridge.com/zh-HK/dolphin/post/43482610.md)
author: "[Dolphin Research](https://longbridge.com/en/dolphin.md)"
generator: "portal-rs"
---

# First Take on Kuaishou 2Q26: Q2 was soft. Headline…


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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**