On March 25, KINGSOFT officially disclosed its annual performance report for the year ended December 31, 2025.
At a time when the tech industry is generally facing the dual test of growth and efficiency, KINGSOFT has delivered a report with distinct characteristics: the group's annual revenue recorded 9.683 billion yuan, a slight year-on-year decrease of 6%; however, the net profit attributable to the parent company achieved a counter-trend surge of 29%, reaching 2.004 billion yuan.
This &#34;revenue down, profit up&#34; financial scissors effect cannot be summarized simply as cost reduction and efficiency enhancement. Analysis indicates that KINGSOFT's internal business structure is undergoing a profound shift.
Specifically, its traditional business represented by gaming may be in an adjustment period of the product cycle, while the office software and services business centered on WPS has thoroughly established its absolute dominance as the group's fundamental base, driven by AI and SaaS (Software as a Service).
Financial report data shows that in 2025, KINGSOFT's office software and services business revenue reached 5.929 billion yuan, achieving steady growth of 16%. Comparing this data with the group's total revenue of 9.683 billion yuan, it is not difficult to find that the office business accounts for more than 61% of the total revenue.
This means the core logic supporting KINGSOFT's 29% profit surge comes precisely from this core asset, which is high-margin, highly certain, and in a growth channel.
When overall revenue was dragged down by other business segments, office software not only played the role of a &#34;ballast stone&#34; but also became the main engine for optimizing the group's profitability.
Exploring the momentum behind the 16% growth in the office business, it is clear that KINGSOFT's strategic implementation on both the C-end and B-end has taken effect.
First, on the individual user side, WPS AI has completed the leap from an eye-catching tool to a sharp weapon for boosting paid conversion.
In the past few years, the growth of personal subscriptions for office software once faced concerns about penetration reaching its peak. However, the 2025 financial report released a positive signal: the continuous upgrade of WPS AI successfully broke the original growth ceiling.
The introduction of AI functions not only increased the depth of product usage, but more importantly, it provided users with a strong reason for &#34;membership upgrades,&#34; directly driving the expansion of the individual paying user scale and the increase in average revenue per paying user (ARPPU). This shows that users are willing to pay for AI technology that can truly improve productivity.
Second, on the government and enterprise side, the WPS 365 productivity platform for organizational customers continued to deepen and expand. Combined with the release of government and enterprise digital transformation needs, orders from these sectors increased steadily, forming a dual-wheel growth driver with the personal business.
As the digital transformation of government and enterprises deepens and the wave of domestic substitution for office software advances, KINGSOFT's layout on the B-end has welcomed a harvest period. As an office productivity platform for organizations, WPS 365's SaaS service model not only enhances customer stickiness but also makes the revenue model healthier and more sustainable.
The &#34;increase in software business government and enterprise orders&#34; mentioned in the financial report is a direct manifestation of its expanded depth in the B-end market.
Since the office business surged by 16%, the gap from the 6% decline in total revenue clearly came from the drag of the other pillar—online games and other businesses.
Deducing from financial report data, KINGSOFT's non-office business revenue in 2025, mainly from gaming, was approximately 3.754 billion yuan. Compared to 2024, this segment's revenue saw a significant drop of nearly 30%, directly dragging down the group's overall revenue scale.
Overall, KINGSOFT's performance in 2025 represents a high-quality contraction and expansion.
The decline in total revenue objectively reflects the company's growing pains in diversified businesses, especially in the era of zero-sum games, where growth pressure on non-office business is becoming apparent; but the counter-trend rebound in profit serves as evidence of management's focus on resource allocation and commercialization efficiency.
At the current juncture, the valuation logic of the capital market for KINGSOFT may need to be re-anchored. It is becoming more and more like a pure &#34;AI+SaaS&#34; enterprise.
Looking forward, KINGSOFT still needs to answer several key questions.
First, after the first wave of &#34;trial-type&#34; paid conversion dividends brought by WPS AI is exhausted, how to maintain technological iteration to sustain long-term high retention rates;
Second, amid the technical suppression by global giants such as Microsoft Copilot and the fierce competition from domestic large model manufacturers entering B-end applications, how can WPS 365 defend and expand its moat in the government and enterprise market;
Third, how to smooth out the revenue fluctuations caused by non-office businesses to bring the group back to a healthy track of &#34;growth in both revenue and profit&#34;.
KINGSOFT's 2025 proved that AI can indeed make money. And its 2026 will face a more brutal efficiency race.

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- Kingsoft Software disclosed its 2025 annual performance report, revealing total revenue of 9.683 billion yuan, a 6% decrease year-on-year, while net profit surged by 29% to 2.004 billion yuan.  
- The shift in the company’s business structure indicates that traditional gaming revenue is under pressure, whereas the WPS office software segment, driven by AI and SaaS, has grown robustly, accounting for over 61% of total revenue.  
- Moving forward, Kingsoft must address how to sustain customer retention, defend its market position against competitors, and mitigate revenue fluctuations from non-office segments to establish a healthier growth trajectory.

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WPS Accounts for 60% of Revenue: Is KINGSOFT Moving Beyond Its "Game Dependency"?