Kunlun Tech Q1 Revenue Reaches 2.57 Billion Yuan, Up 45.69% Year-over-Year

Kunlun Tech Delivers Strong Q1 Results as AI Commercialization Accelerates

On April 28, Kunlun Tech (300418) released its Q1 2026 financial report. The company recorded quarterly revenue of 2.57 billion yuan, representing a 45.69% year-over-year increase and sustaining strong growth momentum. Overseas business revenue reached 2.487 billion yuan, up 49.29% year-over-year, with overseas revenue accounting for over 96% of total revenue — a clear testament to the company's successful globalization strategy.

Short Drama Business Emerges as Core Growth Engine

In the AI content space, Kunlun Tech's short drama and AI short drama platform business delivered particularly impressive results. The segment's monthly gross transaction value exceeded $48 million, with annual recurring revenue (ARR) surpassing the $570 million milestone. These figures not only validate the enormous potential of the overseas short drama market but also demonstrate the deep empowerment of AI technology across content production and distribution.

The short drama sector has been booming in recent years, especially in overseas markets, where Chinese companies are rapidly capturing market share through mature content production capabilities and AI-powered advantages. Kunlun Tech has integrated AI technology throughout the entire short drama production workflow — from script generation and character design to video production — significantly boosting content output efficiency, reducing production costs, and establishing a differentiated competitive edge.

Tianong AI Business Maintains Rapid Growth

The financial report also revealed that Tianong AI business revenue continued its rapid growth trajectory from Q4 2025, driven by accelerating AI commercialization. The Tianong large language model, independently developed by Kunlun Tech, serves as the company's foundational AI capability, providing technical support across multiple business lines and driving the critical transition from the "technology investment phase" to the "commercial return phase."

Notably, net cash flow from operating activities improved significantly year-over-year, indicating markedly enhanced organic cash generation capabilities. This means Kunlun Tech's AI commercialization has moved beyond the revenue level and is already translating into healthy cash flow, laying a solid foundation for continued R&D investment and business expansion.

Industry Insight: AI Plus Global Expansion as a Dual Growth Driver

Kunlun Tech's financial report illustrates that the "AI plus global expansion" dual-driver strategy is unleashing powerful growth momentum. On one hand, overseas markets provide vast monetization opportunities for AI applications; on the other, AI technology enhances overseas operations by improving efficiency and user experience, creating a positive feedback loop.

Currently, multiple Chinese tech companies are actively exploring AI-driven global expansion, but few have managed to achieve scaled revenue across multiple segments — including short dramas and AI applications — simultaneously, as Kunlun Tech has done. As the global AI application market matures further, companies with established overseas experience and accumulated AI expertise are well positioned to continue benefiting.

Outlook

Looking ahead, Kunlun Tech maintains robust growth momentum in core businesses including AI short dramas and the Tianong large language model. The ARR milestone of $570 million validates the sustainability of its business model. Against the backdrop of continuous AI technology iteration and strong overseas market demand, Kunlun Tech's full-year performance is one to watch.