KE Holdings Inc. Earnings Recaps
Q2 2026
Aug 25, 2026
Shares rose 4.2% as KE Holdings delivered a rebound in GTV growth and significant profit margin expansion, signaling improved operational efficiency and cost discipline despite ongoing revenue pressure in select segments.
Key takeaways
- Q2 gross transaction volume (GTV) grew 6.3% year-over-year, returning to growth after prior softness.
- Revenue declined 5.7% year-over-year, mainly due to strategic adjustments and weaker demand in home renovation and rental services.
- Non-GAAP net income surged 74.9% to RMB 3.185 billion, with non-GAAP net margin reaching 13%, the highest in three years.
- Contribution margins improved across all core segments; notably, existing home transaction services margin rose to 46.1%.
- Operating expenses fell 14.1% year-over-year despite a quarterly increase linked to seasonal home renovation activity and increased bad debt provisions.
Q1 2026
May 20, 2026
Shares rallied 5.2% after Q1 earnings as operational efficiencies and margin expansion outweighed revenue declines, signaling investor approval of the company’s structural cost optimization despite a challenging top line environment.
Key takeaways
- Q1 non-GAAP operating profit surged 45.1% year-over-year to RMB 1.67 billion, with operating margin reaching 8.8%, the highest in seven quarters.
- Group GTV decreased 15.6% year-over-year to RMB 711.2 billion, and revenue fell 19%, pressured by a high comparable base from last year’s real estate market.
- Existing home transaction services GTV declined 7.9% year-over-year, while contribution margin improved to 41.3%, the highest in seven quarters, driven by cost optimizations and improved efficiency.
- New home business revenue dropped 37% year-over-year amid scale contraction, but contribution margin rose 2.3 percentage points, reflecting refined operations; quarter-over-quarter margin fell due to one-off cost factors.
- Share repurchases totaled approximately USD 195 million, up roughly 40% year-over-year, underscoring management’s confidence in long-term sustainable performance.
Q3 2025
Nov 11, 2025
KE Holdings reported mixed results for Q3 2025, with total revenues increasing slightly year-over-year while experiencing declines in net income amid ongoing optimization efforts and investments in AI technology.
Key takeaways
- Total revenues reached RMB 23.1 billion, up 2.1% year-over-year, but GAAP net income fell 36.1% to RMB 747 million.
- GTV for existing home transactions showed a 5.8% year-over-year increase, while new home transactions experienced significant declines, down 13.7% year-over-year.
- The company achieved city-level profitability in its home renovation and rental business, contributing to a record high combined profit for gross margins.
- Share repurchases in Q3 were at their highest level in two years, reinforcing a commitment to shareholder returns.
- Efficiency enhancements via AI and operational optimizations are central to the company's growth strategy moving forward.