KE Holdings Inc. Q2 2026 Earnings Recap

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.