KE Holdings Inc. (“Beike”) reported a sharp rebound in profitability for the three months ended 30 June 2026, underscoring the impact of cost optimisation and margin-focused execution amid a still-soft property market.
Gross Transaction Value (GTV) and Top-Line Trends • Platform-wide GTV climbed 6.30% year-on-year (YoY) to RMB 933.80 billion (US$137.60 billion). – Existing-home GTV rose 8.00% to RMB 629.90 billion; new-home GTV inched up 1.20% to RMB 258.40 billion. • Net revenue slipped 5.70% to RMB 24.54 billion (US$3.62 billion), weighed by a 30.10% contraction in home-renovation revenue and a 14.80% drop in home-rental income. These declines offset mid-single-digit growth in both existing-home (+4.50%) and new-home (+3.80%) transaction services.
Profitability Rebounds • Gross profit expanded 23.10% to RMB 7.01 billion, lifting gross margin by 6.70 percentage points to 28.60% as contribution margins improved across all core business lines. – Existing-home contribution margin: 46.10% (up 6.20 ppts). – New-home contribution margin: 28.80% (up 4.40 ppts). – Renovation contribution margin: 39.60% (up 7.50 ppts). – Rental contribution margin: 15.30% (up 6.90 ppts). • Total operating expenses fell 14.10% to RMB 3.99 billion, reflecting lower personnel, marketing and R&D spending. • Operating income surged to RMB 3.03 billion, tripling YoY and pushing operating margin to 12.30% (Q2 2025: 4.10%). • Net income doubled to RMB 2.62 billion (US$0.39 billion). Adjusted net income increased 74.90% to RMB 3.19 billion (US$0.47 billion), with the adjusted net margin reaching 13.00%, the highest in three years. • Adjusted EBITDA rose 89.50% to RMB 4.18 billion (US$0.62 billion).
Operating Metrics • Store network: 60,274 outlets, down 0.40% YoY; active stores declined 1.50% to 57,803. • Agent base: 540,634 (-3.10% YoY); active agents fell 7.50% to 454,571. • Mobile MAUs averaged 45.70 million, versus 48.70 million a year earlier.
Balance Sheet & Capital Returns • Cash, cash equivalents, restricted cash and short-term investments totalled RMB 56.00 billion (US$8.25 billion) at quarter-end. • Under its US$5.00 billion share-repurchase programme (in place through August 2028), Beike bought back approximately US$250.00 million of shares during Q2, including its first repurchases on the Hong Kong bourse. Cumulative buybacks reached US$2.97 billion (185.40 million ADS) in New York and HK$201.50 million (4.90 million Class A shares) in Hong Kong.
Management Commentary Chairman and CEO Stanley Yongdong Peng highlighted ongoing organisational transformation that integrates professional service providers, platform capabilities and AI tools, aiming for “quality growth at scale.” CFO Tao Xu noted that disciplined cost controls and enhanced operating efficiency boosted contribution and gross margins, supporting record adjusted profitability.
Outlook While no quantitative guidance was provided, management signalled continued focus on resource allocation, operating resilience and capability building to underpin long-term sustainable growth.
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