KE Holdings Inc. Announces Second Quarter 2025 Unaudited Financial Results and Upsizing and Extension of Share Repurchase Program

BEIJING, Aug. 26, 2025 (GLOBE NEWSWIRE) -- KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE; HKEX: 2423), a leading integrated online and offline platform for housing transactions and services, today announced its unaudited financial results for the second quarter ended June 30, 2025. Business and Financial Highlights for the Second Quarter 2025 Gross transaction value (GTV)1 was RMB878.7 billion (US$122.7 billion), an increase of 4.7% year-over-year. GTV of existing home transactions was RMB583.5 billion (US$81.5 billion), an increase of 2.2% year-over-year. GTV of new home transactions was RMB255.4 billion (US$35.6 billion), an increase of 8.5% year-over-year.Net revenues were RMB26.0 billion (US$3.6 billion), an increase of 11.3% year-over-year.Net income was RMB1,307 million (US$182 million), a decrease of 31.2% year-over-year. Adjusted net income2 was RMB1,821 million (US$254 million), a decrease of 32.4% year-over-year.Number of stores was 60,546 as of June 30, 2025, a 31.8% increase from one year ago. Number of active stores3 was 58,664 as of June 30, 2025, a 32.1% increase from one year ago.Number of agents was 557,974 as of June 30, 2025, a 21.6% increase from one year ago. Number of active agents4 was 491,573 as of June 30, 2025, a 19.5% increase from one year ago.Mobile monthly active users (MAU)5 averaged 48.7 million in the second quarter of 2025, compared to 49.7 million in the same period of 2024. Mr. Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, commented, “In the second quarter of 2025, our business maintained its high-quality development. At the same time, we recognized significant shifts in consumer demand, driven by the evolving trends in China’s real estate sector. As our platform achieves substantial expansion in terms of agent and store networks, we are advancing into a new phase of efficiency-driven development, with AI technology breakthroughs unlocking tremendous opportunities for productivity gains. In the second quarter of 2025, we proactively implemented a series of initiatives to address the evolving dynamics. In our home transaction services, we leveraged scientific management and AI technology to enhance our service capabilities for both “homes” and “customers,” while exploring a new growth model that is driven by efficiency over scale. In our home renovation and furnishing services, we pioneered a community-focused approach, with productized model home showrooms adjacent to our contract signing service centers, significantly elevating both user trust and convenience. In our home rental services, we are driving the business toward maximum efficiency through initiatives such as product iterations and AI-driven operational restructuring. In the Beihaojia business segment, we continued to refine our C2M capabilities, leveraging customer insights to create distinct, new value for the industry. These were the key initiatives we undertook to adapt to the industry’s new growth paradigm. Looking ahead, we will embrace these changes with greater determination. While maintaining our platform’s scale advantage, we will strive to reshape service offerings through community-focused operations, unleash organizational efficiency with AI-driven productivity, and redefine our product logic with a customer-centric mindset, continuously creating greater value for the residential services industry,” concluded Mr. Peng. Mr. Tao Xu, Executive Director and Chief Financial Officer of Beike, added, “At the beginning of the year, the real estate market continued the recovery momentum from the end of last year. However, that momentum softened in the second quarter. In the first half of the year, our platform’s agent and store network continued to scale, with various high-quality industry brands joining our platform. The number of active non-Lianjia stores on our platform increased by 36.8% year-over-year. The number of active non-Lianjia agents on our platform increased by nearly 24% year-over-year. Meanwhile, refined platform operations and ecosystem improvements drove our existing home and new home businesses to outperform the market in the first half of the year. Both our home renovation and furnishing business and home rental services achieved high-quality growth. The home renovation and furnishing business continued to strengthen its product and delivery capabilities, driving steady improvements in operational capacity. The home rental services business enhanced operational efficiency through differentiated products and AI-driven refined operations. In the second quarter, net revenues from non-housing transaction services accounted for a record high of 41% of our total net revenues, highlighting our diversified growth drivers. The operating expense ratio declined year-on-year and quarter-on-quarter, and the operating leverage gradually emerged. We placed great emphasis on shareholder returns. As of the end of the second quarter, we repurchased around US$394 million worth of shares this year, which accounted for around 1.7% of the Company’s total shares outstanding at the end of 2024. We also upsized and extended the existing share repurchase program to August 31, 2028, increasing the repurchase authorization from US$3 billion to US$5 billion. Moving forward, we will continue to reward the shareholders who have been staying alongside our growth and share the value created by the Company with them.” Second Quarter 2025 Financial Results Net Revenues Net revenues increased by 11.3% to RMB26.0 billion (US$3.6 billion) in the second quarter of 2025 from RMB23.4 billion in the same period of 2024, primarily attributable to the increase of net revenues from new home transaction services driven by the Company’s enhanced coverage capabilities, and the sustained year-over-year growth of net revenues from home renovation and furnishing and home rental services. Net revenues from existing home transaction services were RMB6.7 billion (US$0.9 billion) in the second quarter of 2025, decreased by 8.4% from RMB7.3 billion in the same period of 2024. GTV of existing home transactions increased by 2.2% to RMB583.5 billion (US$81.5 billion) in the second quarter of 2025 from RMB570.7 billion in the same period of 2024. The higher growth rate in GTV compared to net revenues in existing home transaction services was primarily attributable to a higher contribution from GTV of existing home transaction services served by connected agents on the Company’s platform, for which revenue is recorded on a net basis from platform service, franchise service and other value-added services, while for GTV served by Lianjia brand, the revenue is recorded on a gross commission revenue basis.Among that, (i) commission revenue was RMB5.4 billion (US$0.7 billion) in the second quarter of 2025, decreased by 10.4% from RMB6.0 billion in the same period of 2024, primarily attributable to the decrease of GTV of existing home transactions served by Lianjia stores of 8.6% to RMB213.1 billion (US$29.7 billion) in the second quarter of 2025 from RMB233.2 billion in the same period of 2024; and(ii) revenues derived from platform service, franchise service and other value-added services, which are mostly charged to connected stores and agents on the Company’s platform were RMB1.4 billion (US$0.2 billion) in the second quarter of 2025, relatively flat compared with RMB1.4 billion in the same period of 2024, mainly due to an increase of GTV of existing home transactions served by connected agents on the Company’s platform of 9.7% to RMB370.4 billion (US$51.7 billion) in the second quarter of 2025 from RMB337.5 billion in the same period of 2024, partially offset by incentive-based reductions in platform service and franchise service fees for connected stores. Net revenues from new home transaction services increased by 8.6% to RMB8.6 billion (US$1.2 billion) in the second quarter of 2025 from RMB7.9 billion in the same period of 2024, primarily due to the increase of GTV of new home transactions of 8.5% to RMB255.4 billion (US$35.6 billion) in the second quarter of 2025 from RMB235.3 billion in the same period of 2024. Among that, the GTV of new home transactions facilitated on Beike platform through connected agents, dedicated sales team with the expertise on new home transaction services and other sales channels increased by 8.2% to RMB208.2 billion (US$29.1 billion) in the second quarter of 2025 from RMB192.5 billion in the same period of 2024, and the GTV of new home transactions served by Lianjia brand increased by 10.1% to RMB47.1 billion (US$6.6 billion) in the second quarter of 2025 from RMB42.8 billion in the same period of 2024. Net revenues from home renovation and furnishing increased by 13.0% to RMB4.6 billion (US$0.6 billion) in the second quarter of 2025 from RMB4.0 billion in the same period of 2024, primarily attributable to a) a larger contribution from furniture and home furnishing sales in categories such as customized furniture, soft furnishings, and electrical appliances, and b) the increase in home renovation orders referred by agents of home transaction services. Net revenues from home rental services increased by 78.0% to RMB5.7 billion (US$0.8 billion) in the second quarter of 2025 from RMB3.2 billion in the same period of 2024, primarily attributable to the increase of the number of rental units under the Carefree Rent model. Net revenues from emerging and other services were RMB432 million (US$60.3 million) in the second quarter of 2025, compared to RMB874 million in the same period of 2024. Cost of Revenues Total cost of revenues increased by 20.5% to RMB20.3 billion (US$2.8 billion) in the second quarter of 2025 from RMB16.9 billion in the same period of 2024. Commission – split. The Company’s cost of revenues for commissions to connected agents and other sales channels increased by 9.1% to RMB5.9 billion (US$0.8 billion) in the second quarter of 2025, from RMB5.4 billion in the same period of 2024, primarily due to the increase in net revenues from new home transaction services derived from transactions facilitated through connected agents and other sales channels. Commission and compensation – internal. The Company’s cost of revenues for internal commission and compensation increased by 6.4% to RMB4.7 billion (US$0.7 billion) in the second quarter of 2025 from RMB4.4 billion in the same period of 2024, primarily due to the increase in fixed compensation costs mainly driven by the increased number of Lianjia agents and improved benefits for them. Cost of home renovation and furnishing. The Company’s cost of revenues for home renovation and furnishing increased by 11.6% to RMB3.1 billion (US$0.4 billion) in the second quarter of 2025 from RMB2.8 billion in the same period of 2024, which was in line with the growth of net revenues from home renovation and furnishing. Cost of home rental services. The Company’s cost of revenues for home rental services which mainly consists of variable cost, increased by 73.3% to RMB5.2 billion (US$0.7 billion) in the second quarter of 2025 from RMB3.0 billion in the same period of 2024, primarily attributable to the growth of net revenues from home rental services. Cost related to stores. The Company’s cost related to stores increased by 11.9% to RMB762 million (US$106 million) in the second quarter of 2025 from RMB681 million in the same period of 2024, primarily attributable to the increased renovation and maintenance costs of Lianjia stores. Other costs. The Company’s other costs increased to RMB0.6 billion (US$0.1 billion) in the second quarter of 2025 from RMB0.5 billion in the same period of 2024, mainly due to the increased maintenance costs of home rental. Gross Profit Gross profit decreased by 12.5% to RMB5.7 billion (US$0.8 billion) in the second quarter of 2025 from RMB6.5 billion in the same period of 2024. Gross margin decreased to 21.9% in the second quarter of 2025 from 27.9% in the same period of 2024, primarily due to a) a lower proportion of net revenues from existing home transaction services with a relatively higher contribution margin than other revenues streams, and b) a lower contribution margin of existing home transaction services led by the increased fix compensation costs as percentage of net revenues from existing home transaction services. Income from Operations Total operating expenses were RMB4.6 billion (US$0.6 billion) in the second quarter of 2025, compared to RMB4.5 billion in the same period of 2024. General and administrative expenses were RMB2.1 billion (US$0.3 billion) in the second quarter of 2025, relatively flat compared with RMB2.1 billion in the same period of 2024. Sales and marketing expenses were RMB1.9 billion (US$0.3 billion) in the second quarter of 2025, relatively flat compared with RMB1.9 billion in the same period of 2024. Research and development expenses increased by 25.6% to RMB633 million (US$88 million) in the second quarter of 2025 from RMB505 million in the same period of 2024, primarily due to the increased headcount of research and development personnel and the increased technical service expenses. Income from operations was RMB1,059 million (US$148 million) in the second quarter of 2025, compared to RMB2,015 million in the same period of 2024. Operating margin decreased to 4.1% in the second quarter of 2025 from 8.6% in the same period of 2024, primarily due to the decreased gross profit margin, which was partially offset by the improved operating leverage. Adjusted income from operations6 was RMB1,607 million (US$224 million) in the second quarter of 2025, compared to RMB2,813 million in the same period of 2024. Adjusted operating margin7 was 6.2% in the second quarter of 2025, compared to 12.0% in the same period of 2024. Adjusted EBITDA8 was RMB2,203 million (US$308 million) in the second quarter of 2025, compared to RMB3,372 million in the same period of 2024. Net Income Net income was RMB1,307 million (US$182 million) in the second quarter of 2025, compared to RMB1,900 million in the same period of 2024. Adjusted net income decreased by 32.4% to RMB1,821 million (US$254 million) in the second quarter of 2025, from RMB2,693 million in the same period of 2024. Net Income attributable to KE Holdings Inc.’s Ordinary Shareholders Net income attributable to KE Holdings Inc.’s ordinary shareholders was RMB1,301 million (US$182 million) in the second quarter of 2025, compared to RMB1,892 million in the same period of 2024. Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders9 was RMB1,815 million (US$253 million) in the second quarter of 2025, compared to RMB2,685 million in the same period of 2024. Net Income per ADS Basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders10 were RMB1.16 (US$0.16) and RMB1.11 (US$0.15) in the second quarter of 2025, respectively, compared to RMB1.67 and RMB1.61 in the same period of 2024, respectively. Adjusted basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders11 were RMB1.62 (US$0.23) and RMB1.55 (US$0.22) in the second quarter of 2025, respectively, compared to RMB2.36 and RMB2.28 in the same period of 2024, respectively. Cash, Cash Equivalents, Restricted Cash and Short-Term Investments As of June 30, 2025, the combined balance of the Company’s cash, cash equivalents, restricted cash and short-term investments amounted to RMB53.1 billion (US$7.4 billion). Upsizing and Extension of Share Repurchase Program As previously disclosed, the Company established a share repurchase program in August 2022 and upsized and extended it in August 2023 and August 2024, under which the Company may purchase up to US$3 billion of its Class A ordinary shares and/or ADSs until August 31, 2025 (the “Existing Share Repurchase Program”). As of the date of this press release, the Company in aggregate has purchased approximately 138.7 million ADSs (representing approximately 416.2 million Class A ordinary shares) on the New York Stock Exchange with a total consideration of approximately US$2,177.9 million under the Existing Share Repurchase Program since its launch. On August 26, 2025, the Company’s board of directors approved modifications to the Existing Share Repurchase Program, pursuant to which the repurchase authorization has been further increased from US$3 billion to US$5 billion and extended until August 31, 2028 (the “Extended Share Repurchase Program”). In the annual general meeting (the “AGM”) held on June 27, 2025, the shareholders of the Company have approved to grant the board of directors a general unconditional mandate to purchase the Company’s own shares (the “2025 Share Repurchase Mandate”), which covers the repurchases to be made under the Extended Share Repurchase Program until the conclusion of the next AGM of the Company. After the expiry of the 2025 Share Repurchase Mandate, the Company will further seek for general unconditional mandate for repurchase from the shareholders of the Company at each of the next three AGMs to be held in the forthcoming years to continue its share repurchase under the Extended Share Repurchase Program. Conference Call Information The Company will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on Tuesday, August 26, 2025 (8:00 P.M. Beijing/Hong Kong Time on Tuesday, August 26, 2025) to discuss the financial results. For participants who wish to join the conference call using dial-in numbers, please complete online registration using the link provided below at least 20 minutes prior to the scheduled call start time. Dial-in numbers, passcode and unique access PIN would be provided upon registering. Participant Online Registration: English Line: https://s1.c-conf.com/diamondpass/10048559-12bwoh.html Chinese Simultaneous Interpretation Line (listen-only mode): https://s1.c-conf.com/diamondpass/10048560-0l1rzo.html A replay of the conference call will be accessible through September 2, 2025, by dialing the following numbers: United States:+1-855-883-1031Mainland, China:400-1209-216Hong Kong, China:800-930-639International:+61-7-3107-6325Replay PIN (English line):10048559Replay PIN (Chinese simultaneous interpretation line):10048560 A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://investors.ke.com. Exchange Rate This press release contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.1636 to US$1.00, the noon buying rate in effect on June 30, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial information contained in this earnings release. Non-GAAP Financial Measures The Company uses adjusted income (loss) from operations, adjusted net income (loss), adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, adjusted operating margin, adjusted EBITDA and adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders, each a non-GAAP financial measure, in evaluating its operating results and formulating its business plan. Beike believes that these non-GAAP financial measures help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of certain expenses that the Company includes in its net income (loss). Beike also believes that these non-GAAP financial measures provide useful information about its results of operations, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in formulating its business plan. A limitation of using these non-GAAP financial measures is that these non-GAAP financial measures exclude share-based compensation expenses that have been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business. The presentation of these non-GAAP financial measures should not be considered in isolation or construed as an alternative to gross profit, net income (loss) or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review these non-GAAP financial measures and the reconciliation to the most directly comparable GAAP measures. The non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Beike encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Adjusted income (loss) from operations is defined as income (loss) from operations, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, and (iii) impairment of goodwill, intangible assets and other long-lived assets. Adjusted operating margin is defined as adjusted income (loss) from operations as a percentage of net revenues. Adjusted net income (loss) is defined as net income (loss), excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, and (vi) tax effects of the above non-GAAP adjustments. Adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders is defined as net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, (vi) tax effects of the above non-GAAP adjustments, and (vii) effects of non-GAAP adjustments on net income (loss) attributable to non-controlling interests shareholders. Adjusted EBITDA is defined as net income (loss), excluding (i) income tax expense, (ii) share-based compensation expenses, (iii) amortization of intangible assets, (iv) depreciation of property, plant and equipment, (v) interest income, net, (vi) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (vii) impairment of goodwill, intangible assets and other long-lived assets, and (viii) impairment of investments. Adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is defined as adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating adjusted net income (loss) per ADS, basic and diluted. Please see the “Unaudited reconciliation of GAAP and non-GAAP results” included in this press release for a full reconciliation of each non-GAAP measure to its respective comparable GAAP measure. About KE Holdings Inc. KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services. The Company is a pioneer in building infrastructure and standards to reinvent how service providers and customers efficiently navigate and complete housing transactions and services in China, ranging from existing and new home sales, home rentals, to home renovation and furnishing, and other services. The Company owns and operates Lianjia, China’s leading real estate brokerage brand and an integral part of its Beike platform. With more than 23 years of operating experience through Lianjia since its inception in 2001, the Company believes the success and proven track record of Lianjia pave the way for it to build its infrastructure and standards and drive the rapid and sustainable growth of Beike. Safe Harbor Statement This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Among other things, the quotations from management in this press release, as well as Beike’s strategic and operational plans, contain forward-looking statements. Beike may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about KE Holdings Inc.’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Beike’s goals and strategies; Beike’s future business development, financial condition and results of operations; expected changes in the Company’s revenues, costs or expenditures; Beike’s ability to empower services and facilitate transactions on Beike platform; competition in the industry in which Beike operates; relevant government policies and regulations relating to the industry; Beike’s ability to protect the Company’s systems and infrastructures from cyber-attacks; Beike’s dependence on the integrity of brokerage brands, stores and agents on the Company’s platform; general economic and business conditions in China and globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in KE Holdings Inc.’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and KE Holdings Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For more information, please visit: https://investors.ke.com. For investor and media inquiries, please contact: In China:KE Holdings Inc.Investor RelationsSiting LiE-mail: ir@ke.com Piacente Financial Communications Jenny CaiTel: +86-10-6508-0677E-mail: ke@tpg-ir.com In the United States:Piacente Financial Communications Brandi PiacenteTel: +1-212-481-2050E-mail: ke@tpg-ir.com Source: KE Holdings Inc. KE Holdings Inc.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(All amounts in thousands, except for share, per share data) As ofDecember 31, As ofJune 30, 2024 2025 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 11,442,965 11,115,936 1,551,725Restricted cash 8,858,449 8,116,638 1,133,039Short-term investments 41,317,700 33,863,827 4,727,208Financing receivables, net of allowance for credit losses of RMB147,330 and RMB164,579 as of December 31, 2024 and June 30, 2025, respectively 2,835,527 1,930,095 269,431Accounts receivable and contract assets, net of allowance for credit losses of RMB1,636,163 and RMB1,693,036 as of December 31, 2024 and June 30, 2025, respectively 5,497,989 4,516,205 630,438Amounts due from and prepayments to related parties 379,218 388,962 54,297Loan receivables from related parties 18,797 222,989 31,128Prepayments, receivables and other assets 6,252,700 7,603,582 1,061,418Total current assets 76,603,345 67,758,234 9,458,684Non-current assets Property, plant and equipment, net 2,400,211 2,413,707 336,941Right-of-use assets 23,366,879 23,126,982 3,228,402Long-term investments, net 23,790,106 23,458,114 3,274,626Intangible assets, net 857,635 790,699 110,377Goodwill 4,777,420 4,749,229 662,967Long-term loan receivables from related parties 131,410 26,471 3,695Other non-current assets 1,222,277 1,367,607 190,910Total non-current assets 56,545,938 55,932,809 7,807,918TOTAL ASSETS 133,149,283 123,691,043 17,266,602 KE Holdings Inc.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)(All amounts in thousands, except for share, per share data) As ofDecember 31, As ofJune 30, 2024 2025 RMB RMB US$ LIABILITIES Current liabilities Accounts payable 9,492,629 7,103,777 991,649Amounts due to related parties 391,446 419,751 58,595Employee compensation and welfare payable 8,414,472 5,296,372 739,345Customer deposits payable 6,078,623 5,601,762 781,976Income taxes payable 1,028,735 496,399 69,295Short-term borrowings 288,280 200,676 28,013Lease liabilities current portion 13,729,701 12,956,051 1,808,595Contract liabilities and deferred revenue 6,051,867 6,213,306 867,344Accrued expenses and other current liabilities 7,268,505 7,429,911 1,037,176Total current liabilities 52,744,258 45,718,005 6,381,988Non-current liabilities Deferred tax liabilities 317,697 317,697 44,349Lease liabilities non-current portion 8,636,770 8,756,664 1,222,383Long-term borrowings - 56,625 7,905Other non-current liabilities 2,563 2,367 330Total non-current liabilities 8,957,030 9,133,353 1,274,967TOTAL LIABILITIES 61,701,288 54,851,358 7,656,955 KE Holdings Inc.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)(All amounts in thousands, except for share, per share data) As ofDecember 31, As ofJune 30, 2024 2025 RMB RMB US$ SHAREHOLDERS’ EQUITY KE Holdings Inc. shareholders’ equity Ordinary shares (US$0.00002 par value; 25,000,000,000 ordinary shares authorized, comprising of 24,114,698,720 Class A ordinary shares and 885,301,280 Class B ordinary shares. 3,479,616,986 Class A ordinary shares issued and 3,337,567,403 Class A ordinary shares outstanding(1) as of December 31, 2024; 3,458,896,856 Class A ordinary shares issued and 3,313,383,515 Class A ordinary shares outstanding(1) as of June 30, 2025; and 145,413,446 and 143,263,221 Class B ordinary shares issued and outstanding as of December 31, 2024 and June 30, 2025, respectively) 461 462 64 Treasury shares (949,410) (1,351,591) (188,675)Additional paid-in capital 72,460,562 68,167,608 9,515,831 Statutory reserves 926,972 926,972 129,400 Accumulated other comprehensive income 609,112 538,097 75,115 (Accumulated Deficit) / Retained Earnings (1,723,881) 432,957 60,438 Total KE Holdings Inc. shareholders' equity 71,323,816 68,714,505 9,592,173 Non-controlling interests 124,179 125,180 17,474 TOTAL SHAREHOLDERS' EQUITY 71,447,995 68,839,685 9,609,647 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 133,149,283 123,691,043 17,266,602 (1) Excluding the Class A ordinary shares registered in the name of the depositary bank for future issuance of ADSs upon the exercise or vesting of awards granted under our share incentive plans and the Class A ordinary shares repurchased but not cancelled in the form of ADSs. KE Holdings Inc.UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS(All amounts in thousands, except for share, per share data, ADS and per ADS data) For the Three Months Ended For the Six Months Ended June 30,2024 June 30,2025 June 30,2025 June 30,2024 June 30,2025 June 30,2025 RMB RMB US$ RMB RMB US$ Net revenues Existing home transaction services7,334,889 6,719,345 937,984 13,061,919 13,589,752 1,897,056 New home transaction services7,933,805 8,619,323 1,203,211 12,850,320 16,694,318 2,330,437 Home renovation and furnishing4,040,224 4,565,354 637,299 6,449,072 7,510,797 1,048,467 Home rental services3,187,540 5,674,624 792,147 5,812,743 10,762,400 1,502,373 Emerging and other services873,972 431,990 60,303 1,573,690 781,716 109,123 Total net revenues23,370,430 26,010,636 3,630,944 39,747,744 49,338,983 6,887,456 Cost of revenues Commission-split(5,439,667) (5,932,431) (828,135) (8,857,846) (11,625,571) (1,622,867)Commission and compensation-internal(4,444,340) (4,729,219) (660,174) (8,065,289) (9,547,496) (1,332,779)Cost of home renovation and furnishing(2,776,351) (3,098,710) (432,563) (4,448,069) (5,084,666) (709,792)Cost of home rental services(3,001,325) (5,200,202) (725,920) (5,481,822) (9,946,258) (1,388,444)Cost related to stores(680,930) (761,941) (106,363) (1,365,977) (1,478,750) (206,426)Others(510,767) (588,343) (82,131) (889,605) (1,135,560) (158,517)Total cost of revenues(1)(16,853,380) (20,310,846) (2,835,286) (29,108,608) (38,818,301) (5,418,825)Gross profit6,517,050 5,699,790 795,658 10,639,136 10,520,682 1,468,631 Operating expenses Sales and marketing expenses(1)(1,881,726) (1,897,988) (264,949) (3,505,463) (3,670,945) (512,444)General and administrative expenses(1)(2,079,299) (2,080,713) (290,456) (4,098,494) (3,954,473) (552,023)Research and development expenses(1)(504,509) (633,442) (88,425) (971,809) (1,217,052) (169,894)Impairment of goodwill, intangible assets and other long-lived assets(36,397) (28,191) (3,935) (36,397) (28,191) (3,935)Total operating expenses(4,501,931) (4,640,334) (647,765) (8,612,163) (8,870,661) (1,238,296)Income from operations2,015,119 1,059,456 147,893 2,026,973 1,650,021 230,335 Interest income, net356,578 223,940 31,261 666,253 492,508 68,751 Share of results of equity investees351 6,971 973 (3,735) 14,316 1,998 Fair value changes in investments, net70,523 111,740 15,598 78,288 222,226 31,022 Impairment loss for equity investments accounted for using Measurement Alternative(1,902) (1,214) (169) (8,049) (1,214) (169)Foreign currency exchange loss(55,277) (5,314) (742) (73,025) (44,947) (6,274)Other income, net363,972 322,552 45,027 901,610 767,999 107,209 Income before income tax expense2,749,364 1,718,131 239,841 3,588,315 3,100,909 432,872 Income tax expense(848,960) (411,487) (57,441) (1,255,789) (938,942) (131,071)Net income 1,900,404 1,306,644 182,400 2,332,526 2,161,967 301,801 KE Holdings Inc.UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Continued)(All amounts in thousands, except for share, per share data, ADS and per ADS data) For the Three Months Ended For the Six Months Ended June 30,2024 June 30,2025 June 30,2025 June 30,2024 June 30,2025 June 30,2025 RMB RMB US$ RMB RMB US$ Net income attributable to non-controlling interests shareholders(8,343) (5,573) (778) (8,691) (5,129) (716)Net income attributable to KE Holdings Inc.1,892,061 1,301,071 181,622 2,323,835 2,156,838 301,085 Net income attributable to KE Holdings Inc.’s ordinary shareholders1,892,061 1,301,071 181,622 2,323,835 2,156,838 301,085 Net income 1,900,404 1,306,644 182,400 2,332,526 2,161,967 301,801 Currency translation adjustments84,115 (53,412) (7,456) 120,450 (77,107) (10,764)Unrealized gains (losses) on available-for-sale investments, net of reclassification7,282 (25,383) (3,543) 32,613 6,092 850 Total comprehensive income 1,991,801 1,227,849 171,401 2,485,589 2,090,952 291,887 Comprehensive income attributable to non-controlling interests shareholders(8,343) (5,573) (778) (8,691) (5,129) (716)Comprehensive income attributable to KE Holdings Inc.1,983,458 1,222,276 170,623 2,476,898 2,085,823 291,171 Comprehensive income attributable to KE Holdings Inc.’s ordinary shareholders1,983,458 1,222,276 170,623 2,476,898 2,085,823 291,171 KE Holdings Inc.UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Continued)(All amounts in thousands, except for share, per share data, ADS and per ADS data) For the Three Months Ended For the Six Months Ended June 30,2024 June 30,2025 June 30,2025 June 30,2024 June 30,2025 June 30,2025 RMB RMB US$ RMB RMB US$ Weighted average number of ordinary shares used in computing net income per share, basic and diluted —Basic3,406,250,235 3,357,155,883 3,357,155,883 3,422,928,331 3,359,945,551 3,359,945,551—Diluted3,525,256,472 3,507,278,161 3,507,278,161 3,533,558,988 3,514,649,718 3,514,649,718 Weighted average number of ADS used in computing net income per ADS, basic and diluted —Basic1,135,416,745 1,119,051,961 1,119,051,961 1,140,976,110 1,119,981,850 1,119,981,850—Diluted1,175,085,491 1,169,092,720 1,169,092,720 1,177,852,996 1,171,549,906 1,171,549,906 Net income per share attributable to KE Holdings Inc.'s ordinary shareholders —Basic0.56 0.39 0.05 0.68 0.64 0.09—Diluted0.54 0.37 0.05 0.66 0.61 0.09 Net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders —Basic1.67 1.16 0.16 2.04 1.93 0.27—Diluted1.61 1.11 0.15 1.97 1.84 0.26 (1) Includes share-based compensation expenses as follows: Cost of revenues125,401 94,457 13,186 249,834 204,015 28,479Sales and marketing expenses43,458 35,807 4,998 90,761 81,102 11,321General and administrative expenses513,776 317,474 44,318 1,090,910 648,677 90,553Research and development expenses48,416 41,490 5,792 92,926 82,603 11,531 KE Holdings Inc.UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS(All amounts in thousands, except for share, per share data, ADS and per ADS data) For the Three Months Ended For the Six Months Ended June 30,2024 June 30,2025 June 30,2025 June 30,2024 June 30,2025 June 30,2025 RMB RMB US$ RMB RMB US$ Income from operations2,015,119 1,059,456 147,893 2,026,973 1,650,021 230,335 Share-based compensation expenses731,051 489,228 68,294 1,524,431 1,016,397 141,884 Amortization of intangible assets resulting from acquisitions and business cooperation agreement29,991 29,883 4,172 184,284 59,766 8,343 Impairment of goodwill, intangible assets and other long-lived assets36,397 28,191 3,935 36,397 28,191 3,935 Adjusted income from operations2,812,558 1,606,758 224,294 3,772,085 2,754,375 384,497 Net income1,900,404 1,306,644 182,400 2,332,526 2,161,967 301,801 Share-based compensation expenses731,051 489,228 68,294 1,524,431 1,016,397 141,884 Amortization of intangible assets resulting from acquisitions and business cooperation agreement29,991 29,883 4,172 184,284 59,766 8,343 Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration87 (27,687) (3,865) 13,278 (40,771) (5,691)Impairment of goodwill, intangible assets and other long-lived assets36,397 28,191 3,935 36,397 28,191 3,935 Impairment of investments1,902 1,214 169 8,049 1,214 169 Tax effects on non-GAAP adjustments(6,494) (6,494) (907) (13,410) (12,988) (1,813)Adjusted net income 2,693,338 1,820,979 254,198 4,085,555 3,213,776 448,628 Net income 1,900,404 1,306,644 182,400 2,332,526 2,161,967 301,801 Income tax expense848,960 411,487 57,441 1,255,789 938,942 131,071 Share-based compensation expenses731,051 489,228 68,294 1,524,431 1,016,397 141,884 Amortization of intangible assets36,012 35,395 4,941 194,518 70,566 9,851 Depreciation of property, plant and equipment173,690 182,565 25,485 338,859 360,819 50,368 Interest income, net(356,578) (223,940) (31,261) (666,253) (492,508) (68,751)Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration87 (27,687) (3,865) 13,278 (40,771) (5,691)Impairment of goodwill, intangible assets and other long-lived assets36,397 28,191 3,935 36,397 28,191 3,935 Impairment of investments1,902 1,214 169 8,049 1,214 169 Adjusted EBITDA3,371,925 2,203,097 307,539 5,037,594 4,044,817 564,637 Net income attributable to KE Holdings Inc.’s ordinary shareholders1,892,061 1,301,071 181,622 2,323,835 2,156,838 301,085 Share-based compensation expenses731,051 489,228 68,294 1,524,431 1,016,397 141,884 Amortization of intangible assets resulting from acquisitions and business cooperation agreement29,991 29,883 4,172 184,284 59,766 8,343 Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration87 (27,687) (3,865) 13,278 (40,771) (5,691)Impairment of goodwill, intangible assets and other long-lived assets36,397 28,191 3,935 36,397 28,191 3,935 Impairment of investments1,902 1,214 169 8,049 1,214 169 Tax effects on non-GAAP adjustments(6,494) (6,494) (907) (13,410) (12,988) (1,813)Effects of non-GAAP adjustments on net income attributable to non-controlling interests shareholders(7) (7) (1) (14) (14) (2)Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders2,684,988 1,815,399 253,419 4,076,850 3,208,633 447,910 KE Holdings Inc.UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Continued)(All amounts in thousands, except for share, per share data, ADS and per ADS data) For the Three Months Ended For the Six Months Ended June 30,2024 June 30,2025 June 30,2025 June 30,2024 June 30,2025 June 30,2025 RMB RMB US$ RMB RMB US$ Weighted average number of ADS used in computing net income per ADS, basic and diluted —Basic1,135,416,745 1,119,051,961 1,119,051,961 1,140,976,110 1,119,981,850 1,119,981,850—Diluted1,175,085,491 1,169,092,720 1,169,092,720 1,177,852,996 1,171,549,906 1,171,549,906 Weighted average number of ADS used in calculating adjusted net income per ADS, basic and diluted —Basic1,135,416,745 1,119,051,961 1,119,051,961 1,140,976,110 1,119,981,850 1,119,981,850—Diluted1,175,085,491 1,169,092,720 1,169,092,720 1,177,852,996 1,171,549,906 1,171,549,906 Net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders —Basic1.67 1.16 0.16 2.04 1.93 0.27—Diluted1.61 1.11 0.15 1.97 1.84 0.26 Non-GAAP adjustments to net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders —Basic0.69 0.46 0.07 1.53 0.93 0.13—Diluted0.67 0.44 0.07 1.49 0.90 0.12 Adjusted net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders —Basic2.36 1.62 0.23 3.57 2.86 0.40—Diluted2.28 1.55 0.22 3.46 2.74 0.38 KE Holdings Inc.UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS(All amounts in thousands) For the Three Months Ended For the Six Months Ended June 30,2024 June 30,2025 June 30,2025 June 30,2024 June 30,2025 June 30,2025 RMB RMB US$ RMB RMB US$ Net cash provided by (used in) operating activities4,104,624 826,213 115,335 1,996,092 (3,139,058) (438,195)Net cash provided by (used in) investing activities(8,134,019) 1,664,823 232,401 (6,843,593) 7,950,492 1,109,847 Net cash used in financing activities(3,262,930) (6,182,037) (862,978) (3,515,468) (5,920,964) (826,533)Effect of exchange rate change on cash, cash equivalents and restricted cash35,666 5,190 723 32,161 40,690 5,677 Net decrease in cash and cash equivalents and restricted cash(7,256,659) (3,685,811) (514,519) (8,330,808) (1,068,840) (149,204)Cash, cash equivalents and restricted cash at the beginning of the period24,783,312 22,918,385 3,199,283 25,857,461 20,301,414 2,833,968 Cash, cash equivalents and restricted cash at the end of the period17,526,653 19,232,574 2,684,764 17,526,653 19,232,574 2,684,764 KE Holdings Inc.UNAUDITED SEGMENT CONTRIBUTION MEASURE(All amounts in thousands) For the Three Months Ended For the Six Months Ended June 30,2024 June 30,2025 June 30,2025 June 30,2024 June 30,2025 June 30,2025 RMB RMB US$ RMB RMB US$Existing home transaction services Net revenues 7,334,889 6,719,345 937,984 13,061,919 13,589,752 1,897,056 Commission and compensation (3,851,787) (4,035,304) (563,307) (7,032,712) (8,287,595) (1,156,904)Contribution 3,483,102 2,684,041 374,677 6,029,207 5,302,157 740,152 New home transaction services Net revenues 7,933,805 8,619,323 1,203,211 12,850,320 16,694,318 2,330,437 Commission and compensation (5,947,840) (6,515,885) (909,582) (9,768,943) (12,701,657) (1,773,083)Contribution 1,985,965 2,103,438 293,629 3,081,377 3,992,661 557,354 Home renovation and furnishing Net revenues 4,040,224 4,565,354 637,299 6,449,072 7,510,797 1,048,467 Material costs, commission and compensation (2,776,351) (3,098,710) (432,563) (4,448,069) (5,084,666) (709,792)Contribution 1,263,873 1,466,644 204,736 2,001,003 2,426,131 338,675 Home rental services Net revenues 3,187,540 5,674,624 792,147 5,812,743 10,762,400 1,502,373 Property leasing costs, commission and compensation (3,001,325) (5,200,202) (725,920) (5,481,822) (9,946,258) (1,388,444)Contribution 186,215 474,422 66,227 330,921 816,142 113,929 Emerging and other services Net revenues 873,972 431,990 60,303 1,573,690 781,716 109,123 Commission and compensation (84,380) (110,461) (15,420) (121,480) (183,815) (25,659)Contribution 789,592 321,529 44,883 1,452,210 597,901 83,464 KE Holdings Inc.UNAUDITED SEGMENT CONTRIBUTION MEASURE (Continued)(All amounts in thousands) For the Three Months Ended For the Six Months Ended June 30,2024 June 30,2025 June 30,2025 June 30,2024 June 30,2025 June 30,2025 RMB RMB US$ RMB RMB US$Reconciliation of profit Cost related to stores (680,930) (761,941) (106,363) (1,365,977) (1,478,750) (206,426)Other costs (510,767) (588,343) (82,131) (889,605) (1,135,560) (158,517)Amounts not allocated to segment: Sales and marketing expenses (1,881,726) (1,897,988) (264,949) (3,505,463) (3,670,945) (512,444)General and administrative expenses (2,079,299) (2,080,713) (290,456) (4,098,494) (3,954,473) (552,023)Research and development expenses (504,509) (633,442) (88,425) (971,809) (1,217,052) (169,894)Impairment of goodwill, intangible assets and other long-lived assets (36,397) (28,191) (3,935) (36,397) (28,191) (3,935)Total operating expenses (4,501,931) (4,640,334) (647,765) (8,612,163) (8,870,661) (1,238,296)Income from operations 2,015,119 1,059,456 147,893 2,026,973 1,650,021 230,335 1 GTV for a given period is calculated as the total value of all transactions which the Company facilitated on the Company’s platform and evidenced by signed contracts as of the end of the period, including the value of the existing home transactions, new home transactions, home renovation and furnishing and emerging and other services (excluding home rental services), and including transactions that are contracted but pending closing at the end of the relevant period. For the avoidance of doubt, for transactions that failed to close afterwards, the corresponding GTV represented by these transactions will be deducted accordingly.2 Adjusted net income (loss) is a non-GAAP financial measure, which is defined as net income (loss), excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, and (vi) tax effects of the above non-GAAP adjustments. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details. 3 Based on our accumulated operational experience, we have introduced the operating metrics of number of active stores and number of active agents on our platform, which can better reflect the operational activeness of stores and agents on our platform.“Active stores” as of a given date is defined as stores on our platform excluding the stores which (i) have not facilitated any housing transaction during the preceding 60 days, (ii) do not have any agent who has engaged in any critical steps in housing transactions (including but not limited to introducing new properties, attracting new customers and conducting property showings) during the preceding seven days, or (iii) have not been visited by any agent during the preceding 14 days. The number of active stores was 44,423 as of June 30, 2024.4 “Active agents” as of a given date is defined as agents on our platform excluding the agents who (i) delivered notice to leave but have not yet completed the exit procedures, (ii) have not engaged in any critical steps in housing transactions (including but not limited to introducing new properties, attracting new customers and conducting property showings) during the preceding 30 days, or (iii) have not participated in facilitating any housing transaction during the preceding three months. The number of active agents was 411,478 as of June 30, 2024.5 “Mobile monthly active users” or “mobile MAU” are to the sum of (i) the number of accounts that have accessed our platform through our Beike or Lianjia mobile app (with duplication eliminated) at least once during a month, and (ii) the number of Weixin users that have accessed our platform through our Weixin Mini Programs at least once during a month. Average mobile MAU for any period is calculated by dividing (i) the sum of the Company’s mobile MAUs for each month of such period, by (ii) the number of months in such period.6 Adjusted income (loss) from operations is a non-GAAP financial measure, which is defined as income (loss) from operations, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, and (iii) impairment of goodwill, intangible assets and other long-lived assets. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.7 Adjusted operating margin is adjusted income (loss) from operations as a percentage of net revenues.8 Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income (loss), excluding (i) income tax expense, (ii) share-based compensation expenses, (iii) amortization of intangible assets, (iv) depreciation of property, plant and equipment, (v) interest income, net, (vi) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (vii) impairment of goodwill, intangible assets and other long-lived assets, and (viii) impairment of investments. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.9 Adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders is a non-GAAP financial measure, which is defined as net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, (vi) tax effects of the above non-GAAP adjustments, and (vii) effects of non-GAAP adjustments on net income (loss) attributable to non-controlling interests shareholders. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.10 ADS refers to American Depositary Share. Each ADS represents three Class A ordinary shares of the Company. Net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is net income (loss) attributable to ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating net income (loss) per ADS, basic and diluted.11 Adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is a non-GAAP financial measure, which is defined as adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating adjusted net income (loss) per ADS, basic and diluted. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.

KE Holdings Inc. Announces Second Quarter 2025 Unaudited Financial Results and Upsizing and Extension of Share Repurchase Program

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