BEKE

KE Holdings Inc. Announces Second Quarter 2026 Unaudited Financial Results

Beike Reports Margin Expansion, Stock Buybacks, and AI-Driven Transformation in Q2 2026

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  <section data-block="information">
    <h3>Information</h3>
    <p>&lt;link type=&quot;text/css&quot; rel=&quot;stylesheet&quot; href=&quot;https://www.globenewswire.com/styles/gnw_nitf.css&quot;&gt;&lt;/li...</p>
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  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>KE Holdings posted stronger profitability in Q2 2026, with gross margin rising to 28.6% and operating margin to 12.3%, driven by cost optimization and higher-margin services. Adjusted earnings and EBITDA surged, while buybacks totaled about US$250 million, underscoring solid cash generation (RMB56.0B). AI-enabled platform improvements and cost discipline may support multiple expansion, though MAU and agent activity trends warrant monitoring.</p>
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  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Q2 2026 GTV RMB933.8B, +6.3% YoY; existing-home GTV RMB629.9B, +8%.</li><li>Net revenues RMB24.5B, down 5.7% YoY; gross margin 28.6%.</li><li>Net income RMB2.624B; adjusted net income RMB3.185B; adjusted EBITDA RMB4.175B.</li><li>Share repurchases ~US$250M in Q2; HK buyback for first time; cash RMB56.0B.</li><li>Active stores/agents declined; MAU averaged 45.7M in Q2 2026.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>KE Holdings Inc. (BEKE)</strong>: NYSE listing; Q2 2026 highlights include margin expansion, share repurchases, and strong cash balance.</li><li><strong>KE Holdings Inc. (2423.HK)</strong>: HKEX cross-listing; potential arbitrage/upside if US-listed improves; HK buyback activity noted.</li><li><strong>Lianjia (N/A)</strong>: China&#039;s leading brokerage brand on Beike platform; key driver of existing-home GTV.</li><li><strong>Beihaojia (N/A)</strong>: Beike investment; impairment discussed; non-GAAP adjustments partially exclude these items.</li></ul>
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  <section data-block="category">
    <h3>Earnings</h3>
    <p>Category: Earnings. BEKE’s Q2 results underscore meaningful margin expansion, strong cash generation, and a strategic share-repurchase program, all of which can drive near-term multiple expansion. The narrative around AI-driven productivity and cost optimization supports a longer-term growth thesis, though user/agent activity declines imply continued housing-market exposure risk.</p>
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  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>GTV growth supports housing platform recovery; BEKE benefits from improving unit economics.</li><li>Gross margin 28.6% and adjusted operating margin 14.6% signal cost discipline.</li><li>Share repurchase activity reinforces cash generation and could lift valuation.</li><li>MAU and active store/agent declines remain overhang; watch for stabilization.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>GTV RMB933.8B; +6.3% YoY (Q2 2026).</li><li>Existing home GTV RMB629.9B; +8% YoY; New home GTV RMB258.4B; +1.2%.</li><li>Net revenues RMB24.5B; -5.7% YoY; Gross margin 28.6%; Operating margin 12.3%.</li><li>Adjusted net income RMB3.185B; Adjusted EBITDA RMB4.175B (Q2 2026).</li><li>Cash, cash equivalents, restricted cash and short-term investments RMB56.0B (~US$8.3B) as of 6/30/2026.</li><li>Share repurchases ~US$250M in Q2 2026; HK first-time buyback mentioned.</li><li>Active stores 57,803; active agents 454,571; MAU 45.7M (Q2 2026).</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Bullish on BEKE in the near term (1–3 months) due to margin expansion and buybacks; monitor MAU/store metrics for durability.</p>
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<article>
  <h2>KE Holdings Inc. Reports Second Quarter 2026 Unaudited Financial Results (BEKE)</h2>

  <p>BEIJING, Aug.  21, 2026  (GLOBE NEWSWIRE) -- KE Holdings Inc. ("<strong>Beike</strong>" or the "<strong>Company</strong>") (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/BEKE">BEKE</a>, 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, 2026.</p>

  <section id="highlights">
    <p><strong>Business and Financial Highlights for the Second Quarter 2026</strong></p>
    <ul>
      <li><strong>Gross transaction value (GTV)</strong><sup>1</sup> was RMB933.8 billion (US$137.6 billion), an increase of <strong>6.3%</strong> year-over-year. <strong>GTV of existing home transactions</strong> was RMB629.9 billion (US$92.8 billion), an increase of <strong>8.0%</strong> year-over-year. <strong>GTV of new home transactions</strong> was RMB258.4 billion (US$38.1 billion), an increase of <strong>1.2%</strong> year-over-year.</li>
      <li><strong>Net revenues</strong> were RMB24.5 billion (US$3.6 billion), a decrease of <strong>5.7%</strong> year-over-year.</li>
      <li><strong>Net income</strong> was RMB2,624 million (US$387 million), an increase of <strong>100.8%</strong> year-over-year. <strong>Adjusted net income</strong><sup>2</sup> was RMB3,185 million (US$469 million), an increase of <strong>74.9%</strong> year-over-year.</li>
      <li><strong>Number of stores</strong> was 60,274 as of June 30, 2026, a <strong>0.4%</strong> decrease from one year ago. <strong>Number of active stores</strong><sup>3</sup> was 57,803 as of June 30, 2026, a <strong>1.5%</strong> decrease from one year ago.</li>
      <li><strong>Number of agents</strong> was 540,634 as of June 30, 2026, a <strong>3.1%</strong> decrease from one year ago. <strong>Number of active agents</strong><sup>4</sup> was 454,571 as of June 30, 2026, a <strong>7.5%</strong> decrease from one year ago.</li>
      <li><strong>Mobile monthly active users (MAU)</strong><sup>5</sup> averaged <strong>45.7 million</strong> in the second quarter of 2026, compared to <strong>48.7 million</strong> in the same period of 2025.</li>
    </ul>
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  <section aria-labelledby="ceo-quote" id="ceo-quote">
    <h3>Leadership Commentary</h3>
    <blockquote>
      Mr. Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, commented, "In the second quarter of 2026, we saw our operating foundation strengthen further, while our organizational transformation began to take deeper root in day-to-day operations. Starting with consumer needs and practical challenges encountered on the front lines, we are further enhancing collaboration among professional service providers, our platform and AI: professional service providers exercise judgment and take accountability; our platform facilitates collaboration and safeguards service delivery; and AI enables professional expertise to be codified into verifiable and reusable organizational capabilities."
    </blockquote>
    <p>Looking ahead, we will remain committed to pursuing quality growth at scale and continue to assess the effectiveness of our transformation across consumer experience, professional service provider development, operating efficiency, unit economics, and replicability across cities and service scenarios, laying a stronger foundation for the Company’s long-term, sustainable growth.</p>
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  <section aria-labelledby="cfo-quote" id="cfo-quote">
    <h3>CFO Commentary</h3>
    <blockquote>
      Mr. Tao Xu, Executive Director and Chief Financial Officer of Beike, added, "In the second quarter, the proactive adjustments we made earlier to our cost structure yielded further results, enabling our resource allocation to better align with the current market environment. Building on this foundation, we continued to enhance operating efficiency with a focus on customer value. The scale of our housing transaction services recovered, while the Company’s profitability further improved. The contribution margins of all our major business lines increased both year-over-year and quarter-over-quarter, driving our gross margin up by 6.7 percentage points year-over-year to 28.6%. Meanwhile, operating expenses decreased by 14.1% year-over-year. Adjusted operating margin and adjusted net income margin reached 14.6% and 13.0%, respectively, both marking their highest levels in three years."
    </blockquote>
    <p>In the second quarter, the Company repurchased approximately US$250 million of its shares and conducted share repurchases in Hong Kong for the first time. Looking ahead, building on our more efficient cost structure, we will further direct resources toward building capabilities that can create greater value for customers, continue to strengthen our operating resilience, and drive long-term sustainable growth.</p>
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  <section aria-labelledby="net-revenues-section" id="net-revenues-section">
    <h3>Second Quarter 2026 Financial Results</h3>
    <p><strong>Net Revenues</strong></p>
    <p><strong>Net revenues</strong> decreased by <strong>5.7%</strong> to RMB24.5 billion (US$3.6 billion) in the second quarter of 2026 from RMB26.0 billion in the same period of 2025, primarily attributable to decreased net revenues from home renovation and furnishing and home rental services, which was partially offset by the increase of net revenues from new home and existing home transaction services driven by improved productivity per connected store.</p>

    <ul>
      <li><strong>Net revenues from existing home transaction services </strong>increased by <strong>4.5%</strong> to RMB7.0 billion (US$1.0 billion) in the second quarter of 2026 from RMB6.7 billion in the same period of 2025, primarily due to an <strong>8.0%</strong> increase in GTV of existing home transactions to RMB629.9 billion (US$92.8 billion) in the second quarter of 2026 from RMB583.5 billion in the same period of 2025.<br/><br/>Among that, <strong>(i) commission revenue</strong> decreased by <strong>1.4%</strong> to RMB5.3 billion (US$0.8 billion) in the second quarter of 2026 from RMB5.4 billion in the same period of 2025, primarily due to a <strong>3.1%</strong> decrease in GTV of existing home transactions served by <em>Lianjia</em> stores to RMB206.6 billion (US$30.4 billion) in the second quarter of 2026 from RMB213.1 billion in the same period of 2025; and<br/><br/><strong>(ii) revenues derived from platform service, franchise service and other value-added services</strong>, which are mostly charged to connected stores and agents on the Company’s platform, increased by <strong>27.8%</strong> to RMB1.7 billion (US$0.3 billion) in the second quarter of 2026 from RMB1.4 billion in the same period of 2025, primarily due to a <strong>14.3%</strong> increase in the GTV of existing home transactions served by connected agents on the Company’s platform to RMB423.3 billion (US$62.4 billion) in the second quarter of 2026 from RMB370.4 billion in the same period of 2025 driven by improved productivity per connected store and the increased revenues from certain value-added services that were less directly linked to GTV.</li>
      <li><strong>Net revenues from new home transaction services </strong>increased by <strong>3.8%</strong> to RMB8.9 billion (US$1.3 billion) in the second quarter of 2026 from RMB8.6 billion in the same period of 2025, primarily due to deeper coverage of high-quality projects, which contributed to a <strong>1.2%</strong> increase of GTV of new home transactions to RMB258.4 billion (US$38.1 billion) in the second quarter of 2026 from RMB255.4 billion in the same period of 2025. Of these, the GTV of new home transactions facilitated on <em>Beike</em> platform through connected agents, dedicated sales team with the expertise in new home transaction services and other sales channels increased by <strong>0.9%</strong> to RMB210.2 billion (US$31.0 billion) in the second quarter of 2026 from RMB208.2 billion in the same period of 2025, while the GTV of new home transactions served by <em>Lianjia</em> brand increased by <strong>2.3%</strong> to RMB48.2 billion (US$7.1 billion) in the second quarter of 2026 from RMB47.1 billion in the same period of 2025.</li>
      
    </ul>
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KE Holdings posted stronger profitability in Q2 2026, with gross margin rising to 28.6% and operating margin to 12.3%, driven by cost optimization and higher-margin services. Adjusted earnings and EBITDA surged, while buybacks totaled about US$250 million, underscoring solid cash generation (RMB56.0B). AI-enabled platform improvements and cost discipline may support multiple expansion, though MAU and agent activity trends warrant monitoring.

News insight

KE Holdings Inc. Announces Second Quarter 2026 Unaudited Financial Results

AI summary

Sentiment rationale

Key facts

Earnings