KE Holdings Inc. Announces First Quarter 2026 Unaudited Financial Results
Rhea-AI Summary
KE Holdings (NYSE:BEKE) reported unaudited Q1 2026 results with weaker top line but stronger profitability. Net revenues were RMB18.9 billion, down 19% year-over-year, while net income rose 46.7% to RMB1,255 million. GTV fell 15.6% to RMB711.7 billion, including a 37.2% drop in new home GTV.
Gross margin improved to 24.1% and operating margin to 6.7%, with adjusted operating margin at 8.8%. Cash, cash equivalents, restricted cash and short-term investments totaled RMB53.9 billion. The company repurchased about US$195 million of shares in Q1 under its up to US$5 billion buyback program.
Positive
- Net income up 46.7% year-over-year to RMB1,255 million
- Adjusted net income up 15.7% year-over-year to RMB1,611 million
- Gross margin expanded to 24.1% from 20.7% year-over-year
- Operating margin improved to 6.7% from 2.5% year-over-year
- Adjusted operating margin rose to 8.8% from 4.9% year-over-year
- Adjusted EBITDA increased to RMB2,235 million from RMB1,842 million
- Total cost of revenues declined 22.6% to RMB14.3 billion
- Operating expenses decreased 22.3% to RMB3.3 billion
- Cash, cash equivalents, restricted cash and short-term investments at RMB53.9 billion
- Q1 2026 share repurchases of approximately US$195 million
- Cumulative buybacks of about US$2,741.7 million since 2022 under program up to US$5 billion
Negative
- Total GTV down 15.6% year-over-year to RMB711.7 billion
- Net revenues decreased 19.0% year-over-year to RMB18.9 billion
- Existing home GTV decreased 7.9% to RMB534.4 billion
- New home GTV declined 37.2% to RMB145.9 billion
- Net revenues from new home services down 37.0% to RMB5.1 billion
- Home renovation and furnishing revenues down 20.6% to RMB2.3 billion
- Home rental services revenues down 1.5% to RMB5.0 billion
- Emerging and other services revenues down 8.1% to RMB321 million
- Mobile MAU declined to 42.7 million from 44.5 million year-over-year
- Number of agents down 4.2% to 526,945
- Number of active agents down 7.6% to 453,438
News Market Reaction – BEKE
In the May 19 session, BEKE gained 5.17%, reflecting a notable positive market reaction. Argus tracked a peak move of +4.2% during that session. Argus tracked a trough of -5.5% from its starting point during tracking. Our momentum scanner triggered 23 alerts that day, indicating elevated trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Nov 10 | Q3 2025 earnings | Neutral | +3.4% | Flat GTV, modest revenue growth, weaker net income and margins. |
| May 15 | Q1 2025 earnings | Positive | -5.3% | Strong revenue, GTV and income growth across segments. |
| Nov 21 | Q3 2024 earnings | Positive | -1.2% | Robust revenue and GTV growth but lower gross margin. |
| May 23 | Q1 2024 earnings | Negative | -10.0% | Sharp GTV drop and lower revenues despite solid profitability. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Across recent earnings releases, share-price reactions often skewed negative even when operational metrics were strong, indicating a tendency for cautious or skeptical responses to results.
Over the past earnings cycles, KE Holdings reported sizeable GTV and revenue, but with shifting growth and profitability. In Q3 2024 and Q1 2025, revenue growth was strong, yet margins and net income were pressured in some periods. By Q3 2025, net revenues grew modestly while net income declined year-over-year. Despite substantial cash balances and ongoing share repurchases, three of the last four earnings headlines saw negative next-day moves, underscoring a pattern of cautious market reception to results.
Key Terms
gross transaction value financial
adjusted EBITDA financial
ADS financial
non-GAAP financial measures financial
restricted cash financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
BEIJING, May 19, 2026 (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 first quarter ended March 31, 2026.
Business and Financial Highlights for the First Quarter 2026
- Gross transaction value (GTV)1 was RMB711.7 billion (US
$103.2 billion ), a decrease of15.6% year-over-year. GTV of existing home transactions was RMB534.4 billion (US$77.5 billion ), a decrease of7.9% year-over-year. GTV of new home transactions was RMB145.9 billion (US$21.2 billion ), a decrease of37.2% year-over-year. - Net revenues were RMB18.9 billion (US
$2.7 billion ), a decrease of19.0% year-over-year. - Net income was RMB1,255 million (US
$182 million ), an increase of46.7% year-over-year. Adjusted net income2 was RMB1,611 million (US$234 million ), an increase of15.7% year-over-year. - Number of stores was 60,383 as of March 31, 2026, a
6.2% increase from one year ago. Number of active stores3 was 57,666 as of March 31, 2026, a4.4% increase from one year ago. - Number of agents was 526,945 as of March 31, 2026, a
4.2% decrease from one year ago. Number of active agents4 was 453,438 as of March 31, 2026, a7.6% decrease from one year ago. - Mobile monthly active users (MAU)5 averaged 42.7 million in the first quarter of 2026, compared to 44.5 million in the same period of 2025.
Mr. Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, commented, “In the first quarter of 2026, we observed positive marginal changes in the real estate market. We also continued to advance efficiency-driven growth, with significant improvements in both operating quality and profitability. Our performance in this quarter reflected our ongoing efforts to enhance resource allocation, organizational efficiency and service quality, and also laid a foundation for the Company to further transition from scale-driven growth to efficiency-driven growth, and from transaction matching to decision-making services. Looking ahead, we will continue to focus on helping consumers make higher-quality residential decisions, enhance the professional capabilities of service providers, organizational efficiency and AI-enabled capabilities, and strive to achieve higher-quality and more sustainable development.”
Mr. Tao Xu, Executive Director and Chief Financial Officer of Beike, added, “In the first quarter of 2026, the Company’s operating quality improved significantly year-over-year. A series of initiatives we have undertaken around resource allocation efficiency, cost structure and unit economics translated into healthier profitability. In the first quarter, both our gross margin and adjusted operating margin reached their highest levels in the past seven quarters.
In the first quarter, we further enhanced shareholder returns by repurchasing approximately US
First Quarter 2026 Financial Results
Net Revenues
Net revenues decreased by
- Net revenues from existing home transaction services decreased by
10.7% to RMB6.1 billion (US$0.9 billion ) in the first quarter of 2026 from RMB6.9 billion in the same period of 2025, primarily due to a high base effect for GTV of existing home transactions, which decreased by7.9% to RMB534.4 billion (US$77.5 billion ) in the first quarter of 2026 from RMB580.3 billion in the same period of 2025.
Among that, (i) commission revenue decreased by14.1% to RMB4.8 billion (US$0.7 billion ) in the first quarter of 2026 from RMB5.6 billion in the same period of 2025, primarily due to a14.8% decrease in GTV of existing home transactions served by Lianjia stores to RMB188.7 billion (US$27.4 billion ) in the first quarter of 2026 from RMB221.4 billion in the same period of 2025; 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, increased by3.8% to RMB1,340 million (US$194 million ) in the first quarter of 2026 from RMB1,291 million in the same period of 2025, primarily due to the increased revenues from certain value-added services which were less directly linked to GTV. This was partially offset by a3.7% decrease in the GTV of existing home transactions served by connected agents on the Company’s platform to RMB345.7 billion (US$50.1 billion ) in the first quarter of 2026 from RMB358.9 billion in the same period of 2025.
- Net revenues from new home transaction services decreased by
37.0% to RMB5.1 billion (US$0.7 billion ) in the first quarter of 2026 from RMB8.1 billion in the same period of 2025, primarily due to a high base effect for GTV of new home transactions in the same period of 2025, which decreased by37.2% to RMB145.9 billion (US$21.2 billion ) in the first quarter of 2026 from RMB232.2 billion in the same period of 2025. Of these, the GTV of new home transactions facilitated on Beike platform through connected agents, dedicated sales team with the expertise in new home transaction services and other sales channels decreased by37.5% to RMB119.9 billion (US$17.4 billion ) in the first quarter of 2026 from RMB192.0 billion in the same period of 2025, while the GTV of new home transactions served by Lianjia brand decreased by35.4% to RMB26.0 billion (US$3.8 billion ) in the first quarter of 2026 from RMB40.3 billion in the same period of 2025. - Net revenues from home renovation and furnishing decreased by
20.6% to RMB2.3 billion (US$0.3 billion ) in the first quarter of 2026 from RMB2.9 billion in the same period of 2025, as the Company proactively optimized the channel mix in customer acquisition and moderated pace of certain non-brokerage channels. - Net revenues from home rental services decreased by
1.5% to RMB5.0 billion (US$0.7 billion ) in the first quarter of 2026 from RMB5.1 billion in the same period of 2025, primarily due to the impact of an increasing proportion of new service offerings within the Carefree Rent business. Under the new model, revenue is recognized based on net service fees derived from two sources: (1) commissions earned for facilitating the signing of lease agreements between homeowners and tenants; and (2) fees for lease term management services rendered throughout the lease period. The decrease was partially offset by the increase in the number of rental units under the Carefree Rent model. - Net revenues from emerging and other services decreased by
8.1% to RMB321 million (US$47 million ) in the first quarter of 2026 from RMB350 million in the same period of 2025, primarily due to the decrease of revenues from ancillary services.
Cost of Revenues
Total cost of revenues decreased by
- Commission – split. The Company’s cost of revenues for commissions to connected agents and other sales channels decreased by
38.2% to RMB3.5 billion (US$0.5 billion ) in the first quarter of 2026 from RMB5.7 billion in the same period of 2025, primarily due to the decrease in GTV of new home transactions facilitated through connected agents and other sales channels. - Commission and compensation – internal. The Company’s cost of revenues for internal commission and compensation decreased by
17.9% to RMB4.0 billion (US$0.6 billion ) in the first quarter of 2026 from RMB4.8 billion in the same period of 2025, primarily attributable to the decrease in commission of Lianjia agents, consistent with the decreased GTV of existing and new home transactions they served, as well as the decreased fixed personnel costs due to the Company's disciplined headcount control.
- Cost of home renovation and furnishing. The Company’s cost of revenues for home renovation and furnishing was RMB1.5 billion (US
$0.2 billion ) in the first quarter of 2026, a decrease of24.9% from RMB2.0 billion in the same period of 2025, primarily due to lower net revenues from home renovation and furnishing. Meanwhile, enhanced supply chain capabilities helped reduce material costs and improve the contribution margin of the home renovation and furnishing business. - Cost of home rental services. The Company’s cost of revenues for home rental services, which mainly consists of variable cost, decreased by
10.0% to RMB4.3 billion (US$0.6 billion ) in the first quarter of 2026 from RMB4.7 billion in the same period of 2025. Despite relatively stable year-over-year revenue performance for home rental services in the first quarter of 2026, the segment achieved a notable uplift in contribution margin, driven primarily by the continuous increase in the proportion of high-margin new service offerings under Carefree Rent business. In addition, improved operational efficiency, further optimized the overall cost structure and supported healthier profitability. - Cost related to stores. The Company’s cost related to stores decreased by
20.3% to RMB0.6 billion (US$0.1 billion ) in the first quarter of 2026 from RMB0.7 billion in the same period of 2025, primarily attributable to Lianjia store optimization.
- Other costs. The Company’s other costs decreased by
5.0% to RMB520 million (US$75 million ) in the first quarter of 2026 from RMB547 million in the same period of 2025, primarily attributable to the decreased taxes and surcharges, which was in line with the trend in net revenues.
Gross Profit
Gross profit decreased by
Income from Operations
Total operating expenses decreased by
- General and administrative expenses decreased by
8.6% to RMB1.7 billion (US$0.2 billion ) in the first quarter of 2026 from RMB1.9 billion in the same period of 2025, primarily due to the decrease in share-based compensation expenses. - Sales and marketing expenses decreased by
39.0% to RMB1.1 billion (US$0.2 billion ) in the first quarter of 2026 from RMB1.8 billion in the same period of 2025, primarily due to the Company’s cost optimization initiatives, including lower personnel costs and reduced advertising and promotion expenses, as well as the decreased scale-driven variable selling expenses of home renovation and furnishing. - Research and development expenses decreased by
15.6% to RMB493 million (US$71 million ) in the first quarter of 2026 from RMB584 million in the same period of 2025, primarily due to the Company’s cost optimization initiatives.
Income from operations was RMB1,273 million (US
Adjusted income from operations6 was RMB1,665 million (US
Net Income
Net income increased by
Adjusted net income increased by
Net Income attributable to KE Holdings Inc.’s Ordinary Shareholders
Net income attributable to KE Holdings Inc.’s ordinary shareholders was RMB1,255 million (US
Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders9 was RMB1,612 million (US
Net Income per ADS
Basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders10 were RMB1.15 (US
Adjusted basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders11 were RMB1.48 (US
Cash, Cash Equivalents, Restricted Cash and Short-Term Investments
As of March 31, 2026, the combined balance of the Company’s cash, cash equivalents, restricted cash and short-term investments amounted to RMB53.9 billion (US
Share Repurchase Program
As previously disclosed, the Company established a share repurchase program in August 2022 and upsized and extended it in August 2023, August 2024 and August 2025, under which the Company may purchase up to US
Conference Call Information
The Company will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on Tuesday, May 19, 2026 (8:00 P.M. Beijing/Hong Kong Time on Tuesday, May 19, 2026) 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:
Chinese Line: https://s1.c-conf.com/diamondpass/10054239-fn5s21.html
English Simultaneous Interpretation Line (listen-only mode): https://s1.c-conf.com/diamondpass/10054238-3nd54a.html
A replay of the conference call will be accessible through May 26, 2026, by dialing the following numbers:
| United States: | +1-855-883-1031 |
| Mainland, China: | 400-1209-216 |
| Hong Kong, China: | 800-930-639 |
| International: | +61-7-3107-6325 |
| Replay PIN (Chinese line): | 10054239 |
| Replay PIN (English simultaneous interpretation line): | 10054238 |
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 RMB6.8980 to US
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 Group recognized fair value loss and impairment in relation to its investments in Beihaojia business. As such impairment does not represent a non-recurring item, it has not been excluded when calculating Non‑GAAP financial measures.
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, and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement. 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 investments, and (v) 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 investments, (v) tax effects of the above non-GAAP adjustments, and (vi) 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, and (vii) 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 24 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 Relations
Siting Li
E-mail: ir@ke.com
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: ke@tpg-ir.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-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 of December 31, | As of March 31, | |||||
| 2025 | 2026 | |||||
| RMB | RMB | US$ | ||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 7,773,182 | 11,074,476 | 1,605,462 | |||
| Restricted cash | 8,170,605 | 8,901,929 | 1,290,509 | |||
| Short-term investments | 39,579,961 | 33,911,411 | 4,916,122 | |||
| Financing receivables, net of allowance for credit losses of RMB174,478 and RMB177,785 as of December 31, 2025 and March 31, 2026, respectively | 1,353,682 | 2,104,898 | 305,146 | |||
| Accounts receivable and contract assets, net of allowance for credit losses of RMB1,612,202 and RMB1,647,075 as of December 31, 2025 and March 31, 2026, respectively | 3,936,976 | 4,037,061 | 585,251 | |||
| Amounts due from and prepayments to related parties | 409,867 | 402,819 | 58,396 | |||
| Short-term loan receivables from related parties | 315,755 | 78,794 | 11,423 | |||
| Inventories | 2,854,034 | 2,800,860 | 406,039 | |||
| Prepayments, receivables and other assets | 3,726,128 | 3,770,401 | 546,593 | |||
| Total current assets | 68,120,190 | 67,082,649 | 9,724,941 | |||
| Non-current assets | ||||||
| Property, plant and equipment, net | 2,069,624 | 1,962,709 | 284,533 | |||
| Right-of-use assets | 19,144,129 | 16,173,939 | 2,344,729 | |||
| Long-term investments, net | 20,148,524 | 19,822,114 | 2,873,603 | |||
| Intangible assets, net | 722,676 | 691,085 | 100,186 | |||
| Goodwill | 4,660,360 | 4,660,360 | 675,610 | |||
| Long-term loan receivables from related parties | 39,573 | 19,935 | 2,890 | |||
| Other non-current assets | 1,763,102 | 1,903,273 | 275,917 | |||
| Total non-current assets | 48,547,988 | 45,233,415 | 6,557,468 | |||
| TOTAL ASSETS | 116,668,178 | 112,316,064 | 16,282,409 | |||
| KE Holdings Inc. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued) (All amounts in thousands, except for share, per share data) | ||||||
| As of December 31, | As of March 31, | |||||
| 2025 | 2026 | |||||
| RMB | RMB | US$ | ||||
| LIABILITIES | ||||||
| Current liabilities | ||||||
| Accounts payable | 6,052,129 | 5,002,359 | 725,190 | |||
| Amounts due to related parties | 348,467 | 338,597 | 49,086 | |||
| Short-term loan payable to related parties | 497,939 | 678,095 | 98,303 | |||
| Employee compensation and welfare payable | 6,504,197 | 3,905,833 | 566,227 | |||
| Customer deposits payable | 4,157,248 | 5,326,103 | 772,123 | |||
| Income taxes payable | 702,607 | 890,947 | 129,160 | |||
| Short-term borrowings | 207,717 | 139,387 | 20,207 | |||
| Lease liabilities current portion | 10,658,576 | 8,933,570 | 1,295,096 | |||
| Contract liabilities and deferred revenue | 5,690,293 | 6,166,467 | 893,950 | |||
| Accrued expenses and other current liabilities | 7,588,077 | 9,665,273 | 1,401,170 | |||
| Total current liabilities | 42,407,250 | 41,046,631 | 5,950,512 | |||
| Non-current liabilities | ||||||
| Deferred tax liabilities | 317,209 | 317,209 | 45,986 | |||
| Lease liabilities non-current portion | 6,969,571 | 5,743,608 | 832,648 | |||
| Long-term borrowings | 182,917 | 215,062 | 31,177 | |||
| Long-term loan payable to related parties | 259,249 | 561,249 | 81,364 | |||
| Other non-current liabilities | 2,148 | 2,050 | 297 | |||
| Total non-current liabilities | 7,731,094 | 6,839,178 | 991,472 | |||
| TOTAL LIABILITIES | 50,138,344 | 47,885,809 | 6,941,984 | |||
| KE Holdings Inc. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued) (All amounts in thousands, except for share, per share data) | |||||||||
| As of December 31, | As of March 31, | ||||||||
| 2025 | 2026 | ||||||||
| RMB | RMB | US$ | |||||||
| SHAREHOLDERS’ EQUITY | |||||||||
| KE Holdings Inc. shareholders’ equity | |||||||||
| Ordinary shares (US | 450 | 451 | 65 | ||||||
| Treasury shares | (848,433 | ) | (1,354,868 | ) | (196,415 | ) | |||
| Additional paid-in capital | 64,802,176 | 62,598,048 | 9,074,811 | ||||||
| Statutory reserves | 1,054,872 | 1,054,872 | 152,924 | ||||||
| Accumulated other comprehensive income | 290,029 | 20,436 | 2,963 | ||||||
| Retained earnings | 1,142,194 | 2,052,803 | 297,594 | ||||||
| Total KE Holdings Inc. shareholders' equity | 66,441,288 | 64,371,742 | 9,331,942 | ||||||
| Non-controlling interests | 88,546 | 58,513 | 8,483 | ||||||
| TOTAL SHAREHOLDERS' EQUITY | 66,529,834 | 64,430,255 | 9,340,425 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 116,668,178 | 112,316,064 | 16,282,409 | ||||||
(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 | ||||||||
| March 31, 2025 | March 31, 2026 | March 31, 2026 | ||||||
| RMB | RMB | US$ | ||||||
| Net revenues | ||||||||
| Existing home transaction services | 6,870,407 | 6,132,034 | 888,958 | |||||
| New home transaction services | 8,074,995 | 5,086,868 | 737,441 | |||||
| Home renovation and furnishing | 2,945,443 | 2,339,098 | 339,098 | |||||
| Home rental services | 5,087,776 | 5,012,701 | 726,689 | |||||
| Emerging and other services | 349,726 | 321,276 | 46,575 | |||||
| Total net revenues | 23,328,347 | 18,891,977 | 2,738,761 | |||||
| Cost of revenues | ||||||||
| Commission-split | (5,693,140 | ) | (3,519,769 | ) | (510,259 | ) | ||
| Commission and compensation-internal | (4,818,277 | ) | (3,957,380 | ) | (573,700 | ) | ||
| Cost of home renovation and furnishing | (1,985,956 | ) | (1,492,188 | ) | (216,322 | ) | ||
| Cost of home rental services | (4,746,056 | ) | (4,271,229 | ) | (619,198 | ) | ||
| Cost related to stores | (716,809 | ) | (571,498 | ) | (82,850 | ) | ||
| Others | (547,217 | ) | (519,938 | ) | (75,375 | ) | ||
| Total cost of revenues(1) | (18,507,455 | ) | (14,332,002 | ) | (2,077,704 | ) | ||
| Gross profit | 4,820,892 | 4,559,975 | 661,057 | |||||
| Operating expenses | ||||||||
| Sales and marketing expenses(1) | (1,772,957 | ) | (1,082,144 | ) | (156,878 | ) | ||
| General and administrative expenses(1) | (1,873,760 | ) | (1,712,546 | ) | (248,267 | ) | ||
| Research and development expenses(1) | (583,610 | ) | (492,565 | ) | (71,407 | ) | ||
| Total operating expenses | (4,230,327 | ) | (3,287,255 | ) | (476,552 | ) | ||
| Income from operations | 590,565 | 1,272,720 | 184,505 | |||||
| Interest income, net | 268,568 | 134,947 | 19,563 | |||||
| Share of results of equity investees | 7,345 | (16,402 | ) | (2,378 | ) | |||
| Fair value changes in investments, net | 110,486 | 135,781 | 19,684 | |||||
| Impairment loss for equity investments accounted for using Measurement Alternative | - | (571 | ) | (83 | ) | |||
| Foreign currency exchange loss | (39,633 | ) | (1,463 | ) | (212 | ) | ||
| Other income, net | 445,447 | 306,712 | 44,464 | |||||
| Income before income tax expense | 1,382,778 | 1,831,724 | 265,543 | |||||
| Income tax expense | (527,455 | ) | (576,647 | ) | (83,596 | ) | ||
| Net income | 855,323 | 1,255,077 | 181,947 | |||||
| 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 | ||||||||
| March 31, 2025 | March 31, 2026 | March 31, 2026 | ||||||
| RMB | RMB | US$ | ||||||
| Net loss attributable to non-controlling interests shareholders | 444 | 414 | 60 | |||||
| Net income attributable to KE Holdings Inc. | 855,767 | 1,255,491 | 182,007 | |||||
| Net income attributable to KE Holdings Inc.’s ordinary shareholders | 855,767 | 1,255,491 | 182,007 | |||||
| Net income | 855,323 | 1,255,077 | 181,947 | |||||
| Currency translation adjustments | (23,695 | ) | (275,482 | ) | (39,937 | ) | ||
| Unrealized gains on available-for-sale investments, net of reclassification | 31,475 | 5,889 | 854 | |||||
| Total comprehensive income | 863,103 | 985,484 | 142,864 | |||||
| Comprehensive loss attributable to non-controlling interests shareholders | 444 | 414 | 60 | |||||
| Comprehensive income attributable to KE Holdings Inc. | 863,547 | 985,898 | 142,924 | |||||
| Comprehensive income attributable to KE Holdings Inc.’s ordinary shareholders | 863,547 | 985,898 | 142,924 | |||||
| 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 | |||||
| March 31, 2025 | March 31, 2026 | March 31, 2026 | |||
| RMB | RMB | US$ | |||
| Weighted average number of ordinary shares used in computing net income per share, basic and diluted | |||||
| —Basic | 3,362,716,016 | 3,275,963,218 | 3,275,963,218 | ||
| —Diluted | 3,522,002,071 | 3,402,938,108 | 3,402,938,108 | ||
| Weighted average number of ADS used in computing net income per ADS, basic and diluted | |||||
| —Basic | 1,120,905,339 | 1,091,987,739 | 1,091,987,739 | ||
| —Diluted | 1,174,000,690 | 1,134,312,703 | 1,134,312,703 | ||
| Net income per share attributable to KE Holdings Inc.'s ordinary shareholders | |||||
| —Basic | 0.25 | 0.38 | 0.06 | ||
| —Diluted | 0.24 | 0.37 | 0.05 | ||
| Net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders | |||||
| —Basic | 0.76 | 1.15 | 0.17 | ||
| —Diluted | 0.73 | 1.11 | 0.16 | ||
| (1) Includes share-based compensation expenses as follows: | |||||
| Cost of revenues | 109,558 | 96,172 | 13,942 | ||
| Sales and marketing expenses | 45,295 | 39,783 | 5,767 | ||
| General and administrative expenses | 331,203 | 205,540 | 29,797 | ||
| Research and development expenses | 41,113 | 24,557 | 3,560 | ||
| 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 | ||||||||
| March 31, 2025 | March 31, 2026 | March 31, 2026 | ||||||
| RMB | RMB | US$ | ||||||
| Income from operations | 590,565 | 1,272,720 | 184,505 | |||||
| Share-based compensation expenses | 527,169 | 366,052 | 53,066 | |||||
| Amortization of intangible assets resulting from acquisitions and business cooperation agreement | 29,883 | 26,684 | 3,868 | |||||
| Adjusted income from operations | 1,147,617 | 1,665,456 | 241,439 | |||||
| Net income | 855,323 | 1,255,077 | 181,947 | |||||
| Share-based compensation expenses | 527,169 | 366,052 | 53,066 | |||||
| Amortization of intangible assets resulting from acquisitions and business cooperation agreement | 29,883 | 26,684 | 3,868 | |||||
| Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration | (13,084 | ) | (30,329 | ) | (4,397 | ) | ||
| Impairment of investments | - | 571 | 83 | |||||
| Tax effects on non-GAAP adjustments | (6,494 | ) | (6,602 | ) | (957 | ) | ||
| Adjusted net income | 1,392,797 | 1,611,453 | 233,610 | |||||
| Net income | 855,323 | 1,255,077 | 181,947 | |||||
| Income tax expense | 527,455 | 576,647 | 83,596 | |||||
| Share-based compensation expenses | 527,169 | 366,052 | 53,066 | |||||
| Amortization of intangible assets | 35,171 | 31,579 | 4,578 | |||||
| Depreciation of property, plant and equipment | 178,254 | 170,018 | 24,647 | |||||
| Interest income, net | (268,568 | ) | (134,947 | ) | (19,563 | ) | ||
| Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration | (13,084 | ) | (30,329 | ) | (4,397 | ) | ||
| Impairment of investments | - | 571 | 83 | |||||
| Adjusted EBITDA | 1,841,720 | 2,234,668 | 323,957 | |||||
| Net income attributable to KE Holdings Inc.’s ordinary shareholders | 855,767 | 1,255,491 | 182,007 | |||||
| Share-based compensation expenses | 527,169 | 366,052 | 53,066 | |||||
| Amortization of intangible assets resulting from acquisitions and business cooperation agreement | 29,883 | 26,684 | 3,868 | |||||
| Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration | (13,084 | ) | (30,329 | ) | (4,397 | ) | ||
| Impairment of investments | - | 571 | 83 | |||||
| Tax effects on non-GAAP adjustments | (6,494 | ) | (6,602 | ) | (957 | ) | ||
| Effects of non-GAAP adjustments on net income attributable to non-controlling interests shareholders | (7 | ) | - | - | ||||
| Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders | 1,393,234 | 1,611,867 | 233,670 | |||||
| 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 | |||||
| March 31, 2025 | March 31, 2026 | March 31, 2026 | |||
| RMB | RMB | US$ | |||
| Weighted average number of ADS used in computing net income per ADS, basic and diluted | |||||
| —Basic | 1,120,905,339 | 1,091,987,739 | 1,091,987,739 | ||
| —Diluted | 1,174,000,690 | 1,134,312,703 | 1,134,312,703 | ||
| Weighted average number of ADS used in calculating adjusted net income per ADS, basic and diluted | |||||
| —Basic | 1,120,905,339 | 1,091,987,739 | 1,091,987,739 | ||
| —Diluted | 1,174,000,690 | 1,134,312,703 | 1,134,312,703 | ||
| Net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders | |||||
| —Basic | 0.76 | 1.15 | 0.17 | ||
| —Diluted | 0.73 | 1.11 | 0.16 | ||
| Non-GAAP adjustments to net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders | |||||
| —Basic | 0.48 | 0.33 | 0.04 | ||
| —Diluted | 0.46 | 0.31 | 0.04 | ||
| Adjusted net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders | |||||
| —Basic | 1.24 | 1.48 | 0.21 | ||
| —Diluted | 1.19 | 1.42 | 0.20 | ||
| KE Holdings Inc. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (All amounts in thousands) | ||||||||
| For the Three Months Ended | ||||||||
| March 31, 2025 | March 31, 2026 | March 31, 2026 | ||||||
| RMB | RMB | US$ | ||||||
| Net cash used in operating activities | (3,965,271 | ) | (1,471,302 | ) | (213,296 | ) | ||
| Net cash provided by investing activities | 6,285,669 | 5,013,815 | 726,849 | |||||
| Net cash provided by financing activities | 261,073 | 502,878 | 72,902 | |||||
| Effect of exchange rate change on cash, cash equivalents and restricted cash | 35,500 | (12,773 | ) | (1,848 | ) | |||
| Net increase in cash, cash equivalents and restricted cash | 2,616,971 | 4,032,618 | 584,607 | |||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 20,301,414 | 15,943,787 | 2,311,364 | |||||
| Cash, cash equivalents and restricted cash at the end of the period | 22,918,385 | 19,976,405 | 2,895,971 | |||||
| KE Holdings Inc. UNAUDITED SEGMENT CONTRIBUTION MEASURE (All amounts in thousands) | |||||||||
| For the Three Months Ended | |||||||||
| March 31, 2025 | March 31, 2026 | March 31, 2026 | |||||||
| RMB | RMB | US$ | |||||||
| Existing home transaction services | |||||||||
| Net revenues | 6,870,407 | 6,132,034 | 888,958 | ||||||
| Commission and compensation | (4,252,291 | ) | (3,598,676 | ) | (521,698 | ) | |||
| Contribution | 2,618,116 | 2,533,358 | 367,260 | ||||||
| New home transaction services | |||||||||
| Net revenues | 8,074,995 | 5,086,868 | 737,441 | ||||||
| Commission and compensation | (6,185,772 | ) | (3,778,272 | ) | (547,734 | ) | |||
| Contribution | 1,889,223 | 1,308,596 | 189,707 | ||||||
| Home renovation and furnishing | |||||||||
| Net revenues | 2,945,443 | 2,339,098 | 339,098 | ||||||
| Material costs, commission and compensation | (1,985,956 | ) | (1,492,188 | ) | (216,322 | ) | |||
| Contribution | 959,487 | 846,910 | 122,776 | ||||||
| Home rental services | |||||||||
| Net revenues | 5,087,776 | 5,012,701 | 726,689 | ||||||
| Property leasing costs, commission and compensation | (4,746,056 | ) | (4,271,229 | ) | (619,198 | ) | |||
| Contribution | 341,720 | 741,472 | 107,491 | ||||||
| Emerging and other services | |||||||||
| Net revenues | 349,726 | 321,276 | 46,575 | ||||||
| Commission and compensation | (73,354 | ) | (100,201 | ) | (14,527 | ) | |||
| Contribution | 276,372 | 221,075 | 32,048 | ||||||
| KE Holdings Inc. UNAUDITED SEGMENT CONTRIBUTION MEASURE (Continued) (All amounts in thousands) | |||||||||
| For the Three Months Ended | |||||||||
| March 31, 2025 | March 31, 2026 | March 31, 2026 | |||||||
| RMB | RMB | US$ | |||||||
| Reconciliation of profit | |||||||||
| Cost related to stores | (716,809 | ) | (571,498 | ) | (82,850 | ) | |||
| Other costs | (547,217 | ) | (519,938 | ) | (75,375 | ) | |||
| Amounts not allocated to segment: | |||||||||
| Sales and marketing expenses | (1,772,957 | ) | (1,082,144 | ) | (156,878 | ) | |||
| General and administrative expenses | (1,873,760 | ) | (1,712,546 | ) | (248,267 | ) | |||
| Research and development expenses | (583,610 | ) | (492,565 | ) | (71,407 | ) | |||
| Total operating expenses | (4,230,327 | ) | (3,287,255 | ) | (476,552 | ) | |||
| Income from operations | 590,565 | 1,272,720 | 184,505 | ||||||
_______________________________
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 investments, and (v) 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 55,210 as of March 31, 2025.
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 490,862 as of March 31, 2025.
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, and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement. 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, and (vii) 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 investments, (v) tax effects of the above non-GAAP adjustments, and (vi) 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.
