KE (BEKE) Q1 2025 earnings summary

Executive summary

• Achieved rapid business growth in Q1 2025, driven by supportive policies, active growth strategies from H2 2023, and the 'One Body, Three Wings' strategy.

• Outperformed the market in both existing and new home transaction segments, with significant expansion in agent and store networks; active stores and agents grew 29.6% and 23.0% year-over-year.

• Continued focus on efficiency, customer experience, and AI-driven innovation across all business lines, with ongoing investment in AI applications.

• Home rental services managed over 500,000 units, achieving record revenue and contribution margin.

• Maintained prudent capital allocation and high liquidity.

Financial highlights

• Total GTV reached RMB 844.2 billion, up 34% year-over-year; net revenue was RMB 23.3 billion, up 42.4% year-over-year.

• GAAP net income was RMB 855 million, up 97.9% year-over-year; non-GAAP/adjusted net income was RMB 1.39 billion, flat year-over-year.

• Gross margin declined to 20.7% from 25.2% year-over-year; gross profit was RMB 4.8 billion, up 17% year-over-year.

• Home rental services revenue hit RMB 5.1 billion, up 93.8% year-over-year; home renovation and furniture revenue reached RMB 2.9 billion, up 22.3% year-over-year.

• Operating expenses were RMB 4.2 billion, up slightly year-over-year; operating margin improved to 2.5%.

Outlook and guidance

• Cautiously optimistic outlook for the property market, with expectations of a typical seasonal slowdown in Q2 but slight year-over-year growth in existing home transactions.

• Management remains confident in long-term growth, focusing on AI investment and prudent capital deployment.

• Monitoring impact of international trade frictions and domestic policy support; further supportive measures may be introduced if needed.

• Emphasis on sustainable development and shareholder returns, with continued support for strategic initiatives.

• Focus on efficiency improvements, stable agent/store network, and continued investment in AI and digital tools.