KE (BEKE) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw a softening in real estate market momentum, with year-over-year declines due to a high base and fading policy effects.

• Platform, agent, and store networks expanded significantly, with active stores up 32.1% and agents up 19.5% year-over-year.

• Diversification advanced, as non-housing transaction services contributed 41% of total revenue in Q2.

• GTV rose 4.7% year-over-year to RMB 878.7 billion, with new home GTV up 8.5% and existing home GTV up 2.2%.

• Net revenues increased 11.3% year-over-year to RMB 26 billion, driven by growth in new home, home renovation, and rental services.

Financial highlights

• Total GTV reached RMB 878.7 billion, up 4.7% year-over-year; revenue was RMB 26 billion, up 11.3% year-over-year.

• Gross margin declined by 6 percentage points to 21.9% year-over-year.

• GAAP net income was RMB 1.31 billion, down 31.2% year-over-year; non-GAAP net income was RMB 1.32 billion, down 32.4% year-over-year.

• Adjusted EBITDA was RMB 2,203 million, down from RMB 3,372 million a year ago.

• Net operating cash inflow was RMB 826 million; cash liquidity (excluding customer deposits) was around RMB 70 billion.

Outlook and guidance

• Market recovery is expected to depend on future policy pace and supply-demand balance improvements.

• Proactive policy support and supply-side quality upgrades are anticipated to help counteract downward trends.

• Focus will shift from scale to efficiency, leveraging technology and AI for productivity gains.

• Platform scale will be maintained while prioritizing productivity and customer-centric service innovation.