KE (BEKE) Q3 2025 earnings summary

Executive summary

• Q3 2025 focused on optimizing business structure, enhancing efficiency via AI, and achieving city-level profitability in home renovation and rental businesses before high-quality expenses.

• Gross transaction value (GTV) was RMB 736.7 billion, flat year-over-year; existing home GTV up 5.8%, new home GTV down 13.7%.

• Net revenues rose 2.1% year-over-year to RMB 23.1 billion; net income fell 36.1% to RMB 747 million; adjusted net income dropped 27.8% to RMB 1,286 million.

• Share repurchase spending reached a two-year high, reflecting commitment to shareholder returns.

• Number of stores and agents increased significantly year-over-year, with active stores up 25.9% and active agents up 11.4%.

Financial highlights

• Total GTV was RMB 736.7 billion, flat year-over-year; total revenues reached RMB 23.1 billion, up 2.1% year-over-year.

• Gross margin declined by 1.3 percentage points to 21.4%.

• GAAP net income was RMB 747 million, down 36.1% year-over-year; non-GAAP net income was RMB 1.29 billion, down 27.8% year-over-year.

• Gross profit dropped 3.9% year-over-year to RMB 4.9 billion.

• Net operating cash inflow was RMB 851 million in Q3.

Outlook and guidance

• Confident in long-term outperformance of new home business despite near-term market volatility.

• Plans to expand new home business into more cities and increase brokerage penetration.

• Home rental services expected to maintain strong operating leverage as scale and efficiency improve.

• Conservative approach for home renovation outside core cities until operational standards are met.

• Management emphasized ongoing integration of AI and technology to drive operational efficiency and customer experience.