KE (BEKE) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw significant improvements in operating profit, margins, and efficiency, despite year-over-year declines in GTV and revenue due to a high base in the prior year.

• Non-GAAP operating margin reached 8.8% and non-GAAP net margin 8.5%, both at seven-quarter highs.

• Net income rose 46.7% year-over-year to CNY 1.26 billion; adjusted net income increased 15.7% to CNY 1.61 billion.

• Strategic transformation focuses on balancing scale and efficiency, leveraging AI, and refining operations to drive sustainable growth.

• Share repurchases increased by 40% year-over-year, totaling US$195 million in Q1, reflecting confidence in long-term development.

Financial highlights

• Non-GAAP operating profit reached CNY 1.67 billion, up 45.1% year-over-year and 416.2% quarter-over-quarter.

• Revenue was CNY 18.9 billion, down 19% year-over-year; GTV was CNY 711.7 billion, down 15.6% year-over-year.

• Gross margin reached 24.1%, up 3.5 percentage points year-over-year.

• Adjusted EBITDA for Q1 2026 was CNY 2.24 billion.

• Total operating expenses decreased 22.3% year-over-year to CNY 3.3 billion, driven by cost optimization.

Outlook and guidance

• Management expects continued year-over-year margin improvement for the full year, with further gains from operational efficiency and AI-driven productivity.

• Strategic focus remains on maximizing long-term value, prudent resource allocation, and ROI discipline.

• Ongoing initiatives target improved customer experience, resource allocation, and operating efficiency.