KE (BEKE) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw GTV rise 4.7% year-over-year to RMB 878.7 billion and net revenues increase 11.3% to RMB 26.0 billion, driven by growth in new home, renovation, and rental services.

• Net income declined 31.2% year-over-year to RMB 1.31 billion; adjusted net income was RMB 1.32 billion, down 32.4% year-over-year.

• Non-housing transaction services contributed 41% of total revenue in Q2, up 6.4 percentage points year-over-year.

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

• Maintained robust balance sheet with total cash liquidity (excluding customer deposits) of approximately RMB 70 billion as of June 30, 2025.

Financial highlights

• Gross margin was 21.9% in Q2 2025, down from 27.9% year-over-year but up 1.2 percentage points quarter-over-quarter.

• Adjusted EBITDA for Q2 2025 was RMB 2.2 billion, with a margin of 7.8%.

• Operating expenses as a percentage of revenue were 17.8% in Q2 2025, down from 19.3% in Q2 2024.

• Net operating cash inflow was RMB 826 million; cash, cash equivalents, restricted cash, and short-term investments were RMB 53.1 billion as of June 30, 2025.

• Basic net income per ADS was RMB 1.16, and adjusted basic net income per ADS was RMB 1.62.

Outlook and guidance

• Management expects to focus on efficiency-driven growth, leveraging AI and community-focused operations to adapt to evolving market conditions.

• 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.