KE (BEKE) Q3 2025 earnings summary

Executive summary

• Q3 2025 gross transaction value (GTV) was RMB 736.7 billion, flat year-over-year, with net revenues of RMB 23.1 billion, up 2.1% year-over-year.

• Net income fell 36.1% year-over-year to RMB 747 million; adjusted net income was RMB 1.29 billion, down 27.8% year-over-year.

• Share repurchase activity reached $281 million in Q3, the highest in two years, with $675 million repurchased in 2025 YTD and $2.3 billion since September 2022, reducing shares outstanding by 11.5%.

• Number of active stores and agents increased significantly year-over-year; mobile MAUs averaged 49.3 million.

• Focus on optimizing business structure, AI-driven efficiency, and achieving city-level profitability in home renovation and rental businesses before HQ expenses.

Financial highlights

• Gross margin declined by 1.3 percentage points year-over-year to 21.4%; gross profit dropped 3.9% to RMB 4.9 billion.

• GAAP operating expenses totaled RMB 4.3 billion, down 1.8% year-over-year; AI-related expenses exceeded RMB 150 million, nearly doubling year-over-year.

• Adjusted EBITDA for Q3 2025 was RMB 1.92 billion, with a margin of 7.8%.

• GAAP operating margin was 2.6%, down from 3.2% year-over-year; non-GAAP operating margin was 5.1%, down from 6.0%.

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

Outlook and guidance

• Management is confident in long-term outperformance of new home business despite near-term volatility and plans to expand into more cities.

• Home rental and renovation services are expected to maintain strong operating leverage and city-level profitability before HQ allocation.

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

• Continued focus on AI-driven efficiency and cost optimization across business lines.