KE Holdings Q2 2025: Net Income Takes a Hit Despite Revenue Growth

The Chinese diversified real estate portal operator KE Holdings (Beike.com) has released its second-quarter financial results for 2025.

Highlights include:

• Net revenues were RMB 26.0 billion ($3.6 billion), up 11.3% year-over-year.
• Net income was RMB 1,307 million ($182 million), down 31.2% YoY.
• Adjusted net income was RMB 1,821 million ($254 million), a decrease of 32.4% YoY.
• Gross transaction value (GTV) was RMB 878.7 billion (USD 122.7 billion), up 4.7% YoY.
• GTV of existing home transactions was RMB 583.5 billion ($81.5 billion), up 2.2% YoY.
• GTV of new home transactions was RMB 255.4 billion ($35.6 billion), up 8.5% YoY.
• The number of active stores was 58,664, representing a 32.1% YoY increase. Active agents were 491,573, up 19.5% YoY.

Mr. Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, said:

“In the second quarter of 2025, our business maintained its high-quality development. At the same time, we recognized significant shifts in consumer demand, driven by the evolving trends in China’s real estate sector. As our platform achieves substantial expansion in terms of agent and store networks, we are advancing into a new phase of efficiency-driven development, with AI technology breakthroughs unlocking tremendous opportunities for productivity gains.

"In the second quarter of 2025, we proactively implemented a series of initiatives to address the evolving dynamics. In our home transaction services, we leveraged scientific management and AI technology to enhance our service capabilities for both “homes” and “customers,” while exploring a new growth model that is driven by efficiency over scale. In our home renovation and furnishing services, we pioneered a community-focused approach, with productized model home showrooms adjacent to our contract signing service centers, significantly elevating both user trust and convenience. In our home rental services, we are driving the business toward maximum efficiency through initiatives such as product iterations and AI-driven operational restructuring."

It was mostly good going for KE Holdings in Q2, the only major caveat being a sizeable hit on its net income for the quarter, driven primarily by increased costs to the company's home rentals (73% YoY) and home renovations (11%) segments.

Double-digit revenue growth was also attributed to the home rentals segment, which grew by 78% year-on-year. New home transactions also saw solid growth (8.6%). The next step for KE Holdings is to find a way to trim costs for rentals proportionate to revenues. Meanwhile, revenues for existing home transactions dipped by 8% for the quarter.

Tao Xu, CFO at KE Holdings, said:

"Both our home renovation and furnishing business and home rental services achieved high-quality growth. The home renovation and furnishing business continued to strengthen its product and delivery capabilities, driving steady improvements in operational capacity. The home rental services business enhanced operational efficiency through differentiated products and AI-driven refined operations.

"In the second quarter, net revenues from non-housing transaction services accounted for a record high of 41% of our total net revenues, highlighting our diversified growth drivers. The operating expense ratio declined year-on-year and quarter-on-quarter, and the operating leverage gradually emerged."

KE Holdings recently closed a controversial chapter in its reporting, agreeing on settlement terms for investors who lost money after the company inflated key performance figures in 2021 and 2022.