KE Holdings Q2 2026: Revenues Down 5.5% But Net Income Doubles Year-on-Year

KE Holdings, also known as Beike, has released its second-quarter financial results for 2026, with increased profitability despite a small revenue drop.

Highlights for the quarter include:

• Net revenues were RMB24.5 billion (US$3.6 billion), down 5.7% year on year.
• Gross profit was RMB7.0 billion ($1.0 billion), up 23.1%.
• Net income was RMB2,624 million ($387 million), up 100.8%.
• Gross transaction value was RMB933.8 billion ($137.6 billion), up 6.3%.
• Number of stores was 60,274 as of June 30, 2026, marginally down. Active stores were down 1.5%.
• Number of agents was 540,634 as of June 30, 2026, down 3.1%. Active agents were down 7.5%.
• Average mobile monthly active users were 45.7 million, down 6%.

Highlights for the first half of the year include:

• Net revenues were RMB43.4 billion (US$ 6.4 billion), down 11.9% year on year.
• Adjusted EBITDA was RMB6.4 billion ($944.7 million), up 58.4%.

Despite a revenue drop of 5.5% year-on-year, KE Holdings recorded its best adjusted operating margin (14.6%) and adjusted net income margin (13%) for three years in the second quarter of the year.

Revenues were hit by slower home renovation and furnishing and home rental services segments, but were partially offset by improved net revenues from new home and existing home transaction services.

Contribution margins of all major business lines increased year-over-year and quarter-over-quarter, driving gross margin up 6.7 percentage points year-over-year to 28.6%. The company cut operating expenses 14.1% year over year.

Income from operations increased to RMB3.0 billion ($446 million), up 186% year-on-year.

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

“We are further enhancing collaboration among professional service providers, our platform and AI: professional service providers exercise judgment and take accountability; our platform facilitates collaboration and safeguards service delivery; and AI enables professional expertise to be codified into verifiable and reusable organizational capabilities. Looking ahead, we will remain committed to pursuing quality growth at scale and continue to assess the effectiveness of our transformation across consumer experience, professional service provider development, operating efficiency, unit economics, and replicability across cities and service scenarios, laying a stronger foundation for the Company’s long-term, sustainable growth.”

CFO Tao Xu added:

"In the second quarter, we repurchased approximately US$250 million of its shares and conducted share repurchases in Hong Kong for the first time. Looking ahead, building on our more efficient cost structure, we will further direct resources toward building capabilities that can create greater value for customers, continue to strengthen our operating resilience, and drive long-term sustainable growth."