Beike Reports Q2 2025 Profit Decrease, Revenue Growth, and Share Repurchase Program Extension

KE Holdings Inc. (BEKE.US) reported second-quarter 2025 adjusted net income of RMB1,821 million ($254 million), a 32.4% decrease year-over-year. Net revenues for the quarter increased by 11.3% year-over-year to RMB26.0 billion ($3.6 billion). The adjusted EPS of $0.23 exceeded the analyst estimate of $0.22, while total net revenues of $3.6 billion surpassed the analyst estimate of $3.65 billion.

Key Business Drivers

The company's performance was driven by an 11.3% increase in total net revenues, primarily fueled by new home transaction services and continued growth in home renovation and furnishing, as well as home rental services. GTV of new home transactions grew by 8.5% year-over-year to RMB255.4 billion ($35.6 billion), and net revenues from new home transaction services increased by 8.6%.

Despite a softened real estate market in Q2, the platform's agent and store network expanded significantly, with active non-Lianjia stores increasing by 36.8% year-over-year and active non-Lianjia agents by nearly 24%. Net revenues from home rental services saw a substantial increase of 78.0% to RMB5.7 billion ($0.8 billion), primarily due to an increase in rental units under the Carefree Rent model. Non-housing transaction services accounted for a record 41% of total net revenues, highlighting diversified growth drivers.

Operational Efficiency and Strategic Initiatives

KE Holdings is shifting towards efficiency-driven development, leveraging AI technology to enhance productivity. This includes improving service capabilities for home transactions, pioneering a community-focused approach for home renovation, and optimizing home rental services through product iterations and AI-driven restructuring. The company also continued to refine its C2M capabilities in the Beihaojia segment to create new industry value.

Shareholder Returns Program

The company emphasized its commitment to shareholder returns, having repurchased approximately $394 million worth of shares this year, representing about 1.7% of its total outstanding shares at the end of 2024. Furthermore, the board approved an increase in its share repurchase program from $3 billion to $5 billion and extended it until August 31, 2028, demonstrating confidence in future value creation.