BEKE.US Reports Mixed Q3 2025 Results with Revenue Increase but Profit Decline

KE Holdings Inc. (BEKE.US) announced its unaudited financial results for the third quarter ended September 30, 2025, revealing mixed performance. The company reported net revenues of RMB23.1 billion (US$3.2 billion), marking a 2.1% increase year-over-year. However, adjusted net income decreased by 27.8% to RMB1,286 million (US$181 million), compared to RMB1,782 million in the same period of 2024. Adjusted diluted net income per ADS was US$0.16, meeting analyst estimates.

Key Business Drivers and Segment Performance

Existing home transactions GTV increased by 5.8% year-over-year to RMB505.6 billion (US$71.0 billion), primarily driven by connected agents on the company’s platform. Conversely, net revenues from new home transaction services decreased by 14.1% to RMB6.6 billion (US$0.9 billion), attributed to a 13.7% decrease in GTV for new home transactions.

A significant highlight was the home rental services segment, which saw net revenues increase by 45.3% to RMB5.7 billion (US$0.8 billion), mainly due to the growth in the number of rental units under the Carefree Rent model. This segment, along with home renovation and furnishing, achieved city-level profitability before deducting headquarters expenses, contributing a record high to the company's total gross profit.

Operational Efficiency and Shareholder Returns

The company demonstrated improved operational efficiency, with total operating expenses remaining relatively flat at RMB4.3 billion (US$0.6 billion) in Q3 2025, a 1.8% decrease year-over-year and 6.7% quarter-over-quarter. This was partly due to a 10.7% decrease in sales and marketing expenses.

KE Holdings Inc. also continued to reward shareholders through its share repurchase program, allocating US$281 million to share repurchases in the third quarter of 2025, its highest single-quarter spending in the past two years. Since the program's inception in September 2022, approximately US$2.3 billion worth of shares have been repurchased, accounting for about 11.5% of total issued shares before the program began.

Management Outlook and Innovation

Mr. Stanley Yongdong Peng, Chairman and CEO of Beike, emphasized the company's focus on operational efficiency and customer experience through organizational optimization, process restructuring, and technological innovation. A pilot program in Shanghai introduced a 'buyer-seller agent specialization' mechanism to enhance agent capabilities in marketing and selling properties.

The company is also deeply integrating AI into its home rental services, empowering workflows and customer experience, which contributed over RMB100 million in profit during the quarter. Management plans to accelerate the deep integration of AI capabilities into core business scenarios to improve both service provider and customer experiences.