Summary of KE Holdings, Inc. (BEKE) Q4 and Fiscal Year 2025 Earnings Call

1Key Financial Results and Metrics

Q4 2025 Performance::

Gross Transaction Value (GTV): RMB 724.1 billion, down 36.7% YoY.

Revenue: RMB 22.2 billion, down 28.7% YoY.

Gross Profit Margin: 21.4%, a decrease of 1.6 percentage points YoY.

GAAP Net Profit: RMB 82 million, down 85.7% YoY.

Non-GAAP Net Profit: RMB 517 million, down 61.5% YoY.

Full Year 2025 Performance::

Total Revenue: Not specified, but fee revenue remained stable.

Share Repurchase: Approximately USD 921 million, a 29% increase YoY.

Total Shareholder Return: Approximately USD 1.22 billion, a 9% increase YoY, representing 170% of non-GAAP net profit.

2Strategic Updates and Business Highlights

Transitioned from a sales-driven to an efficiency-driven growth model, focusing on optimizing business structure and leveraging technology.

Non-housing transaction revenue reached a record high of 41% of total revenue.

Existing home GTV accounted for 67.6% of total GTV, indicating a focus on segments with growth potential.

Home rental services turned profitable, with a significant year-on-year increase in managed rental units (62%).

AI integration is a key focus, aimed at enhancing operational efficiency and service delivery across business lines.

3Forward Guidance and Outlook

For 2026, the company plans to maintain prudent financial discipline, focusing on efficiency and growth.

Emphasis on validating the decision support service model to improve conversion rates and unit economics.

Continued investment in AI capabilities to enhance service quality and operational resilience.

4Bad News, Challenges, or Points of Concern

Notable year-on-year declines in GTV and revenue in Q4 due to a high base from 2024.

Operating losses in Q4 (GAAP operating loss of RMB 147 million) reflect ongoing challenges in profitability.

The company faced one-off expenses related to cost optimization initiatives, impacting near-term profitability.

Competitive pressures in the new home market, with developers struggling with sell-through and declining profitability.

5Notable Q&A Insights

Management emphasized the importance of enhancing agent efficiency and resource allocation to drive future growth.

The new home business is transitioning to an integrated capability platform, focusing on improving decision-making support for homebuyers and developers.

AI's role is seen as transformative, with potential to automate standardized tasks while enhancing the human elements of service.

The home renovation segment is expected to improve profitability through centralized procurement and standardized processes, although growth may be gradual. Overall, KE Holdings is navigating a challenging market environment while strategically pivoting towards efficiency and technology integration to enhance long-term growth and profitability.