KE Holdings Inc.-ADR · Q1 2026 earnings

Briefing

KE Holdings Q1 2026: RMB18.9B revenue (-19%), net income up 47% to RMB1.26B; margins expand

KE Holdings (Beike) reported Q1 2026 net revenues of RMB18.9 billion (US$2.7 billion), down 19.0% year-over-year on lower transaction volumes across existing and new home markets. Despite the revenue decline, net income rose 46.7% to RMB1.26 billion and adjusted net income increased 15.7% to RMB1.61 billion, reflecting cost optimization and margin expansion. Gross margin improved to 24.1% from 20.7% and operating margin reached 6.7% from 2.5%. GTV totaled RMB711.7 billion, with existing home GTV of RMB534.4 billion (-7.9%) and new home GTV of RMB145.9 billion (-37.2%). The platform had 60,383 stores and 526,945 agents as of March 31. The company repurchased approximately US$195 million of shares in the quarter.

• Net revenues fell 19% YoY to RMB18.9B on lower GTV of RMB711.7B, with new home GTV down 37.2% to RMB145.9B
• Net income rose 47% to RMB1.26B and adjusted net income grew 16% to RMB1.61B on cost optimization initiatives
• Gross margin expanded to 24.1% from 20.7%; operating margin reached 6.7% vs 2.5% in Q1 2025
• Adjusted EBITDA was RMB2.24B; adjusted operating margin of 8.8% was highest in seven quarters
• Repurchased ~US$195M of shares in Q1; cash and equivalents plus short-term investments totaled RMB53.9B

Headline financials

Revenue & EPS history