KE (BEKE) investor relations material

Executive summary

• Q1 2026 saw significant improvements in operating profit, margins, and efficiency, despite year-over-year declines in GTV and revenue due to a high base in the prior year, with GTV down 15.6% to RMB711.7 billion and revenue down 19% to RMB18.9 billion.

• Net income rose 46.7% year-over-year to RMB1,255 million, while adjusted net income increased 15.7% to RMB1,611 million.

• Gross margin improved to 24.1%, and non-GAAP operating margin reached 8.8%, both at seven-quarter highs.

• Strategic transformation focuses on balancing scale and efficiency, leveraging AI, and refining operations to drive sustainable growth.

• Share repurchases increased by 40% year-over-year to US$195 million in Q1, reflecting confidence in long-term development.

Financial highlights

• Non-GAAP operating profit reached RMB1.67 billion, up 45.1% year-over-year; adjusted EBITDA rose to RMB2,235 million.

• GAAP net income was RMB1,255 million, up 46.7% year-over-year; non-GAAP net income was RMB1,611 million, up 15.7% year-over-year.

• Revenue was RMB18.9 billion, down 19% year-over-year; GTV was RMB711.7 billion, down 15.6% year-over-year.

• Gross margin reached 24.1%, up 3.5 percentage points year-over-year.

• Non-GAAP operating margin hit 8.8%, the highest in seven quarters.

Outlook and guidance

• Management expects continued year-over-year margin improvement for the full year, with further gains from operational efficiency and AI-driven productivity.

• Strategic focus remains on maximizing long-term value, prudent resource allocation, and ROI discipline.

• Early resilience of the efficiency-driven model is expected to support continued margin expansion despite ongoing revenue pressure.