KE (BEKE) Q1 2025 earnings summary

Executive summary

• Achieved rapid business growth in Q1 2025, with GTV rising 34% year-over-year to RMB 844.2 billion and net revenues up 42.4% to RMB 23.3 billion, driven by supportive policies, active growth strategies, and platform expansion.

• GAAP net income reached RMB 855 million, up 97.9% year-over-year; adjusted net income was RMB 1.39 billion, stable year-over-year.

• Non-housing transaction services contributed 35.9% of total net revenues and 32.7% of gross profit.

• Active stores and agents grew 29.6% and 23.0% year-over-year, respectively, reflecting strong platform expansion.

• Maintained robust liquidity with RMB 74.3 billion in total cash as of March 31, 2025.

Financial highlights

• Total GTV reached RMB 844.2 billion, up 34% year-over-year; net revenue was RMB 23.3 billion, up 42.4% year-over-year.

• GAAP net income was RMB 855 million, up 97.9% year-over-year; non-GAAP net income was RMB 1.39 billion, stable year-over-year.

• Gross margin declined by 4.5 percentage points year-over-year to 28.7%; overall gross margin was 20.7%.

• Home rental services revenue hit RMB 5.1 billion, up 93.8% year-over-year; home renovation and furniture revenue reached RMB 2.9 billion, up 22.3% year-over-year.

• Adjusted EBITDA for Q1 2025 was RMB 1.67 billion, with a margin of 7.8%.

Outlook and guidance

• Cautiously optimistic outlook for the property market, with expectations of a typical seasonal slowdown in Q2 but slight year-over-year growth in existing home transactions.

• Focus on expanding non-housing transaction services and strategic collaborations with developers and brands.

• Ongoing investment in AI-powered tools to enhance efficiency and customer experience.

• Emphasis on sustainable development, efficiency improvements, and prudent capital deployment.