KE Holdings Inc. ( $BEKE) Stock: Q2 Revenue Climbs, Profit Falls as Share Buyback Expands

TLDR

• KE Holdings stock traded at $19.08, up 1.38%, following its Q2 2025 results.
• Net revenues grew 11.3% year over year to RMB26.0 billion ($3.6 billion).
• Net income fell 31.2% to RMB1,307 million ($182 million); adjusted net income dropped 32.4%.
• Gross transaction value rose 4.7% to RMB878.7 billion, with stronger new home growth.
• Share repurchase program raised to $5 billion and extended through August 2028.

KE Holdings Inc. (NYSE: BEKE; HKEX: 2423), known as Beike, reported its unaudited financial results for the second quarter. Shares traded at $19.08, gaining 1.38% in midday trading.

KE Holdings Inc. (BEKE)

Net revenues rose 11.3% year over year to RMB26.0 billion ($3.6 billion), slightly below analyst expectations of RMB26.19 billion. Adjusted earnings per share came in at $1.55, topping consensus estimates of $1.53.

Revenue Growth Amid Profit Decline

The company’s gross transaction value (GTV) reached RMB878.7 billion ($122.7 billion), up 4.7% from a year earlier. Existing home transactions accounted for RMB583.5 billion, up 2.2%, while new home transactions grew 8.5% to RMB255.4 billion. Despite topline growth, net income fell sharply by 31.2% to RMB1,307 million ($182 million). Adjusted net income also declined 32.4% to RMB1,821 million ($254 million).

Operating margin narrowed to 4.1%, down from 8.6% last year, reflecting lower gross margins partially offset by improved operating leverage.

Platform Expansion and AI Integration

Beike continued to scale its housing ecosystem, with 60,546 stores as of June 30, 2025, representing a 31.8% increase from the prior year. Active stores grew 32.1% to 58,664, while the number of active agents climbed 19.5% year over year to 491,573.

CEO Stanley Yongdong Peng highlighted AI-driven initiatives, noting efficiency-focused growth models across home transaction services, renovation, furnishing, and rental services. Community-based operations and AI-powered management are expected to drive future productivity and enhance customer trust.

Diversified Business and Market Trends

The company reported that net revenues from non-housing transaction services reached a record 41% of total net revenues, underscoring diversification beyond traditional housing. Mobile monthly active users averaged 48.7 million during the quarter, slightly lower than 49.7 million in the same period last year.

CFO Tao Xu acknowledged that while the real estate recovery from late 2024 lost momentum in the second quarter, Beike’s platform continued to attract high-quality brands and non-Lianjia agents. The company emphasized improvements in its home renovation and rental services, supported by differentiated products and AI-enhanced operations.

Shareholder Returns and Buyback Expansion

As of the end of the second quarter, Beike had repurchased around US$394 million worth of shares this year, equivalent to about 1.7% of total shares outstanding at the end of 2024. In a significant move, the company upsized and extended its share repurchase program, raising the authorization from $3 billion to $5 billion and extending it to August 31, 2028.

Xu stated that returning value to shareholders remains a priority, noting that approximately 138.7 million ADSs worth $2.18 billion had been repurchased under the existing authorization before the extension.

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