KE (NYSE:BEKE) Q3 2025 Earnings Call November 10, 2025 07:00 AM ET Company ParticipantsStanley Peng - Co-Founder, Chairman, and CEOTao Xu - CFOTing Li - IR DirectorConference Call ParticipantsTimothy Zhao - AnalystJiang Xiao - AnalystJohn Lamb - AnalystGriffin Chen - AnalystOperatorHello, ladies and gentlemen. Thank you for standing by for KE Holdings Third Quarter 2025 Earnings Conference Call. Please note that today's call, including the management's prepared remarks and question-and-answer session, will ...

Financial Data and Key Metrics Changes - In Q3 2025, the total GTV was RMB 736.7 billion, remaining flat year over year, while total revenues reached RMB 23.1 billion, up 2.1% year over year [5] - Gross margin declined by 1.3 percentage points year over year to 21.4%, and GAAP net income was RMB 747 million, down 36.1% year over year [6][14] - Non-GAAP net income was RMB 1.29 billion, down 27.8% year over year [16] Business Line Data and Key Metrics Changes - Revenue from in-home transactions was RMB 6 billion in Q3, down 3.6% year over year, while GTV was RMB 505.6 billion, up 5.8% year over year [7] - Revenue from new home transactions was RMB 6.6 billion, decreasing by 14.1% year over year [9] - Revenue from home renovation and furniture services was RMB 4.3 billion, remaining relatively flat year over year, with a contribution margin of 32%, up 0.8 percentage points year over year [10] - Home rental services revenue reached a record high of RMB 5.7 billion, up 45.3% year over year, with a contribution margin of 8.7%, up 4.3 percentage points year over year [11][13] Market Data and Key Metrics Changes - The number of rental units under management increased to over 660,000, compared to over 370,000 in the same period of 2023 [12] - The contribution margin for home rental services improved significantly, driven by enhanced gross margin from carefully run business [13] Company Strategy and Development Direction - The company is focusing on balancing skill and efficiency, optimizing business structure, and enhancing operational efficiency through AI technology [5] - A strategic shift from scale to efficiency is being implemented, with innovative initiatives rolled out across businesses [20] - The company aims to build a residential services ecosystem, leveraging technological innovation and a well-structured operating system [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the new home business despite near-term market volatility [37] - The company is optimistic about the home rental services' profitability and plans to continue improving operational efficiency [45] - The home renovation market in second and third-tier cities is viewed as a critical long-term growth driver [53] Other Important Information - The company spent approximately $281 million on share repurchase in Q3, with a cumulative amount of approximately $675 million in 2025, up 15.7% year over year [17][18] - The company has made significant progress in optimizing its business structure and enhancing shareholder returns [18] Q&A Session Summary Question: What is the outlook for the new home business? - Management acknowledged that while the new home business has faced challenges, they remain confident in its long-term growth potential, citing market maturation and improved brokerage penetration [37][39] Question: How did the leasing service business turn losses into profits? - Management attributed the improvement to economies of scale, rapid growth in rental units, and enhanced operational efficiency, resulting in significant year-over-year revenue growth [45][46] Question: How does the company plan to motivate agents in cities outside of major markets? - Management highlighted the importance of a systematic operational framework to engage agents, including innovative incentive programs and leveraging AI to boost conversion efficiency [56][58] Question: What measures are being taken to control costs? - Management detailed various cost control measures across business lines, including labor cost reductions, supply chain integration, and operational efficiency improvements [61][62]

Financial Data and Key Metrics Changes - In Q3 2025, the total GTV was RMB 736.7 billion, remaining flat year over year. Total revenues reached RMB 23.1 billion, up 2.1% year over year [5] - Gross margin declined by 1.3 percentage points year over year to 21.4%. GAAP net income was RMB 747 million, down 36.1% year over year, while non-GAAP net income was RMB 1.29 billion, down 27.8% year over year [6][15] - The company generated net operating cash inflow of RMB 851 million in Q3, with total cash liquidity around RMB 70 billion [15][16] Business Line Data and Key Metrics Changes - Revenue from in-home transactions reached RMB 6 billion in Q3, down 3.6% year over year. GTV was RMB 505.6 billion, up 5.8% year over year [7] - Revenue from new home transactions was RMB 6.6 billion in Q3, decreasing by 14.1% year over year. The contribution margin from new home transaction services was 24.1%, down by 0.7 percentage points year over year [9] - Revenue from home renovation and furniture business was RMB 4.3 billion, remaining relatively flat year over year, with a contribution margin of 32%, up 0.8 percentage points year over year [10] - Revenue from home rental services reached a record high of RMB 5.7 billion in Q3, up 45.3% year over year, with a contribution margin of 8.7%, up 4.3 percentage points year over year [11][12] Market Data and Key Metrics Changes - The company reported a significant increase in the number of rental units under management, exceeding 660,000 by the end of Q3, compared to over 370,000 in the same period of 2023 [11] - The average market coverage in Shanghai hit a record high in Q3, increasing 1.2 percentage points year over year and 2.6 percentage points quarter over quarter [23] Company Strategy and Development Direction - The company is strategically shifting its growth engine from scale to efficiency, focusing on enhancing operational efficiency through AI technology and optimizing business structure [5][18] - The company aims to build a residential services ecosystem, leveraging technological innovation and a well-structured operating system to deliver value to customers and investors [18] - The company is piloting lighter product offerings to tap into lower-tier cities and plans to expand its B+ business to over 30 cities by the end of the year [37][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the new home business despite recent market volatility, citing a shift to a more growth-driven strategy [35] - The company highlighted the importance of operational efficiency and AI integration in driving future growth and improving service capabilities [32][60] - Management noted that the home renovation market in second and third-tier cities represents a critical long-term growth driver, with plans to expand once operational capabilities are matured [51][52] Other Important Information - The company spent approximately $281 million on share repurchase during Q3, with a cumulative amount of approximately $675 million in 2025, up 15.7% year over year [16][17] - The company has achieved significant cost reductions across various business lines, with fixed labor costs decreasing by more than 20% in existing home transaction services [60][62] Q&A Session Summary Question: What is the reason for the diminishing Alpha in the new home business? - Management indicated that the new home construction business has been affected by market volatility but remains confident in its long-term potential, citing a shift in customer preferences towards existing homes and a higher base from the previous year [35][36] Question: How did the leasing service business turn losses into operating profit? - Management attributed the improvement to economies of scale, rapid growth in rental units, and operational efficiency, with revenue from home rental services reaching RMB 5.7 billion in Q3 [42][43] Question: How does the company plan to motivate agents to sell renovation services in lower market share cities? - Management emphasized the importance of a systematic operational framework to engage agents, including innovative incentive programs and leveraging AI to boost contract conversion efficiency [50][53]

Core Insights - Beike's total transaction value (GTV) reached 736.7 billion RMB in Q3, with net revenue growing by 2.1% year-on-year to 23.1 billion RMB, indicating resilience in overall business performance [1] - The proportion of net revenue from non-real estate transactions increased to 45%, with both home decoration and rental services achieving profitability at the city level before headquarter expenses [1] - The company plans to enhance AI capabilities in core business scenarios to improve both service provider and consumer experiences [1] Financial Performance - Beike's GTV for existing home transactions was 505.6 billion RMB in Q3, reflecting a year-on-year increase of 5.8% [1] - New home business GTV for the first three quarters grew by approximately 11%, with Q3 GTV reaching 196.3 billion RMB [2] - Home decoration and furnishing business generated net revenue of 4.3 billion RMB, with a profit margin increase to 32%, up by 0.8 percentage points year-on-year [2] AI and Technology Integration - Beike invested 1.865 billion RMB in R&D over the first three quarters, with Q3 R&D expenses at 648 million RMB, a year-on-year increase of 13.2% [3] - AI assistants have been deployed to 414,000 agents, enhancing client conversion rates significantly [3] - The rental business has achieved full-process intelligent operations, improving efficiency and reducing costs substantially [3] Service Innovations - Beike launched the "True Guarantee" service system in Q3, ensuring real source authenticity and secure transactions [4] - The "Renovation Fund Custody" service has been implemented in over 30 cities, benefiting more than 20,000 families [4] - The rental service introduced a "Direct Payment of Housing Fund" feature in cities like Beijing and Jinan, alleviating rental pressures for young people [4]

Core Insights - Beike's Q3 net revenue increased by 2.1% to 23.1 billion yuan, exceeding Bloomberg consensus expectations [1] - The total transaction volume (GTV) reached 736.7 billion yuan, with a year-on-year growth of 5.8% in the existing home business [1] - The company's non-real estate transaction revenue share rose to 45%, indicating a healthy development of the platform ecosystem [1] Financial Performance - Q3 net income was 23.1 billion yuan, surpassing Bloomberg's forecast of 22.96 billion yuan by approximately 140 million yuan [1] - Adjusted net profit also exceeded expectations, reaching 1.225 billion yuan, exceeding the forecast by about 61 million yuan [1] - Home decoration and rental businesses achieved profitability at the city level, contributing to overall financial stability [1][2] Business Segments - Home decoration and furniture business generated 4.3 billion yuan in net income, with a profit margin increase to 32%, up by 0.8 percentage points year-on-year [2] - Rental services revenue reached 5.7 billion yuan, showing a significant year-on-year growth of 45.3%, with a profit margin of 8.7%, up by 4.3 percentage points [2] - The new home business GTV grew by approximately 11% year-on-year, reaching 196.3 billion yuan in Q3 [1][2] Strategic Initiatives - Beike is piloting a "B+" product light operation model to expand its reach into lower-tier cities, aiming for future growth [1] - The company is exploring new real estate models in response to changing market cycles, achieving steady operational results through diversified business layouts [2]

北京商报讯（记者 王寅浩 李晗）11月10日，贝壳披露2025年第三季度财务报告。报告显示，2025年第 三季度贝壳净收入增长2.1%至231亿元，净利润7.47亿元。存量房业务GTV同比提升5.8%达5056亿元； 新房业务GTV前三季同比增长约11%。 2025年第三季，贝壳"非房产交易业务"净收入占比升至45%；第三季度研发费用6.48亿元同比增长 13.2%；收房人效提升13%。 ...

Core Insights - Beike (NYSE: BEKE; HKEX: 2423) reported a resilient performance in Q3, with a total transaction value (GTV) of 736.7 billion RMB, a net income increase of 2.1% to 23.1 billion RMB, and a net profit of 747 million RMB [1] - The company aims to enhance operational efficiency and customer experience through organizational upgrades and technological innovations, with a focus on AI integration in core business scenarios [1][3] Financial Performance - Total GTV for existing home business reached 505.6 billion RMB, a year-on-year increase of 5.8% [1] - New home business GTV for Q3 was 196.3 billion RMB, with a year-to-date growth of approximately 11% [2] - Home decoration and furniture business net income was 4.3 billion RMB, with a profit margin increase to 32%, up 0.8 percentage points year-on-year [2] - Rental service revenue for Q3 was 5.7 billion RMB, a 45.3% year-on-year increase, achieving profitability before allocating headquarters expenses [2] Business Diversification - Non-property transaction business net income proportion increased to 45%, indicating a more diversified business structure [1] - The company is piloting a "B+" product model in new home business to cover more lower-tier cities, with plans to expand to over 30 cities by year-end [2] AI Integration and Efficiency - The company invested 1.865 billion RMB in R&D over the first three quarters, with Q3 R&D expenses at 648 million RMB, a 13.2% year-on-year increase [3] - AI technology has been integrated into the entire rental business process, enhancing efficiency and reducing costs significantly [3] - Over 414,000 agents are utilizing AI tools to improve client conversion rates, with AI-driven processes leading to a 13% increase in efficiency in property collection [3] Service Enhancements - The company launched a comprehensive service guarantee system in the real estate transaction sector, ensuring authenticity and security in transactions [4] - A dedicated fund management service for home decoration has been implemented in over 30 cities, benefiting more than 20,000 families [5] - The rental business introduced a "direct payment of housing fund" feature in cities like Beijing and Jinan, easing rental pressures for young individuals [5]

Core Insights - Beike (NYSE: BEKE; HKEX: 2423) reported its Q3 2025 financial performance, showcasing a total transaction value (GTV) of 736.7 billion RMB and a net revenue of 23.1 billion RMB, reflecting a year-on-year growth of 2.1% [1] - The company achieved a net profit of 747 million RMB and an adjusted net profit of 1.286 billion RMB during the same period [1] - As of the end of Q3, Beike's cash balance, excluding customer reserve funds, remained approximately 70 billion RMB [1] Shareholder Returns - Beike increased its shareholder return efforts, with a share buyback amounting to 280 million USD in Q3, representing a 38.3% increase compared to the same period last year, marking a two-year high [1] - From the beginning of 2025 until the end of Q3, the total buyback amount increased by 15.7% year-on-year [1] - Since initiating the buyback program in September 2022, Beike has repurchased approximately 2.3 billion USD worth of shares, accounting for about 11.5% of the total share capital prior to the buyback [1] Strategic Developments - The company's Executive Director and CFO, Xu Tao, highlighted significant progress in optimizing business structure and enhancing technological empowerment during Q3 [1] - Beike aims to create greater value for customers and investors by combining technological innovation, a counter-cyclical business portfolio, and a lean operational system as the industry enters a new phase of high-quality development [1]

Core Insights - Beike (NYSE: BEKE; HKEX: 2423) reported a total transaction volume (GTV) of 736.7 billion RMB and net revenue of 23.1 billion RMB for Q3 2025, reflecting a year-on-year growth of 2.1% in net revenue, indicating stable overall business performance [1] - The share of net revenue from Beike's "non-real estate transaction business" increased to 45%, with both home decoration and rental services achieving profitability at the city level before allocating headquarters expenses [1] - Beike's Q3 financial metrics, including net revenue and adjusted net profit, exceeded consensus expectations according to Bloomberg data [1] Real Estate Transaction Sector - In the real estate transaction sector, the GTV for existing homes increased by 5.8% year-on-year, with the proportion of non-Lianjia existing home transactions rising, demonstrating healthy platform ecosystem development [1] - The new home business saw a GTV growth of approximately 11% year-on-year, reaching 196.3 billion RMB in Q3 [1] - Beike is piloting a "B+" product light operation model to further penetrate lower-tier cities, expanding future growth opportunities [1] Home Decoration and Rental Services - The home decoration and furnishing business generated net revenue of 4.3 billion RMB, with profit margin increasing to 32%, up by 0.8 percentage points year-on-year [2] - The rental service revenue reached 5.7 billion RMB in Q3, marking a year-on-year growth of 45.3%, with a profit margin of 8.7%, up by 4.3 percentage points year-on-year [2] - The company achieved city-level profitability in the rental business for the second consecutive quarter, driven by scale growth and operational efficiency improvements, including a reduction in operational labor cost ratio [2] Strategic Transformation - The industry is accelerating the exploration of new real estate models in the new market cycle, with Beike achieving stable operational results through diversified business layouts and strategic transformation [2]

格隆汇11月10日｜贝壳：2025年第三季度营收231亿元，同比增2.1%；三季度NON-GAAP净利润12.9亿 元。贝壳第三季度总交易价值(GTV)为7367亿元，与去年同期基本持平。 ...