KE Holdings Q1 Net Income +46.7% to $182M; Revenue -19.0%
KE Holdings Inc. announced its Q1 2026 financial results, reporting a significant 46.7% year-over-year increase in net income to $182 million, with adjusted net income rising 15.7% to $234 million. This improvement in profitability was achieved despite a 19.0% decrease in net revenues to $2.7 billion and a 15.6% decline in Gross Transaction Value (GTV), primarily due to high base effects in existing and new home transaction services. The company emphasized a shift towards efficiency-driven growth, evidenced by improved gross margin and adjusted operating margin, which reached their highest levels in seven quarters. Additionally, KE Holdings repurchased approximately $195 million of its shares during the quarter, enhancing shareholder returns.
Key Highlights
- Net income increased 46.7% year-over-year to $182 million (RMB1,255 million) in Q1 2026.
- Adjusted net income rose 15.7% year-over-year to $234 million (RMB1,611 million).
- Net revenues decreased 19.0% year-over-year to $2.7 billion (RMB18.9 billion).
- Gross transaction value (GTV) decreased 15.6% year-over-year to $103.2 billion (RMB711.7 billion).
- Gross margin improved to 24.1% in Q1 2026 from 20.7% in Q1 2025.
- Adjusted basic net income per ADS was $0.21 (RMB1.48), up from $1.24 (RMB1.24) in Q1 2025.
- The company repurchased approximately $195 million of shares in Q1 2026.
- Number of stores increased 6.2% to 60,383, while active agents decreased 7.6% to 453,438.
Price Impact
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