KE Holdings Inc. reported its fourth‑quarter 2025 results on March 16 2026, showing net revenue of RMB22.2 billion (US$3.172 billion) and net income of RMB82 million (US$12 million). Adjusted earnings per share were $0.07, matching the consensus estimate of $0.07 but falling short of the normalized estimate of $0.11. Revenue beat the consensus estimate of $3.09 billion, a margin of $82 million, while the adjusted EPS beat expectations by $0.00, reflecting disciplined cost management and a favorable mix shift toward higher‑margin rental and renovation services.
Full‑year 2025 figures reveal a modest 1.2% increase in net revenue to RMB94.6 billion (US$13.5 billion) compared with the prior year, but net income fell 26.7% to RMB2.991 billion (US$428 million). Adjusted net income for the year was RMB5,017 million (US$717 million), a decline of 30.4% YoY, underscoring the impact of a 5.0% drop in gross transaction volume (GTV) and margin compression in the core brokerage segment.
The company declared a final cash dividend of US$0.276 per ADS (US$0.092 per ordinary share), amounting to an aggregate payout of roughly US$300 million. The dividend will be paid in U.S. dollars to shareholders of record on April 8 2026, with distribution dates around April 21 for ordinary shares and April 24 for ADS holders.
Segment analysis shows that home‑rental revenue grew 18.1% YoY, while home‑renovation and furnishing revenue increased 4.4% for the full year. However, the brokerage contribution margin contracted to 39.3% from 43.2% in 2024, reflecting pricing pressure amid a slowing housing market. The decline in GTV and margin compression explain the revenue and income downturns in Q4, even as the diversified rental and renovation businesses provide a counter‑balance.
Management emphasized an “efficiency‑driven” growth strategy, highlighting increased use of data and AI, tighter cost discipline, and a more diversified business mix. CFO Tao Xu noted that share repurchases totaled RMB921 million in 2025, and total shareholder return reached RMB1.22 billion, roughly 170% of non‑GAAP net profit. The company’s focus on AI and operational efficiency signals confidence in sustaining profitability despite the headwinds in the core brokerage segment.
The results illustrate a company navigating a challenging housing market while pursuing diversification and cost discipline. Revenue fell sharply in Q4 due to a 28.7% YoY decline, yet the adjusted EPS beat expectations thanks to disciplined cost control and a favorable mix shift. The dividend declaration and share‑repurchase activity demonstrate a commitment to returning capital, while margin compression in the brokerage segment signals ongoing pressure that management aims to mitigate through AI‑driven efficiencies and a broader service portfolio. Investors will likely view the earnings beat as a positive sign of operational resilience, but the revenue decline and margin compression highlight the need for continued vigilance in the face of a slowing real‑estate market.
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