Q2 2026 KE Holdings Inc Earnings Call Transcript
Key Points
- Non-GAAP net income surged 74.9% year-over-year to RMB3.185 billion, with net margin hitting a three-year high of 13%.
- Existing home GTV grew 8% year-over-year, with connected store transaction volume up nearly 30% and average transactions per store rising 26%.
- Contribution margins improved across all core business lines, driving gross margin up 6.7 percentage points to 28.6%.
- Home rental services managed units exceeded 790,000, up 34% year-over-year, with contribution margin improving 6.9 percentage points.
- Shareholder returns remained strong, with $460 million in buybacks in the first half, representing 2.4% of outstanding shares.
- Total revenue declined 5.7% year-over-year, primarily due to adjustments in home renovation and furnishing and revenue recognition changes in home rental services.
- Home renovation and furnishing revenue fell 30.1% year-over-year due to proactive exits from inefficient channels and cities with weak unit economics.
- Home rental services revenue decreased 14.8% year-over-year due to the transition to a lighter, net-basis revenue model.
- New home market remains under pressure, with overall volume declining and a polarized market requiring cautious resource allocation.
- GAAP operating expenses rose 21.3% quarter-over-quarter, driven by higher selling expenses and a bad debt provision of around RMB280 million in the new home business.
Hello, ladies and gentlemen. Thank you for standing by for KE Holdings' second-quarter 2026 earnings conference call. I am Siting Li, IR Director of KE Holdings. Please note that today's call, including the management's prepared remarks and Q&A session, will all be in Chinese. Simultaneous interpretation in English will be available on a separate line for the duration of the call.
To access the call in Chinese, you will need to dial into the Chinese language line. At this time, all participants are in listen-only mode. Today's conference call is being recorded. The company's financial and operating results were published in the press release earlier today and are posted on the company's IRR website.
On today's call, we have Mr. Stanley Peng, our Co-Founder, Chairman, and Chief Executive Officer; and Mr. Tao Xu, our Executive Director and CFO. Mr. Xu will provide an overview of our business update and financial performance. Then Mr. Peng will share more on the progress of our strategic transformation.
Before we
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