Beike's 2025 Net Revenue Growth of 1%: Non-housing Business Reaches New High Ratio, Rental Achieves First Profitability

On March 16, KE Holdings (NYSE: BEKE; HKEX: 2423) released its Q4 2025 and full-year performance data. In 2025, thanks to a diversified and more resilient business structure, KE Holdings performed steadily amid a challenging external environment, with net revenue increasing by 1% to 94.6 billion RMB, net profit reaching 2.99 billion RMB, and adjusted net profit of 5.02 billion RMB. In the real estate transaction business, second-hand transaction volume reached a new high with an 11% increase, and new home sales outperformed the market. The share of “non-property transaction businesses” rose to a record 41%, home renovation revenue hit a new high of 15.4 billion RMB, and leasing business achieved profitability for the first time in a full year. With deeper integration of AI and refined operations, average second-hand transaction per agent increased from 2 to 3, professional home renovation project managers’ monthly transaction volume increased by over 100%, and asset management managers’ average managed properties grew by more than 40%, all reaching historical highs.

KE Holdings Co-Founder, Chairman, and CEO Peng Yongdong stated, “The true ability to withstand cycles does not come from scale itself but from continuously creating real value for consumers. KE Holdings will reform its service logic, shifting from a growth model driven by the scale of people and stores to one driven by efficiency and value creation, improving overall platform resource conversion efficiency and unit output. Next, we will explore upgrading transaction services to a full-process ‘decision-making’ service, enhancing the professionalism and certainty of consumer services. We will reshape capabilities with AI technology, optimize resource allocation, and further amplify the professional value of service providers and platform efficiency. At the same time, we aim to build systematic services around the residential lifecycle.”

KE Holdings Executive Director and CFO Xu Tao said, “In 2025, we implemented a series of efficiency improvement measures aimed at optimizing unit economics and group cost structure, enhancing the company’s future operational resilience. The profit margin contribution from new homes increased by 0.2 percentage points year-over-year, and the profit margin from existing homes also rebounded in Q4. Operating efficiency improved, with operating expenses as a percentage of net revenue decreasing by 1.4 percentage points year-over-year. In 2026, we will maintain prudent financial discipline, continue optimizing capital allocation, improve governance, and promote steady, sustainable business growth.”

Focusing on Growth Quality: Second-hand Volume Hits New High with 11% Increase, Rental Profits and Home Renovation Growth

In the context of the new normal of real estate development, KE Holdings proactively adjusted its operating pace, moving away from scale-centric growth and focusing on long-term business capability building. Particularly in home renovation and leasing, the focus is on improving profitability quality and establishing sustainable, replicable operating models, with both businesses entering healthier development stages.

In 2025, KE Holdings’ existing property revenue reached 25.02 billion RMB, with second-hand transaction volume hitting a record high, up 11% year-over-year. Throughout the year, the contribution of non-Lianjia existing property GTV increased to about 63%, with second-hand transaction volume from non-Lianjia rising 15% YoY. The platform’s attributes strengthened, leading to more stable income under the platform model and lighter asset mode.

The total GTV of new home transactions reached 890.9 billion RMB, continuing to outperform the market. KE Holdings is upgrading its new home business from traditional “traffic distribution” to delivering “certainty results” to developers and homebuyers. Based on previous channel value focus, the company is now providing early project structure analysis support and later-stage marketing and sales services.

Home renovation and furniture revenue reached 15.4 billion RMB, up 4.4% year-over-year, with profit margin increasing to 31.4%, up 0.7 percentage points. In 2025, KE Holdings actively controlled the pace of home renovation and furniture business, aiming to build scalable, professional service capabilities. Through modular product systems, model homes, and BIM intelligent design tools, the company continuously improved designer productivity. Additionally, about 80% of main materials and 60% of auxiliary materials are now sourced through nationwide or regional procurement, enhancing bargaining power and long-term product quality stability.

By the end of 2025, KE Holdings’ managed rental properties exceeded 700,000 units, a 62% increase YoY; annual net revenue was 21.9 billion RMB, up 52.8%. Profit contribution margin increased by 3.6 percentage points to 8.6%, achieving operational profitability for the full year.

Initial Signs of “Human-Machine Collaboration” Effect, Service Provider Efficiency Reaches New High

Amid the AI wave, Peng Yongdong believes AI is becoming a core factor in upgrading the residential services industry. He states that real estate transactions are not standardized commodities; they involve both rational calculations and substantial emotional judgments. Both data support and genuine offline experiences are necessary.

“AI cannot be ignored, and humans cannot be replaced,” Peng explains. AI can maximize rational aspects and amplify the value of emotional, human-driven parts. KE Holdings has clearly adopted an “human-machine collaboration” AI strategy. Leveraging AI capabilities, KE is enhancing the professionalism of platform services, resource conversion efficiency, and unit productivity.

For agents, KE has built an “AI Studio” system in real estate transactions, including AIGC for automatic marketing content generation and initial engagement, AI CRM for customer insights and strategy suggestions, and AI training tools to consolidate top agent experience, reducing capability gaps. For example, in agent services, agents previously spent significant time organizing listings and answering repetitive questions. Now, AI can automatically generate VR walkthrough videos, property explanations, and client communication materials, allowing agents to focus more on understanding client needs and driving transactions. In terms of efficiency, in 2025, the average second-hand transaction per non-Lianjia agent increased by 6%, from less than 2 in 2022 to over 3.

In leasing, KE has established a closed-loop where AI participates in core strategies, including rental pricing, inventory scheduling, and regional resource allocation. Pilot regions saw a 13% increase in agent productivity for rental collection, and AI-based rental pricing improved success rates by 5.3 percentage points compared to manual pricing. Throughout the year, asset management managers managed over 120 properties per person on average, a 40% increase.