KE Holdings' Q2 Earnings Soar Amid Strategic Transformation

KE Holdings, the leading online-to-offline (O2O) platform for housing services in China, has reported a remarkable 74.9% year-over-year growth in non-GAAP net income to RMB 3.185 billion, driven by a healthier cost structure and higher operating efficiency.

In its Q2 2026 earnings conference call, KE Holdings' management attributed the profit improvements to strict financial discipline, and a combination of gross margin expansion and lower operating expenses. This strategy has yielded impressive results, with contribution margins across all core business lines improving year-over-year and quarter-over-quarter.

The company's total GTV (Gross Transaction Value) returned to growth in Q2 2026, increasing by 6.3% year-over-year. Despite a modest revenue decline of 5.7% year-over-year, KE Holdings' profits outperformed both GTV and revenue. Non-GAAP net margin reached 13%, up 6% year-over-year, a three-year high.

KE Holdings' existing home transaction services business saw significant improvements in Q2. The company's scale returned to growth, with GTV reaching RMB 629.89 billion, up 8% year-over-year and 17.9% quarter-over-quarter. Revenue was RMB 7.02 billion, up 4.5% year-over-year and 14.5% quarter-over-quarter.

The new home business also experienced growth in Q2, with GTV reaching RMB 258.39 billion, up 1.2% year-over-year and 77.1% quarter-over-quarter. Revenue reached RMB 8.95 billion, up 3.8% year-over-year and 75.9% quarter-over-quarter.

KE Holdings' management attributed the growth in the new home business to collaboration on high-quality projects, improved customer conversion, and optimized costs.

The company's strategic transformation is clearly bearing fruit, with KE Holdings poised to continue its upward trajectory in the coming quarters.