KE Holdings Inc. (02423) has released its financial results for the second quarter of 2026, posting a total transaction value of RMB 933.8 billion (USD 137.6 billion), representing a year-on-year increase of 6.3%.
The existing home transaction segment recorded a total transaction value of RMB 629.9 billion (USD 92.8 billion), up 8.0% from the prior year period. Meanwhile, new home transactions generated RMB 258.4 billion (USD 38.1 billion), reflecting a modest 1.2% growth.
Net revenue for the quarter reached RMB 24.5 billion (USD 3.6 billion). Gross profit climbed 23.1% year-on-year to RMB 7.0 billion, while net profit more than doubled to RMB 2.624 billion, up 100.8%. On an adjusted basis, net profit came in at RMB 3.185 billion, representing a substantial 74.9% increase compared to the same period last year.
According to the company's announcement, the gross margin expanded from 21.9% in the corresponding quarter of 2025 to 28.6% in the second quarter of 2026, primarily attributable to improved contribution margins across all major business segments.
As of June 30, 2026, the company operated 60,274 stores, of which 57,803 were active. The total number of agents stood at 540,634, including 454,571 active agents. Average monthly mobile active users during the second quarter of 2026 reached 45.7 million.
Mr. Yongdong Peng, Chairman and Chief Executive Officer of the company, commented, "During the second quarter of 2026, we observed further consolidation of our operational foundation, with organizational transformation beginning to permeate daily operations. We are enhancing collaboration among professional service providers, the platform, and AI, driven by consumer demand and frontline issues: service providers assume judgment and responsibility, the platform ensures collaboration and transaction fulfillment, while AI transforms professional expertise into verifiable and reusable organizational capabilities. Moving forward, we will persist in pursuing quality-driven scale growth and continuously assess the effectiveness of our transformation across consumer experience, professional development, operational efficiency, unit economics, and cross-city and cross-scenario replication, thereby consolidating a solid foundation for long-term sustainable development."
Mr. Tao Xu, Executive Director and Chief Financial Officer, added, "In the second quarter, the proactive adjustments to our cost structure made earlier have yielded further results, enabling our resource allocation to better align with the current market environment. Building on this, we have continued to drive operational efficiency around customer value. Our property transaction services business has resumed growth, and our profitability has further improved. Contribution margins across all principal businesses improved both year-on-year and quarter-on-quarter, lifting gross margin by 6.7 percentage points to 28.6%. Meanwhile, operating expenses decreased by 14.1% year-on-year. Adjusted operating margin and adjusted net margin reached 14.6% and 13.0%, respectively, both hitting three-year highs. During the quarter, we repurchased approximately USD 250 million worth of shares and conducted our first-ever share buyback on the Hong Kong Stock Exchange. Looking ahead, we will build on our more efficient cost structure, further focus resources on capability-building that creates greater customer value, strengthen operational resilience, and drive long-term sustainable growth."