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 hit a new high with an 11% increase, and new home sales outperformed the market. The proportion of “non-property transaction businesses” rose to a record 41%, home renovation revenue reached a historic 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 transactions per agent increased from 2 to 3, professional home renovation project managers handled over 100% more orders per month year-over-year, and asset management managers saw a over 40% increase in managed properties, all reaching historical highs.

Ke Holdings Co-Founder, Chairman, and CEO Peng Yongdong stated, “The true ability to withstand cycles doesn’t 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 human-store scale to one driven by efficiency and value creation, improving overall platform resource conversion and unit output. Next, we will explore upgrading transaction services into full-process ‘decision-making’ services to enhance consumer professionalism and certainty. 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 initiatives aimed at optimizing unit economics and group cost structure, enhancing the company’s future 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 compared to last year. In 2026, we will maintain prudent financial discipline, continue optimizing capital allocation, improve governance, and promote steady, sustainable business growth.”

Focusing on quality growth, second-hand transaction volume hit a new high with an 11% increase, and rental profitability and home renovation growth

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

In 2025, net revenue from the existing home business reached 25.02 billion RMB, with platform second-hand home transaction volume hitting a record high, up 11% year-over-year. Throughout the year, the contribution of non-Lianjia existing home 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 and a lighter asset model under the platform approach.

The full-year new home transaction GTV 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” for developers and homebuyers, providing project pre-structure analysis support and post-sale marketing and inventory services beyond channel value.

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, building scalable, professional service capabilities through modular product systems, model rooms, and BIM intelligent design tools, continuously improving designer efficiency. 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’ property leasing services managed over 700,000 units, a 62% YoY increase; full-year net revenue was 21.9 billion RMB, up 52.8%. Profit margin increased by 3.6 percentage points to 8.6%, achieving full-year operational profitability.

Initial signs of “human-machine collaboration” effects, with service provider efficiency reaching new highs

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 commodity trades; they involve both rational calculations and substantial emotional judgments. Both data support and genuine offline experiences are necessary.

“AI cannot be ignored, nor can humans be replaced,” Peng explains. AI can maximize rationality and amplify the value of emotional, human-driven aspects. Ke Holdings has clearly adopted an “human-AI collaboration” AI strategy. Leveraging AI capabilities, Ke Holdings is enhancing the professionalism of platform services, resource conversion efficiency, and unit productivity.

For agents, Ke Holdings has built an “AI Studio” system, 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, AI now automatically generates VR walkthroughs, property explanations, and customer communication materials, freeing agents to focus more on understanding client needs and closing deals. In 2025, the average second-hand transactions per non-Lianjia agent increased by 6% YoY, from less than 2 to over 3.

In leasing, Ke Holdings has established a closed-loop “AI-involved core strategy,” with AI participating in or managing rent pricing, inventory scheduling, and regional resource allocation. Pilot regions saw a 13% increase in agent efficiency for rent collection, and AI-based rental pricing improved success rates by 5.3 percentage points compared to manual pricing. Throughout the year, asset management managers handled over 120 properties on average per month, a 40% increase.