[BEKE] KE Holdings: Q3 2026 Earnings Test for Existing-Home Margins

KE Holdings, which runs Beike, China's largest housing transaction and services platform, earns money from existing-home and new-home brokerage, home renovation and furnishing, and home rentals led by its Carefree Rent product. Third quarter 2026 (three months ended September 30, 2026) results go to the board on 2026-11-16, and management will host the earnings call that day at 8:00 p.m. Beijing time[1]. In the latest reported period, the second quarter of 2026, total GTV was RMB933.8 billion, up 6.3% year over year, net revenues were RMB24.5 billion, down 5.7%, and net income was RMB2,624 million, up 100.8%[2]; gross margin rose to 28.6% from 21.9%[3], and operating margin rose to 12.3% from 4.1%[4]. The company does not give quarterly numerical guidance; on its first-quarter call, management said full-year 2026 margins should improve year over year even though quarterly margins may fluctuate seasonally[5]. The Drillr earnings calendar shows an analyst estimate of US$3.0995 billion in third-quarter revenue and US$0.25 in earnings per ADS[6], and four analysts' RMB revenue estimates average RMB20.78 billion[7]; Earnings Whispers cites a revenue estimate of US$3.05 billion, on a slightly different basis[8].

Three things matter most in the third-quarter report. First, whether the existing-home contribution margin can hold its gains as transactions enter the slower season: it rose to 46.1% in the second quarter from 39.9% a year earlier[3], while existing-home GTV grew 8.0%[9], so only post-peak numbers can show how much of the gain came from peak-season volume spreading Lianjia's fixed costs. Second, whether the better new-home margin is being paid for with longer developer credit: the new-home contribution margin rose to 28.8%[3], while accounts receivable and contract assets, net, reached RMB4,928.9 million at June 30, up from RMB3,937.0 million at the end of 2025[10], and the September balance will show whether that was quarter-end settlement timing or slower collection. Third, whether a lower cost base can keep supporting profit and cash as revenue falls: second-quarter operating expenses fell 14.1% and income from operations was RMB3,026 million[4], operating cash flow was RMB6,612 million[10], and analysts' average RMB revenue estimate for the third quarter is about RMB20.8 billion, well below the second quarter's RMB24.5 billion[7].

Company Background and Business Structure

KE Holdings is a housing services platform built around a brokerage network that has expanded into renovation and rentals; as a foreign private issuer, it files annual reports on Form 20-F and quarterly results on Form 6-K in the United States[11]. The company is incorporated in the Cayman Islands and headquartered in Beijing, and it grew out of Lianjia, founded in 2001. It launched the Beike platform in 2018, listed on the New York Stock Exchange in 2020 and completed a secondary listing in Hong Kong in 2022 under stock code 2423. Chairman and CEO Yongdong Peng controls the company through a weighted-voting-rights structure.

Beike's 2025 revenue came from five businesses: transaction services were still the largest share, but rentals gained weight fastest[11]. Existing-home transaction services generated RMB25.0 billion; Lianjia store transactions are booked at gross commission, while transactions by connected stores contribute only platform service, franchise and value-added service fees[12]. New-home transaction services generated RMB30.6 billion in commissions from developers, most of which is passed on to connected agents and channels[13]. Home renovation and furnishing, including the Shengdu brand and furniture sales, generated RMB15.4 billion; home rentals generated RMB21.9 billion, mainly from Carefree Rent, which managed more than 690,000 units at the end of 2025 and books its newer product on a net basis[14]; emerging and other services, mainly financial services, generated RMB1.6 billion[11].

The platform runs on the Agent Cooperation Network (ACN), which sets how commissions are split across listing, showing and closing a deal and brings many outside brokerage brands under one rulebook[15]. At the end of 2025 the platform had about 61,000 stores and 523,000 agents, including about 58,000 active stores and more than 445,000 active agents, and it connected 278 brokerage brands besides Lianjia; about 68% of existing- and new-home GTV in 2025 came from connected stores and dedicated channels, and Beijing and Shanghai together produced 38.9% of net revenues[15]. Costs are dominated by agent commissions and splits: in 2025 splits to connected agents and channels were RMB20.9 billion and internal commissions and compensation were RMB17.7 billion; on the cash side, the company holds transaction escrow funds and customer deposits, and new-home receivables are owed by developers[11].

Financial History and Current Position

Beike's 2025 revenue was roughly flat, but profit and operating cash flow weakened clearly[11]. Net revenues rose 1.2% to RMB94.6 billion from RMB93.5 billion in 2024, while total GTV fell 5.0% to RMB3,183.3 billion; by business, existing-home revenue fell 11.3%, new-home revenue fell 9.1%, renovation and furnishing grew 4.4%, rentals grew 52.8% and emerging and other services fell 34.5%[11]. Net income was RMB2,991.0 million in 2025, down from RMB4,078.2 million in 2024; operating cash flow was negative RMB376.2 million, mainly because working capital absorbed RMB6,700 million, yet the company still repurchased RMB6,581 million of shares and paid RMB2,884 million in dividends, and cash, restricted cash and short-term investments fell from RMB61.6 billion to RMB55.5 billion at year-end[16].

In the first quarter of 2026, revenue kept falling but profit had started to recover[17]. Net revenues were RMB18.9 billion, down 19.0%, and total GTV was RMB711.7 billion, down 15.6%, with new-home GTV down 37.2%; net income was RMB1,255 million, up 46.7%, adjusted net income was RMB1,611 million, up 15.7%, and operating cash flow was negative RMB1,471 million[17].

The second quarter of 2026 brought a sharp jump in margins: revenue still declined slightly, but profit and cash flow improved strongly[2]. Net revenues were RMB24.5 billion, down 5.7%, net income was RMB2,624 million, up 100.8%, and adjusted net income was RMB3,185 million, up 74.9%[2]; gross margin was 28.6% against 21.9% a year earlier[3], operating expenses were RMB4.0 billion, down 14.1%, and income from operations was RMB3,026 million, a 12.3% operating margin[4]. Operating cash flow for the quarter was RMB6,612 million, cash, restricted cash and short-term investments stood at RMB56.0 billion at June 30, and under the current repurchase program the company had bought back about US$2,967.7 million of ADSs on the New York Stock Exchange by that date[10].

Operating Model

Beike's revenue is the sum of each business's transaction value multiplied by its fee rate, and recognition rules differ sharply across businesses[12]. Existing-home revenue equals Lianjia store GTV times the commission rate, plus connected-agent GTV times the platform fee rate, plus value-added services; 2025 existing-home GTV was RMB2,151.5 billion, of which Lianjia accounted for RMB802.1 billion and connected agents for RMB1,349.4 billion[12]. New-home revenue is roughly new-home GTV times a commission rate of about 3.4%, on 2025 new-home GTV of RMB890.9 billion[13]; renovation is recognized as construction progresses, and rentals are booked either as gross rent or as net service fees, so a rising share of the net product directly lowers rental revenue[14].

Beike's gross profit is revenue minus commission splits, internal commissions and compensation, and renovation, rental and store costs; operating profit then subtracts selling, general and administrative, and R&D expenses[18]. In 2025 contribution margins were 39.3% for existing homes, 25.0% for new homes, 31.4% for renovation and 8.6% for rentals[18], and in the second quarter of 2026 they rose to 46.1%, 28.8%, 39.6% and 15.3%[3]. The three operating expense lines totaled about RMB18 billion in 2025 and operating profit was only RMB2.83 billion, whereas second-quarter 2026 operating income alone reached RMB3,026 million[4]. Changes in transaction volume usually reach revenue within the quarter, while Lianjia agents' fixed pay and store costs adjust more slowly, so swings in volume are amplified in the contribution margin.

Beike's operating cash flow is roughly net income plus non-cash items such as share-based compensation, plus or minus working-capital movements in customer deposits, lease liabilities, developer receivables and payables[16]. In 2025 working capital absorbed RMB6,700 million and pushed operating cash flow to negative RMB376.2 million[16]; in the first half of 2026 operating cash flow was RMB5,141 million against negative RMB3,139 million a year earlier[10]. That cash, together with RMB56.0 billion of cash and investments at June 30, funds buybacks and dividends under a repurchase program capped at US$5 billion and valid until August 2028[10].

Industry and Competitive Position

Beike is China's largest housing transaction and services platform by scale, but its annual report warns that tougher competition would lower market share and commission rates and make it harder to keep brokerage brands and agents[15]. Platform GTV was RMB3,183.3 billion in 2025; Lianjia is the company's own brokerage brand, and most other transactions run through 278 outside brokerage brands[15]. The available disclosures do not give competitors' market shares or fee rates, so Beike cannot be compared with peers on a like-for-like basis, and its position can only be judged from its own transaction mix and regional concentration.

Beike's market is still adjusting, and both regional divergence and regulation shape how much room the platform has[19]. On the second-quarter 2026 call, management said existing-home transactions were recovering moderately while average prices were still adjusting, the new-home market remained under pressure, and developer credit risk was the main concern in the new-home business[19]. Beijing and Shanghai produced 38.9% of 2025 net revenues, and the Anti-monopoly Compliance Guidelines for Internet Platforms issued by the State Administration for Market Regulation on January 28, 2026 also set requirements on how platforms use rules and data[15].

Core Debates

Can Beike's existing-home margins keep rising as transactions enter the seasonal slowdown?

Existing-home services are Beike's highest-margin business, and their margin path decides whether group gross margin can stay high[18]. In 2025 existing-home revenue fell 11.3% to RMB25.0 billion and GTV fell 4.2% to RMB2,151.5 billion[12]; the contribution margin dropped from 43.2% in 2024 to 39.3%, which the company attributed to Lianjia agents' fixed compensation taking a larger share of revenue[18]. In the first quarter of 2026 existing-home GTV was RMB534.4 billion, down 7.9%, and the contribution margin had already recovered to 41.3%[5]; in the second quarter existing-home revenue rose 4.5% to RMB7.0 billion, the contribution margin climbed further to 46.1%, and group gross margin rose from 21.9% to 28.6%[3].

The second-quarter improvement came from both higher volume and a more productive connected network[9]. Existing-home GTV was RMB629.9 billion, up 8.0%; connected-agent GTV was RMB423.3 billion, up 14.3%, while Lianjia store GTV was RMB206.6 billion, down 3.1%; platform and value-added service revenue rose 27.8% to RMB1.7 billion, and commission revenue fell 1.4% to RMB5.3 billion[9]. On the call, management said a moderate transaction recovery provided the volume base but there was no year-over-year price tailwind as average prices kept adjusting; active connected stores and agents were broadly stable, connected-store transaction volume grew nearly 30%, and transactions per active connected store rose 26%[20]. Over the same period, Lianjia's internal commission and compensation cost fell 4.8% to RMB4.5 billion, which the company attributed to lower fixed personnel costs[3].

The existing-home margin works through a simple chain: volume drives Lianjia commissions and connected-platform fees, which spread Lianjia agents' fixed pay and store costs, and the result shows up in the existing-home contribution margin and group gross margin. The alternative reading is that the second quarter is the traditional peak season and the cost base was already lower after 2025 headcount cuts, so part of the margin jump is simply seasonal volume; if third-quarter transactions turn negative year over year, Lianjia's fixed pay will again take a larger share of revenue and the year-over-year margin gain will narrow sharply. The disclosed data do not yet separate the structural efficiency gain from the seasonal volume effect.

Four measures in the third quarter will show which way this debate is moving. Whether the existing-home contribution margin rises more than 3 percentage points year over year, whether existing-home GTV still grows with connected-agent GTV outpacing Lianjia stores, whether platform and value-added revenue grows faster than connected-agent GTV, and whether Lianjia's internal commission and compensation cost keeps falling together decide whether the improvement holds. If existing-home GTV turns negative and the year-over-year margin gain all but disappears, or if Beike cuts platform fees again to keep connected stores and platform revenue lags GTV, the efficiency reading would weaken.

Is the margin gain in Beike's new-home business being paid for with longer developer credit?

New homes are Beike's largest revenue line, and their margin and collection quality feed directly into group profit and cash flow[13]. In 2025 new-home revenue fell 9.1% to RMB30.6 billion and GTV fell 8.2% to RMB890.9 billion; the company earns commissions from developers per transaction and, following market practice, gives them longer credit terms than individual clients, which creates collection risk when developer liquidity tightens[13]. Accounts receivable and contract assets, net, had fallen from RMB5.5 billion at the end of 2024 to RMB3.9 billion at the end of 2025, mainly because new-home revenue declined[13].

The new-home business improved on volume, revenue and margin in the second quarter, but receivables rose at the same time[9]. New-home GTV was RMB258.4 billion, up 1.2%, and revenue rose 3.8% to RMB8.9 billion, which the company attributed to deeper coverage of high-quality projects[9]; the contribution margin rose to 28.8% from 24.4%, and splits to connected agents and other channels fell 2.3% to RMB5.8 billion, which the company attributed to cost optimization through refined operations[3]. Based on the reported figures, second-quarter new-home revenue was about 3.44% of GTV, close to about 3.43% for full-year 2025. Accounts receivable and contract assets, net, were RMB4,928.9 million at June 30 after an allowance of RMB1,791.1 million, up about RMB890 million from RMB4,037.1 million at March 31[10].

The new-home business works through this chain: new-home GTV times the commission rate produces revenue, splits and internal commissions determine contribution profit, and developer collections affect results through receivables, credit losses booked in general and administrative expenses, and operating cash flow[4]. Second-quarter general and administrative expenses included a mainly non-recurring provision for credit losses[4], and management said on the call that developer credit risk remains the key concern in new homes and that the company will not take on unreasonable credit risk to expand GTV[19]. The alternative reading is that the rise in June receivables is only quarter-end settlement timing and will reverse once third-quarter collections come in; the current data cannot yet tell the two apart.

Four measures in the third quarter will test the quality of the new-home margin. Whether new-home GTV stays flat or better year over year, whether new-home revenue stays near 3.4% of GTV, whether the new-home contribution margin rises more than 2 percentage points year over year, and whether receivables and contract assets fall below RMB4,928.9 million at September 30 together show whether the margin gain reflects real efficiency. If receivables keep rising while new-home revenue falls, developer collections are slowing; if new-home GTV falls by double digits again, platform scale shrinks again, and either outcome would weaken the current reading.

Can the margins Beike bought by shrinking rental and renovation revenue hold in the third quarter?

Rentals and home renovation and furnishing are Beike's two main businesses outside transactions, and both are trading revenue for margin[11]. Together they produced RMB37.3 billion in 2025, about 39% of total revenue[11]; in the second quarter of 2026 they produced RMB8.0 billion combined, with rentals down 14.8% to RMB4.8 billion and renovation and furnishing down 30.1% to RMB3.2 billion[9]. Based on the reported figures, the two fell about 22% combined and were the main reason group revenue fell 5.7%, yet rental and renovation contribution margins rose from 8.4% and 32.1% to 15.3% and 39.6%[3].

The two businesses shrank for different reasons: rentals mainly because of accounting, renovation because of deliberate cuts[19]. Carefree Rent's net product books only matching commissions and lease-management fees, so revenue falls, yet managed units grew from more than 690,000 at the end of 2025[14] to more than 740,000 at the end of March and more than 790,000 at the end of June, up about 34% year over year, with the net product above half of units[19]. Renovation revenue fell as Beike exited inefficient cities and channels; management said the adjustment is largely complete with no further broad cuts planned in 2026, that revenue recovery will lag contract value because of construction cycles, and that front-end demand improved sequentially in July, though contract value itself is not disclosed[19]. In the first quarter of 2026 renovation revenue was RMB2.3 billion, down 20.6%, with a 36.2% contribution margin, and the rental contribution margin was 14.8%[5].

The two businesses also transmit differently. In rentals, a larger net-product share lowers revenue and raises the contribution margin, while unit growth sets the scale of service fees; in renovation, exiting weak cities and channels lowers both revenue and selling expenses, and centralized procurement cuts material costs and lifts the contribution margin[3]. The alternative reading is that renovation revenue is also falling because fewer new homes are being delivered and new-home renovation firms are moving into existing-home renovation, so industry demand stays under pressure and revenue may not recover once the cuts end[19]. Full-year 2025 contribution margins were 8.6% for rentals and 31.4% for renovation[18], which makes the second-quarter jump look large, but whether it holds while revenue keeps adjusting is still unproven.

Three sets of numbers in the third quarter will show whether these margins have settled. Whether renovation and furnishing revenue declines by less than the first quarter's 20.6%, whether the renovation contribution margin stays above 36%, and whether the rental contribution margin stays at or above 15.3% with managed units still growing decide whether the revenue-for-margin trade is paying off. If the renovation decline widens, demand rather than deliberate restructuring is the main cause; if rental units stop growing, the shift to the net product is starting to lose landlords.

In a quarter of lower revenue, can Beike's leaner cost base keep supporting profit and cash?

Whether Beike's profit and shareholder returns last depends on whether the lower cost base formed in the second quarter keeps working in the slower season[16]. In 2025 Beike had RMB94.6 billion of revenue but only RMB2.83 billion of operating profit and negative RMB376.2 million of operating cash flow, yet it still repurchased RMB6,581 million of shares and paid RMB2,884 million in dividends[16]. Second-quarter 2026 income from operations was RMB3,026 million, more than all of 2025 in a single quarter[4], and operating cash flow was RMB6,612 million[10].

The second-quarter expense decline covered every major expense line and came with a smaller workforce[4]. Operating expenses were RMB4.0 billion, down 14.1%: general and administrative expenses were RMB2.0 billion, down 2.1%, sales and marketing RMB1.4 billion, down 26.1%, and R&D RMB549 million, down 13.4%, which the company attributed to earlier cost optimization, including fewer employees, lower advertising and promotion spending and lower scale-driven renovation selling expenses[4]; active agents were 454,571 at June 30, down 7.5%[2]. CFO Tao Xu said contribution margins of all major businesses rose both year over year and quarter over quarter, and that the 14.6% adjusted operating margin and 13.0% adjusted net margin were both three-year highs[4]. For comparison, full-year 2025 sales and marketing expenses were RMB7.3 billion, down 5.8%, general and administrative RMB8.1 billion, down 9.9%, and R&D RMB2.6 billion, up 13.0%[16].

On the cost side, the chain runs from headcount cuts, lower advertising and store optimization to lower operating expenses, which magnify operating profit on top of a higher gross margin; operating profit plus working-capital changes produces operating cash flow, which in turn sets the capacity for buybacks and dividends. On the second-quarter call, management said that under a neutral market outlook for the second half, the optimized lower cost base would continue to support profitability[19]. The alternative reading is that the second quarter was the peak season and its cash inflow included seasonal increases in customer deposits and payables that could reverse in the third quarter; analysts' average RMB revenue estimate for the third quarter is about RMB20.8 billion[7], and if expenses do not fall enough to offset lower revenue, the margin gain will narrow sharply.

Three numbers in the third quarter will show whether the cost base has truly moved lower. Whether operating expenses stay down more than 10% year over year, whether operating margin still rises year over year as revenue falls, and whether third-quarter operating cash flow is a net inflow decide whether the profit improvement carries into the slower season. If the expense decline shrinks abruptly, the savings were mainly one-off; if operating cash flow turns negative, buybacks and dividends would again rely on existing cash reserves.

Risks and Falsifiers

Platform regulation is a risk aimed directly at Beike's platform service revenue[15]. The State Administration for Market Regulation issued the Anti-monopoly Compliance Guidelines for Internet Platforms on January 28, 2026, effective the same day, barring platforms from using data, algorithms or platform rules for monopolistic conduct, and Beike organizes 279 brokerage brands through its connected network and common rules[15]. About 68% of existing- and new-home GTV comes from connected stores and dedicated channels, so any constraint on platform rules or fees would hit the RMB5.0 billion of 2025 platform, franchise and value-added service revenue first[12]; if third-quarter platform revenue keeps growing faster than connected GTV and the company discloses no regulatory change to its fee rules, the risk has not materialized.

Concentration in Beijing and Shanghai makes Beike's revenue especially sensitive to those two markets and their policies[15]. The two cities' share of net revenues rose from 32.3% in 2023 to 38.9% in 2025, and the company is concentrating resources further in higher-tier cities[15]; in the second quarter, management said prices in core areas of Tier 1 cities have support but nationwide price stabilization still needs confirmation[19]. If third-quarter existing-home GTV grows year over year and management reports no significant slowdown in Tier 1 transactions, this risk has not shown up in the quarter.

A renewed downturn in the existing-home market would pass through to existing-home profit with amplification[19]. Management describes the market as still in a phase of structural adjustment and confidence rebuilding, with clear divergence across cities and price tiers and average prices still adjusting[19]; when existing-home GTV fell 4.2% in 2025, existing-home revenue fell 11.3%[12] and the contribution margin dropped 3.9 percentage points[18]. Second-quarter 2026 existing-home revenue was RMB7.0 billion[9], which at a 46.1% contribution margin implies contribution profit of about RMB3.2 billion[3]; if third-quarter existing-home GTV grows and the contribution margin rises year over year, the efficiency reading gains support.

Developer credit risk reaches Beike through receivables, credit losses and operating cash flow[13]. The company grants developers longer credit terms, and receivables become hard to collect when developer liquidity deteriorates[13]; accounts receivable and contract assets, net, were RMB4,928.9 million at June 30 after an allowance of RMB1,791.1 million[10], and second-quarter general and administrative expenses included a mainly non-recurring provision for credit losses[4]. If receivables decline at the end of the third quarter and credit-loss provisions stop rising, this risk has not worsened for now.

Tougher competition in home renovation would turn falling revenue into pressure from unabsorbed fixed costs[19]. Management noted that as new-home deliveries fall, renovation firms focused on new homes are entering the existing-home renovation market and industry demand remains under pressure[19]; renovation and furnishing revenue was RMB3.2 billion in the second quarter of 2026, down 30.1%[9], and further declines would leave design and construction-management fixed costs spread over less revenue. If the third-quarter renovation decline narrows and the contribution margin stays at or above 36.2%, the current reading holds.

What to Watch Next

• Existing-home margin: the contribution margin was 46.1% in the second quarter against 39.9% a year earlier; a gain of more than 3 percentage points year over year confirms the reading, while a gain that all but disappears falsifies it.
• Existing-home volume: GTV was RMB629.9 billion (up 8.0%), with connected-agent GTV at RMB423.3 billion (up 14.3%); GTV turning negative year over year falsifies the reading, and connected GTV should keep outpacing Lianjia.
• Platform revenue: platform and value-added revenue was RMB1.7 billion (up 27.8%); growth slower than connected GTV falsifies the reading.
• New-home volume and margin: GTV rose 1.2% and the contribution margin was 28.8%; flat-or-better GTV and a margin gain above 2 percentage points confirm it, while a double-digit GTV decline falsifies it.
• Developer receivables: RMB4,928.9 million at June 30; a September balance below that level confirms the reading, while a further rise alongside falling new-home revenue falsifies it.
• Renovation: revenue was RMB3.2 billion (down 30.1%) with a 39.6% margin; a decline narrower than 20.6% and a margin above 36% confirm it, while a widening decline falsifies it.
• Rentals: the contribution margin was 15.3% with more than 790,000 managed units; a margin at or above 15.3% with growing units confirms it, while stalled unit growth falsifies it.
• Costs and cash: operating expenses fell 14.1% and operating cash flow was RMB6,612 million; an expense decline above 10% and a net cash inflow confirm it, while an abrupt shrinking of savings or negative operating cash flow falsifies it.

Conclusion

Beike's results depend on the relationship among transaction volume, platform fee rates and the cost base, and the second quarter of 2026 was a quarter in which all three moved in its favor[2]. Revenue fell 5.7% to RMB24.5 billion while net income doubled to RMB2,624 million[2], because contribution margins rose across businesses and operating expenses fell 14.1%[4], and operating cash flow reached RMB6,612 million[10]. The central unresolved question is how much of this came from connected-network efficiency, the rental and renovation restructuring and a lower headcount base, and how much was simply the spring transaction rebound and seasonal quarter-end working capital; the rise in new-home receivables adds another layer of uncertainty about the quality of the margin.

Since the second-quarter results, the main independent outside interpretation with a clear view is a November 8 preview from Earnings Whispers, which argues that this report hinges on margins rather than sales[8]. It cites market expectations of US$0.25 per share on revenue of US$3.05 billion, a 5.8% year-over-year decline, and calls new homes the weaker link, saying new-home volume growth has narrowed to about 1% as buyers drift toward cheaper resale properties[8]. That reading fits how the existing-home margin and cost-base debates are framed: if revenue falls as expected and the margin improvement continues, the second-quarter jump was more structural. Its view of new homes sits in tension with the 4.4-percentage-point rise in the second-quarter new-home contribution margin, and it points attention toward whether that margin holds and how developers pay. This is one outlet's outside interpretation, and it cannot stand in for the market's broader view.

Only a combination of later observations can materially strengthen or weaken the current understanding. If third-quarter existing-home GTV still grows, the existing-home contribution margin rises more than 3 percentage points year over year, operating expenses stay down more than 10% with net operating cash inflow, and receivables fall below RMB4,928.9 million at September 30, the margin improvement looks mainly structural. Conversely, if existing-home transactions turn negative, the margin gain narrows sharply, receivables keep climbing or operating cash flow turns negative, the second-quarter margin jump would have depended heavily on peak-season and seasonal working-capital effects.

Sources

[1] BEKE 6-K filed 2026-11-05 board meeting · 2026-11-05 · 6-K · https://www.sec.gov/Archives/edgar/data/1809587/000110465926122940/tm2628991d1_ex99-1.htm

[2] BEKE 6-K filed 2026-08-24 Q2 2026 results · 2026-08-24 · 6-K · https://www.sec.gov/Archives/edgar/data/1809587/000110465926100295/tm2623857d1_ex99-1.htm

[3] BEKE 6-K filed 2026-08-24 Q2 2026 contribution margin and costs · 2026-08-24 · 6-K · https://www.sec.gov/Archives/edgar/data/1809587/000110465926100295/tm2623857d1_ex99-1.htm

[4] BEKE 6-K filed 2026-08-24 Q2 2026 operating expenses and profit · 2026-08-24 · 6-K · https://www.sec.gov/Archives/edgar/data/1809587/000110465926100295/tm2623857d1_ex99-1.htm

[5] BEKE Q1 2026 earnings call 2026-05-19 · 2026-05-19 · Earnings call · https://investors.ke.com

[6] Drillr earnings calendar 2026-11-11 BEKE Q3 2026 · 2026-11-11 · Drillr earnings calendar

[7] Drillr analyst estimates 2026-11-11 BEKE Q3 2026 · 2026-11-11 · Drillr analyst estimates

[8] Earnings Whispers 2026-11-08 BEKE Q3 preview · 2026-11-08 · Earnings Whispers · https://finviz.com/news/418743/ke-holdings-must-prove-its-margin-breakout-can-survive-a-softer-third-quarter

[9] BEKE 6-K filed 2026-08-24 Q2 2026 segment revenue · 2026-08-24 · 6-K · https://www.sec.gov/Archives/edgar/data/1809587/000110465926100295/tm2623857d1_ex99-1.htm

[10] BEKE 6-K filed 2026-08-24 Q2 2026 balance sheet and cash flow · 2026-08-24 · 6-K · https://www.sec.gov/Archives/edgar/data/1809587/000110465926100295/tm2623857d1_ex99-1.htm

[11] BEKE 20-F filed 2026-04-24 · 2026-04-24 · 20-F · https://www.sec.gov/Archives/edgar/data/1809587/000110465926048109/beke-20251231x20f.htm

[12] BEKE 20-F filed 2026-04-24 existing home · 2026-04-24 · 20-F · https://www.sec.gov/Archives/edgar/data/1809587/000110465926048109/beke-20251231x20f.htm

[13] BEKE 20-F filed 2026-04-24 new home and receivables · 2026-04-24 · 20-F · https://www.sec.gov/Archives/edgar/data/1809587/000110465926048109/beke-20251231x20f.htm

[14] BEKE 20-F filed 2026-04-24 rental and renovation · 2026-04-24 · 20-F · https://www.sec.gov/Archives/edgar/data/1809587/000110465926048109/beke-20251231x20f.htm

[15] BEKE 20-F filed 2026-04-24 network and competition · 2026-04-24 · 20-F · https://www.sec.gov/Archives/edgar/data/1809587/000110465926048109/beke-20251231x20f.htm

[16] BEKE 20-F filed 2026-04-24 cash flow · 2026-04-24 · 20-F · https://www.sec.gov/Archives/edgar/data/1809587/000110465926048109/beke-20251231x20f.htm

[17] BEKE 6-K filed 2026-05-20 Q1 2026 results · 2026-05-20 · 6-K · https://www.sec.gov/Archives/edgar/data/1809587/000110465926064481/tm2615067d1_ex99-1.htm

[18] BEKE 20-F filed 2026-04-24 contribution margins · 2026-04-24 · 20-F · https://www.sec.gov/Archives/edgar/data/1809587/000110465926048109/beke-20251231x20f.htm

[19] BEKE Q2 2026 earnings call 2026-08-21 · 2026-08-21 · Earnings call · https://investors.ke.com

[20] BEKE Q2 2026 earnings call 2026-08-21 existing home Q&A · 2026-08-21 · Earnings call · https://investors.ke.com