Beike Financial Report Infographic: Annual Revenue of 94.6 Billion, Adjusted Net Profit of 5 Billion, Dividend of 300 Million USD

Question: What does the record high proportion of non-real estate business mean for Beike?

Lei Di Network Lei Jianping, March 16

Beike (NYSE:BEKE; HKEX:2423) released its Q4 2025 and full-year earnings today. The financial report shows that Beike’s revenue for 2025 was 94.6 billion yuan (13.5 billion USD), a 1% increase from 93.5 billion yuan in the same period last year. Net profit for 2025 was 2.99 billion yuan (about 428 million USD), with an adjusted net profit of 5.02 billion yuan (about 717 million USD).

Beike states that in 2025, thanks to a diversified and more resilient business structure, the company’s income remained stable despite challenging external conditions. In the real estate transaction business, second-hand transaction volume increased by 11%, and new home sales performed better than the market. The proportion of “non-real estate transaction business” reached a record high of 41%. Home renovation revenue reached 15.4 billion yuan, and the rental business achieved profitability for the first time in a full year.

With deeper integration of AI and refined operations, the average number of second-hand deals per agent increased from 2 to 3, professional home renovation project managers handled over 100% more deals per month year-over-year, and asset management managers saw a more than 40% increase in managed properties.

Beike announced that the board has approved a final cash dividend of $0.092 per ordinary share or $0.276 per American Depositary Share (ADS), payable to holders recorded at the close of business on April 8, 2026, Beijing/Hong Kong time and New York time. The total dividend payout will be approximately $300 million, paid from the company’s surplus cash on the balance sheet.

Beike co-founder, Chairman, and CEO Peng Yongdong said, “The true ability to withstand cycles does not come from scale itself but from continuously creating real value for consumers. Beike will reform its service logic, shifting from a growth model driven by store size to one driven by efficiency and value creation, improving overall resource conversion efficiency and unit output. Next, we will explore upgrading transaction services into full-process ‘decision-making’ services to enhance consumer service 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.”

Beike 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 to enhance the company’s future resilience. The profit margin contribution from new homes increased by 0.2 percentage points year-over-year, and the contribution 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 development.”

Beike Q4 Revenue: 22.2 billion yuan, down 28.7% year-over-year

Beike’s revenue for Q4 2025 was 22.2 billion yuan (3.2 billion USD), a 28.7% decrease from 31.1 billion yuan in the same period last year, mainly due to the high base effect of revenue from new home and existing home transaction services, offset somewhat by growth in rental service revenue.

In Q4 2025, net income from existing home business was 5.4 billion yuan (800 million USD), down 39% from 8.9 billion yuan last year. This was mainly due to the high base of total transaction volume, which fell 35.3% from 744.8 billion yuan in the same period of 2024 to 482 billion yuan (68.9 billion USD) in Q4 2025.

Net income from new home business in Q4 2025 was 7.3 billion yuan (1 billion USD), down 44.5% from 13.1 billion yuan last year, mainly due to the high base of total transaction volume, which decreased 41.7% from 355.3 billion yuan in the same period of 2024 to 207 billion yuan (29.6 billion USD) in Q4 2025.

Net income from home renovation and furnishings in Q4 2025 was 3.6 billion yuan (500 million USD), down 12% from 4.1 billion yuan last year, mainly due to the company’s proactive optimization of channel mix and a slowdown in some non-brokerage channels.

Net income from housing rental services in Q4 2025 was 5.4 billion yuan (800 million USD), up 18.1% from 4.6 billion yuan last year, mainly due to an increase in rental listings under the “Worry-Free Rent” model, with some impact from the increased share of new product modes under this model. In this mode, owners retain control and beneficial rights over their properties, while the company provides leasing agency and lease management services.

Therefore, under this new model, revenue is recognized based on net service fees from two sources: (1) commissions earned from facilitating lease agreements between owners and tenants; (2) fees for lease management services provided throughout the lease term.

Net income from emerging businesses and others in Q4 2025 was 459 million yuan (66 million USD), roughly flat compared to 439 million yuan in the same period of 2024.

Beike Q4 Cost: 17.4 billion yuan, down 27.2% year-over-year

Beike’s operating costs for Q4 2025 were 17.4 billion yuan (2.5 billion USD), a 27.2% decrease from 24 billion yuan last year.

Beike Q4 Gross Profit: 4.8 billion yuan, gross margin 21%

Gross profit in Q4 2025 was 4.8 billion yuan (700 million USD), down 33.7% from 7.2 billion yuan last year.

The gross margin for Q4 2025 was 21.4%, compared to 23% in the same period last year. The decline was mainly due to the reduced contribution of high-margin existing and new home transaction revenues, partially offset by increased profit margins from rental services.

Q4 Expenses: 4.9 billion yuan, down 20% year-over-year; R&D investment nearly 5 billion yuan over two years

Expenses in Q4 2025 were 4.9 billion yuan (700 million USD), down 20.4% from 6.2 billion yuan last year, mainly due to cost optimization measures.

Of these, general and administrative expenses were 2.3 billion yuan (300 million USD), down 23.9% from 3 billion yuan, mainly due to cost control, reduced credit loss provisions, and lower share-based compensation.

Sales and marketing expenses were 1.9 billion yuan (300 million USD), down 17.7% from 2.3 billion yuan, mainly due to cost optimization, including lower labor costs and reduced advertising and promotion expenses.

R&D expenses in Q4 2025 were 715 million yuan (100 million USD), roughly flat compared to 739 million yuan in the same period of 2024. For the full year, R&D investment totaled 2.6 billion yuan, with nearly 5 billion yuan invested over the past two years.

Q4 Operating Loss: 147 million yuan, due to one-time costs for cost optimization

Beike’s operating loss in Q4 2025 was 1.47 billion yuan (21 million USD), compared to an operating profit of 1.01 billion yuan in the same period last year. The operating margin was -0.7%, versus 3.2% last year, mainly due to lower gross profit margins and one-time costs related to cost optimization measures in Q4 2025.

Adjusted operating profit in Q4 2025 was 323 million yuan (about 46 million USD), compared to 1.755 billion yuan in the same period last year. Adjusted EBITDA was 910 million yuan (about 130 million USD), down from 2.343 billion yuan last year.

Q4 Adjusted Net Profit: 517 million yuan

Beike’s net profit for Q4 2025 was 82 million yuan (12 million USD), compared to 577 million yuan in the same period last year. The adjusted net profit was 517 million yuan (about 74 million USD), down 61.5% from 1.344 billion yuan last year.

As of December 31, 2025, Beike held a total of 55.5 billion yuan (7.9 billion USD) in cash, cash equivalents, restricted funds, and short-term investments.

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