Operating margins have deteriorated to 2.1% in 2025Q4, reflecting the company's inability to scale its fixed cost base against a 28.7% decline in quarterly revenue.
| Sales/Revenue | 94.58B | 93.46B | 77.78B | 60.67B | 80.75B | 70.48B | 46.01B | 28.65B | 25.51B |
| Revenue Growth % | 1.2% | 20.16% | 28.2% | -24.87% | 14.57% | 53.17% | 60.63% | 12.31% | - |
| Cost of Goods Sold | 74.37B | 70.51B | 56.06B | 46.89B | 64.93B | 53.62B | 34.75B | 21.78B | 20.74B |
| COGS % of Revenue | 78.63% | 75.45% | 72.08% | 77.29% | 80.41% | 76.08% | 75.51% | 76.02% | 81.31% |
| Gross Profit | 20.21B | 22.94B | 21.72B | 13.78B | 15.82B | 16.86B | 11.27B | 6.87B | 4.77B |
| Gross Margin % | 21.37% | 24.55% | 27.92% | 22.71% | 19.59% | 23.92% | 24.49% | 23.98% | 18.69% |
| Gross Profit Growth % | -11.91% | 5.65% | 57.6% | -12.89% | -6.17% | 49.63% | 64.02% | 44.08% | - |
| Operating Expenses | 17.38B | 18.3B | 16.07B | 13.8B | 15.37B | 14.02B | 13.05B | 8.09B | 5.53B |
| OpEx % of Revenue | 18.38% | 19.58% | 20.66% | 22.74% | 19.03% | 19.89% | 28.37% | 28.23% | 21.69% |
| Selling, General & Admin | 15.4B | 16.74B | 14.89B | 11.92B | 13.23B | 11.3B | 11.48B | 7.42B | 5.28B |
| SG&A % of Revenue | 16.29% | 17.92% | 19.15% | 19.65% | 16.39% | 16.04% | 24.95% | 25.89% | 20.7% |
| Research & Development | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - |
| Operating Income | 2.83B | 4.65B | 5.65B | -16.48M | 451.75M | 2.84B | -1.79B | -1.22B | -763.89M |
| Operating Margin % | 2.99% | 4.97% | 7.27% | -0.03% | 0.56% | 4.03% | -3.88% | -4.25% | -3% |
| Operating Income Growth % | -39.15% | -17.78% | 34405.74% | -103.65% | -84.1% | 259.16% | -46.6% | -59.45% | - |
| EBITDA | 3.9B | 5.66B | 7.05B | 1.49B | 1.82B | 4.02B | -746.22M | -425.71M | 47.31M |
| EBITDA Margin % | 4.12% | 6.06% | 9.07% | 2.45% | 2.26% | 5.7% | -1.62% | -1.49% | 0.19% |
| EBITDA Growth % | -31.09% | -19.77% | 374.67% | -18.45% | -54.62% | 638.15% | -75.29% | -999.79% | - |
| D&A (Non-Cash Add-back) | 1.07B | 1.01B | 1.4B | 1.5B | 1.37B | 1.17B | 1.04B | 792.29M | 811.2M |
| EBIT | 4.68B | 6.88B | 7.9B | 306.78M | 1.15B | 4.58B | -1.09B | -455.52M | -94.48M |
| Net Interest Income | 827.09M | 1.26B | 1.26B | 755.04M | 831.39M | 163.6M | 326.26M | 121.37M | 81.17M |
| Interest Income | 834.5M | 1.29B | 1.29B | 769.09M | 861.8M | 163.6M | 533.23M | 172.68M | 126.38M |
| Interest Expense | - | - | - | - | - | - | - | - | - |
| Other Income/Expense | - | - | - | - | - | - | - | - | - |
| Pretax Income | 4.68B | 6.87B | 7.88B | 292.29M | 1.14B | 4.39B | -1.28B | -499.06M | -138.34M |
| Pretax Margin % | 4.95% | 7.35% | 10.14% | 0.48% | 1.41% | 6.22% | -2.77% | -1.74% | -0.54% |
| Income Tax | 1.69B | 2.79B | 1.99B | 1.69B | 1.67B | 1.61B | 904.36M | -71.38M | 399.28M |
| Effective Tax Rate % | 36.05% | 40.64% | 25.3% | 578.05% | 146% | 36.67% | -70.89% | 14.3% | -288.63% |
| Net Income | 2.99B | 4.06B | 5.88B | -1.39B | -524.13M | 2.78B | -2.18B | -467.82M | -574.43M |
| Net Margin % | 3.17% | 4.35% | 7.56% | -2.28% | -0.65% | 3.94% | -4.75% | -1.63% | -2.25% |
| Net Income Growth % | -26.35% | -30.91% | 524.45% | -164.45% | -118.87% | 227.21% | -366.75% | 18.56% | - |
| Net Income (Continuing) | 2.99B | 4.08B | 5.89B | -1.4B | -524.77M | 2.78B | -2.18B | -427.68M | -537.62M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 88.6M | 124.18M | 101.28M | 134.08M | 81.52M | 27.07M | 87.2M | 10.47M | 65.84M |
| EPS (Diluted) | 2.52 | 3.45 | 4.89 | -1.17 | -0.45 | 0.96 | -1.90 | -0.39 | -0.48 |
| EPS Growth % | -26.96% | -29.45% | 517.95% | -160% | -146.88% | 150.53% | -387.18% | 18.75% | - |
| EPS (Basic) | 2.67 | 3.57 | 5.01 | -1.17 | -0.45 | 0.96 | -1.90 | -0.42 | -0.48 |
| Diluted Shares Outstanding | 1.16B | 1.18B | 1.2B | 1.19B | 1.18B | 1.16B | 1.14B | 1.19B | 1.14B |
| Basic Shares Outstanding | 1.11B | 1.14B | 1.2B | 1.19B | 1.18B | 1.16B | 1.14B | 1.14B | 1.14B |
| Dividend Payout Ratio | 93.61% | 69.64% | 24.23% | - | - | 1.39% | - | - | - |
Macro-driven transaction volume volatility
As reported in recent financial statements, BEKE experienced a significant revenue contraction of 28.7% year-over-year in 2025Q4, reflecting the broader deceleration in the Chinese property market that has pressured transaction volumes across the company's core existing and new home segments throughout the recent fiscal period.
The sharp decline in top-line performance suggests that the platform's transaction-based model remains highly sensitive to macro-policy shifts and cooling buyer sentiment. Investors should monitor whether the strategic pivot toward renovation and rental services can provide a sufficient buffer against the ongoing volatility in property transaction volumes.
According to the company's quarterly filings, gross margins have compressed to 21.4% in 2025Q4, down from the 27.9% peak observed in 2024Q2, indicating that the firm's ability to maintain pricing power is being challenged by the current competitive landscape and shifting revenue mix toward lower-margin service offerings.
The narrowing of gross margins appears to reflect the high variable cost structure inherent in commission-sharing protocols, which are difficult to rationalize during periods of declining GTV. This trend warrants further investigation into whether the company can achieve sustainable margin expansion without sacrificing its competitive position in the ACN.
Based on the provided income statement data, operating margins have deteriorated to 2.1% in 2025Q4, suggesting that the company's fixed cost base, particularly the physical store network, is not scaling efficiently in response to the recent 28.7% decline in quarterly revenue compared to the prior year.
The inability to maintain operating leverage during a downturn implies that the fixed costs associated with the Lianjia store network may be acting as a drag on profitability. Analysts should consider whether management can successfully rationalize these overhead expenses if the current property market stagnation persists into future quarters.
As indicated by the 2025Q4 net income of $87.9 million, the company's bottom-line profitability has seen significant fluctuations, with EPS dropping to 0.08, a sharp decline that highlights the sensitivity of reported earnings to non-operating items and the absence of share-based compensation in the most recent quarter.
The variability in net income suggests that investors should look past headline figures to understand the underlying cash-generating capacity of the platform. The sudden cessation of share-based compensation in 2025Q4 warrants further investigation, as it may mask the true cost of talent retention in a challenging operating environment.
While the company maintains a robust cash position, the 84.4% year-over-year decline in EPS for 2025Q4 provides a strong basis for skepticism regarding the durability of the platform's earnings, particularly if the current property market downturn leads to sustained margin compression and increased credit loss provisions.
Short-sellers may focus on the potential for further deterioration in the 'Accounts Receivable' and 'Contract Assets' lines, which could signal hidden credit risks among property developers. The reliance on transactional revenue in a cooling market suggests that the 'platform premium' currently baked into the valuation may be increasingly difficult to justify.
Quick answers to the most common questions about buying BEKE stock.
For fiscal year 2025, KE Holdings Inc. (BEKE) reported total revenue of $94.58B. This represents a 270.8% increase compared to $25.51B in 2017.
KE Holdings Inc. (BEKE) is profitable, generating $2.99B in net income for the fiscal year ending 2025 with a net profit margin of 3.2%.
KE Holdings Inc. (BEKE) reported an operating income of $2.83B, resulting in an operating profit margin of 3.0%. This margin reflects the operational efficiency of the business before interest and taxes.
KE Holdings Inc. (BEKE) generated $20.21B in gross profit for the year, representing a gross profit margin of 21.4%. This demonstrates the company's core pricing power and production efficiency.