Revenue remains highly cyclical, swinging from a 54.1% YoY increase in 2024Q4 to a 28.7% decline in 2025Q4, while NOI margin has recently expanded to 28.6% from 21.9% a year prior, suggesting improved operational leverage.
KE Holdings Inc. (BEKE) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Revenue | 88.6B | 94.58B | 93.46B | 77.78B | 60.67B | 80.75B | 70.48B | 46.01B | 28.65B | 25.51B |
| Revenue Growth % | -14.02% | 1.2% | 20.16% | 28.2% | -24.87% | 14.57% | 53.17% | 60.63% | 12.31% | - |
| Property Operating Expenses | 67.36B | 74.37B | 70.51B | 56.06B | 46.89B | 64.93B | 53.62B | 34.75B | 21.78B | 20.74B |
| Net Operating Income (NOI) | 21.25B | 20.21B | 22.94B | 21.72B | 13.78B | 15.82B | 16.86B | 11.27B | 6.87B | 4.77B |
| NOI Margin % | 23.98% | 21.37% | 24.55% | 27.92% | 22.71% | 19.59% | 23.92% | 24.49% | 23.98% | 18.69% |
| Operating Expenses | 15.81B | 17.38B | 18.3B | 16.07B | 13.8B | 15.37B | 14.02B | 13.05B | 8.09B | 5.53B |
| G&A Expenses | 14B | 15.4B | 16.74B | 14.89B | 11.92B | 13.23B | 11.3B | 11.48B | 7.42B | 5.28B |
| EBITDA | 6.47B | 3.9B | 5.66B | 7.05B | 1.49B | 1.82B | 4.02B | -746.22M | -425.71M | 47.31M |
| EBITDA Margin % | 7.3% | 4.12% | 6.06% | 9.07% | 2.45% | 2.26% | 5.7% | -1.62% | -1.49% | 0.19% |
| Depreciation & Amortization | 1.03B | 1.07B | 1.01B | 1.4B | 1.5B | 1.37B | 1.17B | 1.04B | 792.29M | 811.2M |
| D&A / Revenue % | 1.16% | 1.13% | 1.08% | 1.8% | 2.48% | 1.7% | 1.67% | 2.26% | 2.77% | 3.18% |
| Operating Income | 5.44B | 2.83B | 4.65B | 5.65B | -16.48M | 451.75M | 2.84B | -1.79B | -1.22B | -763.89M |
| Operating Margin % | 6.14% | 2.99% | 4.97% | 7.27% | -0.03% | 0.56% | 4.03% | -3.88% | -4.25% | -2.99% |
| Interest Expense | 0 | 7.42M | 28.55M | 28.15M | 14.49M | 30.41M | 0 | 206.97M | 43.54M | 43.85M |
| Interest Coverage | - | 631.51x | 241.11x | 280.72x | 21.18x | 37.90x | - | -5.29x | -10.46x | -2.15x |
| Non-Operating Income | -3.02B | -1.86B | -2.24B | -2.25B | -323.25M | -700.83M | -1.73B | -690.89M | -762.48M | -669.41M |
| Pretax Income | 6.97B | 4.68B | 6.87B | 7.88B | 292.29M | 1.14B | 4.39B | -1.28B | -499.06M | -138.34M |
| Pretax Margin % | 7.87% | 4.95% | 7.35% | 10.14% | 0.48% | 1.41% | 6.22% | -2.77% | -1.74% | -0.54% |
| Income Tax | 2.27B | 1.69B | 2.79B | 1.99B | 1.69B | 1.67B | 1.61B | 904.36M | -71.38M | 399.28M |
| Effective Tax Rate % | 32.57% | 36.05% | 40.64% | 25.3% | 578.05% | 146% | 36.67% | -70.89% | 14.3% | -288.63% |
| Net Income | 4.71B | 2.99B | 4.06B | 5.88B | -1.39B | -524.13M | 2.78B | -2.18B | -467.82M | -574.43M |
| Net Margin % | 5.31% | 3.17% | 4.35% | 7.56% | -2.28% | -0.65% | 3.94% | -4.75% | -1.63% | -2.25% |
| Net Income Growth % | 20.79% | -26.35% | -30.91% | 524.45% | -164.45% | -118.87% | 227.21% | -366.75% | 18.56% | - |
| Funds From Operations (FFO) | 5.74B | 4.07B | 5.08B | 7.29B | 116.65M | 846.63M | 3.95B | -1.14B | 324.47M | 236.77M |
| FFO Margin % | 6.48% | 4.3% | 5.43% | 9.37% | 0.19% | 1.05% | 5.61% | -2.49% | 1.13% | 0.93% |
| FFO Growth % | 48.56% | -19.91% | -30.31% | 6145.69% | -86.22% | -78.57% | 445.35% | -452.65% | 37.04% | - |
| FFO per Share | 5.13 | 3.51 | 4.31 | 6.05 | 0.10 | 0.72 | 3.40 | -1.00 | 0.27 | 0.21 |
| FFO Payout Ratio % | 36.01% | 68.92% | 55.75% | 19.57% | 47.85% | 9.05% | 0.98% | 0% | 0% | 53.72% |
| EPS (Diluted) | 4.21 | 2.52 | 3.45 | 4.89 | -1.17 | -0.45 | 0.96 | -1.90 | -0.39 | -0.48 |
| EPS Growth % | 26.47% | -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 | 1.12B | 1.16B | 1.18B | 1.2B | 1.19B | 1.18B | 1.16B | 1.14B | 1.19B | 1.14B |
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.
Key Metrics
Top Statement Risk
Chinese property market volatility
Revenue Volatility Amidst Strategic Pivot
BEKE's revenue trajectory is highly volatile, swinging from a 54.1% YoY increase in 2024Q4 to a 28.7% decline in 2025Q4, reflecting extreme sensitivity to Chinese property transaction cycles and policy shifts.
The erratic revenue growth pattern, with quarters of both strong expansion and sharp contraction, underscores the company's exposure to the cyclical and policy-driven nature of the Chinese real estate market. This volatility suggests that top-line performance is less a function of consistent organic growth and more a reflection of the prevailing macro environment and transaction volumes. The strategic expansion into home renovation and rental services appears to be a necessary diversification effort to smooth this inherent cyclicality, though its revenue contribution remains secondary to the core transaction business.
NOI Margin Expansion Amidst Revenue Pressure
Despite a 5.9% YoY revenue decline in 2026Q2, BEKE's NOI margin expanded significantly to 28.6%, up from 21.9% in the prior-year quarter, suggesting improved operational leverage or a favorable shift in revenue mix.
The notable improvement in NOI margin during a period of revenue contraction is a positive signal, potentially indicating successful cost discipline, a higher-margin revenue mix from existing home transactions, or improved commission structures. However, this margin expansion occurred alongside a massive 84.5% surge in FFO, which warrants scrutiny to determine if it reflects sustainable operational improvements or one-time items. The sustainability of this margin level is critical, as the company's high variable cost structure, dominated by agent commissions, typically limits significant margin expansion.
FFO Volatility and Negative AFFO Raise Concerns
FFO per share has been highly erratic, ranging from $0.39 to $2.51 over the last ten quarters, while the negative AFFO of -$3.7B in 2026Q2 suggests significant cash consumption from non-operational activities or investments.
The extreme volatility in FFO per share makes it difficult to assess the underlying earnings power and dividend sustainability, despite the reported 12.7% yield. The negative Adjusted Funds From Operations (AFFO) in recent quarters is a major red flag, indicating that after accounting for capital expenditures and other adjustments, the company is not generating positive free cash flow from its core operations. This pattern suggests that reported FFO may be inflated by non-cash items or that the company is investing heavily in its strategic initiatives, which could pressure future liquidity if not funded by the substantial cash balance.
Organic Performance Masked by Macro Headwinds
The lack of explicit same-store sales data makes it challenging to isolate organic growth, but the severe revenue declines in quarters like 2025Q4 (-28.7% YoY) strongly imply significant same-store transaction volume contraction.
Without specific same-store metrics, the analysis must infer organic performance from the overall revenue trend. The sharp year-over-year revenue drops in multiple quarters suggest that the existing store network and agent base are experiencing substantial declines in transaction activity, likely due to the broader property market downturn. This implies that the platform's market share gains, if any, are insufficient to offset the systemic volume decline, placing pressure on the fixed-cost base of the physical Lianjia store network.
Questionable FFO Quality and Cash Burn
The stark divergence between positive FFO and deeply negative AFFO, particularly the -$3.7B in 2026Q2, raises serious questions about the quality of reported earnings and the true cash-generating ability of the business model.
This disconnect suggests that FFO may be benefiting from significant non-cash adjustments or that the company's capital expenditures and working capital requirements are consuming all operating cash flow and more. Investors should closely examine the cash flow statement to understand the drivers of this negative AFFO, as it could indicate aggressive revenue recognition, substantial investments in the renovation or rental segments, or deteriorating working capital dynamics. The reliance on a massive cash pile to fund operations, rather than organic cash generation, represents a material risk if market conditions do not improve.