KE Holdings Reports Significant Profitability Decline and Negative Operating Cash Flow for 2025
Summary
KE Holdings Inc. reported a 26.7% drop in net income and a shift to negative operating cash flow for 2025, alongside a decrease in GTV and a reduced dividend, reflecting significant financial headwinds.
Key Events
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Net Income Declined Significantly
Net income decreased by 26.7% to RMB2,991 million (US$428 million) in 2025, down from RMB4,078 million in 2024.
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Operating Cash Flow Turned Negative
Net cash from operating activities shifted from a positive RMB9.4 billion in 2024 to a negative RMB376.2 million (US$53.8 million) in 2025.
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Gross Transaction Value (GTV) Decreased
Total GTV on the platform decreased by 5.0% to RMB3,183.3 billion (US$455.2 billion) in 2025 from RMB3,349.4 billion in 2024.
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Dividend Reduced for 2025 Results
The board approved a final cash dividend of US$0.092 per ordinary share (US$0.276 per ADS) for 2025, a decrease from US$0.12 per ordinary share (US$0.36 per ADS) for 2024.
Analysis
KE Holdings Inc. reported a substantial decline in net income and a significant negative shift in operating cash flow for the fiscal year 2025, despite a slight increase in total net revenues. Net income decreased by 26.7% to US$428 million, and operating cash flow turned negative, moving from a positive RMB9.4 billion in 2024 to a negative RMB376.2 million (US$53.8 million) in 2025. Gross Transaction Value (GTV) also saw a 5.0% decrease. Furthermore, the company approved a reduced cash dividend for 2025 results compared to the prior year, signaling financial pressures. While share repurchases increased, the overall financial performance indicates significant operational challenges amid a slowing housing market in China.
At the time of this filing, BEKE was trading at $15.90 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $18.3B. The 52-week trading range was $14.40 to $22.25. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.