KE Holdings Q2: Existing-Home GTV Hits RMB 629.9B, Up 8% YoY

For real estate platforms, KE Holdings' Q2 is a case study in portfolio mix shift: existing-home GTV rose 8% to RMB 629.9B while new-home GTV only managed 1.2%, confirming the shift toward brokerage and services. Managed rental units reached 790,000, up 34%, even as net-basis accounting temporarily depressed reported rental revenue.

On Friday, Aug. 21, 2026, KE Holdings (NYSE: BEKE) reported second-quarter results that showcased a structural pivot in China's residential real estate market. The company said GTV grew 6.3% year over year, driven by a recovery in existing-home transactions and improved coverage in higher-tier cities. Existing-home GTV rose 8% to RMB 629.9 billion, while new-home GTV only edged up 1.2% to RMB 258.4 billion, underscoring the shift from primary sales to brokerage and platform services. Non-GAAP net income surged 74.9% to RMB 3.2 billion, and gross margin expanded 6.7 percentage points to 28.6%. GAAP operating expenses fell 14.1% to RMB 4.0 billion, reflecting lower marketing and organizational costs.

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Net sales rose 4.6% to $319.8 million, with comparable store sales up 2.1% and online sales up 2.3% to $44.6 million.

The contribution margin story is particularly notable for the platform economy. Existing home contribution margin improved 6.1 percentage points to 46.1%, supported by lower fixed labor costs and a shift toward platform service revenue. New-home accounts receivable turnover improved by 12 days to 39 days, signaling better collections from developers and risk management in a still-pressured new-home market. KE Holdings' managed rental portfolio reached 790,000 units, up 34% year over year, with net-basis products now more than half of the portfolio. Home renovation revenue fell 30.1% to RMB 3.2 billion because of proactive exits from inefficient cities and lower new-home deliveries, while rental revenue declined 14.8% to RMB 4.8 billion after moving to a net-basis revenue recognition model for lighter-risk products.

Those revenue declines are strategic rather than operational deterioration. Net-basis accounting reduces headline revenue but improves the quality and risk profile of rental earnings. The company's broad cash balance of RMB 67.3 billion gives it ample liquidity for share repurchases and business development. The results suggest KE Holdings is managing the down-cycle in China's new-home market by pivoting to existing-home brokerage, platform revenue, and asset-light rental services. Tier-one city transaction volumes outpaced other markets, indicating that recovery remains concentrated in high-demand urban centers.

In the same Friday earnings window, US specialty retailer Buckle reported Q2 results that offer a consumer-spending contrast. Net sales rose 4.6% to $319.8 million, with comparable store sales up 2.1% and online sales up 2.3% to $44.6 million. Average unit retail increased about 4.5%, and average transaction value rose 3.5%, but units per transaction fell 1%. Gross margin improved 40 basis points to 47.8% of net sales, helped by $2.5 million in tariff refunds that added 65 basis points to merchandise margins. However, SG&A rose to 30.4% of net sales from 29.0%, and operating margin declined to 17.4% from 18.4%. Inventory jumped 13.3% to $161.4 million, supporting growth and new locations.

Buckle's results highlight the margin pressure facing US specialty retail even when demand is stable. Higher AUR and comp growth were offset by marketing and labor cost increases. The company's cash and investments totaled $323 million as of Aug. 1, 2026, and capital expenditures were $29.8 million for the quarter, reflecting continued physical-store investment. The tariff refunds are a one-time benefit; excluding them, the underlying gross margin improvement would have been more modest.