---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/40910443.md"
description: "BEKE 1Q26 First Take: Overall, the quarter screened as a solid beat vs. expectations. Despite most segments posting YoY revenue declines on a high base, profit inflected as the company streamlined headcount, lifted productivity, and tightened opex, with Adj. net profit up nearly 16% YoY and well ahead of the Street. In detail: 1) Track 1 brokerage remains under pressure. GTV and revenue were both down YoY, with existing-home transactions proving resilient at a low-teens decline, while new-home fell 40%+ YoY. 2) In Track 2, home improvement revenue fell Approx. 21% YoY on macro headwinds and a strategic refocus, notably worse than the Street’s -11% view. Leasing revenue dipped 1% YoY, mainly due to a recognition change for the high-touch 'Steward Rental' model from gross to net; underlying volume likely still grew Approx. 20–30%. 3) While macro headwinds persist, margins improved across business lines. In Track 1 brokerage, segment margins expanded by 200–300bps YoY, slightly above expectations, driven by headcount rationalization and a modest reduction in agent commission splits. Margins in Track 2 exceeded expectations by a wider margin. Home improvement, despite smaller scale, delivered a 36% margin after materially optimizing the upstream supply chain and cutting customer acquisition spend. Leasing benefited from rapid growth in higher-margin 'Steward Rental,' lifting segment margin from 10.4% in the prior quarter to nearly 15%. 4) Cost discipline also contributed meaningfully. Total opex fell Approx. 22% YoY vs. total revenue down 19% YoY, led by a sharp 39% cut in marketing spend, which came in just over RMB 1bn vs. the Street’s ~RMB 1.5bn. 5) Overall, margin expansion did more of the heavy lifting, beating by Approx. RMB 240mn, while opex undershot by Approx. RMB 160mn. As a result, Adj. profit was Approx. RMB 1.6bn, nearly RMB 500mn above the Street. $KE(BEKE.US) $BEKE-W(02423.HK)"
datetime: "2026-05-19T13:16:47.000Z"
locales:
  - [en](https://longbridge.com/en/topics/40910443.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/40910443.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/40910443.md)
author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)"
---

# BEKE 1Q26 First Take: Overall, the quarter screene…


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