KE Holdings Inc. (BEKE): ANSOFF MATRIX [Dec-2025 Updated]

You're looking at KE Holdings Inc. (BEKE)'s Q3 2025 results and seeing a classic dilemma: revenue nudged up just 2.1% to RMB23.1 billion, but the bottom line took a real hit with net income falling 36.1%. Honestly, that mixed signal tells us they can't just keep doing the same thing. As someone who's mapped out growth strategies for years, the Ansoff Matrix is the perfect tool here to cut through the noise. It clearly lays out four distinct paths for KE Holdings Inc. (BEKE) to drive real growth, whether that means aggressively capturing more of their existing Chinese market-like boosting active stores past 59,012-or taking the leap into entirely new international territories. Dive in below to see the concrete actions we've mapped out for each quadrant.

KE Holdings Inc. (BEKE) - Ansoff Matrix: Market Penetration

You're looking at how KE Holdings Inc. (BEKE) can drive more volume through its existing platform and services. This is about maximizing penetration in the current market space.

Increase active stores past the Q3 2025 figure of 59,012 via aggressive franchise recruitment. The total store count as of September 30, 2025, was 61,393, showing a year-over-year increase of 27.3%. The active store base reached 59,012 as of September 30, 2025, marking a 25.9% increase from one year ago. The agent base also grew, standing at 545,511 as of September 30, 2025, up 14.5% year-over-year.

Launch targeted marketing to boost existing home GTV growth beyond the Q3 2025 rate of 5.8%. The Gross Transaction Value (GTV) for existing home transactions in the third quarter of 2025 was RMB505.6 billion (US$71.0 billion), which represented an increase of 5.8% year-over-year. Total GTV for the quarter was RMB736.7 billion (US$103.5 billion), relatively flat year-over-year.

Deepen AI integration in home rental services to sustain the 45.3% YoY revenue surge seen in Q3 2025. Net revenues from home rental services surged by 45.3% to RMB5.7 billion (US$0.8 billion) in the third quarter of 2025, up from RMB3.9 billion in the same period of 2024. This growth was primarily due to an increase in the number of rental units under the Carefree Rent model.

Here's a quick look at the core Q3 2025 operational metrics:

Offer dynamic, localized commission structures to incentivize agents in underperforming tier-two cities. The company is exploring operational efficiency and technological innovation, including a pilot program in Shanghai featuring a 'buyer-seller agent specialization' mechanism.

Leverage the RMB55.7 billion cash and equivalents for strategic, small-scale brokerage acquisitions in key regions. As of September 30, 2025, KE Holdings Inc. held cash and investments totaling RMB55.7 billion (US$7.8 billion). The company also continued its share repurchase program, spending US$281 million in the third quarter.

Consider these operational data points as you plan the next push:

• Mobile monthly active users (MAU) averaged 49.3 million in Q3 2025, up from 46.2 million in Q3 2024.
• Net income for Q3 2025 was RMB747 million (US$105 million).
• Adjusted net income for Q3 2025 was RMB1,286 million (US$181 million).
• Gross margin decreased by 1.3 percentage points to 21.4%.

KE Holdings Inc. (BEKE) - Ansoff Matrix: Market Development

Market Development for KE Holdings Inc. (BEKE) centers on taking the proven domestic platform and service models into new geographical territories. You're looking to expand the reach of your existing infrastructure, which, as of the second quarter of 2025, supports a network of 58,664 active stores, a 32.1% year-over-year increase, and 491,573 active agents, up 19.5% year-over-year. This scale provides the operational base for international moves.

The strategy involves several concrete steps to test and establish presence in high-value overseas markets:

• Pilot the Beike platform in a high-volume Chinese diaspora market, like Singapore or Vancouver.
• Establish a dedicated 'Overseas Property' division to serve affluent Chinese investors looking to diversify.
• Partner with local US or Australian brokerages to offer cross-border transaction services using the existing platform technology.
• Translate and localize the Agent Cooperation Network (ACN) model for a large, fragmented Southeast Asian market.
• Use the existing online-merge-offline (OMO) model to facilitate property tours for international buyers.

The domestic platform's proven ability to scale non-core services demonstrates a transferable model. For instance, net revenues from home rental services for the six months ended June 30, 2025, reached RMB 10.8 billion, an 85.2% year-over-year increase, showing successful expansion within a service category. This success in scaling rentals provides a blueprint for international service adoption.

The sheer size of the domestic transaction value underscores the potential scale if a new market is captured. Total Gross Transaction Value (GTV) for the first six months of 2025 was RMB 1,722.4 billion, a 17.3% increase from the prior year period. The expansion of the agent network is key to supporting the ACN model overseas, as the total number of active agents grew to 491,573 by Q2 2025.

The financial commitment to platform strength is also evident in corporate actions, such as the extension and upsizing of the share repurchase program to US$5 billion. This financial flexibility supports strategic investments required for market development initiatives.

Here is a look at the operational scale that underpins this Market Development strategy:

The focus on technology integration, such as AI capabilities, is intended to drive efficiency, which will be critical when adapting the OMO model to the logistical challenges of cross-border property tours. The company's Q2 2025 results showed that net revenues from non-housing transaction services accounted for a record high of 41% of total net revenues, demonstrating successful diversification that can be replicated in new markets.

The existing home transaction GTV for Q2 2025 was RMB 583.5 billion (US$81.5 billion), showing the core business's volume, which the ACN model is designed to support and expand upon in new geographies. The new home GTV for the same period was RMB 255.4 billion (US$35.6 billion).

Finance: model the capital allocation for the Singapore pilot program based on a 1.5% initial marketing spend against projected Q1 2026 international GTV target.

KE Holdings Inc. (BEKE) - Ansoff Matrix: Product Development

You're looking at how KE Holdings Inc. (BEKE) can build new offerings on its existing market base, which means pushing deeper into the services surrounding the core transaction.

Expand the Home Renovation and Furnishing segment to a full-service, end-to-end digital offering.

The Home Renovation and Furnishing segment showed revenue of RMB 4.3 billion (US$0.6 billion) in the third quarter of 2025, which was relatively flat compared to RMB 4.2 billion in the same period of 2024. For the second quarter of 2025, revenue from this business reached RMB 4.6 billion, marking a 13% year-over-year increase. The contribution margin for this segment in Q2 2025 was 32.1%. Furthermore, this segment, along with home rental services, achieved city-level profitability before deducting headquarters expenses in the third quarter of 2025.

The strategic move to digital end-to-end service is supported by the fact that non-housing transaction revenues, which include renovation, accounted for 41% of total revenue in Q2 2025.

Here's a quick look at the segment revenue performance:

Roll out a proprietary mortgage application and real estate financial solutions platform across all major cities.

Financial services are grouped under 'emerging and other services'. The Gross Transaction Value (GTV) for emerging and other services was RMB 38.3 billion (US$5.3 billion) in the fourth quarter of 2024.

Introduce advanced Virtual Reality (VR) property viewing and Augmented Reality (AR) furnishing tools for new home sales.

The company is leveraging AI capability for tasks like intelligent pricing in rental services. The GTV of new home transactions in Q3 2025 was RMB 196.3 billion (US$27.6 billion).

Develop a specialized property management service for commercial real estate, moving beyond residential-only.

The current focus shows the home rental services managed over 500,000 units by the end of the first quarter of 2025. Net revenues from home rental services in Q3 2025 were RMB 5.7 billion (US$0.8 billion), a 45.3% increase from the prior year period.

Integrate smart home technology consulting into the existing renovation service to increase average transaction value.

The average revenue per order in the home renovation and furnishing business increased in Q2 2025, stemming from an increase in the average price of furniture and home furniture retail. The company is also focusing on organizational optimization and process restructuring to improve operational efficiency.

• Mobile monthly active users (MAU) averaged 49.3 million in the third quarter of 2025.
• The number of active stores as of September 30, 2025, was 59,012.
• The number of active agents as of September 30, 2025, was 471,501.

Finance: draft 13-week cash view by Friday.

KE Holdings Inc. (BEKE) - Ansoff Matrix: Diversification

You're looking at how KE Holdings Inc. (BEKE) might push beyond its core China residential brokerage business, which saw Q3 2025 total revenues hit RMB 23.1 billion. Still, that quarter saw GAAP net income drop to RMB 747 million, and the gross margin settle at 21.4%. This pressure on profitability, despite Q2 2025 net revenues rising 11.3% year-over-year to RMB 26.0 billion, makes exploring new avenues, the Diversification quadrant of the matrix, a clear strategic consideration.

The company already has some diversification built in; for instance, revenue from non-housing transaction services accounted for 41% of total revenues in Q2 2025. This existing non-core revenue base provides a foundation for further expansion into entirely new areas.

Here are the potential diversification vectors KE Holdings Inc. (BEKE) could pursue, grounded in recent operational scale:

• Launch a dedicated senior living facility property management and development service in a new market like Japan.
• Acquire a minority stake in a US-based PropTech firm specializing in commercial real estate data and analytics.
• Create a new venture capital fund to invest in non-real estate financial technology (FinTech) startups outside of China.
• Develop a B2B SaaS platform for real estate developers, selling the Beike technology infrastructure as a service.
• Enter the overseas education consulting market, bundling property rental/purchase with student relocation services.

Mapping the current operational scale against these new ventures helps frame the potential impact. Consider the existing transaction volume and agent network as the base technology to be leveraged:

For example, the B2B SaaS platform idea leverages the technology that underpins the existing network. In Q1 2025, new home GTV grew 53.0% year-over-year to RMB 232.2 billion, showing the platform's capability to handle complex transaction flows that could be productized for developers.

The financial commitment to shareholder returns, which can be seen as a form of capital allocation diversification away from pure operational reinvestment, is also significant. KE Holdings Inc. (BEKE) spent US$281 million on share repurchases in Q3 2025 alone, and the board approved an upsizing of the program to US$5 billion, extended until August 31, 2028. To date, approximately US$2.18 billion had been spent under the existing program as of August 2025.

The market's current view, reflected in the latest analyst price target of $20.70, suggests that while the balance sheet is considered strong, profitability challenges persist, reinforcing the need for revenue streams less correlated with the domestic housing cycle.

• Q1 2025 Net Income: RMB 855 million (up 97.9% YoY)
• Q2 2025 Net Income: RMB 1,307 million (down 31.2% YoY)
• Q3 2025 GAAP Net Income: RMB 747 million (down 36.1% YoY)
• Q3 2025 Non-GAAP Net Income: RMB 1.29 billion