KE Holdings Inc. (BEKE): BCG Matrix [Dec-2025 Updated]

You're looking at KE Holdings Inc. (BEKE) right now, and the picture is defintely shifting from the old model. As of late 2025, the core existing home transaction business, which still moves RMB505.6 billion in GTV, is acting as our reliable Cash Cow, but the real action is in the high-growth Stars like Home Rental Services, which shot up 45.3% year-over-year to RMB5.7 billion. We've got a few Dogs bringing in just RMB0.4 billion, and the big question marks-like the renovation segment and the shrinking New Home GTV, down 13.7%-are where the next big capital decisions lie; let's break down exactly where your focus should be across these four quadrants below.

Background of KE Holdings Inc. (BEKE)

You're looking at KE Holdings Inc. (BEKE), which you know as Beike, the major integrated online and offline platform for housing transactions and services across China. Honestly, the company has built its foundation by owning and operating Lianjia, which is China's leading real estate brokerage brand and a critical part of the Beike ecosystem. This hybrid digital-physical network is how they aim to standardize and streamline property services, from existing and new home sales to rentals and renovations.

Let's look at the numbers coming out of the third quarter of 2025, which gives us a solid snapshot as of late 2025. For the quarter ending September 30, 2025, KE Holdings reported net revenues of RMB23.1 billion, marking a modest increase of 2.1% year-over-year. The Gross Transaction Value (GTV) for the period was RMB736.7 billion, which was flat compared to the same period last year.

Profitability was definitely under pressure, which is something you need to watch closely. Net income for Q3 2025 dropped significantly by 36.1% year-over-year to RMB747 million. Adjusted net income also saw a decline, coming in at RMB1,286 million, down 27.8% from the prior year. This suggests that while they are maintaining top-line revenue, cost management or margin pressure is a real headwind right now.

Breaking down the core transaction business in Q3 2025 shows a mixed picture in the property market itself. Existing home GTV actually saw some positive momentum, growing 5.8% to RMB505.6B. However, new home GTV faced a contraction, falling 13.7% to RMB196.3B. This divergence is key to understanding where their immediate revenue strength lies.

The company continues to push its 'Three Wings' strategy, focusing on growth areas beyond traditional brokerage. Home rental services are showing impressive scale, with net revenues jumping 45.3% to RMB5.7 billion in the third quarter, largely due to the expansion of their Carefree Rent model. Home renovation and furnishing revenues were relatively flat at RMB4.3 billion for the quarter.

On the operational front, KE Holdings Inc. is still expanding its physical footprint, which supports its offline model. As of September 30, 2025, the company reported 59,012 active stores, a 25.9% increase from one year prior. Active agents also grew, reaching 471,501, up 11.4% year-over-year. Plus, they are maintaining a strong liquidity position, with cash and equivalents totaling RMB55.7 billion at the end of Q3 2025, and they continued their capital return program by repurchasing approximately US$281 million in shares that quarter.

KE Holdings Inc. (BEKE) - BCG Matrix: Stars

You're looking at the business units of KE Holdings Inc. (BEKE) that are dominating high-growth areas, which is exactly what the Star quadrant of the Boston Consulting Group (BCG) Matrix represents. For KE Holdings Inc., the Home Rental Services segment clearly fits this profile based on the latest figures.

This segment is showing massive top-line expansion. Net revenues from Home Rental Services hit a record high of RMB5.7 billion (US$0.8 billion) in the third quarter of 2025, marking a substantial year-over-year growth rate of 45.3%. This rapid revenue climb is directly tied to market share gains, as the total number of managed rental units soared to exceed 660,000 by the end of Q3 2025. That represents a year-over-year increase of 75% from the over 370,000 units managed in the same period of 2024. Keeping up this pace in a competitive space definitely requires heavy investment, which is typical for a Star, but the underlying unit economics are improving.

Here's a quick look at the core performance indicators for this high-growth area as of Q3 2025:

The investment needed to fuel this market share grab is starting to yield better returns. The contribution margin for Home Rental Services improved to 8.7% in Q3 2025, which is an increase of 4.3 percentage points compared to the prior year period. This margin expansion, coupled with the segment achieving city-level profitability before headquarters allocations in Q3, shows a clear path to high profitability once the market growth rate naturally slows down, allowing the Star to transition into a Cash Cow. The contribution profit itself surged by 186% year-over-year, reaching nearly RMB 500 million in the quarter.

You should track these specific indicators to confirm its Star status progression:

• Revenue growth remains above 40% year-over-year.
• Managed unit count continues to grow at a pace near 75% annually.
• Contribution margin sustains an upward trend toward double digits.
• The segment maintains its city-level profitability achievement.

If KE Holdings Inc. successfully maintains this market share momentum until the high-growth phase of the rental market matures, you can expect this unit to become a significant source of stable cash flow for the entire enterprise.

KE Holdings Inc. (BEKE) - BCG Matrix: Cash Cows

You're looking at the core engine of KE Holdings Inc. (BEKE)'s cash generation, the segment that funds everything else. These are the Cash Cows: high market share in markets that aren't expanding much anymore. They are the business units that generate more cash than they need to maintain their position. Honestly, this is where you want the bulk of your mature business to be.

The Existing Home Transaction Services is definitely this quadrant's anchor for KE Holdings Inc. (BEKE). This segment is the largest and most established, providing the stable, high-market-share platform cash flow that keeps the lights on and funds riskier ventures. Because competitive advantage is locked in, profit margins here are typically high, meaning this unit consumes little but pumps out significant cash.

Here's the quick math on the scale of this cash generator for the third quarter of 2025. Existing Home Transaction Services Gross Transaction Volume (GTV) hit RMB505.6 billion (or US$71.0 billion) in Q3 2025. That represents a year-over-year increase of 5.8%, showing resilience even in a mature space. To be fair, the revenue side saw a slight contraction, but the sheer volume is what matters for cash flow stability.

Net revenues for this segment were RMB6.0 billion (approximately US$0.8 billion) in Q3 2025. This was a slight decrease of 3.6% year-over-year, but it still represents a massive, reliable cash inflow. Investments here are focused on efficiency-supporting infrastructure improvements-rather than aggressive promotion, which keeps the cash flow high.

The dominance of the Lianjia brand, coupled with the Beike platform's reach, solidifies a high relative market share in what is a mature, low-growth market for property transactions. This market leadership is the key to its Cash Cow status.

Consider the key financial metrics for this core business unit as of Q3 2025:

The strategy for a Cash Cow like this is straightforward: maintain the current level of productivity and milk the gains passively. You don't want to overspend on growth initiatives that won't yield significant returns in this market stage. Instead, you use the cash it generates to feed the Question Marks or defend the Stars.

The operational characteristics supporting this Cash Cow designation include:

• Market position: High relative market share.
• Market growth: Mature, low-growth prospects.
• Cash generation: Massive cash generator.
• Investment focus: Efficiency and infrastructure support.
• Brand strength: Lianjia brand and Beike platform dominance.

This segment provides the necessary capital buffer. It covers administrative costs, services corporate debt, and funds research and development for other parts of KE Holdings Inc. (BEKE)'s portfolio. If onboarding takes 14+ days, churn risk rises, so maintaining platform efficiency is a key operational focus to protect this cash flow.

Finance: draft 13-week cash view by Friday.

KE Holdings Inc. (BEKE) - BCG Matrix: Dogs

You're analyzing the portfolio of KE Holdings Inc. (BEKE) and the segment that clearly falls into the Dogs quadrant-low market share in a low-growth or declining market-is the Emerging and Other Services unit.

This segment represents smaller, non-core offerings that, as of the latest reporting, haven't achieved the necessary scale or profitability to compete effectively against the core transaction businesses. The strategy here is typically to minimize investment, harvest any remaining value, or prepare for divestiture, as expensive turn-around plans rarely pay off in this quadrant.

Here's a look at the hard numbers defining this unit's position as of the third quarter of 2025:

The data clearly shows the pressure this segment is under. Emerging and Other Services net revenues were only RMB0.4 billion (US$0.06 billion) in Q3 2025. This figure is down from RMB0.5 billion in the same period last year.

This segment saw a year-over-year revenue decrease of 18.7%, which strongly indicates low market share and negative growth dynamics, fitting the profile of a Dog. You need to treat these units with capital discipline.

For KE Holdings Inc., the implications for this segment are straightforward based on the BCG framework:

• This segment includes smaller, non-core offerings that have not achieved scale or profitability.
• Low-growth, low-share segments require minimal investment.
• These units are prime candidates for divestiture or harvesting strategy execution.

Honestly, when a revenue stream shrinks by nearly one-fifth year-over-year, you've got to ask if the resources tied up are better deployed elsewhere, like in the high-growth rental services that saw a 45.3% revenue increase in the same quarter. Finance: draft a 13-week cash view for the Emerging and Other Services unit by Friday.

KE Holdings Inc. (BEKE) - BCG Matrix: Question Marks

You're looking at the parts of KE Holdings Inc. (BEKE) that are burning cash now but hold the potential for significant future returns, assuming the right strategic moves are made. These are the Question Marks-high market growth, low current market share. They consume capital because they are fighting to establish a foothold in expanding areas, but right now, they aren't delivering big profits.

Consider the New Home Transaction Services segment. While the overall property market faces headwinds, the potential for digital transformation in new home sales remains high-growth territory. However, KE Holdings Inc. (BEKE)'s current share in that evolving space is not yet dominant. This unit needs serious capital infusion to scale quickly before competitors solidify their positions. If it doesn't gain traction fast, it risks sliding into the Dog quadrant as the market matures or consolidates.

The Home Renovation and Furnishing business represents another area where KE Holdings Inc. (BEKE) is placing bets on future revenue streams. This market is growing, but it's also incredibly fragmented, meaning market share is hard-won and expensive to acquire. You need to see a clear path to market leadership here, or the cash drain becomes unsustainable.

Here are the key financial snapshots for these high-potential, high-cost units as of the third quarter of 2025:

The New Home segment's performance clearly shows the pressure. A GTV decrease of 13.7% year-over-year to RMB196.3 billion (or US$27.6 billion) in Q3 2025 signals that the challenging market conditions are actively shrinking the pool KE Holdings Inc. (BEKE) is fishing in. This forces a critical strategic choice.

For these Question Marks, the playbook is clear: either commit significant resources to win market share or divest. You can't afford to let them tread water.

• Invest heavily to achieve market dominance quickly.
• Focus marketing spend on driving rapid customer adoption.
• Assess the long-term competitive advantage in the renovation space.
• Determine if the New Home segment can reverse the GTV decline trend.
• Set strict timelines for market share gains before further cash commitment.

The renovation business, generating RMB4.3 billion (or US$0.6 billion) in net revenues for Q3 2025, is a strategic diversification effort. Honestly, it's a gamble right now; it needs heavy investment to capture share in that highly competitive, fragmented industry. If onboarding takes 14+ days, churn risk rises.

The core issue for the New Home segment, despite its large GTV base of RMB196.3 billion, is that its market share is situated within a rapidly contracting environment. This isn't a classic high-growth market scenario; it's a shrinking market where KE Holdings Inc. (BEKE) must consolidate its position or face obsolescence. Finance: draft 13-week cash view for Q4 2025 investment scenarios by Friday.