Kepper Exceeds Market Forecasts with Robust Q1 2026 Financial and Operational Growth

Leading Chinese residential service platform Kepper has delivered strong financial results for the first quarter of 2026, outperforming market consensus expectations amid a recovering domestic property service market. The company released its official Q1 earnings report, posting steady revenue expansion, notable profit improvement and continuous optimisation of operational indicators across core business segments.

In the first quarter, Kepper achieved a net revenue of 18.9 billion yuan. Its net profit rose 46.7 percent year on year to 1.255 billion yuan, while adjusted net profit reached 1.611 billion yuan, representing a 15.7 percent year-on-year increase. Key profitability indicators hit new highs over the past seven quarters, with the gross margin climbing 3.5 percentage points year on year to 24.1 percent and the adjusted operating margin rising 3.9 percentage points to 8.8 percent.

The solid financial performance is backed by a warming residential service market. The domestic property market witnessed a clear spring rebound after the Spring Festival, particularly in the second-hand housing sector. Kepper’s second-hand housing transaction volume increased 12 percent year on year in the quarter, with March’s single-month transaction volume surging 21 percent year on year to a record high. The revenue from existing housing business stood at 6.1 billion yuan, up 12.7 percent month on month.

All business segments recorded synchronous profit margin growth, marking substantial improvement in overall operational quality. The new housing business generated 5.1 billion yuan in quarterly revenue, with its profit margin rising 2.3 percentage points year on year. The home decoration business secured 2.3 billion yuan in revenue and achieved a record-high profit margin of 36.2 percent. The rental business realised 5 billion yuan in revenue, with its profit margin climbing month on month for six consecutive quarters. The platform’s managed rental housing stock exceeded 740,000 units, a year-on-year increase of approximately 47 percent.

Kepper has pressed ahead with structural optimisation and refined operation across businesses. The home decoration business has withdrawn from low-efficiency urban markets and phased out low-quality sales channels to enhance profitability. The rental business continues to iterate toward lightweight and low-risk operational models, with AI tools and professional workforce division further cutting per-unit housing labour costs.

Consumer service security capabilities have been steadily strengthened. From January to April 2026, Kepper resolved 22,500 risky property transactions through its fund safety mechanism, blocking 948 potential risks during contract signing. Its fund safety guarantee service has covered 23 cities. The platform issued 3,356 compensation cases for home decoration services with a total compensation value of 14.77 million yuan. The cumulative compensation for its rental service programme has surpassed 200 million yuan by mid-April, covering service disputes and rental accidents.

Frontline service efficiency and practitioner income have achieved stable growth. In the first quarter, the average transaction volume per agent of Lianjia increased 26 percent year on year, and average commission income rose 8 percent. From January to April, the average income per order for Lianjia practitioners increased 20 percent year on year, outpacing the overall market growth level.

The platform has launched innovative service models to optimise transaction experiences. A new transaction mechanism trialled in Beijing streamlines housing matching and negotiation procedures, effectively shortening transaction cycles for stagnant housing listings. Community open day activities also facilitate transparent property transactions by aggregating housing resources and enabling on-site communication between buyers and sellers.

Digital and intelligent transformation continues to empower industrial upgrading. Kepper’s self-developed AI application platform has served over 7,100 employees, generating more than 4,400 practical business tools with total visits exceeding 4.12 million times, enabling frontline teams to improve service efficiency through technological empowerment.

A new round of organisational and strategic reform launched in late March focuses on consumer-centric service upgrading. The reform drives management teams to engage in frontline operations, promotes specialised workforce division, and converts practical frontline experience into replicable service capabilities. The platform will further transform general practitioners into professional consultants across diverse residential service scenarios to continuously upgrade service quality and customer experience.