Kanzhun Limited

Revenue in the first quarter was RMB 2.07 billion, up 7.6% year over year; another prepared-remarks reference rounded Q1 revenue to RMB 2.1 billion, up 8% year over year. Adjusted operating income was over RMB 810 million / RMB 815 million, up 17.8% to 18% year over year, and adjusted operating margin was 39.4%, up 3.4 percentage points year over year. Gross margin was 85.6%, up 1.8 percentage points year over year. Net income was RMB 1.1 billion, adjusted net income was RMB 856 million, adjusted net margin was 41.4%, and operating cash flow was RMB 1.2 billion, up 19% year over year. For Q2 2026, revenue is expected to be RMB 2.38 billion to RMB 2.42 billion, implying 13.2% to 15.1% year-over-year growth.

Jonathan Peng Zhao emphasized that the company’s double-sided platform continues to gain users and paying enterprise customers, with over 15 million newly verified users added from January to April and 7.1 million paid enterprise customers. He spent much of the call arguing that AI is a net positive for Kanzhun’s model rather than a threat, saying AI agents can improve matching and that the company’s ecosystem should benefit from AI-driven efficiencies. His tone was confident and expansive, especially around the long-term opportunity to move from selling exposure to delivering outcomes.

Wenbei Wang framed Q1 as a solid start, with revenue of RMB 2.1 billion, adjusted operating income of RMB 815 million, and adjusted operating margin of 39.4%. She highlighted cost discipline: total operating cost and expenses fell 3% year over year to RMB 1.4 billion, while share-based compensation dropped 24% year over year to RMB 181 million, or 9.2% of revenue. She also noted gross margin improved to 85.6%, operating cash flow was RMB 1.2 billion, and cash, cash equivalents, short-term deposits and short-term investments totaled RMB 19.8 billion as of March 31, 2026. On capital returns, she reiterated that buybacks and dividends will remain tied to market and operating conditions, with over $200 million repurchased year to date.

Analysts focused on three main issues: the impact of the later Chinese New Year on hiring trends, whether AI is disrupting job postings, and how AI could improve monetization and change competition. Management said March and April hiring activity rebounded strongly after the delayed peak season, that AI has not caused a broad decline in software-development postings, and that AI-related roles are actually growing quickly. On monetization, management argued it prefers to first grow paying enterprise customers before pushing price increases, and said the company is still not worried that weaker-matching competitors will overtake it because its double-sided ecosystem and matching efficiency remain advantages.