Kanzhun Limited

Second-quarter revenue was RMB 2.4 billion, up 14% year over year. Adjusted income from operations, excluding share-based compensation, was RMB 1.05 billion, up 19% year over year, and adjusted operating margin was 43.8%, up 1.9 percentage points year over year. Gross margin rose to 87%, up 1.6 percentage points year over year. Net income was RMB 1.9 billion, up 173% year over year, and adjusted net income was RMB 1.03 billion, up 9%. Revenue for Q3 2026 is expected to be RMB 2.41 billion to RMB 2.5 billion, implying 11.4% to 15.6% year-over-year growth. Management also said full-year 2026 share-based compensation expense should remain at a high single-digit percentage of revenue, and Q3 margin should be similar to Q2 with full-year adjusted operating margin still expected to slightly increase.

Jonathan Peng Zhao framed the quarter as evidence that the company still has substantial growth runway, citing roughly 300 million cumulative users and about 22 million employers served, versus a much larger addressable market in China. He emphasized a strategic shift for the next five years: continue prioritizing user penetration in lower-tier cities, while in Tier 1 and Tier 2 cities add reasonable price increases as a growth driver. He also positioned AI as central to improving matching, resume screening, interviewing, and the move toward a closer-loop, success-fee-like model.

Wenbei Wang said revenue growth was driven by user base expansion and better monetization from higher-value services, with paid enterprise customers up 11% to 7.2 million and ARPPU up 7%. She highlighted a 6% rise in operating costs and expenses to RMB 1.5 billion, share-based compensation of RMB 186 million, and cash from operations of RMB 945 million, down 10% year over year. She also noted cash and cash equivalents, short-term deposits and investments of RMB 18.8 billion, and said the company would keep AI investment at the current level, with share-based compensation expected to stay in a high single-digit share of revenue.

Analysts pressed on AI monetization, macro softness, margin implications of AI spending, CapEx plans, and overseas expansion. Management said AI is already helping with sourcing, resume screening, and interviews, and that AI interview functions are now handling more than 10,000 interviews per day; they described the closed-loop business as growing rapidly quarter over quarter, but did not quantify its revenue. On macro, management downplayed the need to comment in detail and pointed instead to the large remaining market and a growing opportunity to convert more free users into paying customers. On overseas business, Peng Zhao said OfferToday could eventually contribute USD 100 million to USD 115 million in revenue over about five years in suitable markets, and that some markets could take 10 to 15 years, while avoiding high geopolitical-risk regions.