Q2 FY2026
Filed Aug 25, 2026Revenue grew 14.1% and income from operations grew 32.6%, while reported net income was lifted by investment gains.
Revenue growth accelerated from the first quarter, income from operations grew faster than revenue, adjusted income from operations increased 19.2%, and paid enterprise customers and average monthly active users both reached record highs. Reported net income growth was substantially affected by investment income from fair value changes.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total paid enterprise customers in the twelve months ended June 30other | 7.2 million | – | 10.8% |
| Average monthly active usersother | 70.2 million | – | 10.4% |
| Total revenuesGAAP | RMB2,398.6 million (US$353.5 million) | – | 14.1% |
| Cost of revenuesGAAP | RMB312.4 million (US$46.0 million) | – | 1.6% |
| Sales and marketing expensesGAAP | RMB580.9 million (US$85.6 million) | – | 38.3% |
| Research and development expensesGAAP | RMB430.5 million (US$63.5 million) | – | 3.5% |
| General and administrative expensesGAAP | RMB218.6 million (US$32.2 million) | – | -29.7% |
| Total operating cost and expensesGAAP | RMB1,542.5 million (US$227.3 million) | – | 6.1% |
| Total share-based compensation expensesGAAP | RMB186.4 million (US$27.5 million) | – | -18.9% |
| Income from operationsGAAP | RMB863.2 million (US$127.2 million) | – | 32.6% |
| Adjusted income from operationsnon-GAAP | RMB1,049.7 million (US$154.7 million) | – | 19.2% |
| Interest and investment income, netGAAP | RMB1,632.5 million (US$240.6 million) | – | – |
| Income tax expensesGAAP | RMB550.3 million (US$81.1 million) | – | – |
| Net incomeGAAP | RMB1,942.3 million (US$286.3 million) | – | 173.1% |
| Adjusted net incomenon-GAAP | RMB1,029.2 million (US$151.7 million) | – | 9.4% |
| Basic net income per ADS attributable to ordinary shareholdersGAAP | RMB4.28 (US$0.63) | – | – |
| Diluted net income per ADS attributable to ordinary shareholdersGAAP | RMB4.20 (US$0.62) | – | – |
| Adjusted basic net income per ADS attributable to ordinary shareholdersnon-GAAP | RMB2.27 (US$0.33) | – | – |
| Adjusted diluted net income per ADS attributable to ordinary shareholdersnon-GAAP | RMB2.23 (US$0.33) | – | – |
| Net cash provided by operating activitiesGAAP | RMB944.8 million (US$139.2 million) | – | -10.2% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Online recruitment services to enterprise customersThis increase was mainly driven by the paid enterprise customer growth. | RMB2,384.0 million (US$351.4 million) | – | 14.7% |
| Other servicesThe decrease was mainly driven by the optimization of certain value-added features for job seekers since the third quarter of 2025. The Company simplified these offerings to enhance the value proposition for job seekers, prioritizing platform engagement and long-term ecosystem growth. | RMB14.6 million (US$2.2 million) | – | – |
third quarter of 2026 outlook
- Revenuebetween RMB2.41 billion and RMB2.50 billion, representing a year-on-year increase of 11.4% to 15.6%
Capital returns
- Annual cash dividend of US$0.255 per ordinary share, or US$0.510 per ADS.
- The aggregate amount of the Dividend to be paid will be approximately US$230 million.
- The payment date is expected to be on October 6, 2026 for holders of ordinary shares and on or around October 14, 2026 for holders of ADSs.
- Over US$300 million of share buybacks completed year-to-date.
- The Company expects to allocate no less than 50% of the Company’s adjusted net income of the preceding fiscal year for distribution of dividend under the annual dividend policy and share repurchases for each of the next three years starting from 2026.
- The share repurchase program authorizes repurchases of up to US$400 million of the Company’s shares, including ADSs, through August 28, 2027.
What drove it
- Paid enterprise customers increased 10.8% and average monthly active users increased 10.4%.
- Online recruitment services to enterprise customers increased mainly due to paid enterprise customer growth.
- Sales and marketing expenses increased primarily due to advertising and marketing expenses incurred mainly for the 2026 FIFA World Cup campaigns and higher sales employee-related expenses.
- Research and development expense growth was primarily due to increased cloud service fees.
- Interest and investment income increased primarily due to investment income of RMB1,466.1 million arising from fair value changes of investments in an investee company that completed its initial public offering in January 2026.
- The Company is investing in AI foundation model capabilities and rolling out AI across user-facing and commercial products, including AI-hosted or AI-assisted chats and AI interviews.
Concerns
- Revenues from other services decreased from RMB24.8 million for the same quarter of 2025 to RMB14.6 million (US$2.2 million), following optimization and simplification of certain value-added features for job seekers.
- Sales and marketing expenses increased 38.3%, faster than total revenue growth of 14.1%.
- Net cash provided by operating activities decreased 10.2%, primarily due to increases in advertising and marketing expenditures and tax payments, as well as a decrease in interest and investment income received.
- Reported net income included investment income of RMB1,466.1 million from fair value changes of investments in an investee company; adjusted net income increased 9.4%.
What to watch
- Third-quarter total revenue outlook of between RMB2.41 billion and RMB2.50 billion.
- The pace of paid enterprise customer growth and average monthly active user growth.
- The effect of AI commercialization efforts, which management said point to substantial market potential.
- Sales and marketing spending following the 2026 FIFA World Cup campaigns.
- Execution of the dividend and repurchase plan supported by cash reserves and operating cash flow.
Balance sheet and cash flow
- As of June 30, 2026, the balance of cash and cash equivalents, short-term time deposits and short-term investments, excluding investments in equity securities, was RMB18,807.2 million (US$2,771.8 million).
- Net cash provided by operating activities was RMB944.8 million (US$139.2 million), compared with RMB1,051.9 million for the same quarter of 2025.
- Net cash used in investing activities was RMB308,639 thousand (US$45,488 thousand), compared with RMB824,453 thousand for the three months ended June 30, 2025.
- Net cash used in financing activities was RMB1,389,947 thousand (US$204,853 thousand), compared with net cash provided by financing activities of RMB144,272 thousand for the three months ended June 30, 2025.
- Cash and cash equivalents at end of the period were RMB2,580,279 thousand (US$380,286 thousand).
- Deferred revenue was RMB3,548,283 thousand (US$522,952 thousand) as of June 30, 2026. Under the PRC value-added tax law effective January 1, 2026, deferred revenue as of June 30, 2026 decreased by RMB41.6 million from the balance under the prior tax regime.
Analysis
Kanzhun reported Q2 2026 revenue of RMB2,398.6 million (US$353.5 million), up 14.1% from RMB2,102.4 million. The Company said this growth accelerated from the first quarter. Online recruitment services to enterprise customers generated RMB2,384.0 million (US$351.4 million), up 14.7%, driven mainly by paid enterprise customer growth. Paid enterprise customers in the twelve months ended June 30 reached 7.2 million, and average monthly active users reached 70.2 million, both described by management as record highs. Other services declined to RMB14.6 million (US$2.2 million) as the Company simplified certain job-seeker value-added offerings to prioritize engagement and long-term ecosystem growth.
Operating leverage was evident in the reported results. Total operating cost and expenses increased 6.1% to RMB1,542.5 million (US$227.3 million), below revenue growth, while income from operations increased 32.6% to RMB863.2 million (US$127.2 million). Adjusted income from operations increased 19.2% to RMB1,049.7 million (US$154.7 million). Management cited AI-enabled operating and management efficiency, strong operating leverage, and a 5.0 percentage-point expansion in operating margin. Share-based compensation expenses declined 18.9% to RMB186.4 million (US$27.5 million), while general and administrative expenses declined 29.7%.
Marketing was the principal area of incremental investment. Sales and marketing expenses rose 38.3% to RMB580.9 million (US$85.6 million), primarily due to 2026 FIFA World Cup campaigns and higher sales employee-related expenses. Cost of revenues increased 1.6%, and research and development expenses increased 3.5%, primarily due to cloud service fees. The Company is investing in AI foundation model capabilities and applying AI to recruitment matching, chats, interviews, and commercial products.
Reported net income increased 173.1% to RMB1,942.3 million (US$286.3 million), but the result included RMB1,466.1 million of investment income from fair value changes of investments in an investee company that completed an initial public offering in January 2026. Adjusted net income, which excludes share-based compensation expenses and net gains from investments in an investee company, increased 9.4% to RMB1,029.2 million (US$151.7 million). Income tax expenses increased to RMB550.3 million (US$81.1 million), including the tax effect associated with the investment income, withholding tax, a top-up tax under the Pillar Two rules, and increased income from operations.
Operating cash flow moved lower despite the earnings growth, declining 10.2% to RMB944.8 million (US$139.2 million), with management citing higher advertising and marketing expenditures, tax payments, and lower interest and investment income received. The Company held RMB18,807.2 million (US$2,771.8 million) of cash and cash equivalents, short-term time deposits, and short-term investments excluding investments in equity securities as of June 30, 2026. It declared an annual dividend of approximately US$230 million and reported over US$300 million of year-to-date buybacks. For Q3 2026, total revenue is expected to be between RMB2.41 billion and RMB2.50 billion, representing year-on-year growth of 11.4% to 15.6%.
Management, verbatim
We are delighted to report that the Company continued to deliver strong sets of financials for the quarter, with both revenue and profit growth accelerating.
Jonathan Peng Zhao, Founder, Chairman and Chief Executive Officer
We are continuing to invest firmly in our Artificial Intelligence (AI) foundation model capabilities, while advancing the rollout of AI across both our user-facing and commercial products.
Jonathan Peng Zhao, Founder, Chairman and Chief Executive Officer
The Company continued to deliver a high-quality growth in the second quarter, with revenue up 14.1% year-on-year, accelerating from the first quarter, alongside a year-on-year improvement in margins.
Wenbei Wang, Deputy Chief Financial Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Gross profit was not reported.
- Free cash flow was not reported.
- Debt balance was not reported.
- Prior-quarter comparisons for reported Q2 metrics were not reported.
- Prior-period guidance was not provided.
- Guidance for gross margin, operating expenses, and tax rate was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.