Kanzhun Limited reported third‑quarter 2025 revenue of RMB 2,163.3 million, up 13.2% from RMB 1,911.6 million a year earlier, while net income rose 67.2% to RMB 775.4 million. Adjusted operating income reached RMB 903.5 million, a 49.3% increase from RMB 603.5 million in Q3 2024, and adjusted net income climbed 34.2% to RMB 991.8 million. The company’s share‑based compensation expense fell 21.3% to RMB 216.4 million, and operating costs dropped 7.0% to RMB 1,476.2 million, underpinning the record‑high net profit margin of 35.9% versus 24.4% a year earlier.
Revenue fell short of consensus estimates of RMB 2.23 billion, missing by roughly RMB 70 million (about 3.1%). Adjusted earnings per share of RMB 2.16 (US$0.31) beat the consensus of RMB 2.13 (US$0.30) by RMB 0.03, a 1.4% lift. The revenue miss reflects softer demand in the core enterprise recruitment segment, while the EPS beat is largely attributable to disciplined cost control and the sharp decline in share‑based compensation, which reduced the expense base and improved operating leverage.
Margin expansion was driven by a combination of higher‑margin AI‑enabled services and a shift toward more profitable enterprise contracts. Operating costs fell 7% as the company streamlined its support functions, and share‑based compensation dropped 21% as the board reduced the number of new grants. These measures lifted the operating margin to 31.5% from 24.8% a year earlier, and the net profit margin to 35.9% from 24.4%, the highest level in the company’s history.
Management guided Q4 2025 revenue to RMB 2.05‑2.07 billion, a 12.4‑13.5% year‑over‑year increase, and reaffirmed its full‑year revenue outlook of RMB 6.20‑6.22 billion. The company also extended its share‑repurchase program through August 28 2026, authorizing up to US$250 million in repurchases over the next 12 months, signaling confidence in cash generation and a commitment to returning capital to shareholders.
CEO Jonathan Peng Zhao highlighted that the company’s AI‑driven platform has accelerated user acquisition and monetization, noting that “the recovery in enterprise recruitment demand drove an acceleration in revenue year‑over‑year, and while profitability improved, user numbers maintained a steady growth, further consolidating our industry‑leading position.” He added that “enhanced marketing efficiency, efficient operating leverage, and continued optimization of share‑based compensation expenses” have lifted the net profit margin by 11.5 percentage points to a record high.
Market reaction was mixed. Investors weighed the revenue miss against the strong profitability and margin expansion, leading to a tempered response. The company’s extended share‑repurchase program and solid earnings beat provided a counterbalance, but the revenue shortfall highlighted lingering demand softness in the core recruitment segment, which tempered enthusiasm for the quarter’s results.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.