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    BZ
    Earnings call· Mar 2026(Q1 FY26)

    Kanzhun Q1 FY26 earnings call BZ

    May 20, 2026 Source

    Executive summary

    Kanzhun Limited Q1 FY26 — Strong User Growth and AI-Driven Efficiency

    Kanzhun Limited reported a solid first quarter, driven by robust user acquisition and an expanding paid enterprise customer base, despite a compressed peak recruitment season due to the later Chinese New Year. The company is actively integrating AI into its operations, seeing significant efficiency gains and revenue growth from AI-powered services, while maintaining a commitment to shareholder returns through substantial share repurchases. Management anticipates stronger revenue growth in Q2 and for the full year.

    Highlights

    5

    • Acquired over 15 million newly verified users from January to April 2026.

    • Number of paid enterprise customers reached 7.1 million for the 12 months ended March 31, up 10.9% year-on-year.

    • Adjusted operating income increased 17.8% year-on-year to RMB 810 million, with margin expanding 3.4 percentage points year-on-year to 39.4%.

    • AI-facilitated closed-loop service revenue grew over 50% year-on-year, reaching RMB 50 million in Q1.

    • Net cash provided by operating activities reached RMB 1.2 billion, up 19% year-on-year.

    Concerns

    2

    • First quarter revenue growth of 7.6% year-on-year was impacted by a later Chinese New Year, resulting in a shorter peak recruitment season compared to the prior year.

    • Adjusted R&D expenses increased 5% year-on-year due to higher cost service fees and depreciation related to AI infrastructure.

    Guidance & targets

    7
    CategoryTargetConfidence
    Newly verified users
    Over 14 million
    medium materiality
    High
    Revenue growth
    Stronger than Q1 FY26
    high materiality
    High
    Cash collection growth
    At least double-digit YoY growth
    medium materiality
    Medium
    Total revenues
    RMB 2.38 billion to RMB 2.42 billion
    high materiality
    High
    Total revenues YoY growth
    13.2% to 15.1%
    high materiality
    High
    Share-based compensation expenses as % of revenue
    Around 9%
    medium materiality
    Medium
    Adjusted operating margin
    Modest expansion
    medium materiality
    Medium

    Operational metrics

    41
    Newly verified users
    15 million
    Jan-Apr 2026

    Newly verified users acquired on the platform.

    Paid enterprise customers
    7.1 millionUp 10.9% YoY, 4.4% QoQ
    Trailing 12 months ended March 31, 2026

    Number of paid enterprise customers on the platform.

    Average Monthly Active Users (MAU)
    61.9 millionUp 5.7% YoY
    Q1 FY26

    Average monthly active users for the app.

    MAU
    72 millionUp 4.6% YoY
    March FY26

    Monthly active users for March, exceeding the Q1 average due to seasonal shift.

    Revenue
    RMB 2.07 billionUp 7.6% YoY
    Q1 FY26

    Total revenue for the first quarter.

    Adjusted operating income
    RMB 810 millionUp 17.8% YoY
    Q1 FY26

    Adjusted operating income, excluding share-based compensation expenses.

    Adjusted operating margin
    39.4%Up 3.4 percentage points YoY
    Q1 FY26

    Adjusted operating margin for the first quarter.

    White collar revenue as % of total revenue
    Exceeded 40%
    Q1 FY26

    Proportion of total revenue derived from white-collar recruitment.

    Active job postings for software engineers growth
    10.9%YoY
    Jan-Apr 2026

    Increase in active job postings for software engineers.

    Revenue from AI-related roles growth
    Over 100%YoY
    Q1 FY26

    Growth in revenue generated from AI-related job roles on the platform.

    AI agents mutual consent conversion rate improvement
    50%
    Q1 FY26

    Improvement in time and efficiency from initial to successful mutual consent conversion rate due to AI agents.

    AI agents average per enterprise user achievement increase
    Double-digit percentage
    Q1 FY26

    Increase in average achievement per enterprise user enabled by AI agents.

    AI-powered closed-loop service revenue
    RMB 50 million
    Q1 FY26

    Total revenue generated from AI-facilitated closed-loop services.

    Total operating cost and expenses
    RMB 1.4 billionDecreased 3% YoY
    Q1 FY26

    Total operating cost and expenses for the quarter.

    Total share-based compensation expenses
    RMB 181 millionDropped 24% YoY, 11% QoQ
    Q1 FY26

    Total share-based compensation expenses.

    Share-based compensation as % of revenue
    9.2%Down 3.9 percentage points YoY, 1.1 percentage points QoQ
    Q1 FY26

    Share-based compensation expenses as a percentage of total revenue.

    Adjusted operating costs and expenses
    RMB 1.3 billionStable YoY
    Q1 FY26

    Adjusted operating costs and expenses, excluding share-based compensation.

    Cost of revenue
    RMB 298 millionDecreased 4% YoY
    Q1 FY26

    Cost of revenue, primarily due to lower employee-related expenses and partially offset by higher bandwidth cost.

    Gross margin
    85.6%Up 1.8 percentage points
    Q1 FY26

    Gross margin for the quarter, also benefiting from the induction of store commission fees.

    Sales and marketing expenses
    RMB 502 millionIncreased 2% YoY
    Q1 FY26

    Sales and marketing expenses, primarily due to increased advertising and marketing.

    R&D expenses
    RMB 424 millionStable YoY
    Q1 FY26

    Research and development expenses.

    Adjusted R&D expenses
    RMB 351 millionIncreased 5% YoY
    Q1 FY26

    Adjusted R&D expenses, primarily due to higher cost service fees and depreciation relating to AI infrastructure.

    G&A expenses
    RMB 282 millionDecreased 15% YoY
    Q1 FY26

    General and administrative expenses, primarily driven by lower share-based compensation expenses.

    Interest and investment income
    RMB 781 millionUp 422% YoY
    Q1 FY26

    Interest and investment income, primarily driven by investment income from fair value changes.

    Investment income from fair value changes
    RMB 640 million
    Q1 FY26

    Investment income arising from fair value changes of an invested company that went public in January 2026.

    Income tax expenses
    RMB 299 millionUp 293% YoY
    Q1 FY26

    Income tax expenses, primarily due to tax impact from investment income and Pillar 2 top-up tax.

    Tax impact from investment income
    RMB 154 million
    Q1 FY26

    Tax impact specifically from the aforementioned investment income.

    Top-up tax under Pillar 2
    RMB 60 million
    Q1 FY26

    Provision for top-up tax under the Pillar 2 tax rules.

    Recording tax
    RMB 8 million
    Q1 FY26

    Recording tax expense.

    Net income
    RMB 1.1 billion
    Q1 FY26

    Total net income for the quarter.

    Adjusted net income
    RMB 856 millionIncreased 12% YoY
    Q1 FY26

    Adjusted net income, excluding share-based compensations and net gains from investment.

    Net margin
    54.4%
    Q1 FY26

    Net margin for the quarter.

    Adjusted net margin
    41.4%Increased 1.7 percentage points YoY
    Q1 FY26

    Adjusted net margin for the quarter.

    Net cash provided by operating activities
    RMB 1.2 billionUp 19% YoY
    Q1 FY26

    Net cash generated from operating activities.

    Cash position
    RMB 19.8 billion
    As of March 31, 2026

    Cash position including cash, cash equivalent, short-term deposits, and short-term investment, excluding investment in securities.

    Shares repurchased year-to-date
    Over USD 200 million
    YTD FY26

    Value of shares repurchased since the start of the year.

    Shares repurchased as % of total outstanding
    Approximately 3%
    YTD FY26

    Percentage of total outstanding shares repurchased year-to-date.

    Shares repurchased since 2022
    Close to 10%
    Since 2022

    Cumulative percentage of total shares repurchased since 2022.

    Annual shareholder return commitment
    No less than 50% of prior year's adjusted net income
    Next 3 years

    Commitment for annual allocation to buybacks and dividends.

    Average daily active users
    Approximately 60,000
    Current

    Daily active users in the Hong Kong market.

    Average annual payment per paid enterprise customer
    RMB 800-900
    Annual

    Management stated their annual revenue is around RMB 8 billion and they have 7.1 million paid enterprise customers (trailing 12 months), which would imply a higher average payment per customer than the stated RMB 800-900. The stated range is captured.

    Industry KPIs

    1
    MetricValueDetails
    Retention ratehighest level since pandemic in 2020

    Risks & headwinds

    3
    Impact of later Chinese New Year on Q1 revenueQ1 FY26

    Q1 revenue growth of 7.6% YoY, compared to stronger expected growth in Q2 and full year.

    Mitigation: Management noted accelerated revenue and cash collection post-CNY, indicating a seasonal shift rather than underlying weakness.

    Increased investment in AI infrastructure and talentFY26 and coming years

    Adjusted R&D expenses increased 5% YoY; 'smaller increase' in adjusted operating margin expected for the year.

    Mitigation: Viewed as strategic investments for long-term growth and efficiency, with management expecting modest margin expansion despite these investments.

    Potential for AI to disrupt job marketOngoing

    Discussed, but no negative quantification. Software engineer postings up 10.9%, AI-related roles up >100%.

    Mitigation: Company views AI as an opportunity, investing in AI to enhance its platform and services, and sees it as a 'friend instead of the enemy.'

    What to watch in Q2 FY26

    5

    Revenue growth

    Q2 FY26
    Current7.6% YoY in Q1 FY26
    TargetStronger than Q1 FY26 (Q2 FY26 target: 13.2% to 15.1% YoY)

    Why it matters

    Management explicitly guided for stronger growth in Q2 and full year, making this a key indicator of recovery from the Q1 seasonal impact.

    Looking ahead, we are confident that our revenue growth in the second quarter and for the full year will be stronger than what we delivered in the first quarter.

    Q&A highlights

    3

    Asked about post-CNY growth trends, specific industries showing improvement, AI's impact on job postings (especially white-collar vs. blue-collar), and progress/feedback on AI-powered closed-loop services.

    Management confirmed robust post-CNY recovery, with MAU for March and April near 70 million and newly added job postings up 10% YoY. They stated software development engineer postings increased 10.9% and AI-related roles grew over 100%, indicating AI is not yet causing large-scale job reductions. AI-supported closed-loop services generated RMB 50 million in Q1 revenue, with some experimental groups growing over 100%.

    “So for the first quarter, our AI facilitated closed loop service have total revenue line of around RMB 50 million.”

    asked by Wei Xiong · answered by Peng Zhao

    2 min read5 chapters

    Detailed Narrative

    01

    Q1 Performance Overview

    Kanzhun reported Q1 FY26 revenue of RMB 2.07 billion, up 7.6% year-on-year, and adjusted operating income of RMB 810 million, up 17.8% year-on-year, with an adjusted operating margin of 39.4%. This growth was achieved despite a later Chinese New Year shifting the peak recruitment season primarily into March, impacting Q1 comparisons. The company noted accelerated revenue and cash collection traction post-Chinese New Year.

    02

    User and Customer Growth

    The platform acquired over 15 million newly verified users from January to April 2026, with a full-year target of over 14 million. Paid enterprise customers reached 7.1 million for the 12 months ended March 31, 2026, marking a 10.9% year-on-year increase. Average monthly active users (MAU) for the app reached 61.9 million in Q1, with March MAU exceeding 72 million, significantly higher than the quarterly average due to the seasonal shift.

    03

    AI Strategy and Impact

    Kanzhun outlined a four-pronged AI strategy focusing on advancing its business model, investing in small model AI science, heavily investing in AI applications, and viewing AI-driven revenue growth as a natural outcome of efficiency gains. The company reported that AI agents improved initial mutual consent conversion rates by 50% and increased average per enterprise user achievement by a double-digit percentage. AI-powered closed-loop services generated approximately RMB 50 million in revenue in Q1, with some experimental groups seeing over 100% growth.

    04

    Talent Market Trends

    White-collar revenue exceeded 40% of total revenue in Q1, with white-collar recruitment demand accelerating post-Chinese New Year. Active job postings for software engineers increased by 10.9% from January to April 2026, and revenue from AI-related roles grew over 100%. The company observed a notable recovery in recruitment demand from large enterprises (1,000 to 10,000 employees) during the spring recruitment season, shifting from the prior quarter's strongest growth in small and micro enterprises.

    05

    Shareholder Returns and Overseas Expansion

    Kanzhun reiterated its commitment to shareholder returns, having repurchased over USD 200 million in shares year-to-date, representing approximately 3% of total outstanding shares. This aligns with its plan to allocate no less than 50% of prior year's adjusted net income to buybacks and dividends over the next three years. The company also highlighted strong performance in the Hong Kong market, with approximately 60,000 daily active users, and views overseas expansion as a strategic move to cultivate core teams and verify its double-sided ecosystem model.

    AI-generated summary of the company’s earnings call. Not investment advice.