Asked how AI can enhance revenue per job listing, how much it can be enhanced, and if platforms with lower matching efficiency could benefit more from AI, potentially changing the competitive landscape.

Management emphasized providing better value before increasing prices, targeting the over 40 million Chinese enterprises not yet using online services, and shifting from selling exposure to selling "onboarding" (successful placements). They noted their 7.1 million paid enterprise customers pay an average of RMB 800-900 per year, indicating huge potential for price increases, but prioritize growing the customer base first. They expressed confidence in their platform's AI capabilities and are not worried about weaker peers surpassing them. “So on average, every paying customer is paying us around [indiscernible]. So I think everybody can see the huge potential in here for hire price. But between more paying customers, for example, we have 7.1 million today. In the future, we can have 9.1 -- or 19 million paying customers. So I choose to grow our number of paying customers first.”

Asked about outlook for overall profit margin given marketing/R&D investments in AI, updates on shareholder return plans, and color on Hong Kong market performance and future overseas expansion plans.

Management expects a "smaller increase" in adjusted operating margin for the year due to continued AI investments, broadcast sponsorships, and new business initiatives. They reiterated the USD 200 million share buyback year-to-date (3% of shares) and commitment to the 50% adjusted net income payout plan. In Hong Kong, they have approximately 60,000 daily active users, providing effective supply for recruiters, and view it as a strategic market to verify their model and cultivate core international teams, with revenue not being the current priority. “So for our margin perspective, I will call this is not quite high at 50%, but considering all those investments and broadcast sponsorship and the new business. So I think it's just a similar expectation for us from the beginning of this year, we are expecting a smaller increase in our adjusted operating margin.”

Kanzhun (BZ) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Information Technology· May 20, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Newly verified users	Over 14 million medium materiality	FY26	High
Revenue growth	Stronger than Q1 FY26 high materiality	Q2 FY26 and FY26	High
Cash collection growth	At least double-digit YoY growth medium materiality	FY26	Medium
Total revenues	RMB 2.38 billion to RMB 2.42 billion high materiality	Q2 · FY26	High
Total revenues YoY growth	13.2% to 15.1% high materiality	Q2 · FY26	High
Share-based compensation expenses as % of revenue	Around 9% medium materiality	Coming quarters	Medium
Adjusted operating margin	Modest expansion medium materiality	Coming years	Medium

Risks & headwinds

Impact of later Chinese New Year on Q1 revenue Q1 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 talent FY26 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 market Ongoing

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

Revenue growth

Q2 FY26

Current 7.6% YoY in Q1 FY26

Target Stronger 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.

Find out whether BZ delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.