What are the plans for AI product testing/launch and monetization expectations for this year? What is the rationale behind Nanbeige LLM investment and its application this year?

Peng Zhao stated closed-loop placement service revenue from AI is expected to double or triple in 2026 from hundreds of millions RMB in 2025. He emphasized AI empowers overall operations rather than being a native product. The Nanbeige LLM (a smaller science team effort) serves a "taillight strategy" to follow leading AI developments and avoid solely relying on open-source platforms, while also being cost-effective for industrial applications. “closed-loop placement service, which last year, we have already made like million level -- RMB 100 million level of revenue and this year, we expect that number to double or triple or even have multiple growth that's quite sure.”

Elaborate on recruitment trends after Chinese New Year, especially special points compared to previous years.

Peng Zhao confirmed strong recruitment demand with significant YoY growth in new and active enterprise data. Wenbei Wang added that the later Chinese New Year this year will result in weaker YoY GAAP revenue data for Q1 due to fewer post-holiday revenue recognition days, but underlying cash collection growth is positive and expected to accelerate throughout the year. “this year, we actually saw a very strong recruitment demand with both new and active enterprise data showing significant year-on-year growth and the situation remains stable.”

What is the user growth target for 2026? How will margin trend given investments in sales, marketing, and AI? Update on overseas business, specifically OfferToday in Hong Kong.

Wenbei Wang stated a target of at least 40 million newly verified users for 2026. Despite investments in AI and potential marketing, adjusted operating profit margin is expected to slightly increase in 2026 due to strong operating leverage. Peng Zhao highlighted OfferToday's success in Hong Kong, ranking #1 in DAU, and emphasized localization efforts and exploring other international opportunities. “for 2026, we are still looking at a very robust user growth. So at least -- we want to add at least 40 million of newly verified users this year.”

Kanzhun (BZ) Q4 FY25 earnings call: guidance and Q&A

Earnings call· Dec 2025 (Q4 FY25)· Information Technology· Mar 18, 2026

Source: earnings call transcript

Executive summary

Kanzhun Q4 FY25 — Strong User Growth, AI Progress, and Enhanced Shareholder Returns

Kanzhun delivered a strong Q4 FY25, marked by robust user growth and accelerating revenue, driven by recovery in the recruitment market and strategic penetration into lower-tier cities and SMEs. The company is actively leveraging AI to enhance matching efficiency and develop closed-loop services, which are showing significant commercial potential. Management also demonstrated a strengthened commitment to shareholder returns through an enhanced dividend and share repurchase policy, while navigating short-term seasonal impacts on Q1 revenue guidance.

Highlights

Total revenue grew 14% year-on-year to RMB 2.08 billion in Q4 FY25 and 12.4% to RMB 8.27 billion for FY25.
Adjusted operating profit increased 37% year-on-year to RMB 900 million in Q4 FY25 and 45.7% to RMB 3.38 billion for FY25, with margin reaching 40.8%.
Acquired nearly 46 million newly verified users in FY25, with average MAU reaching over 60.7 million, up 14.5% year-on-year.
Board approved a new shareholder return policy, allocating no less than 50% of prior year's adjusted net income for dividends/buybacks, and upsized share repurchase program to $400 million.
AI-related newly posted jobs grew 172% year-on-year after Spring Festival, and closed-loop services revenue reached hundreds of millions RMB, expected to double or triple this year.

Concerns

Q1 FY26 revenue guidance of RMB 2.050 billion to RMB 2.085 billion reflects a different seasonality due to a later Chinese New Year, resulting in a shorter peak recruitment window within the quarter.
Income tax expenses were up 81% year-on-year to RMB 165 million in Q4, primarily due to higher income and a RMB 38 million top-up tax related to OECD Pillar Two.

Guidance & targets

Category	Target	Timeline	Confidence
Total revenues	between RMB 2.050 billion and RMB 2.085 billion high materiality	Q1 · FY26	Medium
Shareholder return allocation	no less than 50% of the prior year's adjusted net income for dividend and share repurchase high materiality	3-year period starting from 2026 · FY26-FY28	High
Share repurchase program upper limit	$400 million high materiality	through August 28, 2027 · FY27	High
Newly verified users	at least 40 million medium materiality	FY26	High
Adjusted operating profit margin	slightly increase high materiality	FY26	Medium

Product announcements

Product	Type	Timeline
AI quick hiring tool	launch	now being scaled up
AI-assisted interview feature	launch	fully rolled out
AI agent for specific enterprise users	launch	current

Risks & headwinds

Labor force decline in China 2026-2046

Projected to decrease by around 9% by 2036 (from 810 million to 730 million) and by 20% by 2046 (to 690 million) for ages 16-59.

Mitigation:Application of AI in daily work is seen as a key solution to help with this situation, supplementing the labor force.

Seasonality impact on Q1 FY26 revenue Q1 FY26

Q1 FY26 revenue guidance of RMB 2.050 billion to RMB 2.085 billion (6.6% to 8.4% YoY increase) is lower than expected due to a later Chinese New Year, resulting in fewer post-holiday revenue recognition days.

Mitigation:Underlying momentum remains strong, with expected acceleration in revenues over coming quarters; cash collection growth is positive.

Income tax increase due to OECD Pillar Two Q4 FY25 onwards

Income tax expenses up 81% YoY to RMB 165 million in Q4 FY25, including a RMB 38 million top-up tax related to OECD Pillar Two global minimum tax rules.

Mitigation:Not explicitly stated, but management noted it was driven by higher income before tax expenses.

What to watch in Q1 FY26

AI Closed-Loop Services Revenue Growth

FY26

Current hundreds of millions RMB in FY25

Target double or triple

Why it matters

This segment is a key indicator of Kanzhun's successful AI commercialization and potential for new revenue streams.

By 2025, with the support of AI capabilities, the revenue from closed-loop services has already reached the scale of hundreds of millions RMB. To date, this segment has been growing faster than other businesses on our platform. [...] this year, we expect that number to double or triple or even have multiple growth that's quite sure.

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

Q&A highlights

Will AI agents reduce white-collar hiring demand, affecting China's recruitment market long-term? Does AI challenge BOSS Zhipin's competitive advantage and business model?

Peng Zhao acknowledged the debate but argued AI would supplement, not replace, the labor force, especially given China's projected labor decline (9% by 2036, 20% by 2046). He highlighted differences between US and China labor markets (blue-collar vs. white-collar ratio, prevalence of SMBs). AI-related job postings are surging (172% YoY growth in newly posted jobs). He asserted Kanzhun's strong bilateral network effect and unique data are solidified by AI, enabling a shift to results-based placement services.

“my first opinion is that the development of AI, the improvement AI can have to the human labor efficiency, I think it's a very good supplement to the overall labor force in the coming 2 to 20 years.”

asked by Eddy Wang · answered by Peng Zhao

3 min read 7 chapters

Detailed narrative

Q4 and FY25 Financial Performance

Kanzhun reported Q4 FY25 revenue of RMB 2.08 billion, up 14% YoY, and FY25 revenue of RMB 8.27 billion, up 12.4% YoY. Adjusted operating profit for Q4 reached RMB 900 million, up 37% YoY, with a full-year adjusted operating profit of RMB 3.38 billion, up 45.7%, and an adjusted operating profit margin of 40.8%.

Net income for FY25 was RMB 2.7 billion, with Q4 net income at RMB 682 million. Total operating costs and expenses decreased by 7% YoY to RMB 1.4 billion in Q4 and RMB 5.8 billion for FY25. Gross margin improved by 2 percentage points to 85.1% in FY25.

User Growth and Market Penetration

The company acquired nearly 46 million newly verified users in FY25, bringing the total to over 250 million job seekers and 36 million enterprise users, with over 20 million enterprises served cumulatively. Average MAU of the BOSS Zhipin app reached over 60.7 million, a 14.5% YoY increase.

Kanzhun continued to penetrate the blue-collar sector, lower-tier cities (contributing nearly 25% of Q4 revenue, doubling in 4 years), and SMEs (contributing over 50% of FY25 revenue for the first time). The platform facilitated over 2.27 billion instances of mutual consent exchanges in FY25, up 22.4% YoY, with average mutual consent per job seeker rising 7% YoY.

Spring Recruitment Season Momentum

Following the Spring Festival, the company observed robust momentum with average daily newly verified users exceeding last year's levels and active users reaching a record high. Average daily job postings in the 15 days after the festival grew by a double-digit percentage YoY, with strong growth in manufacturing, electronics, communications, semiconductors, automotive, advertising, media, and urban services.

White-collar jobs, particularly in Internet, AI, and technology, also showed accelerated YoY growth.

AI Progress and Commercialization

Kanzhun is leveraging AI to deliver closed-loop services, with revenue from this segment already reaching hundreds of millions RMB in 2025 and expected to double or triple in 2026. AI is used for high-end user quick hiring tools, AI-assisted interview features, and AI agents for screening, significantly improving efficiency and making results-based business models viable.

The company's Nanbeige 4.1/3B model, with only 3 billion parameters, surpassed models ranging from 4 billion to 52 billion parameters on multiple evaluation tasks and ranked first on HuggingFace's trending list for text generation models in late February.

AI's Impact on Labor Market and Kanzhun's Business Model

Management addressed concerns about AI replacing white-collar jobs, noting that China's labor force (ages 16-59) is projected to decrease by 9% by 2036 and 20% by 2046 (to 690 million), making AI a crucial supplement. They highlighted differences between US (150-160 million labor force, 2:1 white-collar to blue-collar ratio) and China (more blue-collar, 40 million enterprises hiring 420 million urban employees, 98% being SMBs).

AI-related newly posted jobs grew 172% YoY after Spring Festival, and active online jobs increased 80%. Kanzhun believes its strong bilateral network effect and unique data are solidified by AI, enabling a shift towards results-based placement services.

Shareholder Returns

The Board approved a new policy to allocate no less than 50% of the prior year's adjusted net income for dividends and share repurchases over the next three years, starting from 2026. The share repurchase program upper limit was increased from $250 million to $400 million through August 28, 2027.

In 2025, the company declared a dividend of $80 million and repurchased $50 million worth of shares year-to-date in 2026.

Overseas Expansion (OfferToday)

OfferToday, Kanzhun's app in Hong Kong, has achieved the #1 ranking in daily active users among mobile apps in the region. Management noted that 1 in 50 Hong Kong workers (out of a 3 million workforce) uses OfferToday daily. The company is focusing on product and team localization in Hong Kong and is actively exploring other international opportunities, though no specific reports are ready yet.

Hong Kong is considered part of China, not an overseas market in their internal classification.

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