Earnings call transcript: Kanzhun posts stronger Q2 2026 growth, shares slip premarket

Kanzhun reported a 14% increase in revenue for Q2 2026, reaching RMB 2.4 billion, while adjusted operating income rose 19% to RMB 1.05 billion. The company's adjusted operating margin hit a record high of 43.8%, surpassing previous levels. Gross margin also improved to 87%, driven by AI-related efficiencies and lower App Store commission fees.

Paying enterprise customers increased to 7.2 million, an 11% year-over-year growth. However, the stock price fell 1.88% in premarket trading to $15.15, leaving the shares below their 52-week high of $25.26. Despite the stronger operating results, the company acknowledged broader macro pressure in China's internet sector. Revenue growth accelerated to 14% year-on-year, indicating stable recruitment demand.

Management expects revenue between RMB 2.41 billion and RMB 2.5 billion for Q3, indicating year-on-year growth of 11.4% to 15.6%. The company continues to benefit from a large addressable market in China, with its platform having served about 300 million users and 22 million employers. AI tools are increasingly integrated into the hiring process, from sourcing to interviews.

Kanzhun remains optimistic about its long-term strategy, focusing on user growth and modest price increases in tier 1 and tier 2 cities, while targeting user penetration in lower-tier cities. The company plans to expand AI sourcing, resume screening, and interview tools, with AI-enabled closed-loop business growing rapidly. Management aims to keep R&D spending at 20% to 25% of revenue and refrain from aggressive capital spending in AI infrastructure.