Key Highlights

  • Second-quarter revenue rose 14.1% to RMB2,398.6 million.
  • Net income rose 173.1%, boosted by a RMB1,466.1 million fair value gain.
  • Adjusted net income rose 9.4% to RMB1,029.2 million.
  • An annual dividend of US$0.510 per ADS was declared.

Kanzhun Limited (NASDAQ:BZ), operator of the BOSS Zhipin online recruitment platform in China, reported second-quarter 2026 results that look strong on the surface but need careful reading. Net income rose 173.1%, yet most of that jump came from a fair value gain on an investee company's shares. Underlying revenue and adjusted profit growth were more modest, so investors may focus on the quality of earnings, the Q3 outlook and a sizeable capital return programme.

Latest Company Context

Revenue for the second quarter was RMB2,398.6 million (US$353.5 million), up 14.1% year over year, with enterprise recruitment revenue up 14.7%. Income from operations rose 32.6% to RMB863.2 million; excluding share-based compensation, it was RMB1,049.7 million, up 19.2%. Reported net income was RMB1,942.3 million, boosted by a RMB1,466.1 million pre-tax fair value gain. Adjusted net income was RMB1,029.2 million, up 9.4%, and adjusted diluted EPS per ADS was RMB2.23 versus RMB2.09.

Operating cash flow for the quarter was RMB944.8 million, down 10.2%. Trailing-twelve-month paid enterprise customers reached 7.2 million (up 10.8%) and average monthly active users were 70.2 million (up 10.4%).

Key Business Drivers

User and customer growth underpin the revenue line, so hiring demand in China is the key external driver. For the third quarter, management guided revenue of RMB2.41 billion to RMB2.50 billion, representing growth of 11.4% to 15.6%. The company notes this reflects current conditions in China and could change; it is a management expectation rather than an assured outcome.

Capital returns are another driver. The company declared an annual cash dividend of US$0.510 per ADS, about US$230 million in total, with a record and ex-dividend date of September 28, 2026. It has completed over US$300 million of buybacks so far this year under a programme authorised up to US$400 million through August 28, 2027. Cash and short-term investments were RMB18,807.2 million (US$2,771.8 million), excluding equity securities. The ADSs also have a Hong Kong listing, which may broaden the investor base.

What Investors Should Watch

Investors may watch the company's third-quarter 2026 results for whether revenue lands inside the RMB2.41 billion to RMB2.50 billion range. The gap between reported and adjusted earnings merits attention, as does the performance of the investee holding behind the fair value gain, which could reverse in future periods.

Other areas include operating cash flow trends after the 10.2% decline, enterprise customer growth, and margin behaviour as the company invests. The remaining buyback capacity under the US$400 million authorisation may also matter, as might China's broader labour-market and consumer data, regulatory developments affecting US-listed Chinese companies, and currency movements between the renminbi and US dollar.

Headline Profit Inflated by a One-Off Gain, Core Growth Intact

Kanzhun's quarter combined double-digit revenue growth, improving operating income and a strong cash position with a headline profit figure inflated by a non-recurring gain. Hiring-market sentiment in China and the pace of shareholder returns remain the main influences.