BZ

Kanzhun Limited (NasdaqGS:BZ) reports robust Q2 2026 results, highlighting solid operational performance across its online recruitment platform. The company announces an annual dividend for shareholders, adding a direct cash return component to its capital allocation approach. Kanzhun outlines continued investment into AI driven tools across its platform, aiming to refine matching between job seekers and employers. For readers tracking how AI heavy platforms are shaping the next wave of digital infrastructure, it can be useful to compare Kanzhun with a wider group of stocks exposed to this theme through 55 AI infrastructure stocks. Kanzhun runs an online recruitment platform in China and, with a market cap of $6.9b, sits among the larger listed Professional Services companies focused on digital hiring tools. For this update, the key focus for readers is how its AI-driven matching capabilities support that core recruitment business model. Is Kanzhun's dividend sustainable? Check out what every dividend investor needs to know in our dividend analysis. Kanzhun reported Q2 2026 revenue of CNY 2,398.6 million compared with CNY 2,102.43 million a year earlier. Net income for the quarter was CNY 1,945.11 million compared with CNY 716.4 million a year ago, with basic earnings per share from continuing operations at CNY 4.28 compared with CNY 1.62. The approved annual cash dividend of US$0.255 per ordinary share, or US$0.510 per ADS, totals about US$230 million and is funded entirely from surplus cash on Kanzhun’s balance sheet. The board is pairing this dividend with over US$300 million of buybacks in 2026. This points to a capital return policy that leans on currently available cash rather than new borrowing. The Q2 earnings jump and the decision to distribute US$230 million in dividends while continuing a buyback program support the Narrative that strong cash generation can fund both AI investment and capital returns. This lines up with the view that AI driven efficiencies and operating leverage are key catalysts for Kanzhun. If we take a look at the community Narrative for Kanzhun, we can see how this news fits into the bigger investment story. The next key marker is Q3 2026 results versus the company’s revenue guidance of RMB 2.41 billion to RMB 2.50 billion, which Kanzhun linked to current market conditions in China. How revenue and earnings land against that range will help show whether the stronger profitability and cash returns are being maintained. For the full picture including more risks and rewards, check out the complete Kanzhun analysis. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Kanzhun stock trades with a mixed recent record in the rear-view mirror and a high value score. This suggests the market may be pricing it more cautiously than the broader checks imply. Over the past 5 years the share price has fallen about 55%, which means long term holders have seen a substantial capital decline that now frames any valuation upside case. Recent revenue growth and shareholder returns through dividends and buybacks can support the idea that the business is still investing for expansion. Reliance on continued demand for its online recruitment platform remains a key risk for how much of that shows up in future cash flows. The broader valuation work indicates Kanzhun screens as relatively cheap, with a high value score of 6 out of 6 checks pointing to an undervalued reading on the usual market multiples. The issue now is whether Kanzhun's current share price already reflects the recent setbacks in returns or if the high value score points to mispricing that could still close over time. Compare Kanzhun's high value score and mixed long term return with other potential rebound candidates in our hand picked 49 high quality undervalued stocks list. P/E is a useful lens for Kanzhun because the company is currently profitable and investors can anchor expectations to its earnings base. Kanzhun trades on a P/E of about 14.5x, which is well below the Professional Services industry average of roughly 22.5x and also below the peer group average of about 51.4x. The internal fair P/E for Kanzhun, which blends its growth profile, margins, size and risk, sits higher at around 17.0x. That indicates the stock trades at a material discount to where this framework would usually place a business with similar characteristics. Despite the recent Q2 2026 earnings beat and the sizeable dividend and buyback program, Kanzhun stock still changes hands on a P/E that is below both sector norms and the modelled fair ratio. On the P/E multiple, Kanzhun appears undervalued relative to both its tailored fair ratio and broader industry benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where Kanzhun's valuation puzzle leaves off by explaining what kind of future growth, margins and earnings would need to occur for the stock to be worth materially more or less than today's price. Each narrative links a fair value estimate to a specific story about Kanzhun's possible catalysts and risks, so you can track over time which version of events appears closer to reality on the Community page. The Simply Wall St community is split on Kanzhun, with one camp seeing meaningful upside and the other seeing limited headroom. Bull case: 38% undervalued Read the full Bull Case to see why Kanzhun could be undervalued Bear case: roughly fairly valued Read the full Bear Case to see why Kanzhun could be overvalued Do you think there's more to the story for Kanzhun? Head over to our Community to see what others are saying! Kanzhun screens as undervalued on earnings compared with both its industry and a tailored fair P/E, which gives valuation oriented investors something to work with after a difficult run over the past 5 years. The key question is whether the current discount reflects temporary caution or a lasting concern that demand for its online recruitment platform may not translate into sustained cash flows. For now, the debate turns on whether earnings can grow into a higher multiple without a major reset to the business model or user trends. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Kanzhun (BZ) just delivered a busy Q2 2026 update for investors, pairing detailed earnings, fresh revenue guidance and AI investment plans with a confirmed annual cash dividend and ongoing share repurchases. The latest Q2 update and dividend decision appear to have given Kanzhun fresh momentum, with a 1 day share price return of 5.51% and a 90 day share price return of 22.11% from a last close of $16.29. Even so, the stock is still down 22.09% on a year to date share price basis, while the 1 year total shareholder return is down 28.52% and the 3 year total shareholder return is up 11.33%. This frames today’s reaction against a longer history of mixed outcomes for investors. Scan how Kanzhun compares to other platform and tech driven opportunities by reviewing the hand picked 18 high quality undiscovered gems that may be flying under most investors’ radar. After Kanzhun’s Q2 jump and fresh dividend, the stock still trades well below both analyst targets and some intrinsic value estimates. Is that discount a signal of opportunity, or a warning that fair value sits lower than it appears? The most followed Kanzhun valuation narrative points to a fair value of $21.28 versus the latest close at $16.29, with that gap driven by detailed earnings and cash flow assumptions. Read the complete narrative. Want to see how this narrative gets from today’s earnings to that higher fair value? The story leans on revenue growth, margins and a richer future earnings multiple. Result: Fair Value of $21.28 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you still need to weigh Kanzhun’s exposure to rising competition and higher customer acquisition costs, as well as potential revenue volatility tied to hiring cycles. Find out about the key risks to this Kanzhun narrative. With sentiment around Kanzhun feeling cautiously optimistic, it helps to move quickly and test the story against the full data set yourself. To see which potential upsides investors are watching, review the 4 key rewards If Kanzhun has your attention, do not stop here. Fresh ideas can reshape your portfolio and it only takes a few minutes to scan targeted stock lists. Spot potential turnarounds early by reviewing the 22 elite penny stocks with strong financials that combine smaller size with stronger financial profiles. Prioritize value by checking the 49 high quality undervalued stocks that score well on quality while trading below many investors’ expectations. Balance income and resilience by scanning the 74 resilient stocks with low risk scores that pair measured risk profiles with more durable fundamentals. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in KANZHUN LIMITED Sponsored ADR? Here are five stocks we like better. Strong Q2 performance: Revenue increased 14% year over year to RMB2.4 billion, while adjusted operating income rose 19% and the adjusted operating margin reached a record 43.8%. KANZHUN forecast Q3 revenue of RMB2.41 billion to RMB2.5 billion. Monetization and AI expansion: Paying enterprise customers grew 11% to 7.2 million, supported by higher-value services and AI tools. The company plans to pursue price increases in major Chinese cities while continuing user growth in lower-tier markets. Returns and global growth: KANZHUN approved a roughly $230 million dividend and completed more than $300 million in 2026 share repurchases. Its overseas OfferToday business is targeting $100 million to $115 million in revenue within about five years, with potential expansion across Asia and Europe. Kanzhun Stock Outlook Promising With China's Reopening KANZHUN (NASDAQ:BZ) reported second-quarter 2026 revenue of RMB2.4 billion, up 14% from a year earlier, as the online recruitment platform cited user-base expansion and improved monetization from higher-value services. The company forecast third-quarter revenue of RMB2.41 billion to RMB2.5 billion, representing year-over-year growth of 11.4% to 15.6%. Deputy CFO Wenbei Wang said recruitment demand remained “broadly stable” during the quarter. The number of paying enterprise customers rose 11% year over year to 7.2 million during the trailing 12 months ended June 30, while average revenue per paying customer increased 7%, supported by more efficient services and an expanded range of AI-powered tools. → Rocket Lab's Sell-Off Is Fading—Is It Finally Safe to Buy? The company said its paying ratio among active enterprise users improved for a fourth consecutive quarter. Revenue growth was balanced between key accounts and smaller customers, according to Wang. Adjusted income from operations, excluding share-based compensation, rose 19% year over year to RMB1.05 billion. KANZHUN’s adjusted operating margin expanded by 1.9 percentage points to a record 43.8%. → Travel + Leisure Goes Big—Is It Ready to Rally? Total operating costs and expenses increased 6% to RMB1.5 billion. Share-based compensation expense declined 19% to RMB186 million, or 7.8% of revenue, down 3.1 percentage points from the prior-year quarter. Wang said the company expects share-based compensation to remain at a high single-digit percentage of revenue for the full year. Cost of revenue increased 2% to RMB312 million, while gross margin rose 1.6 percentage points to 87%. Sales and marketing expense climbed 38% to RMB581 million, primarily reflecting the company’s FIFA World Cup marketing campaign and higher sales employee-related expenses. Research and development expense rose 3% to RMB431 million, with adjusted R&D expense up 7% to RMB361 million due mainly to AI-related cloud-service fees and server depreciation. General and administrative expense declined 30% to RMB219 million, driven mainly by lower employee-related expenses. Net income rose 173% year over year to RMB1.9 billion. The result included about RMB1.5 billion in investment income related to fair-value changes in an invested company that went public in January 2026. Excluding share-based compensation and gains from those investments, adjusted net income increased 9% to RMB1.03 billion. → What Rising Delivery Forecasts Say About Rivian's Stock Prospects Operating cash flow was RMB945 million, down 10% from a year earlier, which Wang attributed to higher advertising, marketing and tax payments, as well as lower interest and investment income received. Cash, cash equivalents, short-term deposits and short-term investments totaled RMB18.8 billion as of June 30, excluding investments in securities. Founder, Chairman and CEO Jonathan Peng Zhao said the company will pursue separate strategies in lower-tier and higher-tier Chinese cities over the next five years. In tier-three through tier-five cities, the company will continue to prioritize user growth and market penetration. In tier-one and tier-two cities, it plans to continue expanding users while adding “reasonable price increases” as a growth driver. Zhao said BOSS Zhipin has cumulatively served about 300 million users and approximately 22 million employers, compared with China’s nearly 500 million urban workers and more than 40 million active businesses. He said the company’s mobile recommendation and direct-chat model has lowered communication costs between recruiters and job seekers and enabled many businesses to move from traditional recruiting to online recruitment. The executive argued that recruitment services in major Chinese cities remain priced at relatively low levels compared with mature overseas markets. He said the company intends to improve user experience while gradually raising customer payments and payment rates in mature markets, particularly in first-tier cities and certain second-tier cities. Wang said more than 10 million enterprises use the company’s services annually, with more than half using the platform for free. He described converting free users to entry-level paying customers as a further monetization opportunity, while characterizing potential pricing changes as minimal for customers. Management said AI is supporting both product monetization and internal operating efficiency. Zhao said revenue from the company’s AI-enabled closed-loop business grew rapidly sequentially in the second quarter. The services include AI-assisted talent sourcing, resume screening and interviews, with Wang stating that the company’s AI interview function is handling more than 10,000 interviews daily. Wang said AI sourcing can use longer queries and multiple rounds of communication to better understand customer requirements, particularly for professional or senior candidates who may not be active monthly users. He said the company is applying the capability to its own headhunter workflow and third-party headhunter workflows. On internal operations, Wang said AI has been deployed in areas including security, notifications, sales and marketing, verification and customer service. Since 2023, operating headcount has remained stable alongside user growth, he said, helping employee-related costs contribute about two percentage points to gross margin. The company said it will maintain AI investment while avoiding a major capital-expenditure expansion. Wang said KANZHUN expects to keep R&D spending at approximately 20% to 25% of revenue, allocating incremental spending to AI without sacrificing cash-flow discipline. He said third-quarter margins should be similar to the second quarter, despite FIFA World Cup sponsorship costs being recognized across the second and third quarters, and that full-year adjusted operating margin could rise slightly. The board approved an annual cash dividend of approximately $230 million. Combined with more than $300 million of share repurchases completed year to date, total 2026 shareholder returns exceeded $530 million, or more than 100% of the company’s adjusted net income for 2025, management said. The repurchases represented roughly 4.6% to 4.7% of outstanding shares, and the company said it has cumulatively repurchased more than 10% of its shares outstanding. Regarding overseas operations, Wang said the company’s OfferToday business is targeting $100 million to $115 million of revenue in about five years. He said KANZHUN sees potential to invest in cities in Asia and Europe while avoiding areas with high geopolitical risk. Management also identified longer-term opportunities in developing countries with younger populations and orderly economic development, citing Vietnam, Argentina and Brazil as examples. Kanzhun Ltd. (NASDAQ: BZ) operates a leading AI-driven online recruitment platform under the brand name Boss Zhipin. The platform leverages algorithmic job matching and instant in-app messaging to connect job seekers and employers, streamlining the hiring process and reducing time-to-fill. By combining machine-learning recommendations with direct recruiter interactions, Kanzhun aims to create a more efficient, personalized recruitment experience compared with traditional job boards. Beyond its core peer-to-peer marketplace, Kanzhun provides a suite of premium services for corporate clients, including employer branding packages, targeted marketing campaigns and SaaS-based human capital management tools. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "KANZHUN Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: RMB2.4 billion in Q2 2026, up 14% year over year. Adjusted Operating Income: RMB1.05 billion, up 19% year over year. Adjusted Operating Margin: 43.8%, a record high, up 1.9 percentage points year over year. Paying Enterprise Customers: 7.2 million in the trailing 12 months ended June 30, 2026, up 11% year over year. Average Monthly Active Users (MAU): Exceeded 70 million in Q2 2026. ARPPU: Increased 7% year over year. Gross Margin: 87%, up 1.6 percentage points year over year. Sales and Marketing Expenses: RMB581 million, up 38% year over year, driven by FIFA World Cup marketing campaign. R&D Expenses: RMB431 million, up 3% year over year. G&A Expenses: RMB219 million, down 30% year over year. Net Income: RMB1.9 billion, up 173% year over year, boosted by investment income from a portfolio company's IPO. Adjusted Net Income: RMB1.03 billion, up 9% year over year. Operating Cash Flow: RMB945 million, down 10% year over year. Cash Position: RMB18.8 billion as of June 30, 2026. Shareholder Returns: Annual dividend of $230 million declared; $300 million in share repurchases completed year-to-date, totaling over $530 million in 2026. Warning! GuruFocus has detected 3 Warning Sign with BZ. Is BZ fairly valued? Test your thesis with our free DCF calculator. Release Date: August 25, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue grew 14% year-over-year to RMB2.4 billion, with adjusted operating margin reaching a record high of 43.8%. Monthly active users exceeded 70 million, and paying enterprise customers increased 11% year-over-year to 7.2 million. AI-powered features, including AI sourcing and AI interviews (over 10,000 daily), are driving monetization and efficiency gains. Shareholder returns totaled $530 million in 2026 (dividends and buybacks), exceeding 100% of last year's adjusted net income. Gross margin improved to 87% due to AI-driven operational efficiencies and lower app store commission fees. Sales and marketing expenses surged 38% year-over-year due to FIFA World Cup sponsorship, pressuring near-term profitability. Revenue growth guidance for Q3 2026 (11.4%-15.6%) is slower than Q2's 14%, indicating potential macro headwinds. Operating cash flow declined 10% year-over-year due to higher advertising, tax payments, and lower interest income. The company faces significant macro uncertainty, with weak consumption and recruitment demand broadly stable but not robust. Overseas expansion (e.g., OfferToday) is expected to take 5-15 years to reach meaningful revenue, limiting near-term contribution. Q: Could you share more color on the latest progress of your AI products, the revenue scale of closed-loop services, and the quantitative impact of AI on matching efficiency? Also, what are the improvements in your newly launched Nanbeige4.2-3B model compared to the last generation, and how does it compare to top large language models in the market?A: CEO Jonathan Peng Zhao explained that AI talent sourcing leverages large language models to understand long, multi-round conversational queries, enabling the platform to serve high-requirement clients better than traditional search models. This expands service to "silent" users (senior, professional job seekers) beyond the 17 million MAU, appealing to headhunters. The closed-loop service uses AI for sourcing, resume screening, and interviews (over 10,000 AI interviews daily), moving closer to successful hires. Regarding Nanbeige4.2-3B, it ranked #1 in five areas (including scientific reasoning and math) in a test by Artificial Analysis on mobile devices. While the previous 4.1 model excelled in inference and writing, the 4.2 model is better at complex agent tasks like coding and office work. The company believes in the value of smaller models for specific applications (smartphones, vehicles, robots) as a complement to mega-size models. Q: What is your view on the macro impact on the company for the second half of this year, and how much pressure can be offset through operational improvements? Also, will the new AI services have a different cost structure, and do you plan to materially ramp up CapEx?A: CEO Jonathan Peng Zhao stated that despite macro headwinds, the company remains stable and trustworthy. He highlighted two growth opportunities: the potential market size (having served 300 million users and 22 million enterprises out of a potential 40 million+ active businesses) and the low paying ratio (over 50% of the 10 million+ annual served enterprises use the service for free). He gave an example where converting free users in a first-tier city to the lowest paying tier would increase the average cost per mutual match by at least 15%, a minimal change for customers. On AI investment, he confirmed the company follows a "tail light strategy," prioritizing AI applications without sacrificing financial safety. R&D expenses will be maintained at 20-25% of revenue, with incremental spending on AI, but this will not impact the overall cost structure or cash flow. Q: Could you quantify the benefits from AI in internal use for efficiency and cost reduction? How should we think about investment plans and margin trends in the second half after the FIFA World Cup sponsorship? Also, can you provide an update on the overseas business, including OfferToday?A: Deputy CFO Wenbei Wang noted that AI is leveraged across all operations (security, sales, marketing). Since 2023, operating employee headcount has remained stable alongside user growth, reducing employee-related costs as a percentage of revenue and contributing ~2 percentage points to gross margin, which is now in the high 80s. For the second half, FIFA World Cup costs will be recognized in Q2 and Q3, and cloud service costs for AI training will remain at current levels. Q3 margins should be similar to Q2, with full-year adjusted operating margin slightly increasing. CEO Jonathan Peng Zhao added that OfferToday's goal is to achieve USD100-115 million in revenue in five years (about the size of the Hong Kong market). The lessons learned are that it takes 2-3 years to enter a market and 5 more to grow. The company will invest in similar-sized cities in Asia and Europe, avoiding high geopolitical risk areas. It also sees "slow dish" markets like Vietnam, Argentina, or Brazil, which could achieve similar revenue in 10-15 years. Q: The company's margins are at a very healthy level. What is the outlook for the second half of the year regarding expenses and margin trends?A: Deputy CFO Wenbei Wang confirmed that the FIFA World Cup sponsorship costs will be evenly recognized in Q2 and Q3. Apart from that, the company will maintain its current investment level in cloud services for AI model training. The margin level in Q3 is expected to be similar to Q2, and for the full year, the adjusted operating margin can still slightly increase as initially expected. Q: Can you provide an update on the overseas business, including OfferToday, and any plans to expand into other markets?A: CEO Jonathan Peng Zhao stated that OfferToday's current goal is to bring in USD100 million to USD115 million in revenue within five years, which is roughly the market size of Hong Kong. The company has learned that it takes 2-3 years to enter a new market and an additional 5 years to grow to that revenue level. They will consider investing in cities of this size in Asia and Europe, avoiding high geopolitical risk areas. Additionally, they see potential in "slow dish" markets like Vietnam, Argentina, or Brazil, which have younger populations and are developing orderly, with a total population of slightly less than 100 million. These markets could achieve similar revenue in 10-15 years. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

KANZHUN LIMITED Sponsored ADR (BZ) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.13%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.27, delivering a surprise of +8%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Kanzhun, which belongs to the Zacks Internet - Software industry, posted revenues of $353.51 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.5%. This compares to year-ago revenues of $293.49 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kanzhun shares have lost about 24.2% since the beginning of the year versus the S&P 500's gain of 11.8%. While Kanzhun has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kanzhun was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.31 on $361.52 million in revenues for the coming quarter and $1.29 on $1.37 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Cognyte Software Ltd. (CGNT), is yet to report results for the quarter ended July 2026. This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +12.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Cognyte Software Ltd.'s revenues are expected to be $108.7 million, up 11.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KANZHUN LIMITED Sponsored ADR (BZ) : Free Stock Analysis Report Cognyte Software Ltd. (CGNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BEIJING, Aug. 25, 2026 (GLOBE NEWSWIRE) -- KANZHUN LIMITED (“BOSS Zhipin” or the “Company”) (Nasdaq: BZ; HKEX: 2076), a leading online recruitment platform in China, today announced its unaudited financial results for the quarter ended June 30, 2026. Second Quarter 2026 Highlights Total paid enterprise customers1 in the twelve months ended June 30, 2026 were 7.2 million, an increase of 10.8% from 6.5 million in the twelve months ended June 30, 2025. Average monthly active users2 for the second quarter of 2026 were 70.2 million, an increase of 10.4% from 63.6 million for the same quarter of 2025. Revenues for the second quarter of 2026 were RMB2,398.6 million (US$353.5 million), an increase of 14.1% from RMB2,102.4 million for the same quarter of 2025. Income from operations for the second quarter of 2026 was RMB863.2 million (US$127.2 million), an increase of 32.6% from RMB651.2 million for the same quarter of 2025. Adjusted3 income from operations for the second quarter of 2026 was RMB1,049.7 million (US$154.7 million), an increase of 19.2% from RMB880.9 million for the same quarter of 2025. Net income for the second quarter of 2026 was RMB1,942.3 million (US$286.3 million), an increase of 173.1% from RMB711.2 million for the same quarter of 2025. Adjusted net income for the second quarter of 2026 was RMB1,029.2 million (US$151.7 million), an increase of 9.4% from RMB940.9 million for the same quarter of 2025. Mr. Jonathan Peng Zhao, Founder, Chairman and Chief Executive Officer of the Company, remarked, “We are delighted to report that the Company continued to deliver strong sets of financials for the quarter, with both revenue and profit growth accelerating. Multiple operating metrics reached record highs in the second quarter, with average monthly active users on the BOSS Zhipin app surpassing 70 million for the first time, further reinforcing the Company’s industry-leading position and competitive moat. We are continuing to invest firmly in our Artificial Intelligence (AI) foundation model capabilities, while advancing the rollout of AI across both our user-facing and commercial products. We have applied AI to improve job-seeking and recruitment efficiency and matching accuracy, and we have also extended these capabilities across the full recruitment process, including AI-hosted or AI-assisted chats and AI interviews. These initiatives have received positive user feedback, and our initial commercialization efforts point to substantial market potential. At the same time, we place great importance on delivering value to our shareholders. The Company has declared an annual dividend of approximately US$230 million. Together with over US$300 million of share buybacks completed year-to-date, total shareholder returns through dividends and share buybacks this year have already exceeded 100% of the prior year’s adjusted net income.” Ms. Wenbei Wang, Deputy Chief Financial Officer of the Company, added, “The Company continued to deliver a high-quality growth in the second quarter, with revenue up 14.1% year-on-year, accelerating from the first quarter, alongside a year-on-year improvement in margins. During the second quarter, we sponsored the 2026 FIFA World Cup, and earned positive market feedback. By harnessing AI across our operations to enhance operating and management efficiency, combined with strong operating leverage, our income from operations grew 32.6% year-on-year, and our operating margin expanded by 5.0 percentage points, further validating the efficiency of our business model and the strength of our management execution. We remain firmly committed to shareholder returns, with healthy cash flow and ample cash reserves supporting our share buyback and dividend arrangements.” ________________________1 Paid enterprise customers are defined as enterprise users and company accounts from which the Company recognizes revenues for online recruitment services.2 Monthly active users refer to the number of verified user accounts, including both job seekers and enterprise users, that logged on to the Company’s mobile application in a given month at least once.3 It is a non-GAAP financial measure. For more information about non-GAAP financial measures, please see the sections entitled “Non-GAAP Financial Measures” and “Unaudited Reconciliation of GAAP and Non-GAAP Results.” Second Quarter 2026 Financial Results Revenues Revenues were RMB2,398.6 million (US$353.5 million) for the second quarter of 2026, representing an increase of 14.1% from RMB2,102.4 million for the same quarter of 2025. Revenues from online recruitment services to enterprise customers were RMB2,384.0 million (US$351.4 million) for the second quarter of 2026, representing an increase of 14.7% from RMB2,077.6 million for the same quarter of 2025. This increase was mainly driven by the paid enterprise customer growth. Revenues from other services, primarily comprising paid value-added services offered to job seekers, were RMB14.6 million (US$2.2 million) for the second quarter of 2026, decreasing from RMB24.8 million for the same quarter of 2025. The decrease was mainly driven by the optimization of certain value-added features for job seekers since the third quarter of 2025. The Company simplified these offerings to enhance the value proposition for job seekers, prioritizing platform engagement and long-term ecosystem growth. Operating cost and expenses Total operating cost and expenses were RMB1,542.5 million (US$227.3 million) for the second quarter of 2026, representing an increase of 6.1% from RMB1,454.4 million for the same quarter of 2025. Total share-based compensation expenses were RMB186.4 million (US$27.5 million) for the second quarter of 2026, representing a decrease of 18.9% from RMB229.7 million for the same quarter of 2025. Cost of revenues was RMB312.4 million (US$46.0 million) for the second quarter of 2026, representing an increase of 1.6% from RMB307.5 million for the same quarter of 2025, primarily due to an increase in server and bandwidth cost, partially offset by decreases in payment processing cost and share-based compensation expenses. Sales and marketing expenses were RMB580.9 million (US$85.6 million) for the second quarter of 2026, representing an increase of 38.3% from RMB419.9 million for the same quarter of 2025, primarily driven by higher advertising and marketing expenses incurred mainly for the 2026 FIFA World Cup campaigns, as well as an increase in sales employee-related expenses. Research and development expenses were RMB430.5 million (US$63.5 million) for the second quarter of 2026, representing an increase of 3.5% from RMB416.0 million for the same quarter of 2025, primarily due to an increase in cloud service fees. General and administrative expenses were RMB218.6 million (US$32.2 million) for the second quarter of 2026, representing a decrease of 29.7% from RMB311.0 million for the same quarter of 2025, primarily due to a decrease in employee-related expenses. Income from operations and adjusted income from operations Income from operations was RMB863.2 million (US$127.2 million) for the second quarter of 2026, representing an increase of 32.6% from RMB651.2 million for the same quarter of 2025. Adjusted income from operations was RMB1,049.7 million (US$154.7 million) for the second quarter of 2026, representing an increase of 19.2% from RMB880.9 million for the same quarter of 2025. Interest and investment income, net Interest and investment income was RMB1,632.5 million (US$240.6 million) for the second quarter of 2026, compared with RMB157.0 million for the same quarter of 2025. The increase was primarily attributable to investment income of RMB1,466.1 million arising from fair value changes of investments in an investee company, which completed its initial public offering in January 2026. Income tax expenses Income tax expenses were RMB550.3 million (US$81.1 million) for the second quarter of 2026, compared with RMB97.1 million for the same quarter of 2025. The increase was primarily driven by the tax effect of RMB366.5 million associated with the aforementioned investment income, together with withholding tax of RMB19.7 million, a top-up tax of RMB10.3 million under the Pillar Two rules, and an increase in income from operations. Net income and adjusted net income Net income was RMB1,942.3 million (US$286.3 million) for the second quarter of 2026, representing an increase of 173.1% from RMB711.2 million for the same quarter of 2025. Adjusted net income was RMB1,029.2 million (US$151.7 million) for the second quarter of 2026, representing an increase of 9.4% from RMB940.9 million for the same quarter of 2025, primarily driven by an increase in adjusted income from operations, partially offset by an increase in income tax expenses. Net income per American depositary share (“ADS”) and adjusted net income per ADS Basic and diluted net income per ADS attributable to ordinary shareholders for the second quarter of 2026 were RMB4.28 (US$0.63) and RMB4.20 (US$0.62), respectively, compared with basic and diluted net income per ADS of RMB1.62 and RMB1.58 for the same quarter of 2025. Adjusted basic and diluted net income per ADS attributable to ordinary shareholders for the second quarter of 2026 were RMB2.27 (US$0.33) and RMB2.23 (US$0.33), respectively, compared with adjusted basic and diluted net income per ADS of RMB2.14 and RMB2.09 for the same quarter of 2025. Net cash provided by operating activities Net cash provided by operating activities was RMB944.8 million (US$139.2 million) for the second quarter of 2026, representing a decrease of 10.2% from RMB1,051.9 million for the same quarter of 2025. This decrease was primarily attributable to increases in advertising and marketing expenditures and tax payments, as well as a decrease in interest and investment income received, partially offset by an increase in cash billings collected from customers. Cash position As of June 30, 2026, the balance of cash and cash equivalents, short-term time deposits and short-term investments (excluding investments in equity securities) was RMB18,807.2 million (US$2,771.8 million). Declaration of Annual Cash Dividend Under the Company’s annual dividend policy, the Company’s board of directors (the “Board”) has approved an annual cash dividend (the “Dividend”) of US$0.255 per ordinary share, or US$0.510 per ADS, to holders of ordinary shares and holders of ADSs of record as of the close of business on September 28, 2026, Beijing Time and New York Time, respectively, payable in U.S. dollars. The ex-dividend date for holders of ordinary shares in Hong Kong will be September 25, 2026 and the ex-dividend date for holders of ADSs will be September 28, 2026. The aggregate amount of the Dividend to be paid will be approximately US$230 million, which will be funded by surplus cash on the Company’s balance sheet. For holders of ordinary shares, in order to qualify for the Dividend, all valid documents for the transfer of shares accompanied by the relevant share certificates must be lodged for registration with the Company’s Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong no later than 4:30 p.m. on September 28, 2026 (Beijing/Hong Kong Time). Dividend to be paid to the Company’s ADS holders through the depositary bank will be subject to the terms of the deposit agreement. The payment date is expected to be on October 6, 2026 for holders of ordinary shares and on or around October 14, 2026 for holders of ADSs. Shareholder Return Plan On March 18, 2026, the Company announced that, subject to the final determination of the Board and the prevailing market conditions, the Company expects to allocate no less than 50% of the Company’s adjusted net income (a non-GAAP financial measure) of the preceding fiscal year for distribution of dividend under the annual dividend policy and share repurchases for each of the next three years starting from 2026. In addition, on March 18, 2026, the Board approved amendments to the existing share repurchase program, increasing the total authorization under the program to repurchase up to US$400 million of the Company’s shares (including ADSs) over the extended term of the program through August 28, 2027. Outlook For the third quarter of 2026, the Company currently expects its total revenues to be between RMB2.41 billion and RMB2.50 billion, representing a year-on-year increase of 11.4% to 15.6%. This forecast reflects the Company’s current views on the market and operational conditions in China, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof. Conference Call Information The Company will host a conference call at 8:00 AM U.S. Eastern Time on Tuesday, August 25, 2026 (8:00 PM Beijing Time on Tuesday, August 25, 2026) to discuss the financial results. Participants are required to pre-register for the conference call at: https://register-conf.media-server.com/register/BI270c41bec5db48968b0cb374ee844028 Upon registration, participants will receive an email containing participant dial-in numbers and a unique personal PIN. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time. Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.zhipin.com. Exchange Rate This press release contains translations of certain RMB amounts into U.S. dollar (“US$”) amounts at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the exchange rate of RMB6.7851 to US$1.00 on June 30, 2026 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all. Non-GAAP Financial Measures In evaluating the business, the Company considers and uses non-GAAP financial measures, such as adjusted income from operations, adjusted net income, adjusted net income attributable to ordinary shareholders, adjusted basic and diluted net income per ordinary share attributable to ordinary shareholders and adjusted basic and diluted net income per ADS attributable to ordinary shareholders as supplemental measures to review and assess operating performance. The Company defines these non-GAAP financial measures by excluding the impact of share-based compensation expenses and net gains from investments in an investee company from the related GAAP financial measures. The Company believes that these non-GAAP financial measures help identify underlying trends in the business and facilitate investors’ assessment of the Company’s operating performance. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP information used by other companies. The non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for most directly comparable GAAP financial measures. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures has been provided in the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” at the end of this press release. Safe Harbor Statement This press release contains statements that may constitute “forward-looking” statements which are made pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Among other things, the outlook and quotations from management in this press release contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited, in its interim and annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission and The Stock Exchange of Hong Kong Limited. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. About KANZHUN LIMITED KANZHUN LIMITED operates the leading online recruitment platform BOSS Zhipin in China. The Company connects job seekers and enterprise users in an efficient and seamless manner through its highly interactive mobile app, a transformative product that promotes two-way communication, focuses on intelligent recommendations, and creates new scenarios in the online recruiting process. Benefiting from its large and diverse user base, BOSS Zhipin has developed powerful network effects to deliver higher recruitment efficiency and drive rapid expansion. For investor and media inquiries, please contact: KANZHUN LIMITEDInvestor RelationsEmail: [email protected] PIACENTE FINANCIAL COMMUNICATIONSEmail: [email protected]

Kanzhun Limited (NASDAQ:BZ) just reported healthy earnings but the stock price didn't move much. Investors are probably missing some underlying factors which are encouraging for the future of the company. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. This ratio tells us how much of a company's profit is not backed by free cashflow. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Over the twelve months to March 2026, Kanzhun recorded an accrual ratio of -2.38. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. In fact, it had free cash flow of CN¥4.6b in the last year, which was a lot more than its statutory profit of CN¥3.37b. Kanzhun shareholders are no doubt pleased that free cash flow improved over the last twelve months. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. As we discussed above, Kanzhun's accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company. Because of this, we think Kanzhun's underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! Better yet, its EPS are growing strongly, which is nice to see. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. While it's really important to consider how well a company's statutory earnings represent its true earnings power, it's also worth taking a look at what analysts are forecasting for the future. So feel free to check out our free graph representing analyst forecasts. Today we've zoomed in on a single data point to better understand the nature of Kanzhun's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

KANZHUN LIMITED Sponsored ADR (BZ) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.00%. A quarter ago, it was expected that this company would post earnings of $0.3 per share when it actually produced earnings of $0.27, delivering a surprise of -10%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Kanzhun, which belongs to the Zacks Internet - Software industry, posted revenues of $299.91 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.81%. This compares to year-ago revenues of $265.03 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kanzhun shares have lost about 30.8% since the beginning of the year versus the S&P 500's gain of 7.4%. While Kanzhun has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kanzhun was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.32 on $361.97 million in revenues for the coming quarter and $1.23 on $1.33 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, VNET Group (VNET), has yet to report results for the quarter ended March 2026. The results are expected to be released on May 26. This provider of carrier-neutral internet data center services is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. VNET Group's revenues are expected to be $389.9 million, up 26% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KANZHUN LIMITED Sponsored ADR (BZ) : Free Stock Analysis Report VNET Group, Inc. - Unsponsored ADR (VNET) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research