HYBE has reported its highest-ever quarterly revenue, with cumulative sales for the first three quarters of 2025 nearing 2 trillion KRW(~1.4 billion USD).
According to its consolidated financial statement for the third quarter, HYBE recorded ₩727.2 billion in revenue — a 37.8% increase year-on-year, surpassing its previous record of ₩726.4 billion set in the fourth quarter of 2024. However, the company reported an operating loss of ₩42.2 billion (5.8%), citing one-time costs tied to global artist IP expansion and restructuring of its North American operations, which lowered its operating margin by roughly 12 percentage points.
HYBE’s remarkable growth momentum continued throughout 2025, with both Q1 and Q2 already marking record-breaking sales. Cumulative revenue for the first three quarters reached approximately ₩1.93 trillion.
Direct participation revenue — driven by concerts and albums — totaled ₩477.4 billion, accounting for 66% of total sales. The concert division recorded over ₩245 billion, more than triple last year’s figure, thanks to strong global demand for BTS Jin’s solo world tour, as well as large-scale tours by TOMORROW X TOGETHER and ENHYPEN.
The album segment saw a decline to ₩189.8 billion due to fewer artist comebacks during the quarter.
Meanwhile, indirect participation revenue — including MD & licensing, content, and fan club sales — rose 22% year-on-year to ₩249.8 billion. The MD and licensing category led the growth, surging 70% to ₩168.3 billion, driven by the sale of tour merchandise, light sticks, and IP-based character goods.
HYBE’s multi-home, multi-genre strategy continues to pay off. Global girl group KATSEYE achieved record-breaking success, with their single “Gabriela” peaking at No. 37 on the Billboard Hot 100, their highest to date. Their track “Gnarly” re-entered the same chart, extending its run to 11 cumulative weeks.
KATSEYE also earned two nominations at the 68th Grammy Awards — Best New Artist and Best Pop Duo/Group Performance — marking a milestone for K-pop-based acts. With 33 million monthly Spotify listeners, they currently hold the top streaming record among K-pop-structured global artists.
Following this success, KATSEYE is set to embark on their first global tour across 13 North American cities with 16 shows, all of which have sold out. A new four-member sister group from the same label is being finalized through a global audition program, set to air on a Japanese OTT platform next spring.
HYBE’s superfan platform Weverse turned profitable on a cumulative basis for the third quarter, thanks to new revenue models such as digital memberships and advertising. On November 18, Weverse will expand its user engagement by launching a private messaging service, “Weverse DM,” on China’s top streaming platform QQ Music.
The company expects significant improvement in Weverse’s performance next year, driven by BTS’s group activity resumption, expanding e-commerce sales, and continued digital growth.
HYBE continues to expand its artist IP portfolio globally. In Korea, boy group CORTIS successfully debuted, signaling the rise of a new generation of global stars. In Latin America, HYBE launched Santos Bravos, a five-member boy group selected through the namesake reality show, and MUSA, a band from HYBE Latin America’s CIENTO Records via the audition show “Pase a la Fama.” Two additional teams — Destino and Low Clicka, both popular finalists — are also preparing for debut.
These large-scale projects, along with marketing and production investments, reduced the operating margin by about 6 percentage points this quarter.
HYBE CFO Lee Kyung Jun commented,
“While multiple debuts have temporarily lowered profitability, we expect stronger mid-to-long-term growth through global fandom expansion and revenue diversification.”
Another 6 percentage point decline in profitability stemmed from one-time costs associated with North American restructuring, as HYBE shifts from a management-focused model to a label-centered, IP-integrated business system to strengthen profitability and operational stability.
HYBE CEO Lee Jae Sang stated,
“Despite short-term margin pressures, the fundamentals of our K-pop division remain strong, maintaining profitability in the 10–15% range this year. As one-off cost factors are largely resolved by Q4, we expect full-scale profit recovery beginning next year.”
He added,
“From 2026 onward, the resumption of BTS’s activities, accelerated growth of our K-pop artists, expansion of our multi-home/multi-genre strategy, and Weverse’s stable profitability will drive HYBE into a new phase of sustained earnings recovery.”
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