I always told y'all that hybe be expanding too fast. Without making one act or subsidiary succeeded they start another. Classic way businesses fail

Loving this K-pop Ponzi scheme...

When do we get to the closing chapter of their sorry saga? Lol

HYBE (XKRX:352820) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic Challenges

Positive Points

-HYBE (XKRX:352820) achieved record-breaking revenue of 2 trillion 649.9 billion won in 2025, demonstrating sustainable growth potential.

- BTS is set to provide strong growth momentum in 2026 with a comeback and a large-scale world tour, which is expected to significantly boost revenue.

- HYBE's artists maintained strong influence in the global streaming market, accounting for about 3% of total streams in 2025.

- The company successfully expanded its global artist IP portfolio, with new artists like Cortis and Santos Bravos gaining significant market influence.

- Weverse, HYBE's platform business, returned to profitability in 2025, driven by digital business growth and improved operational efficiency.

Negative Points

- The operating profit margin declined to 1.9% due to preemptive investments for long-term growth and restructuring costs.

- The company recognized approximately 200 billion won in impairment losses during the restructuring of its U.S. business model.

- Recorded music and concert sales were slightly down year over year in Q4 2025 due to fewer artist comebacks and tours.

- Merchandise and licensing revenue decreased by 6% year over year in Q4 2025.

HYBE’s focus on expanding into new markets may lead to short-term profit declines due to necessary investments.

Q&A Highlights

Q: You reported that Weverse turned a profit in 2025. Which revenue categories contributed to this improved profitability, and what is the outlook for Weverse in 2026?

A (CEO): The profitability of Weverse was mainly driven by growth in the digital business, including digital memberships and Weverse DM, which grew at an annual rate of 30% and now account for more than 10% of total revenue. Additionally, increased efficiency in commerce operations contributed to a stronger profit structure. For 2026, we expect a positive impact from BTS resuming activities, which will increase traffic and commerce on Weverse. We will continue expanding our Japanese lineup and focus on IPs that can enhance commerce and transactions.

Q: Cortis has shown unprecedented album sales. What factors contributed to their success, and what is the future outlook for Cortis?

A (CFO): Cortis’ ongoing album sales growth is due to their talented lineup and unique promotional strategies, such as producing music videos for all album tracks. These strategies have been well received, leading to a growing fandom.

A (CEO): Cortis’ debut was unprecedented, with over 1.3 million physical copies sold in three months. Their global popularity is evident from their Spotify streaming numbers and partnerships with global brands. This success is a result of HYBE’s accumulated experience and innovative marketing approaches.

Q: Can you provide more details on the financial results for Q4 2025?

A (CFO): In Q4, consolidated revenue was 716.4 billion won, with 61% from direct artist involvement and 39% from indirect involvement. Operating profit was affected by costs related to new projects and restructuring. Recorded music and concert sales were slightly down year over year due to fewer artist comebacks and tours. However, content sales increased by 61% year over year, driven by successful shows and seasonal greetings.

Q: What are the key factors affecting HYBE’s operating profit margin, and how do you plan to address them?

A (CFO): The decline in the operating profit margin is due to preemptive investments for long-term growth and costs associated with improving the profit structure. The expansion of the global artist IP portfolio and restructuring of the U.S. business model have incurred costs but are expected to enhance profitability in the long term. We are focusing on realigning the business structure to achieve medium- to long-term growth.

Q: Can you elaborate on the new shareholder return policy?

A (CFO): HYBE has introduced a new three-year shareholder return policy, shifting the basis for dividend payouts from net profit to consolidated free cash flow. This change aims to minimize volatility and provide greater predictability for shareholders. Up to 30% of free cash flow will be used as distributable income, with a minimum dividend system guaranteeing a minimum DPS of 501 won. This policy reflects HYBE’s commitment to enhancing shareholder value amid external uncertainties.

Quote from Flovell

HYBE (XKRX:352820) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic Challenges

Positive Points

-HYBE (XKRX:352820) achieved record-breaking revenue of 2 trillion 649.9 billion won in 2025, demonstrating sustainable growth potential.

- BTS is set to provide strong growth momentum in 2026 with a comeback and a large-scale world tour, which is expected to significantly boost revenue.

- HYBE's artists maintained a strong influence in the global streaming market, accounting for about 3% of total streams in 2025.

- The company successfully expanded its global artist IP portfolio, with new artists like Cortis and Santos Bravos gaining significant market influence.

- Weverse, HYBE's platform business, returned to profitability in 2025, driven by digital business growth and improved operational efficiency.

Negative Points

- The operating profit margin declined to 1.9% due to preemptive investments for long-term growth and restructuring costs.

- The company recognised approximately 200 billion won in impairment losses during the restructuring of its U.S. business model.

- Recorded music and concert sales were slightly down year over year in Q4 2025 due to fewer artist comebacks and tours.

- Merchandise and licensing revenue decreased by 6% year over year in Q4 2025.

HYBE’s focus on expanding into new markets may lead to short-term profit declines due to necessary investments.

Q&A Highlights

Q: You reported that Weverse turned a profit in 2025. Which revenue categories contributed to this improved profitability, and what is the outlook for Weverse in 2026?

A (CEO): The profitability of Weverse was mainly driven by growth in the digital business, including digital memberships and Weverse DM, which grew at an annual rate of 30% and now accounts for more than 10% of total revenue. Additionally, increased efficiency in commerce operations contributed to a stronger profit structure. For 2026, we expect a positive impact from BTS resuming activities, which will increase traffic and commerce on Weverse. We will continue expanding our Japanese lineup and focus on IPs that can enhance commerce and transactions.

Q: Cortis has shown unprecedented album sales. What factors contributed to their success, and what is the future outlook for Cortis?

A (CFO): Cortis’ ongoing album sales growth is due to their talented lineup and unique promotional strategies, such as producing music videos for all album tracks. These strategies have been well-received, leading to a growing fandom.

A (CEO): Cortis’ debut was unprecedented, with over 1.3 million physical copies sold in three months. Their global popularity is evident from their Spotify streaming numbers and partnerships with global brands. This success is a result of HYBE’s accumulated experience and innovative marketing approaches.

Q: Can you provide more details on the financial results for Q4 2025?

A (CFO): In Q4, consolidated revenue was 716.4 billion won, with 61% from direct artist involvement and 39% from indirect involvement. Operating profit was affected by costs related to new projects and restructuring. Recorded music and concert sales were slightly down year over year due to fewer artist comebacks and tours. However, content sales increased by 61% year over year, driven by successful shows and seasonal greetings.

Q: What are the key factors affecting HYBE’s operating profit margin, and how do you plan to address them?

A (CFO): The decline in the operating profit margin is due to preemptive investments for long-term growth and costs associated with improving the profit structure. The expansion of the global artist IP portfolio and restructuring of the U.S. business model have incurred costs but are expected to enhance profitability in the long term. We are focusing on realigning the business structure to achieve medium- to long-term growth.

Q: Can you elaborate on the new shareholder return policy?

A (CFO): HYBE has introduced a new three-year shareholder return policy, shifting the basis for dividend payouts from net profit to consolidated free cash flow. This change aims to minimise volatility and provide greater predictability for shareholders. Up to 30% of free cash flow will be used as distributable income, with a minimum dividend system guaranteeing a minimum DPS of 501 won. This policy reflects HYBE’s commitment to enhancing shareholder value amid external uncertainties.

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Ugh!!

They've been harping on about growth potential for TWO YEARS NOW!! When is this growth gonna lead to substantial profits??

All I see is smoke and mirrors for a Ponzi scheme with no path to major profits being made.

It's a shady company...

oh so they are loosing even more money

It’s so satisfying to see that the most successful 4th gen group is coming from JYP.

Quote from OopsEncoreMoi

It’s so satisfying to see that the most successful 4th gen group is coming from JYP.

Newjeans is from JYP?

bango must have payed ALOT ALOT of money for that grammy nomination and meybe they even payed for an award by it they got still rejected?

on top of that they must have spend an ENORMOUS amount of money against NJS and MHJ to win these lawsuits and they still lost to MHJ!

then we got the cortis mass payola as well and probably many other shady sht...

They are make a loss mostly to big impairment losses connected to the american bussiness, in really they are making a profit for the Q4. It's common that Q4 can be hit by impairment cost because they close the books for the financial year of 2025 the companies are forced to think a big harder about any need impairments.

Quote from vinslow4

Newjeans is from JYP?

Stray kids Fandoms > Nj

Quote from OopsEncoreMoi

Stray kids Fandoms > Nj

TXT fandoms also > NJ, some other groups too.

That doesn't mean those groups are more successful.

Newjeans is the only group in 4th gen has all of these:

- Chart topping tracks,

- Chart more than a week on Hot 100 (not like many other groups front-loaded the sale just to chart 1 week then free-falled). Also is the group with highest peak on this,

- Stream. Despite being 4 years younger, NewJean has 4 tracks with 700M+ on Spotify, while Stray Kids just has one track barely reached 500M,

- Sizeable fandom,

- Public recognition (2 times No 1 Gallup poll, one time top 5 despite not having any activity in that year).

Quote from vinslow4

TXT fandoms also > NJ, some other groups too.

That doesn't mean those groups are more successful.

Newjeans is the only group in 4th gen has all of these:

- Chart topping tracks,

- Chart more than a week on Hot 100 (not like many other groups front-loaded the sale just to chart 1 week then free-falled). Also is the group with highest peak on this,

- Stream. Despite being 4 years younger, NewJean has 4 tracks with 700M+ on Spotify, while Stray Kids just has one track barely reached 500M,

- Sizeable fandom,

- Public recognition (2 times No 1 Gallup poll, one time top 5 despite not having any activity in that year).

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We can talk about it again when they manage to do a worldwide stadium tour, until then SKZ > NJ