HYBE Suffers $30M Loss Despite Record Quarterly Revenue

In the fourth quarter of 2025, HYBE, the South Korean entertainment company behind the global K-pop sensation BTS, reported its highest-ever quarterly revenue of 727.2 billion Korean won ($518.6 million), a 37.8% increase from the same period a year earlier. The company's consolidated sales reached 2 trillion Korean won ($1.37 billion) during the quarter, with artist-related revenue, including music sales, world tours, live events, and advertisements, accounting for 66% of the total.

Despite the record-breaking revenue, HYBE faced an operating loss of 42.2 billion Korean won (negative $30 million) in the quarter. This was attributed to higher income taxes and a decline in the company's recorded music business, which saw an 11.5% drop from the previous year due to fewer new album releases. Additionally, the expansion of HYBE's global intellectual property (IP) and its North American operations restructuring resulted in a 12-percentage-point decline in operating margin.

However, HYBE remains optimistic about its long-term prospects. The company's K-pop division, which is the core of its business, is expected to maintain a 10-15% profitability this year, indicating strong fundamentals. Moreover, HYBE is positively looking forward to 2026, the year when BTS is anticipated to make its highly anticipated comeback to the music scene following the conclusion of each member's respective military service.