HYBE recorded an operating loss of 42.2 billion KRW in the third quarter of 2025, turning to a deficit. According to HYBE's data released on the 11th, consolidated revenue for the third quarter of this year was 727.2 billion KRW, a 37.8% increase compared to the same period last year. This figure exceeded the 726.4 billion KRW recorded in the fourth quarter of 2024, marking the highest quarterly revenue. However, it posted an operating loss of 42.2 billion KRW, resulting in a return to deficit.

Direct participation revenue in the third quarter was 477.4 billion KRW, accounting for about 66% of total revenue. Large-scale performances such as BTS Jin's global solo tour and world tours of Tomorrow X Together and ENHYPEN were loved by fans worldwide, with concert segment revenue growing more than threefold year-on-year to 245 billion KRW. On the other hand, album segment revenue decreased to 189.8 billion KRW compared to the same period last year due to fewer artist comebacks.

Indirect participation revenue, including MD and licensing, content, and fan club sales, was 249.8 billion KRW, a 22% increase year-on-year. Among these, MD and licensing segment revenue was 168.3 billion KRW, up 70% from the same period last year. The strong MD sales indicate that tour MD, light sticks, and IP-based character merchandise related to artist tour activities were effective.

The operating loss of 42.2 billion KRW in the third quarter was mainly attributed to proactive investments for expanding global artist IP and one-time expenses related to restructuring the North American business. This caused a decline in operating profit margin by about 12 percentage points. HYBE successfully debuted the boy group CORTIS in Korea through new investments to expand artist IP, and in South America, the five-member boy group SANTOS BRAVOS was selected through an audition program of the same name. Additionally, the band MUSZA, under HYBE Latin America's label S1ENTO Records, debuted through the Latin band audition "Pase a la Fama." The final finalist team Destino and the popular group Low Clika during the program are also preparing to debut.

Due to initial investments such as marketing and content production costs for these large projects, the operating profit margin fell by about 6 percentage points this quarter. HYBE CFO Lee Kyung-joon stated, "Although profitability declined in the short term due to the debut of multiple teams, in the mid-to-long term, HYBE's growth structure will be strengthened through global fandom expansion and stabilization of the revenue base."

One-time expenses related to the North American business restructuring also contributed to an additional approximately 6 percentage point decline in operating profit margin. HYBE is shifting from a management-centered to a label-centered IP integrated business system to strengthen profitability and operational stability in the North American market. From next year, with the effects of restructuring and the resumption of BTS activities, the North American business's profit and loss structure is expected to stabilize.

HYBE CEO Lee Jae-sang said, "The core K-pop segment of HYBE is expected to maintain profitability at the 10% to 15% level this year. The company's fundamentals remain strong," adding, "Most of the profitability burden factors will be resolved starting from the fourth quarter of this year." He continued, "From next year, we will enter a full-scale profitability recovery phase centered on the resumption of BTS activities, accelerated growth of K-pop artists, expansion of multi-home and multi-genre strategies, and stable profitability maintenance of Weverse."

HYBE plans to pursue continuous growth through expanding artist IP and global fandom in the future.