1. What Happened?: HYBE’s Q2 2025 Performance

HYBE reported revenue of ₩705.6 billion, operating profit of ₩65.9 billion, and net profit of ₩15.4 billion for Q2 2025. While revenue slightly exceeded market expectations, net profit fell significantly short.

2. Why This Result?: Unpacking the Earnings Shock

The primary drivers of this earnings shock are a sharp decline in album/track sales (-57.6%) and legal disputes surrounding ADOR. Decreased activity from major artists and album release schedule adjustments contributed to the sales decline. Conversely, concert revenue grew by 23.9% year-over-year to ₩343.8 billion, demonstrating robust growth. Positive factors include Weverse platform enhancements, new artist debuts, and expanded global partnerships.

3. What’s Next?: Investment Strategies & Future Outlook

In the short term, HYBE needs to focus on strengthening its album/track sales competitiveness, improving cost efficiency, and resolving the legal disputes promptly. Long-term strategies should prioritize platform enhancements, nurturing new artists, and expanding into global markets for sustainable growth. HYBE’s future hinges on the recovery of its album/track business and the success of its new ventures.

4. Investor Action Plan

  • Short-term Investors: Exercise caution and closely monitor the recovery of album/track sales and the resolution of legal disputes.
  • Long-term Investors: Consider the growth potential of the platform business, the success prospects of new artists, and the global market entry strategy for long-term investment.