HYBE, the South Korean entertainment giant behind K-pop phenomenon BTS, has today (November 10) reported its strongest-ever quarterly revenue performance.
The company’s Q3 revenues grew 37.8% YoY to hit 727.2 billion South Korean won, which converts to USD $524.7 million at the average exchange for the quarter.
The performance topped HYBE’s previous quarterly record from Q4 2024, pushing cumulative revenue for the first nine months of 2025 to 1.93 trillion won ($1.39 billion).
Concert revenue registered the fastest growth in Q3 2025, surging over three times or by 231% YoY to 245 billion won ($176.8m). The jump was driven by world tours and fan events from Jin of BTS, SEVENTEEN, TOMORROW X TOGETHER and ENHYPEN.
Direct artist activities, which covers recorded music and concerts combined, generated 477.4 billion won ($344.5m), accounting for 66% of total revenue. Recorded music revenue came in at 189.8 billion won ($137m), down 11.5% YoY due to a lighter album release schedule in the quarter.
Indirect revenue streams, including from official merchandise, intellectual property licensing, content, and fan club memberships, climbed 22% YoY to 249.8 billion won ($180.2m). Merchandise and IP licensing jumped 70% YoY to 168.3 billion won ($121.4m), driven mainly by tour merch and IP-based products.
Despite the revenue growth, HYBE swung to an operating loss of 42.2 billion won ($30.4m), versus an operating profit of 54.2 billion won ($37m) last year.
The loss came from what the company described as “significant strategic investments in global IP expansion” including early-stage investments in the debut of CORTIS and two other teams from HYBE Latin America‘s audition program, Pase a la Fama, plus non-recurring expenses tied to restructuring its North American business.
HYBE CFO Kyung Jun Lee said: “While the debut of multiple teams has temporarily absorbed short-term profitability, HYBE’s growth structure will be strengthened in the mid-to-long term through global fandom expansion and revenue base stabilization.”
He added: “The transition of our North American business to a label-centric IP integrated structure is expected to stabilize the P&L next year, aligning with the effects of this restructuring.
Jason Jaesang Lee, CEO of HYBE, said: “HYBE’s fundamentals remain robust, with our core K-pop sector projected to maintain profitability between 10% to 15% in 2025. We anticipate these profitability headwinds will largely clear by the fourth quarter, allowing for the full-scale improvement of our revenue structure starting in 2026.”
“While the debut of multiple teams has temporarily absorbed short-term profitability, HYBE’s growth structure will be strengthened in the mid-to-long term through global fandom expansion and revenue base stabilization.”
Kyung Jun Lee, HYBE
He continued: “This recovery will be anchored by BTS’ return as a group, the accelerated growth of K-pop artists, further results from our ‘multi-home, multi-genre’ strategy, and stable profitability from Weverse.”
Speaking of Weverse, HYBE’s global superfan platform achieved “cumulative profitability” through Q3, said HYBE, helped by new business models like Digital Membership. The platform plans to expand further by opening its private messaging service, Weverse DM, on China’s QQ Music on November 18. The partnership between Weverse and Tencent Music Entertainment’s QQ Music was announced last week.
As of Q3 2025, Weverse had 11.6 million monthly active users, up by +700,000 from the 10.9 million recorded in Q2 2025 and by +1.9 million MAUs in Q3 2024.
HYBE said Weverse expects significant performance improvements driven by BTS’s group return, expanded e-commerce revenue from growing artists, and growth in its own digital services. BTS will return as a complete seven-member group in March 2026.
“We anticipate these profitability headwinds will largely clear by the fourth quarter, allowing for the full-scale improvement of our revenue structure starting in 2026.”
Jason Jaesang Lee, HYBE
Meanwhile, in the US, KATSEYE’s momentum continued as their single Gabriela reached No. 37 on the Billboard Hot 100. The group, formed through HYBE’s partnership with Universal Music Group‘s Geffen Records, earned two Grammy nominations for Best New Artist and Best Pop Duo/Group Performance. Their first North American tour sold out completely.
HYBE is now forming another girl group quartet under the same US label through a global audition called Prelude: The Final Piece in partnership with Japan’s ABEMA. The program is scheduled to air early next year.
Three former contestants from the 2023 Dream Academy competition, which launched KATSEYE, have been confirmed among the four new members of the new girl group.
QC Music’s BigXthaPlug saw his album I Hope You’re Happy chart at No. 2 on both Billboard’s Top Rap Albums and Top Country Albums charts, while his single All The Way hit No. 4 on the Billboard Hot 100 and No. 1 on the Hot Rap Songs chart. HYBE, through HYBE AMERICA, acquired QC Music in February 2023.
Country music also continued delivering for HYBE via Big Machine Label Group. Riley Green sold out his UK and Ireland tour and scored his first solo No. 1 on the UK Country Airplay Chart with Change My Mind.
Elsewhere, HYBE’s Latin American division expanded further in Q3, launching new groups MUSZA and SANTOS BRAVOS from local audition programs. SANTOS BRAVOS debuted in October with their single 0%, racking up over 100 million views on social media and 100,000 Weverse subscribers. Their debut concert in Mexico City sold out in two hours. The division also signed DY (formerly Daddy Yankee), releasing his music video El Toque, which was filmed in Korea.
All KRW-USD conversions in this report were made at the average quarterly rate for Q3 2025 of 1,386 KRW/USD.Music Business Worldwide
