JYP Entertainment‘s revenues and profits both fell in the second quarter of 2026.
The Seoul-headquartered company behind Stray Kids and TWICE generated revenue of KRW 183.1 billion (approximately USD $122 million) in the three months to the end of June, down 15.1% YoY.
Net profit fell 40.3% YoY to KRW 21.7 billion ($14.5m), while operating profit dropped 41.4% to KRW 31.0 billion ($20.7m), according to figures the KOSDAQ-listed company published on Wednesday (August 12).
JYP attributed the revenue decline to a “high base (Stray Kids‘ large-scale concerts/MD) despite music growth.”
That high base was the same quarter of 2025, when Stray Kids‘ dominATE world tour was still on the road, and JYP‘s revenue more than doubled YoY while net profit rose 2,734.4%.
That tour finished in October 2025, with an added finale at Incheon Asiad Main Stadium, and the group’s next one did not open until July 2026 – nine months later, and after the second quarter had closed.
Concert revenue consequently fell 35.7% YoY to KRW 39.9 billion ($26.6m) in the quarter.
Merchandise revenue fell 34.5% to KRW 43.9 billion ($29.3m), which JYP put down to the “absence of large-scale tour/online MD.”
Revenue from appearances fell 28.0% to KRW 7.0 billion ($4.7m) on fewer fan concerts, though JYP said the line still reflected Stray Kids fan meetings and festival headline slots.
JYP‘s recorded music business grew, however, across both physical and streaming.
Physical album revenue rose 36.7% YoY to KRW 37.0 billion ($24.7m), with catalog sales of Stray Kids albums climbing from 120,000 units in Q2 2025 to 420,000 units in Q2 2026.
JYP also released five titles in the quarter, up from three a year earlier.
Streaming revenue rose 71.6% to KRW 19.7 billion ($13.1m), which the company credited to “global streaming sales expansion from increased mass fandom and YouTube revenue reclassification.”
Advertising revenue rose 20.5% to KRW 13.6 billion ($9.1m), which JYP said came from “enlarged artist mass awareness.”
Gross margin fell 3.1 percentage points YoY to 38.7%, while operating margin fell 7.6 percentage points to 16.9%.
Total cost of sales fell 10.6% to KRW 112.3 billion ($74.9m), as artist fees dropped 25.3% to KRW 48.1 billion ($32.1m) on lower management revenue.
Content production costs, however, rose 25.9% YoY to KRW 34.0 billion ($22.7m) on new releases, catalog and digital singles, while other cost of sales fell 11.8% to KRW 30.3 billion ($20.2m) and SG&A rose 6.9% to KRW 39.8 billion ($26.5m).
JYP attributed the margin contraction to “high base impact and limited leverage,” and the fall in operating profit to “limited leverage and increased SG&A-commission fee.”
JYP‘s two largest rivals both grew revenue in the same quarter.
HYBE reported revenue up 105.5% YoY to a record KRW 1.45 trillion ($967m) on July 28, as previously reported by MBW.
Operating profit at HYBE rose 159.3% to KRW 170.9 billion ($114m), and net profit rose 610.1% to KRW 109.8 billion ($73m), driven by BTS‘ ARIRANG world tour, which lifted concert revenue 243.3% YoY.
That said, HYBE‘s operating margin for the quarter was 11.8%, below the 16.9% JYP posted after its decline.
SM Entertainment reported consolidated revenue up 15.4% YoY to KRW 349.6 billion ($233m) on August 5, with operating profit up 11.0% to KRW 52.9 billion ($35.3m).
SM‘s net income fell, however, down 5.6%, or KRW 1.7 billion, YoY to KRW 29.2 billion ($19.5m).
SM attributed that decline to “valuation losses on equity investments, impairment losses on investment assets, and higher income tax expenses.”
Across JYP‘s roster, headline touring in the quarter was carried by acts other than Stray Kids, though the group did headline New York’s Governors Ball on June 6, the first K-pop group to top the bill at the festival.
Notably, TWICE played Japan and Europe during the period, on its THIS IS FOR world tour, which JYP said reached 81 shows across 44 cities. The tour ended on July 12.
The Japan leg took in three nights at Tokyo’s Japan National Stadium on April 25, 26, and 28, drawing around 240,000 people and making TWICE the first overseas act to headline a solo concert at the venue.
Across the first half of 2026, JYP generated revenue of KRW 369.1 billion ($246m), operating profit of KRW 64.4 billion ($42.9m) and net profit of KRW 53.6 billion ($35.7m).
Separately, JYP, HYBE, SM Entertainment and YG Entertainment are preparing a joint venture to stage a South Korean music festival, provisionally named Fanomenon, as live music grows as a share of K-pop revenues.
All KRW-USD conversions in this article, including those for the first half of 2026, were made at the average Q2 2026 exchange rate of approximately 1,500 KRW/USD.Music Business Worldwide
