Photo Credit: Korea.net
Thanks largely to BTS’ comeback, Hybe turned in a nearly 40% year-over-year revenue increase during Q1 2026. However, the K-pop mainstay also reported a sizable operating loss for the period, when concerts revenue slipped by about 43% YoY.
According to its newly released earnings breakdown, Hybe (KRX: 352820) generated a cool ₩698.35 billion (currently $469 million) during the three-month stretch; the sum represents the company’s “highest-ever first-quarter revenue.”
Within the total, Hybe attributed $271.08 million/₩403.65 billion (up 25.2% YoY) to the artist-direct side, with recorded music ($182.32 million/₩271.52 billion, up 98.9% YoY) driving most of the growth therein. Also in artist direct, ads and appearances revenue hiked 40.7% YoY to $29.15 million/₩43.41 billion, and the aforementioned concerts contributed $59.59 million/₩88.72 billion.
Meanwhile, the Pledis Entertainment majority owner identified $197.88 million/₩294.70 billion (up 65.5% YoY) in artist-indirect revenue, including $92.28 million/₩137.42 billion (up 29.2% YoY) from merch and licensing; $71.14 million/₩105.95 billion (up 157% YoY) from “contents”; and $34.47 million/₩51.33 billion (up 68.5% YoY) from fan club and different sources.
Building on these sub-categories’ improvements, Hybe identified an average of 13.4 million MAUs on Weverse for the quarter, up from 11.2 million in Q4 2025 and 9.2 million in Q1 2024. The superfan platform achieved “strong profitability” and “its highest-ever engagement levels” in Q1, per the Source Music owner.
Back to the initially highlighted profit slip, massive K-pop comebacks don’t come cheap: Hybe’s Q1 labor expenses swelled 277% YoY to $253.02 million/₩376.80 billion, and the quarter’s operating loss came in at $131.98 million/₩196.58 billion, compared to a net loss of $105.19 million/₩156.67 billion.
That said, execs chalked up about $171.20 million/₩255 billion of the labor expenses to an employee stock award reportedly provided by chairman Bang Si-hyuk; less this once-off expenditure, Hybe identified Q1 2026 adjusted operating profit of $39.24 million/₩58.46 billion (up 170.3% YoY).
Unsurprisingly, Hybe brass dedicated much of the earnings report and the corresponding call to touting the global reach, results, and revenue of BTS.
But they touched on a few non-BTS positives as well: All 13 Seventeen members have reupped with Hybe; execs expect Katseye’s forthcoming August EP to move north of one million copies; and Geffen and Hybe will look to build on Katseye’s success by debuting a four-piece girl group later in 2026.
During today’s trading, the market offered an appropriately measured response to the mixed-bag (what happens after BTS’ comeback?) results; Hybe stock’s value grew 1.6% to $169.50/₩252,500, down 5% from late-April 2025 and 27% from 2026’s start.
Regarding the share-price slump, it probably goes without saying that the legal woes of Bang aren’t ideal for the company or the wider K-pop sector. A bit of an encouraging development on this front: prosecutors ultimately rejected police’s request for an arrest warrant, pointing to insufficient evidence justifying the exec’s detention.
Finally, the Hybe v. NewJeans battle still isn’t finished. Following the return of four members to the girl group, Danielle and ex-Ador head Min Hee-jin remain entangled in an ugly dispute with their former employer.
A Seoul court recently approved Ador’s request to freeze almost $5 million worth of real estate assets owned by Min and Danielle’s mother pending a final ruling (and a possible seizure order) in the courtroom confrontation, per the Korea JoongAng Daily.
Additionally, the Korea Times today noted that “ADOR’s entire legal team has stepped down” – and touched on speculation that the abrupt five-attorney resignation could delay the trial.
