HYBE (352820) investor relations material

Executive summary

• Achieved record Q1 2026 revenue of KRW 698.3 billion, up 39.5% year-over-year, driven by BTS's comeback, strong album sales, and diversified global artist contributions.

• Adjusted operating profit reached KRW 58.5 billion, up 170% year-over-year, excluding a one-off KRW 255 billion stock gift expense for employee compensation.

• Net loss for Q1 2026 was KRW 156.7 billion, narrowing from the previous quarter, primarily due to the stock gift expense.

• BTS's 'ARIRANG' album and world tour set new global records, with the tour becoming the largest in K-pop history and the album topping major charts.

• Weverse platform achieved record profitability and diversified revenue streams, though MAU trended downward to 9.2 million in Q1 2026.

Financial highlights

• Consolidated revenue: KRW 698.3 billion (+39.5% YoY); adjusted operating profit: KRW 58.5 billion (+170% YoY), excluding a one-off KRW 255 billion expense.

• Net loss: KRW 156.7 billion, compared to a net loss of KRW 254.4 billion in FY2025.

• Recorded music revenue: KRW 271.5 billion (+98.9% YoY); concert revenue: KRW 88.7 billion (-42.8% YoY); content revenue: KRW 105.9 billion (+157% YoY).

• Gross profit margin improved to 42.8% (KRW 298.7 billion gross profit on KRW 698.3 billion revenue).

• Cash and cash equivalents at period end: KRW 754.4 billion; total assets: KRW 5.93 trillion; total equity: KRW 3.61 trillion.

Outlook and guidance

• Expect further revenue and profit growth in Q2 as BTS and other artists resume full-scale activities and tours, with additional BTS world tour dates and global expansion of Weverse and immersive projects.

• Multi-label strategy and expansion in Japan and the US to drive continued growth, with a focus on integrating music and technology.

• Dividend policy targets 30% of free cash flow for shareholder returns, with a minimum dividend of KRW 500 per share through 2027.