HYBE (352820) investor relations material

Executive summary

• Achieved record Q1 revenue of KRW 698.3 billion, up 40% year-over-year, driven by BTS's comeback, strong album sales, and global tour activity.

• Adjusted operating profit reached KRW 58.5 billion, up 170% year-over-year, marking the highest Q1 result, excluding a one-off KRW 255 billion employee share compensation expense.

• BTS's 'ARIRANG' album topped global charts, set streaming and sales records, and their world tour became the largest in K-pop history.

• Other artists, including TOMORROW X TOGETHER, LE SSERAFIM, ILLIT, KATSEYE, and &TEAM, contributed to growth with strong album sales and expanding global presence.

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

Financial highlights

• Consolidated revenue: KRW 698.3 billion (+40% YoY); adjusted operating profit: KRW 58.5 billion (+170% YoY), excluding a one-off KRW 255 billion expense.

• Recorded music sales: KRW 271.5 billion (+99% YoY); content sales: KRW 105.9 billion (+157% YoY); concert sales: KRW 88.7 billion (-43% YoY due to tour timing).

• Merchandise/licensing: KRW 137.4 billion (+29% YoY); fan club and related revenue up 68.5% YoY.

• Adjusted EBITDA rose 79.1% YoY to 84.8B KRW; gross margin improved to 298.7B KRW.

• Weverse MAU: 13.37 million (+20% QoQ) at peak, but trended down to 9.2M in Q1 2026; payment volume +80% QoQ; ARPU +8%.

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 Weverse expansion planned.

• Investment in overseas IP will be lower in 2026 than 2025, with a focus on cost-effectiveness and strategic timing.

• Live viewing and immersive city projects are set to expand globally.