NetEase (9999) Q3 2025 earnings summary

Executive summary

• Net revenues for Q3 2025 reached RMB28.4 billion (US$4.0 billion), up 8.2% year-over-year, driven by strong global game launches and established franchises.

• Net income attributable to shareholders was RMB8.6 billion (US$1.2 billion), with non-GAAP net income at RMB9.5 billion (US$1.3 billion), and diluted net income per ADS at US$1.90.

• Strong player engagement and record concurrent users in flagship games, with major new launches and successful global partnerships, including Blizzard titles returning to China.

• Maintained a robust net cash position of RMB153.2 billion (US$21.5 billion) as of September 30, 2025.

• Focus on creativity, long-term operations, and player-first philosophy, with major titles achieving record user engagement and revenue highs.

Financial highlights

• Gross profit for Q3 2025 was RMB18.2 billion (US$2.6 billion), up 10.3% year-over-year, with a gross profit margin of 64.1%.

• Net revenues from online games and related VAS were RMB23.3 billion (US$3.3 billion), up 11.8% year-over-year.

• Youdao's net revenue reached RMB1.6 billion (US$228.8 million), up 3.6% year-over-year, with growth in smart devices and online marketing.

• NetEase Cloud Music's net revenue was RMB2.0 billion (US$275.9 million), down 1.8% year-over-year but stable sequentially.

• Operating expenses were RMB10.2 billion (US$1.4 billion), up 8.9% year-over-year, mainly due to higher marketing spend.

Outlook and guidance

• Continued focus on advancing development capabilities, scaling original IP into lasting franchises, and expanding global reach.

• Pipeline includes major upcoming launches such as Sea of Remnants (2026) and Diablo IV in China (December 2025).

• Confidence in bringing more high-quality content and services to overseas markets, leveraging strong in-house development.

• Management highlighted continued innovation, global expansion, and a focus on user experience to sustain growth.