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 titles.

• 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).

• Demonstrated strong player engagement and record concurrent users in flagship games, with new global launches and successful partnerships, including Blizzard titles.

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

• Focused on creativity, operational excellence, and disciplined execution across gaming, education, and e-commerce segments.

Financial highlights

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

• Online games and related value-added services revenue grew 11.8% year-over-year to RMB23.3 billion (US$3.3 billion).

• Youdao revenue was RMB1.6 billion (US$228.8 million), up 3.6% year-over-year; NetEase Cloud Music revenue was RMB2.0 billion (US$275.9 million), down 1.8% year-over-year.

• Operating expenses were RMB10.2 billion (US$1.4 billion), or 36% of net revenues, up 8.9% year-over-year, mainly due to higher marketing spend.

• Non-GAAP net income attributable to shareholders was RMB9.5 billion (US$1.3 billion), up 27% year-over-year.

Outlook and guidance

• Continued focus on global expansion, scaling original IP into lasting franchises, and delivering innovative experiences.

• 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 to overseas markets and maintaining leadership in authentic Chinese online games globally.