NetEase (9999) Q4 2025 earnings summary

Executive summary

• Achieved total annual net revenue of RMB 112.6 billion ($16.1 billion) in 2025, up 10% year-over-year, with 23 consecutive years of online games revenue growth.

• Comprehensive AI integration across game development boosted efficiency, innovation, and dynamic gameplay in flagship titles.

• Major global expansion with titles like Where Winds Meet, Marvel Rivals, Justice, and Sword of Justice, all achieving strong international traction and record engagement.

• Blizzard titles in China achieved record-high annual revenue, reinforcing commitment to the local market.

Financial highlights

• Fourth quarter 2025 net revenues were RMB 27.5 billion ($3.9 billion), up 3.0% year-over-year.

• Gross profit margin for 2025 was 64.3%; Q4 margin rose to 64.2%–64.3% from 60.8%–61.0% a year ago.

• Non-GAAP net income attributable to shareholders for 2025 was RMB 37.3 billion ($5.3 billion), up 11% year-over-year; Q4 non-GAAP net income was RMB 7.1 billion ($1.0 billion), down 27% year-over-year.

• Net cash as of December 31, 2025, was RMB 163.5 billion ($23.4 billion), up from RMB 131.5 billion in 2024.

• Board approved a Q4 2025 dividend of $0.232 per share ($1.16 per ADS), with $2.0 billion spent on 22.1 million ADS repurchases as of year-end 2025.

Outlook and guidance

• Plans to launch Sea of Dawn in Q3 2026 with positive early feedback and a global cross-platform release.

• Continued investment in AI-native gameplay, vertical AI models, and global talent to sustain innovation and growth.

• Focus on expanding successful models like Unlimited Server to more legacy titles and maintaining high-intensity R&D investment.

• Commitment to delivering exceptional experiences, fostering creative talent, and advancing AI capabilities for franchise longevity and global value.