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 games and value-added services contributing RMB 92.1 billion ($13.2 billion).

• Marked 23 consecutive years of online games revenue growth, driven by proprietary technology, global expansion, and comprehensive AI integration across game development.

• Major titles like Where Winds Meet, Justice, Marvel Rivals, and Sword of Justice achieved strong global traction, surpassing 80 million cumulative players and setting engagement records.

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

Financial highlights

• Q4 2025 net revenues: RMB 27.5 billion ($3.9 billion), up 3.0% year-over-year; full-year: RMB 112.6 billion ($16.1 billion), up from RMB 105.3 billion in 2024.

• Q4 2025 gross profit: RMB 17.7 billion ($2.5 billion), up 8.7% year-over-year; full-year gross profit: RMB 72.4 billion ($10.4 billion).

• Q4 2025 net income attributable to shareholders: RMB 6.2 billion ($892.6 million); full-year: RMB 33.8 billion ($4.8 billion); non-GAAP net income for 2025: RMB 37.3 billion ($5.3 billion).

• Q4 2025 gross margin: 64.2%; full-year gross margin: 64.3%.

• Net cash as of December 31, 2025: RMB 163.5 billion ($23.4 billion), up from RMB 131.5 billion a year earlier.

Outlook and guidance

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

• Continued investment in AI, vertical models, creative talent, and partnerships to maintain leadership in high-quality game development and expand global reach.

• Focus on leveraging AI for next-generation gameplay innovation and extending franchise longevity.