SM Entertainment (A041510) Q3 2025 earnings summary

Executive summary

• Revenue rose 32.8% year-over-year to KRW 321.6bn, driven by core business growth and DEARU consolidation.

• Operating profit surged 261.6% year-over-year to KRW 48.2bn, with major affiliates turning profitable.

• Net income jumped 1,107.0% year-over-year to KRW 44.7bn, reflecting strong operational leverage.

Financial highlights

• Gross profit increased 62.2% year-over-year to KRW 119.0bn; operating margin improved to 15.0% from 5.5% a year ago.

• Sequential revenue growth of 6.2% from the previous quarter; net income up 44.7% quarter-over-quarter.

• Parent company revenue up 30.5% year-over-year to KRW 224.5bn, with operating profit up 48.6% to KRW 40.2bn.

• Major subsidiaries' revenue up 20.6% year-over-year to KRW 146.8bn; operating profit turned positive year-over-year.

Outlook and guidance

• Upcoming music releases and concert tours across multiple artists and regions are expected to support continued growth.