SM Entertainment (A041510) Q4 2025 earnings summary

Executive summary

• Revenue rose 16.6% year-over-year to KRW 319.0bn, driven by concert and MD/licensing growth and improved subsidiary performance.

• Operating profit surged 62.2% year-over-year to KRW 54.6bn, with a turnaround to net profit of KRW 27.4bn.

• Parent company revenue increased 12.1% year-over-year to KRW 202.2bn, with digital music and concert revenue offsetting a decline in physical album sales.

Financial highlights

• Gross profit increased 36.0% year-over-year to KRW 115.6bn.

• Operating margin improved to 17.1% from 12.3% a year ago.

• Net income rebounded to KRW 27.4bn from a net loss of KRW 23.7bn in the prior year quarter.

• Major subsidiaries' revenue grew 23.8% year-over-year to KRW 169.1bn, with operating profit turning positive.

Outlook and guidance

• Upcoming music releases include albums and singles from NCT WISH, EXO, RIIZE, TVXQ!, aespa, and others.

• Concert line-up features major tours and fan meetings across Asia and the U.S. for SUPER JUNIOR, NCT WISH, NCT DREAM, RIIZE, aespa, and more.