HYBE Nears Record Q1 Revenue on BTS, Rising Acts

HYBE has reported its strongest first-quarter performance to date, with revenue nearing 700 billion KRW, driven by the global impact of BTS and steady growth from emerging artists across its roster.

According to regulatory filings released on April 29, HYBE recorded consolidated revenue of 698.3 billion KRW for Q1 2026, marking a 40% increase compared to the same period last year. The figure surpasses the company’s previous first-quarter record, underscoring the continued expansion of its global music business.

BTS comeback fuels core revenue growth

A significant portion of HYBE’s performance was powered by BTS, whose latest full-length album “ARIRANG” delivered strong commercial results worldwide. The album reportedly sold nearly 4 million copies on its first day, while also achieving historic milestones on international charts.

The release topped the Billboard 200 for three consecutive weeks, a first for a Korean act, while its title track “SWIM” reached No. 1 on the Billboard Hot 100. Notably, all 13 tracks from the album entered the chart simultaneously, reflecting the group’s sustained global dominance.

Direct participation revenue—including album sales, concerts, and advertising—reached 403.7 billion KRW, up 25% year-on-year. Album-related revenue alone nearly doubled to 271.5 billion KRW, approaching levels last seen during peak sales cycles in 2023.

Rising artists and global platforms boost expansion

Beyond BTS, HYBE’s broader artist lineup also contributed to the strong quarter. SEVENTEEN and Jungkook previously set major sales records, while ENHYPEN continued its momentum with its fourth double-million-selling release.

Newer acts are also playing an increasingly important role. KATSEYE surpassed 32 million monthly listeners on Spotify, reflecting rapid global fanbase growth. Their releases have collectively sold over one million copies, signaling strong early-stage traction.

Meanwhile, rookie group KORTIS achieved a notable milestone, with its debut album surpassing 2 million cumulative sales, setting a new benchmark for K-pop debut records.

Indirect revenue streams—including merchandise, licensing, and fan club services—rose sharply to 294.7 billion KRW, a 66% increase from the previous year. Merchandise tied to BTS tours and character-based products were key contributors, alongside rising fan club demand linked to upcoming concert ticketing.

HYBE’s fan platform Weverse also recorded its highest engagement levels since launch, with average monthly active users reaching 13.37 million—up 20% quarter-on-quarter.

Profit outlook remains strong despite accounting loss

HYBE reported an adjusted operating profit of 58.5 billion KRW, up 170.8% from a year earlier, with an operating margin of 8.4%. However, the company posted an operating loss on paper due to a one-time accounting expense.

The loss stems from a 255 billion KRW stock-based compensation initiative funded personally by chairman Bang Si-hyuk. HYBE emphasized that the expense does not represent an actual cash outflow but is required under accounting standards.

Looking ahead, HYBE’s outlook for the second quarter remains positive. A series of scheduled comebacks from artists including Tomorrow X Together, LE SSERAFIM, TWS, ILLIT, and KORTIS is expected to sustain momentum. Additionally, revenue from BTS’s ongoing world tour is set to further strengthen both sales and profitability.

With a diversified artist portfolio and expanding global platforms, HYBE appears well-positioned to maintain its upward trajectory in the increasingly competitive K-pop industry.