SM Entertainment achieves record Q4 2025 results with significant revenue and profit increases, driven by major artist tours and IP expansion.
February/16/2026 18:01
SM Entertainment (hereafter SM) achieved the highest quarterly performance in history for the consolidated basis in Q4 2025. SM recently revealed through its earnings announcement that it recorded consolidated sales of 319 billion won (approximately 33.6 billion yen) and operating profit of 54.6 billion won (approximately 5.9 billion yen) for Q4 2025. This represents a 16.6% increase in sales and a 62.2% increase in operating profit compared to the same period last year, achieving an earnings surprise that exceeded market expectations. The operating profit margin also rose by 4.8 points to 17.1%, proving improved profitability. The net profit for the period was 27.4 billion won (approximately 2.9 billion yen), marking a return to profitability and enhancing corporate value. On an individual basis, sales were 202.2 billion won (approximately 22.3 billion yen) and operating profit was 39.5 billion won (approximately 4.2 billion yen), both increasing by 12.1% and 10.2% respectively compared to the same period last year. The net profit for the period was 29.3 billion won (approximately 3.1 billion yen), a 106.5% increase from the previous year. This achievement is a result of the expansion of world tours for major IPs such as NCT DREAM, aespa, RIIZE, and NCT WISH, as well as the full reflection of the MD and licensing business utilizing artist IPs in performance. The performance improvements of major subsidiaries like SM C&C and SM ENTERTAINMENT JAPAN, along with the consolidation effect of DearU, also positively impacted consolidated performance. Along with this earnings announcement, SM shared the specific execution direction of the 'SM NEXT 3.0' strategy focused on sustainable growth structures. Co-CEO Tak Young-jun explained that 'SM NEXT 3.0' is a strategy focused on building a sustainable growth structure rather than short-term expansion or speed competition, stating, 'Through a multi-creative system that enhances the autonomy and efficiency of the production organization, we are generating more predictable and reproducible results in the overall planning and production of IPs.' He added, 'While promoting the development of new IPs and global expansion strategies in a balanced manner, we will simultaneously strengthen scale growth, profitability, and the long-term competitiveness of IPs.' Co-CEO Chang Cheol-hyuk stated that 'the global expansion of 'SM NEXT 3.0' is designed with a focus on sustainability and efficiency. SM plans to actively utilize strategic partnerships and subdivide target regions according to the characteristics of each IP and market environment to maximize visibility and execution efficiency in the expansion process.' SM anticipates maintaining a growth trend in album, sound source, and performance sales in the first half of 2026, with a strong artist lineup. In Q1, new releases will include full albums from EXO and Irene, as well as new works from NCT JNJM and Hearts2Hearts. In Q2, full albums from Girls' Generation's Taeyeon, aespa, and NCT WISH, as well as mini-albums from RIIZE and Hearts2Hearts, and a single from SUPER JUNIOR's Ryeowook are scheduled. The concert sector will continue active activities centered on global stages, with performances by SUPER JUNIOR's 20th-anniversary tour, NCT DREAM, aespa, RIIZE, NCT WISH, and Taeyeon across Asia in Q1. In Q2, EXO's tour, TVXQ's Nissan Stadium performance, and Hearts2Hearts' first American showcase are planned. SM also announces next year's comebacks for RIIZE and NCT WISH in Japan, with Q3 sales expected to exceed approximately 34.1 billion yen, and the debut of a new boy group is also confirmed, unveiling plans for a new leap in 2026 (video available).
Related Articles
On the afternoon of the 15th, NCT WISH returned to Korea via Incheon International Airport after the SMTOWN LIVE 2025-26 in Bangkok. ENHYPEN achieved a remarkable feat by winning 6 awards at the 2nd D Awards, while the SMTOWN's first Fukuoka concert featured 65 performers, showcasing stunning collaborations and J-POP covers.
On the afternoon of the 15th, aespa returned to Korea via Incheon International Airport after concluding their performance at 'SMTOWN LIVE 2025-26 [THE CULTURE, THE FUTURE] in BANGKOK'. The event featured collaborations with the popular game 'PUBG' and showcased a stunning stage with 65 performers, including J-POP covers.
On the afternoon of the 15th, NCT DREAM returned to Korea via Incheon International Airport after their performance at 'SMTOWN LIVE 2025-26 [THE CULTURE, THE FUTURE] in BANGKOK.' NCT Johnny shared his thoughts on participating in the new variety show 'Hot-Blooded Basketball Group,' expressing that all the players were intimidating. Additionally, a report highlighted that 65 performers took part in the first SMTOWN concert in Fukuoka, featuring stunning collaborations and J-POP covers in a one-night-only event.
On the afternoon of the 15th, Tiffany from Girls' Generation and Lee Chang-won appeared on the red carpet at the Hanteo Music Awards 2025 held at the KSPO Dome in Olympic Park, Songpa, Seoul. The event featured a luxurious lineup of 10 groups, including ATEEZ and Hearts2Hearts, with additional acts announced from Billlie to BTOB's Changsub and Lee Yong-ji.
On the morning of the 15th, EXO returned to South Korea via Incheon International Airport after the 'SMTOWN LIVE 2025-26' concert in Bangkok. They are set to travel to Jeju Island for a new season of the variety show 'EXO's Amida World Travel' starting March 4. Additionally, a report highlights that 65 performers participated in the first SMTOWN concert in Fukuoka, featuring stunning collaborations and J-POP covers.
NCT DREAM's 2026 world tour finale will be broadcast live on KNTV and streamed on Beyond LIVE and Weverse Concerts from March 20-29 in Seoul. Fans can enjoy a variety of performances as they celebrate 10 years of the group. Tickets are available for different viewing options.
On the afternoon of the 13th, EXO departed through Incheon International Airport for Thailand to participate in 'SMTOWN LIVE 2025-26 [THE CULTURE, THE FUTURE] in BANGKOK.' The concert is scheduled for February 14, 2026, and will be their first performance in Bangkok in 13 years. Additionally, 65 artists will perform at the first SMTOWN concert in Fukuoka, featuring stunning collaborations and J-POP covers.
On the afternoon of the 13th, RIIZE departed from Incheon International Airport to Thailand for SMTOWN LIVE 2025-26 in Bangkok. This concert will be the first in Bangkok in 13 years, scheduled for February 14, 2026. Additionally, RIIZE sent a congratulatory message for Kstyle's 14th anniversary, offering signed CDs as gifts.
On the afternoon of the 13th, Hyoyeon from Girls' Generation departed from Incheon International Airport to Thailand for SMTOWN LIVE 2025-26 [THE CULTURE, THE FUTURE] in Bangkok. The concert is set for February 14, 2026, marking the first Bangkok performance in 13 years. Additionally, 65 artists will perform at SMTOWN's first Fukuoka concert, featuring stunning collaborations and J-POP covers.
On the afternoon of the 13th, former RIIZE member Sung Han departed from Incheon International Airport to Thailand for SMTOWN LIVE 2025-26 in Bangkok. The event is set for February 14, 2026, marking the first concert in Bangkok in 13 years. Additionally, 65 performers will participate in SMTOWN's first show in Fukuoka, featuring stunning collaborations and J-POP covers.
