SM Entertainment achieves record Q4 2025 results with significant revenue and profit increases, driven by major artist tours and IP expansion.

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).