HYBE posts record Q2 sales but market value drops amid profit margin concerns

South Korean entertainment firm HYBE announced its 2026 second‑quarter results, reporting revenue of 1.45 trillion won (about $1.6 billion) and an operating profit of 170.9 billion won. The performance set a new industry benchmark by breaking the 1‑trillion‑won quarterly sales barrier, driven largely by BTS’s full‑group comeback and world tour, which alone generated 647.7 billion won in concert revenue. HYBE also highlighted growth across its multi‑label roster and a record 14.43 million monthly active users on its fan‑community platform Weverse.

Despite the strong top‑line numbers, analysts cut HYBE’s market capitalisation by nearly $2 billion after the company posted an operating margin of 11.8%, below the 12.7% forecast. Investors expressed concern that high touring costs and production expenses are limiting profitability, even as revenue streams from albums, streaming, merchandise and digital services expand. HYBE plans to stage more than 200 live shows in the second half of 2026 and expects continued contributions from newer groups such as NewJeans, Cortis and Katseye.