HYBE Corporation has posted a record-breaking revenue of approximately $478 million (₩698.3 billion) in the first quarter of 2026, largely driven by the highly anticipated return of BTS.
Despite the impressive top-line growth, the company reported an operating loss of $133 million (₩196.6 billion), reflecting one-time costs rather than underlying weakness in core operations.
BTS Comeback Drives Historic Revenue Growth
The primary catalyst behind HYBE’s record revenue was BTS’ comeback on March 20 with their fifth studio album Arirang. The album achieved remarkable commercial success, selling nearly 3.98 million copies on its first day.
According to industry data, the album recorded 641,000 equivalent units in a week, including 532,000 pure sales—marking one of the highest figures in modern music tracking history. Its strong performance on charts like the Billboard 200 and the success of its lead single “Swim” further amplified HYBE’s global reach.
As a result, HYBE’s album and music sales nearly doubled, reaching ₩271.5 billion (~$189 million), underscoring BTS’ continued dominance in the global music industry.
Diversified Artist Portfolio Strengthens Earnings
Beyond BTS, HYBE’s multi-artist strategy played a crucial role in sustaining growth. Groups like ENHYPEN achieved another milestone with a double-million-selling release, while emerging acts such as KATSEYE gained significant traction internationally, including strong streaming numbers in the United States.
This diversification contributed to a 25.2% increase in direct participation revenue, reflecting the company’s expanding global fanbase and content reach.
Merchandise, Licensing, and Weverse Boost Indirect Revenue
HYBE’s indirect revenue streams—particularly merchandise, licensing, and digital platforms—saw substantial growth. The company reported a 65.5% increase in these segments, largely driven by BTS’ world tour demand and presales.
Additionally, its fan engagement platform Weverse recorded 13.37 million monthly active users, further strengthening HYBE’s “fandom economy” model.
Operating Loss Linked to One-Time Costs
Despite strong revenue performance, HYBE reported a net loss of approximately $106 million (₩156.7 billion). This was primarily due to a one-time stock-based compensation expense of ₩255 billion (~$172 million), linked to Chairman Bang Si-hyuk granting shares to employees.
Excluding this non-cash expense, HYBE’s adjusted operating profit stood at ₩58.5 billion (~$40 million), with a healthy margin of 8.4%, indicating solid core business performance.
Global Expansion and Q2 Outlook Remain Strong
HYBE continues to expand its global footprint through strategic initiatives and label restructuring. Notably, HYBE America relaunched Big Machine Label Group as Blue Highway Records, strengthening its presence in Western markets.
Looking ahead, upcoming releases from Tomorrow X Together (TXT) and ILLIT are expected to sustain momentum into Q2 2026. The company remains optimistic that continued fan engagement, new music, and global tours will drive profitability in the coming quarters.
