SM Entertainment Co., Ltd. (“SM,” co-CEOs Daniel Jang and Dmitry YJ Tak) announced record fourth quarter of 2025 results on a consolidated basis, marking the strongest fourth-quarter performance in the company’s history.
For the fourth quarter ended December 31, 2025, SM recorded consolidated revenue of 319 billion KRW (approx. 220.7 million USD), up 16.6% year over year, and operating profit of 54.6 billion KRW (37.8 million USD), representing a 62.2% increase from the prior year period. Operating margin expanded to 17.1%, an improvement of 4.8 percentage points year over year, reflecting enhanced operating leverage and profitability. Net income totaled 27.4 billion KRW, compared to a net loss in the prior-year quarter.
On a standalone (non-consolidated) basis, revenue increased 12.1% year over year to 202.2 billion KRW (139.9 million USD), while operating profit rose 10.2% to KRW 39.5 billion. Standalone net income increased 106.5% YoY to 29.3 billion KRW (20.3 million USD), supported by improved core business performance.
Concert and IP Monetization Drive Growth
Fourth-quarter performance was primarily driven by expanded global touring activities from core IPs including NCT DREAM, aespa, RIIZE, and NCT WISH, alongside continued growth in artists-driven merchandising and licensing businesses.
Improved performance at key subsidiaries, including SM C&C and SM Japan, as well as the consolidation of DearU, also contributed to consolidated earnings growth.
Executing “SM NEXT 3.0”
In connection with the earnings release, SM highlighted continued progress under its long-term strategic framework, “SM NEXT 3.0,” which is designed to build a sustainable and scalable growth platform.
“SM NEXT 3.0 is focused on strengthening the foundation of our growth rather than pursuing short-term expansion,” said Daniel Jang, Co-CEO of SM Entertainment. “Through our Multi-Creative system, we are enhancing production autonomy and operational efficiency, enabling greater consistency and scalability across IP development. By advancing new IP incubation alongside disciplined global expansion, we aim to drive revenue growth, improve profitability, and enhance long-term shareholder value.”
Dmitry YJ Tak, Co-CEO of SM Entertainment, added, “Our global expansion strategy under SM NEXT 3.0 emphasizes sustainability, operational discipline, and strategic partnerships. By adopting a more focused, IP-specific regional approach aligned with market dynamics, we expect to enhance performance visibility while improving operational efficiency and execution across markets.”
SM expects continued growth in recorded music, digital distribution, and live performance revenue in the first half of 2026, supported by a robust artist lineup.
In the first quarter, full-length albums by EXO and Irene are scheduled for release, along with new projects from Hearts2Hearts and NCT JNJM.
In the second quarter, full-length albums from TAEYONG, aespa, and NCT WISH are planned, alongside mini-albums from RIIZE and Hearts2Hearts and a single release from RYEOWOOK.
The live concert segment is also expected to maintain strong global momentum. In the first quarter, SUPER JUNIOR will continue its 20th anniversary tour, joined by NCT DREAM, aespa, RIIZE, NCT WISH, and TAEYONG across Asia. In the second quarter, EXO will embark on its tour, TVXQ! will hold a concert at Nissan Stadium, and Hearts2Hearts is scheduled to hold its first U.S. showcases.
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