HYBE posts record Q1 revenue of 698.3 billion won as BTS returns and new acts surge

Key facts

• HYBE's Q1 2026 consolidated revenue reached 698.3 billion won, up 40% from the previous Q1 record of 500.6 billion won.
• Direct-participation sales (albums, concerts, ads) rose 25% year-on-year to 403.7 billion won; album sales alone surged 99% to 271.5 billion won.
• BTS's fifth studio album 'ARIRANG' sold 3.98 million copies on its first day and topped the Billboard 200 for three consecutive weeks.
• KATSEYE surpassed 32 million monthly listeners on Spotify, the highest among girl groups globally.
• HYBE China was established in Beijing on April 2, 2025, as a wholly owned subsidiary.
• HYBE is appealing a court order to pay former ADOR CEO Min Hee-jin 25.6 billion won, while subsidiaries seek 2.5 billion won in damages from her.
• Adjusted operating profit for Q1 was 58.5 billion won, with an 8.4% margin; unadjusted profit was negative due to a one-time stock grant expense of 255 billion won.

Record-breaking quarter defies seasonal slump

HYBE, the South Korean entertainment conglomerate behind BTS, posted its highest-ever first-quarter revenue of 698.3 billion won ($525 million) for the period ending March 2026, smashing the previous Q1 record of 500.6 billion won by 40%. The achievement comes during what is traditionally a slow season for the industry, underscoring the combined effect of BTS's return and the rapid ascent of newer acts. Direct-participation sales—encompassing albums, concerts, and advertising—grew 25% year-on-year to 403.7 billion won. Album sales alone nearly doubled, jumping 99% to 271.5 billion won, a figure second only to the 276.2 billion won recorded in Q4 2023, when Seventeen's 'SEVENTEENTH HEAVEN' and Jungkook's 'GOLDEN' set historic first-week records.

BTS's 'ARIRANG' leads album sales surge

The primary driver of the album sales boom was BTS's fifth studio album 'ARIRANG', which sold 3.98 million copies on its first day of release. According to global music data firm Luminate, the LP also achieved the highest weekly vinyl sales since tracking began in 1991, moving 208,000 units in a single week. 'ARIRANG' became the first album by a Korean act to top the Billboard 200 for three consecutive weeks. Its lead single 'SWIM' reached No. 1 on the Hot 100, and all 13 tracks on the album charted on the same list, a feat rarely accomplished even by global superstars.

Rookie acts and indirect sales fuel growth

Beyond BTS, HYBE's roster of younger artists contributed significantly. Enhypen achieved their fourth double-million seller with the seventh mini-album 'THE SIN:VANISH'. KATSEYE, a global girl group, surpassed 32 million monthly listeners on Spotify, the highest among female groups worldwide. Their debut EP 'SIS (Soft Is Strong)', released in August 2024, and the follow-up 'BEAUTIFUL CHAOS' from June 2025 have together sold over one million copies. Kortis's debut album 'COLOR OUTSIDE THE LINES', launched in September 2025, set a new record for debut album sales by a K-pop group. Initially selling around 440,000 copies in its first week, it crossed one million by November and reached two million by February 2026. Indirect-participation sales—including merchandise, licensing, content, and fan clubs—rose 66% year-on-year to 294.7 billion won. Merchandise and licensing revenue grew 29%, boosted by BTS tour-related goods and character products. Fan club revenue jumped 69%, driven by pre-sales for BTS's world tour. The Weverse fan platform posted record monthly active users of 13.37 million, up 20% from the previous quarter.

Profit picture marred by one-time stock expense

HYBE's adjusted operating profit for the quarter stood at 58.5 billion won, yielding an operating margin of 8.4%. However, on an unadjusted basis, the company reported a net loss due to a 255 billion won expense recognized for stock grants to employees—a non-cash, one-time charge required under accounting standards. The company emphasized that this expense does not reflect actual cash outflow. Looking ahead, HYBE expects revenue and profit to accelerate in Q2 as multiple acts—including Tomorrow X Together, Le Sserafim, TWS, I'LL-IT, and Kortis—release new albums and resume activities, with BTS's world tour revenue beginning to flow in.

Legal battles intensify with Min Hee-jin

HYBE's financial success is shadowed by an escalating legal conflict with former ADOR CEO Min Hee-jin. In a related lawsuit, a court ruled that HYBE must pay Min 25.6 billion won ($19.2 million) under a put option agreement. HYBE has appealed the decision. Meanwhile, subsidiaries Source Music and BELIFT LAB have filed separate damage suits against Min, seeking a combined 2.5 billion won. The dispute stems from Min's April 2024 emergency press conference, where she alleged that HYBE chairman Bang Si-hyuk had promised NewJeans would debut as HYBE's first girl group but instead launched Le Sserafim first. She also accused BELIFT LAB of copying NewJeans's style in its group I'LL-IT. BELIFT LAB sued for 2 billion won in June 2024, and Source Music added a 500 million won claim in July for defamation and business interference. In February 2025, Min offered to drop her claim to the 25.6 billion won if HYBE agreed to end all litigation, but the company did not respond and proceeded with its appeal.

Quality and chart manipulation allegations cloud momentum

Despite the record earnings, HYBE faces growing criticism over the musical quality of recent releases. Multiple groups under the label—including Le Sserafim, I'LL-IT, TWS, and Kortis—have been accused of releasing songs with disjointed melodies, cluttered arrangements, and poor mixing. Le Sserafim's 'CELEBRATION' was criticized for allegedly copying BLACKPINK's 'Jump' and for a hollow chorus, leading to a sharp drop in streaming numbers. I'LL-IT's 'It's Me' debuted at No. 96 on music charts, their worst-performing lead single, with listeners describing the track as 'a thousand Mickey Mouses screaming in your ears'. More seriously, Kortis faced allegations of chart manipulation after their song 'REDRED'—which failed to enter any major real-time chart—received a music show score of 5,000 points, enough to beat NCT WISH for first place on 'M Countdown'. Critics noted that only songs with exceptional streaming performance typically achieve such scores, leading to accusations of 'sajaegi' (chart manipulation). The controversy has fueled broader concerns that HYBE prioritizes short-form viral content and concept gimmicks over melodic substance, homogenizing its groups' sounds and eroding the distinctiveness that once defined K-pop.

China expansion opens new front

On April 2, 2025, HYBE established a wholly owned subsidiary in Beijing, HYBE CHINA, signaling a strategic push into the world's largest music market. The move aims to provide localized services for Chinese fans and facilitate market entry for HYBE artists. Plans include holding concerts and music events, as well as collaborating with Chinese partners to develop content such as Chinese-language songs, customized merchandise, and potentially exclusive variety shows. China's vast fan base and high spending power make it a critical market for HYBE's global ambitions. The subsidiary will allow the company to navigate regulatory complexities and forge deeper ties with local firms. However, HYBE will face stiff competition from other Korean entertainment companies already active in China, as well as growing domestic alternatives. The success of HYBE CHINA will depend on its ability to adapt to local tastes while maintaining the global appeal of its artists.

The bottom line

• HYBE's Q1 2026 revenue hit a record 698.3 billion won, driven by BTS's 'ARIRANG' and strong performances from rookie acts like KATSEYE and Kortis.
• Album sales surged 99% year-on-year, with BTS's 'ARIRANG' selling 3.98 million copies on day one and topping Billboard 200 for three weeks.
• Adjusted operating profit was 58.5 billion won (8.4% margin), but a one-time 255 billion won stock grant expense pushed the unadjusted result into a loss.
• Legal disputes with former ADOR CEO Min Hee-jin continue, with HYBE appealing a 25.6 billion won payment order and subsidiaries seeking 2.5 billion won in damages.
• Quality concerns and chart manipulation allegations against groups like Le Sserafim, I'LL-IT, and Kortis threaten HYBE's brand reputation.
• The establishment of HYBE CHINA in Beijing marks a major step to capture the Chinese market, though competition and regulatory hurdles remain.