JYP Entertainment‘s revenues and profits both fell in the second quarter of 2026.
The Seoul-headquartered company behind Stray Kids and TWICE generated revenue of KRW 183.1 billion (approximately USD $122 million) in the three months to the end of June, down 15.1% YoY.
Net profit fell 40.3% YoY to KRW 21.7 billion ($14.5m), while operating profit dropped 41.4% to KRW 31.0 billion ($20.7m), according to figures the KOSDAQ-listed company published on Wednesday (August 12).
JYP attributed the revenue decline to a “high base (Stray Kids‘ large-scale concerts/MD) despite music growth.”
That high base was the same quarter of 2025, when Stray Kids‘ dominATE world tour was still on the road, and JYP‘s revenue more than doubled YoY while net profit rose 2,734.4%.
That tour finished in October 2025, with an added finale at Incheon Asiad Main Stadium, and the group’s next one did not open until July 2026 – nine months later, and after the second quarter had closed.
Concert revenue consequently fell 35.7% YoY to KRW 39.9 billion ($26.6m) in the quarter.
Merchandise revenue fell 34.5% to KRW 43.9 billion ($29.3m), which JYP put down to the “absence of large-scale tour/online MD.”
Revenue from appearances fell 28.0% to KRW 7.0 billion ($4.7m) on fewer fan concerts, though JYP said the line still reflected Stray Kids fan meetings and festival headline slots.
JYP‘s recorded music business grew, however, across both physical and streaming.
Physical album revenue rose 36.7% YoY to KRW 37.0 billion ($24.7m), with catalog sales of Stray Kids albums climbing from 120,000 units in Q2 2025 to 420,000 units in Q2 2026.
JYP also released five titles in the quarter, up from three a year earlier.
Streaming revenue rose 71.6% to KRW 19.7 billion ($13.1m), which the company credited to “global streaming sales expansion from increased mass fandom and YouTube revenue reclassification.”
Advertising revenue rose 20.5% to KRW 13.6 billion ($9.1m), which JYP said came from “enlarged artist mass awareness.”
Gross margin fell 3.1 percentage points YoY to 38.7%, while operating margin fell 7.6 percentage points to 16.9%.
Total cost of sales fell 10.6% to KRW 112.3 billion ($74.9m), as artist fees dropped 25.3% to KRW 48.1 billion ($32.1m) on lower management revenue.
Content production costs, however, rose 25.9% YoY to KRW 34.0 billion ($22.7m) on new releases, catalog and digital singles, while other cost of sales fell 11.8% to KRW 30.3 billion ($20.2m) and SG&A rose 6.9% to KRW 39.8 billion ($26.5m).
JYP attributed the margin contraction to “high base impact and limited leverage,” and the fall in operating profit to “limited leverage and increased SG&A-commission fee.”
JYP‘s two largest rivals both grew revenue in the same quarter.
HYBE reported revenue up 105.5% YoY to a record KRW 1.45 trillion ($967m) on July 28, as previously reported by MBW.
Operating profit at HYBE rose 159.3% to KRW 170.9 billion ($114m), and net profit rose 610.1% to KRW 109.8 billion ($73m), driven by BTS‘ ARIRANG world tour, which lifted concert revenue 243.3% YoY.
That said, HYBE‘s operating margin for the quarter was 11.8%, below the 16.9% JYP posted after its decline.
SM Entertainment reported consolidated revenue up 15.4% YoY to KRW 349.6 billion ($233m) on August 5, with operating profit up 11.0% to KRW 52.9 billion ($35.3m).
SM‘s net income fell, however, down 5.6%, or KRW 1.7 billion, YoY to KRW 29.2 billion ($19.5m).
SM attributed that decline to “valuation losses on equity investments, impairment losses on investment assets, and higher income tax expenses.”
Across JYP‘s roster, headline touring in the quarter was carried by acts other than Stray Kids, though the group did headline New York’s Governors Ball on June 6, the first K-pop group to top the bill at the festival.
Notably, TWICE played Japan and Europe during the period, on its THIS IS FOR world tour, which JYP said reached 81 shows across 44 cities. The tour ended on July 12.
The Japan leg took in three nights at Tokyo’s Japan National Stadium on April 25, 26, and 28, drawing around 240,000 people and making TWICE the first overseas act to headline a solo concert at the venue.
Across the first half of 2026, JYP generated revenue of KRW 369.1 billion ($246m), operating profit of KRW 64.4 billion ($42.9m) and net profit of KRW 53.6 billion ($35.7m).
Separately, JYP, HYBE, SM Entertainment and YG Entertainment are preparing a joint venture to stage a South Korean music festival, provisionally named Fanomenon, as live music grows as a share of K-pop revenues.
All KRW-USD conversions in this article, including those for the first half of 2026, were made at the average Q2 2026 exchange rate of approximately 1,500 KRW/USD.Music Business Worldwide
In the second quarter of 2026, JYP Entertainment, the South Korean entertainment company renowned for managing popular K-pop groups such as Stray Kids and TWICE, experienced a notable decline in both revenues and profits. The company reported revenues of KRW 183.1 billion (approximately USD $122 million), marking a 15.1% decrease compared to the same period in the previous year. This decline in revenue was accompanied by a significant drop in net profit, which fell 40.3% year-on-year to KRW 21.7 billion ($14.5 million). Additionally, operating profit decreased by 41.4% to KRW 31.0 billion ($20.7 million), as disclosed in a report published on August 12.
JYP attributed the revenue decline primarily to what it referred to as a « high base » effect due to the substantial revenue generated from Stray Kids’ large-scale concerts and merchandise during the same quarter in 2025. In that quarter, JYP’s revenues had more than doubled year-on-year, buoyed by Stray Kids’ « dominATE » world tour, which concluded in October 2025 with a grand finale at the Incheon Asiad Main Stadium. The group’s next tour did not commence until July 2026, resulting in a stark contrast in concert revenues for the current quarter, which fell by 35.7% to KRW 39.9 billion ($26.6 million).
Moreover, merchandise revenue also suffered a decline of 34.5%, totaling KRW 43.9 billion ($29.3 million), attributed to the absence of large-scale tours and online merchandise sales. Revenue from appearances dropped by 28.0% to KRW 7.0 billion ($4.7 million) due to fewer fan concerts, though the company noted that this segment still benefited from Stray Kids’ fan meetings and festival headlining slots.
On a more positive note, JYP’s recorded music business showed growth across both physical and streaming avenues. Physical album sales surged by 36.7% year-on-year to KRW 37.0 billion ($24.7 million), with Stray Kids’ catalog sales rising dramatically from 120,000 units in Q2 2025 to 420,000 units in Q2 2026. In the second quarter, JYP released five titles, an increase from three in the previous year. Streaming revenue also experienced a significant boost, rising 71.6% to KRW 19.7 billion ($13.1 million), driven by a global expansion of streaming sales and a reclassification of YouTube revenue.
Advertising revenue increased by 20.5% to KRW 13.6 billion ($9.1 million), attributed to a rise in artist awareness and popularity. However, gross margins fell by 3.1 percentage points year-on-year to 38.7%, and operating margins dropped by 7.6 percentage points to 16.9%. The total cost of sales decreased by 10.6% to KRW 112.3 billion ($74.9 million) due to a 25.3% reduction in artist fees to KRW 48.1 billion ($32.1 million) amid lower management revenue. Despite this, costs associated with content production rose by 25.9% year-on-year to KRW 34.0 billion ($22.7 million), reflecting investments in new releases and digital singles.
JYP’s management noted that the contraction in margins was due to the high base impact and limited operational leverage, as well as increased selling, general, and administrative expenses (SG&A). In contrast, JYP’s two largest competitors, HYBE and SM Entertainment, reported significant revenue growth in the same quarter. HYBE announced a staggering 105.5% increase in revenue to a record KRW 1.45 trillion ($967 million), largely driven by BTS’ ARIRANG world tour, which resulted in concert revenue skyrocketing by 243.3% year-on-year. Operating profit at HYBE also soared by 159.3%, while net profit saw an astonishing rise of 610.1%. However, HYBE’s operating margin stood at 11.8%, which was lower than JYP’s despite the latter’s decline.
SM Entertainment, on the other hand, reported a 15.4% increase in consolidated revenue to KRW 349.6 billion ($233 million) and an 11.0% rise in operating profit, although its net income fell by 5.6% to KRW 29.2 billion ($19.5 million), attributed to losses on equity investments and higher tax expenses.
During the quarter, JYP’s notable touring activities were not solely led by Stray Kids; TWICE also had a significant presence, completing its « THIS IS FOR » world tour, which comprised 81 shows across 44 cities, concluding on July 12. The Japan leg of the tour was particularly remarkable, with three nights at the Japan National Stadium in Tokyo, making TWICE the first overseas act to headline a solo concert there, attracting around 240,000 attendees.
For the first half of 2026, JYP reported total revenues of KRW 369.1 billion ($246 million), an operating profit of KRW 64.4 billion ($42.9 million), and a net profit of KRW 53.6 billion ($35.7 million).
Looking ahead, JYP, along with HYBE, SM Entertainment, and YG Entertainment, is collaborating on a joint venture to organize a South Korean music festival, provisionally named « Fanomenon, » indicating a shift towards live music as a growing segment within K-pop revenues. The overall financial landscape showcases the challenges JYP faces amidst fierce competition but also highlights areas of growth, particularly in recorded music and advertising.
