BTS Tour and Katseye Success Push Hybe to Record Revenue as Annual Sales Near 4 Trillion Won

A record quarter puts a new milestone within reach

Hybe reported revenue of 1.5257 trillion won, about $1.13 billion, for the third quarter of 2026, as BTS stadium concerts and record merchandise sales helped the company more than double its sales from a year earlier. The results, announced on November 3, put the South Korean entertainment group within 326 billion won of reaching 4 trillion won in annual revenue.

Operating profit reached a quarterly record of 188.5 billion won, about $140.2 million, reversing an operating loss of 42.2 billion won in the same period of 2025. Revenue rose 109.8%. Hybe said both measures surpassed records set just three months earlier, when BTS began its Arirang world tour.

BTS remained the main engine of growth, drawing audiences of up to about 70,000 per show in Europe and the United States. Katseye supplied another part of the growth story: a No. 1 American album, stronger retail distribution and a sold out concert schedule across Europe and North America.

Hybe's revenue for January through September reached 3.674 trillion won, about $2.73 billion, already exceeding its previous full year totals. The company was on course to become the first K-pop agency to pass 4 trillion won in annual revenue, with BTS concerts continuing into the first half of 2027.

What the profit figures mean

Hybe's operating margin was 12.4%, meaning it retained about 12.4 won in operating profit for every 100 won of revenue after paying operating expenses. Compared with the second quarter, revenue increased from 1.45 trillion won to 1.5257 trillion won, a rise of about 5.2%. Operating profit grew faster, increasing about 10.3% from 170.9 billion won.

The third quarter's operating profit also exceeded the market forecast of 166 billion won by 13.6%. Net profit, which includes the effects of items beyond ordinary operations, was much smaller at 11.3 billion won. Operating profit and net profit measure different stages of a company's earnings.

For the first nine months, Hybe recorded operating profit of 162.9 billion won. The company also presented an adjusted figure of 417.9 billion won, about $310.8 million, after excluding a stock compensation expense booked in the first quarter. The difference between those figures was 255 billion won.

Stock compensation is payment through shares or rights linked to shares. Hybe described the expense as a one time item. Its reported nine month earnings include that cost, while the adjusted figure shows earnings with the expense removed, explaining why the two totals are so far apart.

Concerts generated nearly half of revenue

Concert revenue reached a record 726.8 billion won, about $540.5 million. That represented approximately 47.6% of Hybe's total quarterly revenue, making live performances the largest category identified in the results.

BTS concerts in Europe and the United States led the business, supported by Enhypen's tour in the Americas and performances by Le Sserafim, &Team, Boynextdoor, TWS, Illit, Katseye and Cortis. NewJeans was also named among the touring contributors.

Hybe classified about 70% of quarterly revenue as income tied directly to artist activities, including music sales, concerts, advertising and appearances. Its other revenue streams included merchandise, licensing, fan memberships and content. A tour can therefore support several parts of the business at once, from admission tickets to products sold around each performance.

The concert figures show how much the quarter depended on artists being on stage. BTS's tour schedule now provides a continuing source of activity into 2027, while tours by other groups spread live revenue across a wider roster.

Two million merchandise items across 12 cities

Merchandise and licensing revenue reached another quarterly record at 334.6 billion won, about $248.8 million. Together, concerts and merchandise and licensing generated 1.0614 trillion won, approximately 69.6% of total revenue.

BTS's North American tour merchandise alone contributed about $79.6 million. Across 45 days in 12 cities, Hybe said roughly 1 million fans visited merchandise sales locations and about 2 million items were purchased. Those figures describe activity at the merchandise locations, giving a closer view of the shopping operation surrounding the concerts.

Hybe credited products adapted to local markets, a broader production network and changes to distribution. Its Weverse Pickup service lets fans place orders online and collect them at a venue, connecting digital purchases with the physical concert experience.

The company said its approach kept purchases flowing throughout the tour rather than concentrating them near the start. Hybe intends to apply the same local approach to tours by artists at its other labels. For fans, the concrete changes include locally tailored products and an option to arrange purchases before collection.

Katseye turns American demand into a wider business

Katseye's third EP, Wild, reached No. 1 on the Billboard 200 after its August release. It sold 150,000 copies in the United States during its opening week, about five times the opening sales of the group's previous release. Its single Animal spent 12 consecutive weeks on the Billboard Hot 100.

The group's progress extended beyond recorded music. Katseye sold out all 31 shows across 27 cities in Europe and North America. Festival appearances, brand agreements and an appearance at the 2026 Victoria's Secret Fashion Show increased its visibility, while retailers including Target widened access to its albums and merchandise.

Hybe presented Katseye as evidence that its strategy of building artists around different home markets and musical styles was producing results. The group's quarter connected several parts of that strategy: an American chart success, broader retail availability, sponsorship work and demand for live shows.

Katseye is scheduled to begin an arena tour covering 11 cities in Asia and Oceania in January 2027. It is also set to headline Lollapalooza India. Those bookings will take the group into additional markets after its sold out European and North American schedule.

Albums, streaming and Japan add other sources of growth

Album and digital music revenue totaled 282.8 billion won, about $210.3 million. Streaming contributed roughly 30% of that category, with both new releases and older recordings supporting sales. BTS and Katseye were among the acts whose streaming activity helped the results.

Enhypen's eighth mini album, The Sin: Bliss, reached No. 1 on the Billboard 200. Cortis's second EP, Greengreen, passed 4 million in cumulative sales in September, about four months after release. New music from &Team, Katseye, Tomorrow X Together member Yeonjun and EVAN also contributed to the category.

Japan based boy group &Team supplied another example of growth outside Hybe's Korean home market. Each of its last four releases sold at least 1 million copies, and the group staged its first solo dome concert at Belluna Dome.

&Team's second Korean mini album, Mark on Me, debuted at No. 20 on the Billboard 200, the highest placing yet for a Japanese boy group. Members also appeared on a remix of Kawasaki by Santos Bravos, Hybe's Latin American group, linking artists developed through different regional operations.

Weverse connects the concert business with fans online

Weverse recorded 14.2 million monthly active users during the quarter, close to the record reached in the previous three months. Monthly active users measure how many people use a service within a month, providing a picture of the audience regularly returning to the platform.

Cortis fans were among the newcomers. Weverse also tested Fan Lounge, a chat feature designed to let fans communicate in real time across languages. The service adds another way for international audiences to participate around artists whose followers live in different countries.

Weverse's role also reaches into purchasing through venue collection services such as Weverse Pickup. Hybe's results show how its fan platform and touring operations connect: fans can engage online, order products and collect them at a concert location.

Memberships, merchandise, licensing and content together brought in about $334.9 million in indirect revenue during the quarter. Merchandise and licensing accounted for the largest identified portion of that total, making products associated with artists a substantial business alongside performances and recordings.

India becomes the next scheduled expansion

Hybe established Hybe Global Label Services in October to strengthen marketing and promotion across its operations. The unit is intended to support artists through the company's bases in Korea, the Americas, Japan and India.

India has two announced roles in the next stage. New Delhi is scheduled to host Weverse Con Festival in March 2027, the event's first edition outside Korea. Hybe is also moving forward with an artist project developed for the Indian market, while Katseye's Lollapalooza India appearance adds a separate performance commitment in the country.

The main dates show how the record quarter connects to the company's next activities:

• Second quarter of 2026: BTS began the Arirang world tour, helping Hybe set its previous quarterly revenue and operating profit records.
• July through September 2026: Concerts and merchandise helped Hybe set new records, while Katseye and other acts contributed through music and touring.
• October 2026: Hybe launched Hybe Global Label Services.
• November 3, 2026: Hybe announced its preliminary third quarter results.
• January 2027: Katseye is scheduled to begin its arena tour across 11 cities in Asia and Oceania.
• March 2027: New Delhi is scheduled to host Weverse Con Festival.
• First half of 2027: BTS is expected to continue its world tour while working on music and other projects.

The schedule combines support for existing stars with the development of artists for specific markets. Katseye and &Team already provide commercial results from that approach; the planned Indian project is another part of the expansion.

BTS plans extend beyond the current tour

Hybe chief executive Lee Jae-sang said during the earnings call that the company was discussing activities after the Arirang world tour with BTS members. He described preparations covering further performances and work by the group and its individual members.

"We plan to announce additional dates for the tour and are also preparing for the group's post-tour activities, including both group and solo projects," he said.

No dates were given for those additional concerts or projects. Hybe said BTS would continue touring through the first half of 2027 while working on new music and other activities.

The financial milestone is closer: Hybe needs 326 billion won in fourth quarter revenue to reach 4 trillion won for the year. Its third quarter revenue alone was nearly 4.7 times that remaining amount. BTS supplies the largest touring force, while Katseye, &Team and the broader roster add music, performances and merchandise sales across more markets.

Key Points

• Hybe's third quarter revenue rose 109.8% to a record 1.5257 trillion won.
• Operating profit reached 188.5 billion won, with an operating margin of 12.4%.
• Concert revenue was 726.8 billion won, and merchandise and licensing generated 334.6 billion won.
• Nine month operating profit was 162.9 billion won, or 417.9 billion won excluding a first quarter stock compensation expense.
• Katseye topped the Billboard 200 and sold out 31 shows across 27 cities.
• BTS is expected to tour through the first half of 2027, while New Delhi is scheduled to host Weverse Con Festival in March.