After a ₩200B Write-Down, Can BTS Save HYBE’s $1.8B Rise in 2026?

• With profitability under strain, HYBE is depending on BTS' 2026 reunion to rewrite the narrative.
• The criticality comes as the company logged an impairment loss of ₩200B, revealing the expense of its American rebuild.
• Meanwhile, live touring and Weverse have emerged as the company's most consistent revenue generators.

HYBE, the K-pop giant, hit ₩2.64 trillion (~ $1.86 billion USD) in revenue for FY2025, up nearly 18% year on year. However, the headline masks the hardship beneath. Operating profit fell 73% to ₩49.9B ($34.5 million) as the company incurred significant restructuring costs and rapidly grew overseas, whereas net profit turned negative.

With BTS’ comeback nearing, the group has become the focal point of both relief and risk for HYBE. All seven members have completed military service, and their fifth studio album, ARIRANG, will be released on March 20, 2026, ahead of an 82-show global tour across 34 locations, which is expected to be the most extensive tour in K-pop history. The first concert will be streamed globally on Netflix, indicating HYBE's expanding ties with premium platforms and its intention to monetize fans beyond ticket sales.

However, the resurgence comes as HYBE goes through a steep U.S. revamp. The company recorded ₩200B (~$138.89M) in impairment losses as a result of reorganizing HYBE America, which moved from a management-led approach to a label-centered IP structure. Executives exited. Assets were combined. The write-downs are non-cash, but they highlight strategic recalibration in the world's largest music industry.

HYBE’s U.S. Reset and Weverse Expansion Intent

Despite this recent write-down, HYBE remains optimistic about its U.S. operations, noting KATSEYE's global success as evidence of its competitive marketing and development chain. This drive is further fueled by a strong country music roster, led by Riley Green, who is the first artist since Taylor Swift to climb up the Country Airplay chart with successive self-written hits. To further expand its 2026 portfolio, HYBE announced a new management agreement with Grammy winner Tyla.

Meanwhile, HYBE's digital environment is stabilizing. Weverse, its fan platform, attained yearly profitability in 2025 and has recorded over 12 million monthly active users. Premium offerings like Weverse DM now account for more than 10% of sales and have been growing at an annual rate of 30%. Additionally, traffic on the platform increased substantially owing to the upcoming BTS return and is expected to drive maximum growth as their album release date nears.

Nevertheless, the management has warned that margins may shrink further as the platform expands into new territories, with initial investments probably impacting profitability. As noted by Music Business News, CEO Lee said, “We don’t really want to continue to maintain this profit structure as is because we want to grow this platform to be a truly global platform.”

Live Music Becomes The BTS Label’s Profit Engine

Amidst this, live performance stands out as the most obvious growth driver. Last year, HYBE presented 279 performances in 53 locations, increasing concert earnings by 69% to ₩763.9B (~$528.3M), a bit shorter than its income from recorded music [amounting to ₩773.0B (~$534.4M)].  With this outcome in hand, the company joined the global top tier of event promoters. Consequently, it also represents a significant shift from 2023, when recorded music produced roughly three times more revenue than performances.

Therefore, in 2026, the formula for HYBE is clear. If BTS rekindles global demand at a massive scale, the company's margin compression may reverse. If not, the risk associated with restructuring could increase. To be specific, investors see BTS’ reunion as more than just entertainment. Either way, it is going to test the strength of HYBE's expanding economic model, which is based as much on platforms and IP design, as on pop stars.