Hybe (KOSPI: 352820), South Korea's largest K-pop entertainment conglomerate, reported consolidated second-quarter 2026 revenue of 1.45 trillion won (approximately $1.05bn) and operating profit of 170.9 billion won, beating market expectations on both measures. Revenue rose 105.5% year on year, operating profit surged 159.3%, and the operating margin came in at 11.8%.
In a research note published on July 29th, DS Investment Securities identified the BTS world tour and concurrent activity across several of Hybe's artist franchises as the primary drivers of the earnings beat. Operating profit exceeded the analyst consensus of 155.1 billion won by roughly 10%.
Concert revenues lead the charge
Live performance revenue was the standout, jumping 243% year on year to 647.7 billion won and expanding its share of total revenue to 45%. The results capture 24 tour dates across South Korea, Japan, North America, Mexico, and Spain. Additional contributions came from a Seventeen fan meeting and tours by TXT, Enhypen, and &TEAM. Higher ticket prices, a favourable won-dollar exchange rate, and growing online live-viewing receipts all added to the uplift.
Album and recorded-music revenue reached 326.8 billion won, up 43% and a record for any single quarter. Newly debuted group CORTIS, which sold more than three million albums, led the way, with strong releases also from TXT, Boynextdoor, TWS, and Le Sserafim. Streaming and digital-music income totalled 98 billion won, a 34% increase.
Indirect-participation revenue — which covers merchandise, licensing, and fan-platform services — rose 59% to 410.1 billion won. Within that, merchandise and licensing alone more than doubled, climbing 103% to 310.6 billion won. Weverse, Hybe's proprietary fan-community platform, recorded 14.4 million monthly active users in the second quarter, up 8% from the prior quarter.
A dramatic reversal of fortune
The scale of the turnaround is striking. The single quarter's operating profit of 170.9 billion won already dwarfs the company's full-year 2025 operating profit of 49 billion won by a wide margin. Hybe had been buffeted by internal strife — including a high-profile dispute with former subsidiary chief Min Hee-jin in 2024 — and extended absences of key artists. Full-year operating profit fell to 184 billion won in 2024 and deteriorated further to 49 billion won in 2025. Over that period, the share price collapsed from a 52-week high of 405,500 won to a low of 174,600 won. The second-quarter results are being read as the starting gun for a genuine operational recovery.
A busy second half
The outlook for the remainder of the year looks constructive. DS Investment Securities expects Hybe to stage more than 200 concerts in the second half of 2026. BTS alone has 53 dates scheduled — 24 shows across the United States and Europe in the third quarter, followed by 29 dates across Asia and Latin America in the fourth. KATSEYE's second world tour, alongside touring activity from CORTIS, Boynextdoor, Le Sserafim, Enhypen, and TWS, will add further volume.
Hybe's first-half concert count of 119 shows, generating 736.4 billion won in live revenue, already almost matches its full-year 2025 tally of 279 shows and 763.9 billion won — a function of both larger venue capacities and higher average ticket prices. Beyond touring, the merchandise division is expanding into lifestyle licensing, and the content segment is expected to grow on the back of a KATSEYE documentary film and broader seasonal releases.
DS Investment Securities forecasts full-year 2026 operating profit of 294.3 billion won, implying roughly 497% growth against 2025, and maintains a buy recommendation with a target price of 350,000 won, based on a price-to-earnings multiple of 40 times. At the current share price of 188,800 won (as of July 28th), that implies upside of 85.4%.
Risks worth watching
Investors should weigh several complicating factors. Hybe's share price has fallen 50.3% so far this year, underperforming the broader KOSPI index by 66.7 percentage points over the same period — a sign that the BTS comeback had been priced in early, with the stock subsequently suffering as sentiment soured. DS Investment Securities itself trimmed its target price from 450,000 won at the start of the year to the current 350,000 won, reflecting that recalibration.
There is also a structural question about sustainability. The broker's own revenue forecasts show 2026 full-year revenue of 4.94 trillion won declining to 4.20 trillion won in 2027 — a projected 14.9% fall — as the base effect of an unusually concentrated BTS touring schedule unwinds. In a business where a single act generates an outsized share of earnings, the BTS tour calendar and any developments relating to members' health or military-service obligations remain critical variables for earnings visibility. The pace at which Weverse improves its monetisation, and whether newer acts such as CORTIS can establish durable global followings, will be the key tests of Hybe's medium-term growth story.