HYBE’s Reported Revenue Loss Raises Eyebrows Amid NewJeans Lawsuit, Corporate Restructuring

Netizens speculate reasons behind HYBE's revenue loss.

HYBE is unarguably one of the biggest management companies in K-pop. Founded by Bang Si Hyuk, the company was originally started as BigHit Entertainment and was renamed as HYBE Corporation in March 2021, housing the original label as a subsidiary called Big Hit Music. The company is also home to some of the biggest K-pop acts in the industry, like BTS, ENHYPEN and SEVENTEEN. However, a recent report from the South Korean media outlet News1 revealed that HYBE recorded a net loss for the third quarter of 2025. Read on to know more.

HYBE Records An Operating Loss Of 52 Billion Won

The news report by News1 revealed that HYBE had allegedly recorded an operating loss of 42.2 billion KRW (3,247 billion INR). It was further reported that the company also recorded a net loss of 52 billion won (4,004 billion INR). Since the net loss exceeds the operating loss, it is implied that the company lost more revenue than it generated for the time period.

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Operating loss refers to the losses the company faced from its main activities. The report revealed that HYBE’s profit margin faced a 12% decline due to global artist IP expansions and the restructuring of its North American business.

Following the report, HYBE’s CFO Lee Kyung Joon explained the strategy HYBE is currently employing. He said that while the company’s profits declined due to multiple teams debuting, their growth structure will be strengthened in the long term through expansions of global fandoms and stabilisations of the profits.

The company’s CEO, Lee Jae Sang, also said that HYBE’s overall profits look positive and the profit structure will see a significant improvement next year.

Netizens Speculate Reasons Behind The Losses

However, despite the statements made by the company officials, internet users think there is more to the truth. Some netizens are speculating that the company is facing losses due to HYBE’s alleged engagement in media play and lawsuits.

Also Read: HYBE India Launches Official Social Media Handle, Fans Already Have Requests!

They believe that ADOR’s (a subsidiary label under HYBE) ongoing lawsuit against NewJeans can also be a reason behind the losses. Last year, NewJeans announced that they would be leaving their label ADOR after alleging mistreatment by staff. The verdict in the case was recently announced, and the court upheld ADOR’s exclusive contract with the group to be valid till 2029; however, NewJeans has filed an appeal in response.

Also Read: Is HYBE Sabotaging BTS To Focus On New Groups? Here’s Why Fans Think So!

First Published: November 11, 2025 5:04 PM