In 2026 Q3, JYP Entertainment achieved its highest-ever quarterly revenue of KRW 267.5 BN, an increase of 15.0% year-over-year, and operating profit increased by 17.6% year-over-year to KRW 48.0 BN. Net profit decreased by 10.6% year-over-year to KRW 24.3 BN due to the foreign exchange impact from appreciation of the Korean won.
Revenue expanded from the growth of Stray Kids' new album 'THIS & THAT' global sales, as well as fan meetings, concerts, and character MD. Moreover, the Korea region recorded the highest revenue from gross-revenue-based large-scale domestic concerts.
Now, I will explain the revenue by segment in detail.
Physical album revenue recorded KRW 79.2 BN, an increase of 18.2% year-over-year, driven by the expansion of Stray Kids' new album sales. Especially, Stray Kids' mini album sales in Western regions increased significantly compared to their previous album. New releases from DAY6 Young K's solo regular album, global mini album from NEXZ and NiziU also contributed to the growth of physical album revenue.
Streaming revenue recorded KRW 19.8 BN, a 48.0% increase year-over-year, driven by the streaming sales growth from artist mass fandom expansion as well as YouTube revenue reclassification.
MD revenue was KRW 58.6 BN, a 46.7% increase year-over-year. In this quarter, online pre-order MD from Stray Kids' fan meeting held in March and April this year was reflected at a larger scale than their previous fan meeting. In addition, local fans purchased lightsticks through FANS SHOP before the large-scale festival 'STRAYCITY' in Latin America, which led to expanded sales of products available year-round. As a result, our subsidiary Blue Garage recorded its highest-ever quarterly revenue.
As Stray Kids kicked off their 4th world tour in July, tour MD achieved strong sales in Korea and Japan, and sales from Japan tour-linked city pop-ups in Osaka and Nagoya were also reflected in this quarter. Stray Kids' character SKZOO MD achieved strong domestic online sales, and also global pop-ups in Latin America linked with 'STRAYCITY' in September completed successfully. Moreover, domestic tour MD sales from DAY6, TWICE, and Young K were reflected. We will continue to strategically advance our MD business by expanding tour-linked city pop-ups and character IP pop-ups.
For management revenue, 2025 Q3 recorded the highest revenue from Stray Kids' large-scale Western tour. Despite this high base, we maintained a similar level to 2025 Q3, as gross-revenue-based large-scale domestic concerts were expanded, and both appearances and advertisement revenue reached record-highs.
Concert revenue recorded KRW 43.6 BN, a 31.1% decrease year-over-year due to the reduced number of shows. A total of 36 shows were held this quarter, including 16 gross-revenue-based large-scale domestic concerts. This quarter's concert revenue reflected Stray Kids' 5 shows in Korea and 6 shows in Japan including the Tokyo National Stadium. Also, there were domestic concerts by DAY6, Young K solo, TWICE, and 2PM as well as world tours of ITZY and NMIXX.
Appearances achieved its highest quarterly revenue of KRW 26.4 BN, a 138.4% increase year-over-year, reflecting Stray Kids' headliners at their own branded festival 'STRAYCITY' and 'Rock in Rio' in Latin America. Advertisement also recorded its highest quarterly revenue of KRW 16.0 BN, a 25.0% increase year-over-year, as advertising demand expanded across the entire artist portfolio.
By region, domestic revenue achieved the largest in this quarter, and the expansion of our artists' global achievements led to solid revenue from Other regions, including Western regions and Latin America. Domestic revenue was KRW 131.1 BN, a 29.5% increase year-over-year, reflecting strong sales of Stray Kids' new album and gross-revenue-based large-scale domestic concerts. Revenue from other regions recorded KRW 76.0 BN from the global sales expansion of Stray Kids' new album and the large-scale festival in Latin America.
Profitability increased year-over-year driven by record-high revenue from Stray Kids' strong global album sales and MD expansion. Gross profit recorded its highest quarterly level of KRW 93.7 BN, an increase of 21.2% year-over-year, and GPM improved by 1.8%p year-over-year to 35.0%.
Content production costs increased by 6.7% year-over-year to KRW 49.9 BN. This reflected higher production costs from the increased number of gross-revenue-based large-scale domestic concerts. Also, production costs for album and digital single releases from HQ and subsidiary artists were reflected as well as the debut album from our subsidiary.
Artist fee decreased by 1.0% to KRW 61.7 BN, in line with 1.4% year-over-year decline in management revenue.
Other expenses increased by 34.5% year-over-year to KRW 62.2 BN from an increase in product costs from MD revenue growth and higher promotional expenses. Promotional expenses in COGS reflected costs related to major artists' appearances and concerts including the debut promotion of OURBIRTHDAY, a new artist from our subsidiary INNIT Entertainment, and promotional costs for the launch of Stray Kids' first own branded festival.
Despite an increase in SG&A expenses such as logistics-related commission fees from MD revenue growth, OPM improved by 0.4%p year-over-year to 17.9%, driven by revenue growth from strong album and MD sales.
Next, I will outline Stray Kids' large-scale tour scheduled for 2027 and the debut plan for our HQ's new artist.
First, 2027 schedule for Stray Kids' 4th world tour <RUN IT> has been additionally announced. This tour will be held at large stadiums around the world, including Japan, North America, and Europe. In Western regions, the tour is scheduled across 14 cities in North America in Q2 and 7 cities in Europe in Q3. Compared to their previous tour <dominATE>, this tour added 4 more cities in North America and 1 more city in Europe, demonstrating that Stray Kids' Western fandom has grown to the next level.
In Japan, following their performance at the Tokyo National Stadium this year as the first foreign male artist, they will further solidify their position in Japan by performing at Nissan Stadium and Nagai Stadium next year. We will also launch tour-linked city pop-ups, which we newly introduced since TWICE's last world tour, in major cities where Stray Kids' concerts take place. We will continue to create greater global leverage across both concerts and MD.
Next is our HQ's new boy group. A 4-member boy group 'oftheblue' under the SQU4D label will make their official debut on January 11th next year. The group name 'oftheblue' is a variation of the term 'out of the blue,' which refers to an unexpected moment or a surprising discovery. The group will present each member's unlimited potential and their youthful energy. We will start a blind promotion targeting the global fandom, including a pre-release track at 6 PM today and the launch of a pop-up store starting tomorrow. Please look forward to JYP's new boy group 'oftheblue.'
Next are key artists' activity plans.
DAY6 held their 5th official fan meetings at the Inspire Arena in October, selling out all 3 shows. They will hold a special concert at the KSPO DOME in December. One of their members, Young K, is currently on a solo world tour of 12 shows across 8 regions and proved his strong solo ticket power by selling out all 3 shows at the Inspire Arena.
TWICE released a special vinyl album of their tour finale live in October, and one of their members, Nayeon, will release her solo single in November. In addition, TWICE is diversifying the fandom experience through various content, including a fan party celebrating their 11th debut anniversary and a pop-up for their new character 'TDOONGZ.'
Stray Kids released their mini album 'THIS & THAT' in August and achieved #1 on 'Billboard 200' with 9 consecutive albums for the first time in Billboard history. They will also release a Japanese mini album in November. Starting with 5 shows at the KSPO DOME in July and August, they kicked off their world tour <RUN IT> and are currently hosting tours in Asia, including 10 shows in Japan with 2 shows at the Tokyo National Stadium as the first foreign male artist. As mentioned on the highlights page, large-scale stadium concerts in Western regions and Japan are planned for 2027. In September, they became the first K-pop artist to headline 'Rock in Rio' in Brazil. They also performed 5 times across 3 regions at their first own branded festival 'STRAYCITY' in front of a total of 270,000 audiences, demonstrating their massive popularity in Latin America.
ITZY is diversifying their artist activities, including Chaeryeong's solo debut in November, and successfully completed their 3rd world tour <TUNNEL VISION> with 19 shows across 15 cities in Asia and Europe, etc.
NMIXX released their mini album in October, and in November, they will hold 3 encore concerts at the Inspire Arena, where their first world tour successfully began. Along with 4 Japan debut showcases in Tokyo and Nagoya starting in November, they plan to make their official Japan debut in December, partnering with Warner Music Japan.
KickFlip released their mini album in October and achieved #1 on domestic music shows. They are continuously expanding their core fandom through diverse content, including the launch of their official character 'KICKDOONGS' and character pop-up stores. In 2027, they plan to host their first tour and actively expand their global activities.
Next are activity plans of our localized artists.
Following the release of their Japanese best album in July, NiziU released their first global mini album in September, setting their own record for the highest first-week sales among their global albums in Korea. In addition, their Japanese EP released in April recently earned Recording Industry Association of Japan (RIAJ) Gold Disc Platinum certification, proving their solid popularity. Starting this November, they will hold an arena tour in Japan, continuing with 11 shows across 5 regions through 2027.
NEXZ recorded first-week sales of 430,000 copies with their mini album released in August, and broadened their engagement with local Latin American fans by performing at both 'STRAYCITY' and 'Rock in Rio.' They kicked off their first Asia tour, selling out all shows in Seoul, and the tour will continue with 12 shows across 8 regions through 2027. In addition, the pop-up store for their own character 'NEXZOO' was also successfully completed.
Chinese boy group CIIU successfully held their 1st anniversary fan meeting along with the release of their first mini album in August. They will release a new digital single and hold showcase tours in November. YAOCHEN is set to release a digital single in November and will continue active local activities, including performances and appearances at local shows.
GIRLSET released a digital single in July and successfully completed promotions in Korea and North America. They plan to release another digital single, 'young & dumb,' in November.
Next are the major albums and performances scheduled for 2026 Q4. The schedules disclosed in this slide are based on information currently released through official channels and the media.