NetEase Inc.

HANGZHOU, China, Feb. 11, 2026 /PRNewswire/ -- NetEase Cloud Music Inc. (HKEX: 9899 or the "Company"), a leading interactive music streaming service provider in China, today announced its financial results for the fiscal year 2025 ended December 31, 2025.

Summary of Key Financial Metrics 

(RMB in thousands, unless otherwise stated)

Note:

(1)  During the year ended 31 December 2025, the Group recognised a deferred income tax credit of RMB746.7 million which primarily arose from the recognition of deferred tax assets in respect of cumulative tax losses incurred by a wholly-owned subsidiary. These tax losses are available to be carried forward against future taxable income. Deferred tax assets relating to tax losses and temporary differences are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences or tax losses can be utilised.

(2)  Adjusted operating profit and adjusted net profit are non-IFRS measures and are defined as operating profit and profit for the year attributable to the equity holders of the Company adjusted by adding back equity-settled share-based payments as appropriate. For details of the reconciliation of the profit for the year attributable to the equity holders of the Company to the adjusted net profit of our Group, see the section headed "Financial Review" below.

Fiscal Year 2025 Key Financial Highlights

• Revenue was RMB7.8 billion, a slight decrease of 2.4% compared with RMB8.0 billion in 2024.
  • Online music services:
    • Revenue from online music services was RMB6.0 billion, an increase of 12.0% compared with RMB5.4 billion in 2024.
    • Revenue from sales of membership subscriptions increased to RMB5.1 billion from RMB4.5 billion in 2024, driven by continuous growth in monthly paying users of online music services with enhanced user experience, expanded membership benefits and enriched music community content.
  • Social entertainment services and others:
    • Revenue from social entertainment services and others was RMB1.8 billion, compared with RMB2.6 billion in 2024. The decrease was primarily attributed to a more prudent operational strategy in the social entertainment services. At the same time, we continued to focus on our core music business, with the intention of supporting long-term growth.
• Gross profit was RMB2,769.6 million, a slight increase of 3.3% compared with RMB2,681.5 million in 2024. This was primarily due to increased revenue from our online music services and continued improvement in operating efficiency, despite a decrease in revenue from our social entertainment services.
• Gross margin improved to 35.7% from 33.7% in 2024.
• Operating profit was RMB1,622.0 million, an increase of 38.5% compared with RMB1,170.8 million in 2024, which was primarily due to the decrease in promotion and advertising expenses and the increase in government grants.
• Adjusted operating profit was RMB1,733.7 million, an increase of 32.4% compared with RMB1,309.4 million for the same period of 2024.
• Net profit reached RMB2,745.8 million, compared with net profit of RMB1,565.4 million in 2024.
• Adjusted net profit reached RMB2,860.0 million, compared with adjusted net profit of RMB1,700.1 million in 2024.

Business Overview

Throughout 2025, we remained focused on driving high-quality development across our core music ecosystem. By continuously improving premium music experiences, we enhanced our appeal to a broad base of music lovers and deepened users' recognition and affinity for our platform. We also enhanced our differentiated content offerings and made further progress in developing original music. Guided by user needs, we continued to enrich the content ecosystem, refine personalized recommendations, innovate product features, and strengthen the community. These initiatives further boosted our appeal to users and engagement. Paired with upgraded membership benefits, they also supported growth in subscription-based memberships, reflecting our platform's sustainable development and long-term value.

We continued to expand and deepen our music-oriented community ecosystem. In 2025, we achieved steady year-over-year growth in both active user base and overall engagement by improving user experience and enhancing brand awareness. Meanwhile, our DAU/MAU ratio (daily active user/monthly active user ratio) improved year over year, remaining above 30%, and average daily mobile music listening time continued to increase. Notably, our efforts to deliver premium content and experiences, along with the platform's trendsetting aesthetics and design, strongly resonated with young music enthusiasts, who are gradually becoming loyal users of our platform.

We have built a diverse and distinctive content library by expanding our copyrighted music collection while actively promoting original Chinese music. In 2025, we introduced content from Korean labels, supplemented our Chinese music catalogue, added OST and variety show music, and further strengthened our signature genres, including hip-hop and Western music. We also deepened collaboration with labels in content promotion and artist-centric campaigns. Our unique independent artist ecosystem continued to grow, and our in-house works such as "Liang Nan (《兩難》)" and "What Ifs (《如果呢》)" gained broad recognition both on and off the platform.

From a product perspective, we continued to prioritize user needs and remained committed to innovation and excellence in music discovery and listening experience. In 2025, we further upgraded our core product framework to enhance its visual appeal and better support users' diverse music discovery preferences. We advanced personalized content distribution and introduced Climber, our self-developed AI-powered generative recommendation model. Our innovative features, such as Automix, "Magic Light Player" (神光播放器) and landscape mode, deliver a more immersive audio-visual journey. We also expanded and enhanced community scenarios to encourage more active user participation and interactions.

Our music-centric monetisation capabilities continued to deliver healthy growth. In 2025, subscription-based membership revenue increased by 13.3% year on year, driven by growth in the subscriber base, though slightly offset by a dilution in monthly ARPPU (average revenue per paying user) due to changes in subscriber mix. Importantly, our fast-growing subscriber base also demonstrated stronger stickiness, with higher retention and activity levels. By continuously enhancing membership benefits across content, features and customization, we strengthened users' willingness to pay for premium experiences.

Alongside our growth in monetisation, we also further improved our profitability in 2025. Our gross margins reached 35.7%, representing a notable increase from 33.7% in 2024. In 2025, our operating profit increased by 38.5% year on year, which mainly benefited from the growth in our business scale, stronger online music monetisation, disciplined cost management and operating leverage.

Looking ahead, we remain committed to enhancing the music experience and deepening user engagement across our platform by expanding our high-quality content offering, advancing product and feature innovation, and further strengthening our community. Our strategic priorities include the following measures:

• further diversifying and enhancing our differentiated content offerings with greater efficiency. We plan to deepen our collaboration with copyright holders and strengthen our capabilities in independent artist incubation and in-house music production, focusing on our signature music genres;
• fulfilling user needs by optimising the music listening experience and recommendation features to deliver the ultimate music experience;
• nurturing our music-oriented community ecosystem and exploring innovative inter-person interaction through enhancing our comprehensive product offerings, including broadening communicative scenarios and ecology;
• cultivating our users' willingness to pay and subscribe to premium offerings by improving user experience, deepening user engagement, enhancing membership privileges and broadening consumption scenarios; and
• improving profitability through continued cost optimisation, operating efficiency enhancement and disciplined cost control.

Diverse and differentiated content ecosystem

We are committed to expanding our distinctive content library by further diversifying our content mix across both licensed tracks and original music. We actively promote original Chinese music through continued support for independent artists and developing in-house music. At the same time, we continue to advance music genres that strongly resonate with our users, including hip-hop and Western music.

Enhancing partnerships with copyright holders

Throughout the Reporting Period, we maintained a disciplined and collaborative approach, further growing our partnerships and deepening our collaborations with copyright holders in ways that support both parties' long-term interests.

• Expansive catalogue of music labels. In 2025, we further supplemented our copyright music library by introducing new content from K-Pop labels, including RBW, StarShip and Shofar Music. We also added popular tracks from popular Chinese artists such as Li Jian (李健), Lay Zhang (張藝興), Chen Chusheng (陳楚生), Jackson Yee (易烊千璽), Xin Liu (劉雨昕) and Miriam Yeung (楊千嬅). In addition, we actively enriched our OST library by introducing content from TVB and added popular OSTs such as 《水龍吟》and《灼灼韶華》.
• Amplifying offerings in signature music genres. We further enriched our music library with high-quality selections across our signature genres, such as hip-hop, Japanese ACG and Western music. This included the latest releases from popular rappers and rock bands such as KeyNG (楊和蘇), MaSiWei (馬思唯), MC HotDog (熱狗), New Pants (新褲子) and Reflector (反光鏡). We also partnered with Kadokawa and U/M/A/A, and collaborated closely with Deco*27 to bring more high-quality J-Pop and ACG music to our platform.
• In-depth collaborations with copyright partners. We strengthened cooperation with music labels to facilitate the promotion of high-quality releases. We played an instrumental role in the launches of Mariah Carey and Taylor Swift's new albums in China, both of which saw outstanding streaming performance on the NetEase Cloud Music platform. Through our enhanced partnerships, the new digital albums from Hua Chenyu (華晨宇), David Tao (陶喆), Allen Ren (任嘉倫) and Eason Chan (陳奕迅) all delivered impressive sales results on our platform. We also executed a tailored campaign for JENNIE's digital album, featuring exclusive virtual and physical music cards, driving the sales performance.
• Online and offline artist-centric activities. We worked closely with labels and artists to deliver artist-centric campaigns across online and offline channels, effectively engaging young audiences and fan communities. These initiatives included online retrospective campaign paired with a large-scale offline activation for Hua Chenyu's 12th debut anniversary, flash mob events in four cities for BLACKPINK's 9th debut anniversary, as well as a series of online programs to celebrate i-dle and Mayday's anniversaries, the new partnerships with Jackson Yee and Lay Zhang, among other initiatives.

Strengthening our leading independent artists' ecosystem

Beyond licensed content, we continued to strengthen our unique independent artist ecosystem by providing end-to-end support across content creation, promotion and monetisation. By the end of 2025, more than 1,000,000 independent artists had contributed more than 5.6 million tracks to our platform.

• Expanding exposure for musicians and their work. We launched the "Original Sound Promoters" (原創聲推官) campus ambassador program, establishing a "discovery- appreciation-dissemination" mechanism to promote original content and build a music discovery and promotion network from the university student perspective. By collaborating with multiple brands and channels, we helped musicians reach a broader audience through a mix of online and offline initiatives. These included online music campaigns with "Where Winds Meet" (燕雲十六聲) and BYD, offline brand activities with Honor Music and Chanel's limited-edition perfume space, and pitching original songs for inclusion in shows such as "Singer 2025" and "The Rap of China 2025."
• Enhancing commercial resources for musicians. We connected musicians with brands and game partners to grow their commercial reach. We provided brands such as Audi, Chanel, Honor, China Mobile, TCL, Taobao and JD.com with access to musicians' performance and songwriting capabilities. We also collaborated with our musicians to supply customized songs or original tracks for games, including "Fantasy Westward Journey," "Where Winds Meet," "Identity V" and "Eggy Party," partnering with 13 popular games.

Developing and promoting differentiated in-house music

Our in-house studios focus on producing original, high-quality music to enrich our content offerings. In 2025, our in-house studios have successfully produced and popularised multiple hit songs across our community and external platforms. We continued to build on our signature genres and received favourable reception for multiple in-house hip-hop releases, including "Liang Nan"(《兩難》), "Mo Chou Xiang" (《莫愁鄉》),《熄滅》,《暗流》and《洗牌》. Meanwhile, we remain dedicated to cultivating high-quality, well-crafted music content. Older in-house tracks, such as "Shi Hao" (《嗜好》), "You" (《你》) and "What Ifs" (《如果呢》), have gradually reached a broader audience and gained wider recognition. We also worked extensively with emerging artists to co- create popular songs, including《褪黑素》and《大城小愛》. Additionally, our original project – the collaboration between MIYEON and Jike Juyi (吉克隽逸), titled "Glow Up" – has garnered widespread attention and sparked discussion internationally.

Diversified audio-based content offerings

In addition to music, we expanded our audio offerings to better serve users' diverse interests and listening needs. In 2025, our growing audio content library drove higher user consumption, resulting in a steady increase in average listening time per user.

• PGC – audiobooks & radio dramas. We continued to enrich our audiobook offerings with disciplined cost management. In 2025, we gained favourable reception with our in-house- produced audiobooks, such as《撈屍人》and《黑相術》. We also introduced more content for young audience and more ACG titles to meet user demand, including《元嬰期》,《天命賒刀人》and《禁咒師》. Furthermore, we co-developed the original radio drama《Eggy Party》, which tapped into gamers' nostalgia while broaden the audience for audio content.
• PUGC/UGC – podcast. Our podcast offerings focus on music-themed audio content and cultural podcast IPs. Our co-produced series, "Dear Music – The Season of New Voices," explored the stories behind classic hit songs, and our music-inspired podcast "Music Neighbour Program" (音樂友鄰計劃) featured 105 musicians and influencers, including author Da Bing (大冰), physicist Li Miao (李淼), musicians Tayu Lo (羅大佑), Terry Lin (林志炫), Sophia Huang (黃綺珊) and Fan Fan (范瑋琪), as well as the renowned label Modern Sky. We recently launched the "Podcast Bookstore Plan《播客書店計劃》," which hosts expert-led podcast episodes organized around curated thematic book lists to build our cultural podcast IP, featuring guests such as Liang Yong'an (梁永安), Feng Tang (馮唐), Su Tong (蘇童) and Xu Zhiyuan (許知遠).
• Enhancing the podcast host ecosystem. In 2025, we introduced eight prominent podcast hosts, including Fan Deng (樊登), founder of the Fan Deng Reading APP (帆書 APP), Li Lei (李蕾), a former CCTV host, and Guo Degang (郭德綱), a crosstalk performer. Among them, Guo Degang's supernatural-themed podcast series《子不語我語》became a breakout hit on our platform, generating nearly 10 million listens.

Product innovation and community ecosystem

During the Reporting Period, we further enhanced users' premium music experience by driving product innovation and revitalizing our community ecosystem. In 2025, the NetEase Cloud Music App underwent continuous main updates, improving its visual appeal and better supporting users' diverse music consumption preferences. Our efforts have yielded improved user engagement, reflected in higher activity ratio and increased in-app music listening time. Our unique and evolving community continues to foster deeper music-driven resonance, inspiring greater user participation in both creating and engaging with community content.

Optimising users' music discovery and listening experience

We keenly focused on advancing personalised recommendations and innovative features which deliver a more intuitive and immersive music experience. In 2025, we made meaningful progress in both music discovery and listening experience for users, strengthening their engagement and enhancing the platform's overall value.

• Optimizing music content discovery and distribution. We are dedicated to providing users with a personalised music discovery journey. In 2025, we continued to enhance our product and recommendation capabilities, including: 1) rolling out continuous core product upgrades to better meet users' diverse music discovery preferences, such as the new "Heartbeat Mode" (心動模式) homepage layout and the new "Search" tab featuring categorized browsing; 2) continuously refining the recommendation page to boost user engagement and listening time; 3) launching the "Heart Collection Playlist Classification" (紅心歌單分類) feature that allows users to filter songs by genre, artist, language, and more, supported by AI to uncover niche categories; 4) optimizing the "New Songs and New Albums" channel by streamlining new content delivery and improving the display of professional information. Additionally, we introduced Climber, our self-developed AI-powered generative recommendation model, which utilizes self-attention mechanisms to accurately capture user preferences.
• Enhancing the music consumption experience. We improved the music experience and addressed a wider range of audio-visual needs through innovative features. We launched the "Magic Light Player" (神光播放器) to recreate live-concert-like experiences, and the "Lustrous Light Wave" (琉璃光波) Player, which syncs music spectra with dynamic visual effects for a more immersive experience. Our newly added Automix feature enables intelligent, seamless playback with smooth transitions between songs. We also introduced a horizontal mode for the Vinyl Player, which significantly increased users' screen-on time. In addition, we launched a range of AI-powered features, including "AI Singing Assistant 2.0" for one-click MV creation, "AI Magic Player" for personalized player backgrounds, and "AI Song-writing" to instantly turn ideas into songs, further enriching the music experience with added creativity and convenience.

Expanding music consumption scenarios

In 2025, we advanced our multi-terminal ecosystem to better address users' daily needs across a wide range of touchpoints. We extended in-car coverage to additional brands and models through new partnerships with Jetour, LYNK & CO, and more. Meanwhile, we continued to enhance multi- device functionality to enhance user engagement. For in-vehicle use, we added features such as "Heartbeat Mode" (心動模式), "In-Car Radio" (車載場景電台), "Magic Light Mode," "Sing at Will" (隨心唱) and AudioVivid. For TV terminals, we introduced the new "Heartbeat" homepage interface and improved large-screen viewing aesthetics with innovative features such as "Record Wall," "Full Screen Cover" and "Sing at Will."

Conference Call

The Company's management will host an earnings conference call at 7:00 p.m. Beijing/Hong Kong Time on Wednesday, February 11, 2026 (6:00 a.m. U.S. Eastern Time on the same day). Details for the conference call are as follows:

Event Title: NetEase Cloud Music Inc. Fiscal Year 2025 Earnings Conference Call

Registration Link: https://s1.c-conf.com/diamondpass/10052762-ref312.html

All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of dial-in numbers, an event passcode, and a personal access PIN, which will be used to join the conference call.

A replay of the call will be accessible by phone at the following numbers and entering PIN: 10052762. The replay will be available through February 18, 2026.

Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.music.163.com for 12 months following the call.

About NetEase Cloud Music Inc.

Launched in 2013 by NetEase, Inc. (NASDAQ: NTES; HKEX: 9999), NetEase Cloud Music Inc. (HKEX: 9899) is a well-known online music platform featuring a vibrant content community. Dedicated to providing an elevated user experience, NetEase Cloud Music Inc. provides precise, personalised recommendations, promotes user interaction and creates a strong social community. Its focus on discovering and promoting emerging musicians has made NetEase Cloud Music Inc. a destination of choice for exploring new and independent music among music enthusiasts in China. The platform has been recognised as the most popular entertainment app among China's vibrant Generation Z community.

Please see http://ir.music.163.com/ for more information.

Forward Looking Statements

This press release contains forward-looking statements relating to the business outlook, estimates of financial performance, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Company and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realised in the future. Underlying these forward-looking statements are a lot of risks and uncertainties. In light of the risks and uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as representations by the Board or the Company that the plans and objectives will be achieved, and investors should not place undue reliance on such statements.

Non-IFRS Measure

To supplement our consolidated results, which are prepared and presented in accordance with International Financial Reporting Standards ("IFRS"), our Company uses adjusted operating profit and adjusted net profit as additional financial measures, which are not required by, or presented in accordance with IFRS. We believe that these measures facilitate comparisons of operating performance from period to period and company to company by eliminating the potential impact of items that our management does not consider to be indicative of our Group's operating performance, such as certain non-cash items. The use of these non-IFRS measures has limitations as an analytical tool, and shareholders and potential investors of our Company should not consider them in isolation from, as a substitute for, as an analysis of, or superior to, our Group's results of operations or financial condition as reported under IFRS. In addition, these non-IFRS financial measures may be defined differently from similar terms used by other companies, and may not be comparable to other similarly titled measures used by other companies. Our presentation of these non-IFRS measures should not be construed as an implication that our future results will be unaffected by unusual or non-recurring items.

Investor Enquiries:

Angela Xu

NetEase Cloud Music Inc.

music.ir@service.netease.com

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SOURCE NetEase Cloud Music

HANGZHOU, China, Feb. 11, 2026 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), a leading internet and game services provider, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025.

Fourth Quarter 2025 Financial Highlights

• Net revenues were RMB27.5 billion (US$3.9 billion), an increase of 3.0% compared with the same quarter of 2024.
  • Games and related value-added services net revenues were RMB22.0 billion (US$3.1 billion), an increase of 3.4% compared with the same quarter of 2024.
  • Youdao net revenues were RMB1.6 billion (US$223.7 million), an increase of 16.8% compared with the same quarter of 2024.
  • NetEase Cloud Music net revenues were RMB2.0 billion (US$281.5 million), an increase of 4.7% compared with the same quarter of 2024.
  • Innovative businesses and others net revenues were RMB2.0 billion (US$292.8 million), a decrease of 10.4% compared with the same quarter of 2024.
• Gross profit was RMB17.7 billion (US$2.5 billion), an increase of 8.7% compared with the same quarter of 2024.
• Total operating expenses were RMB9.4 billion (US$1.3 billion), an increase of 10.9% compared with the same quarter of 2024.
• Net income attributable to the Company's shareholders was RMB6.2 billion (US$892.6 million). Non-GAAP net income attributable to the Company's shareholders was RMB7.1 billion (US$1.0 billion).^[1]
• Basic net income per share was US$0.28 (US$1.40 per ADS). Non-GAAP basic net income per share was US$0.32 (US$1.58 per ADS).^[1]

Fourth Quarter 2025 and Recent Operational Highlights

• After years of concentrated, purposeful effort, achieved comprehensive integration of AI across the full game development and gameplay innovation cycle – from art and design to programming, animation and quality assurance – strengthening high volume, scalable production and enabling the smooth rollout of dynamic, AI-native gameplay features in multiple flagship titles.
• Sustained strong engagement across the Company's established franchises, demonstrating the durability of its long-term operating capabilities. Key titles, including the Fantasy Westward Journey franchise, Identity V, Eggy Party, Sword of Justice and Where Winds Meet, continued to introduce high-quality content and maintain healthy player communities.
• Further strengthened the game portfolio globally. Sword of Justice received a strong reception following its global launch, and Where Winds Meet gained traction on multiple platforms, surpassing 80 million cumulative players and delivering high engagement worldwide. Marvel Rivals also further expanded its global influence through player engagement and industry recognition.
• Blizzard titles delivered sustained engagement in China through enriched content and localized experiences, achieving record-high annual revenue and reaffirming NetEase's long-term commitment to the market.

"We concluded 2025 with another healthy quarter, reflecting the durability of our long-term game operations and the growing impact of our global titles," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "AI has become a foundational competency for our development and operations. We have been systematically applying AI throughout game development and gameplay, where it is already driving meaningful improvement in production efficiency and unlocking new interactive experiences for our players that were previously out of reach.

"Looking ahead, we remain focused on delivering exceptional experiences across the NetEase family of businesses. By fostering a creative talent ecosystem, deepening collaboration with partners worldwide and thoughtfully advancing our AI-application capabilities, we aim to further extend the longevity of our franchises while continuing to deliver innovative experiences to create even greater value for our global players and shareholders alike," Mr. Ding concluded.

Fourth Quarter 2025 Financial Results

Net Revenues

Net revenues for the fourth quarter of 2025 were RMB27.5 billion (US$3.9 billion), compared with RMB28.4 billion and RMB26.7 billion for the preceding quarter and the same quarter of 2024, respectively.

Net revenues from games and related value-added services were RMB22.0 billion (US$3.1 billion) for the fourth quarter of 2025, compared with RMB23.3 billion and RMB21.2 billion for the preceding quarter and the same quarter of 2024, respectively. Net revenues from the operation of online games accounted for approximately 96.8% of the segment's net revenues for the fourth quarter of 2025, compared with 97.6% and 96.7% for the preceding quarter and the same quarter of 2024, respectively. The quarter-over-quarter decrease in online games net revenues reflected the fact that the prior quarter benefited from a high level of diversified events for the summer period. The year-over-year increase was attributable to higher net revenues from self-developed games, such as Fantasy Westward Journey Online and newly launched games Where Winds Meet and Marvel Rivals.

Net revenues from Youdao were RMB1.6 billion (US$223.7 million) for the fourth quarter of 2025, compared with RMB1.6 billion and RMB1.3 billion for the preceding quarter and the same quarter of 2024, respectively. The year-over-year increase was due to increased net revenues from its online marketing services and learning services.

Net revenues from NetEase Cloud Music were RMB2.0 billion (US$281.5 million) for the fourth quarter of 2025, compared with RMB2.0 billion and RMB1.9 billion for the preceding quarter and the same quarter of 2024, respectively.

Net revenues from innovative businesses and others were RMB2.0 billion (US$292.8 million) for the fourth quarter of 2025, compared with RMB1.4 billion and RMB2.3 billion for the preceding quarter and the same quarter of 2024, respectively. Results from this segment were mainly driven by net revenues from Yanxuan, advertising services and other value-added services, as well as certain inter-segment transaction eliminations. The quarter-over-quarter increase was led by increased net revenues from Yanxuan, advertising services and several other businesses included within the segment. The year-over-year decrease reflected an increase in certain inter-segment transaction eliminations.

Cost of Revenues

Cost of revenues for the fourth quarter of 2025 was RMB9.9 billion (US$1.4 billion), compared with RMB10.2 billion and RMB10.5 billion for the preceding quarter and the same quarter of 2024, respectively. The quarter-over-quarter decrease was primarily driven by decreased revenue-sharing costs. The year-over-year decrease was mainly due to lower royalties for licensed games and lower revenue-sharing costs.

Gross Profit

Gross profit for the fourth quarter of 2025 was RMB17.7 billion (US$2.5 billion), compared with RMB18.2 billion and RMB16.3 billion for the preceding quarter and the same quarter of 2024, respectively.

Operating Expenses

Total operating expenses for the fourth quarter of 2025 were RMB9.4 billion (US$1.3 billion), compared with RMB10.2 billion and RMB8.5 billion for the preceding quarter and the same quarter of 2024, respectively. The variances in both the quarter-over-quarter and year-over-year results were primarily attributable to changes in marketing expenses related to online games.

Other Income/(Expenses)

Other income/(expenses) consisted of investment income/(loss), interest income, net exchange gains/(losses) and others. The quarter-over-quarter and year-over-year decreases were primarily attributable to fair value changes of equity security investments and greater exchange losses in the fourth quarter of 2025.

Income Tax

The Company recorded a net income tax charge of RMB1.3 billion (US$178.8 million) for the fourth quarter of 2025, compared with RMB1.3 billion and RMB1.4 billion for the preceding quarter and the same quarter of 2024, respectively. The effective tax rate for the fourth quarter of 2025 was 16.4%, compared with 13.0% and 13.4% for the preceding quarter and the same quarter of 2024, respectively. The effective tax rate represents certain estimates by the Company as to the tax obligations and benefits applicable to it in each quarter.

Net Income and Non-GAAP Net Income

Net income attributable to the Company's shareholders totaled RMB6.2 billion (US$892.6 million) for the fourth quarter of 2025, compared with RMB8.6 billion and RMB8.8 billion for the preceding quarter and the same quarter of 2024, respectively.

Basic net income was US$0.28 per share (US$1.40 per ADS) for the fourth quarter of 2025, compared with US$0.39 per share (US$1.93 per ADS) and US$0.39 per share (US$1.97 per ADS) for the preceding quarter and the same quarter of 2024, respectively.

Non-GAAP net income attributable to the Company's shareholders totaled RMB7.1 billion (US$1.0 billion) for the fourth quarter of 2025, compared with RMB9.5 billion and RMB9.7 billion for the preceding quarter and the same quarter of 2024, respectively.

Non-GAAP basic net income was US$0.32 per share (US$1.58 per ADS) for the fourth quarter of 2025, compared with US$0.43 per share (US$2.13 per ADS) and US$0.44 per share (US$2.18 per ADS) for the preceding quarter and the same quarter of 2024, respectively.

Fiscal Year 2025 Financial Results

Net Revenues

Net revenues for fiscal year 2025 were RMB112.6 billion (US$16.1 billion), compared with RMB105.3 billion for fiscal year 2024.

Net revenues from games and related value-added services were RMB92.1 billion (US$13.2 billion) for fiscal year 2025, compared with RMB83.6 billion for fiscal year 2024. Net revenues from the operation of online games accounted for approximately 97.3% of the segment's total net revenues for fiscal year 2025, compared with 96.2% for fiscal year 2024. The year-over-year increase in online games net revenues was attributable to higher net revenues from Fantasy Westward Journey Online, Identity V and newly launched games Where Winds Meet and Marvel Rivals.

Net revenues from Youdao were RMB5.9 billion (US$845.0 million) for fiscal year 2025, compared with RMB5.6 billion for fiscal year 2024.

Net revenues from NetEase Cloud Music were RMB7.8 billion (US$1.1 billion) for fiscal year 2025, compared with RMB8.0 billion for fiscal year 2024.

Net revenues from innovative businesses and others were RMB6.8 billion (US$973.6 million) for fiscal year 2025, compared with RMB8.1 billion for fiscal year 2024.

Cost of Revenues

Cost of revenues for fiscal year 2025 was RMB40.2 billion (US$5.8 billion), compared with RMB39.5 billion for fiscal year 2024. The year-over-year increase was primarily due to higher royalties for licensed games, which were partially offset by lower revenue-sharing costs.

Gross Profit

Gross profit for fiscal year 2025 was RMB72.4 billion (US$10.4 billion), compared with RMB65.8 billion for fiscal year 2024.

Operating Expenses

Total operating expenses for fiscal year 2025 were RMB36.6 billion (US$5.2 billion), compared with RMB36.2 billion for fiscal year 2024. The year-over-year increase was primarily due to higher marketing expenses and research and development investments for games and related value-added services.

Other Income/(Expenses)

The year-over-year decrease was mainly due to net exchange losses recorded in fiscal year 2025 compared with net exchange gains recorded in fiscal year 2024, as well as lower interest income recognized in fiscal year 2025.

Income Taxes

The Company recorded a net income tax charge of RMB6.0 billion (US$862.7 million) for fiscal year 2025, compared with RMB5.5 billion for fiscal year 2024. The effective tax rate was 14.8% for fiscal year 2025, compared with 15.3% for fiscal year 2024.

Net Income and Non-GAAP Net Income

Net income attributable to the Company's shareholders for fiscal year 2025 totaled RMB33.8 billion (US$4.8 billion), compared with RMB29.7 billion for fiscal year 2024.

Basic net income was US$1.52 per share (US$7.58 per ADS) for fiscal year 2025, compared with US$1.33 per share (US$6.63 per ADS) for fiscal year 2024.

Non-GAAP net income attributable to the Company's shareholders for fiscal year 2025 totaled RMB37.3 billion (US$5.3 billion), compared with RMB33.5 billion for fiscal year 2024.

Non-GAAP basic net income was US$1.68 per share (US$8.38 per ADS) for fiscal year 2025, compared with US$1.50 per share (US$7.49 per ADS) for fiscal year 2024.

Other Financial Information

As of December 31, 2025, the Company's net cash (total cash and cash equivalents, current and non-current time deposits and restricted cash, as well as short-term investments balance, minus short-term and long-term loans) totaled RMB163.5 billion (US$23.4 billion), compared with RMB131.5 billion as of December 31, 2024. Net cash provided by operating activities was RMB50.7 billion (US$7.3 billion) for fiscal year 2025, compared with RMB39.7 billion for fiscal year 2024.

Quarterly Dividend

The board of directors approved a dividend of US$0.232 per share (US$1.16 per ADS) for the fourth quarter of 2025 to holders of ordinary shares and holders of ADSs as of the close of business on March 16, 2026, Beijing/Hong Kong Time and New York Time, respectively, payable in U.S. dollars. For holders of ordinary shares, in order to qualify for the dividend, all valid documents for the transfer of shares accompanied by the relevant share certificates must be lodged for registration with the Company's Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17^th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong, no later than 4:30 p.m. on March 16, 2026 (Beijing/Hong Kong Time). The payment date is expected to be March 25, 2026 for holders of ordinary shares and on or around March 27, 2026, for holders of ADSs.

NetEase paid a dividend of US$0.114 per share (US$0.57 per ADS) for the third quarter of 2025 in December 2025.

Under the Company's current dividend policy, the determination to make dividend distributions and the amount of such distribution in any particular quarter will be made at the discretion of its board of directors and will be based upon the Company's operations and earnings, cash flow, financial condition and other relevant factors.

Share Repurchase Program

On November 20, 2025, the Company announced that its previously approved share repurchase program of up to US$5.0 billion of the Company's ADSs and ordinary shares in open market or other transactions will be extended for an additional 36 months until January 9, 2029. As of December 31, 2025, approximately 22.1 million ADSs had been repurchased under this program for a total cost of US$2.0 billion.

The extent to which NetEase repurchases its ADSs and its ordinary shares depends upon a variety of factors, including market conditions. These programs may be suspended or discontinued at any time.

** The United States dollar (US$) amounts disclosed in this announcement are presented solely for the convenience of the reader. The percentages stated are calculated based on RMB. 

Conference Call

NetEase's management team will host a teleconference call with a simultaneous webcast at 7:00 a.m. Eastern Time on Wednesday, February 11, 2026 (Beijing/Hong Kong Time: 8:00 p.m., Wednesday, February 11, 2026). NetEase's management will be on the call to discuss the quarterly results and answer questions.

Interested parties may participate in the conference call by dialing 1-914-202-3258 and providing conference ID: 10052758, 15 minutes prior to the initiation of the call. A replay of the call will be available by dialing 1-855-883-1031 and entering PIN: 10052758. The replay will be available through February 18, 2026.

This call will be webcast live and the replay will be available for 12 months. Both will be available on NetEase's Investor Relations website at http://ir.netease.com/.

About NetEase, Inc.

NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase") is a leading internet and game services provider centered around premium content. With extensive offerings across its expanding gaming ecosystem, the Company develops and operates some of the most popular and longest-running mobile and PC games available in China and globally.

Powered by one of the largest in-house game R&D teams focused on mobile, PC and console, NetEase creates superior gaming experiences, inspires players, and passionately delivers value for its thriving community worldwide. By infusing play with culture, and education with technology, NetEase transforms gaming into a meaningful vehicle to build a more entertaining and enlightened world.

Beyond games, NetEase service offerings include its majority-controlled subsidiaries Youdao (NYSE: DAO), an intelligent learning and advertising solutions provider, and NetEase Cloud Music (HKEX: 9899), a well-known online music platform featuring a vibrant content community, as well as Yanxuan, NetEase's private-label consumer lifestyle brand.

For more information, please visit: http://ir.netease.com/.

Forward Looking Statements

This announcement contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions. In addition, statements that are not historical facts, including statements about NetEase's strategies and business plans, its expectations regarding the growth of its business and its revenue and the quotations from management in this announcement are or contain forward-looking statements. NetEase may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that the online games market will not continue to grow or that NetEase will not be able to maintain its position in that market in China or globally; risks associated with NetEase's business and operating strategies and its ability to implement such strategies; NetEase's ability to develop and manage its operations and business; competition for, among other things, capital, technology and skilled personnel; potential changes in regulatory environment in the markets where NetEase operates; the risk that NetEase may not be able to continuously develop new and creative online services or that NetEase will not be able to set, or follow in a timely manner, trends in the market; risks related to evolving economic cycles and geopolitical tensions, including the direct or indirect impacts of national trade, investment, protectionist, tax or other laws or policies as well as export controls and economic or trade sanctions; risks related to the expansion of NetEase's businesses and operations internationally; risks associated with cybersecurity threats or incidents; and fluctuations in foreign currency exchange rates that could adversely affect NetEase's business and financial results. Further information regarding these and other risks is included in NetEase's filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. NetEase does not undertake any obligation to update this forward-looking information, except as required under applicable law.

Non-GAAP Financial Measures

NetEase considers and uses non-GAAP financial measures, such as non-GAAP net income attributable to the Company's shareholders and non-GAAP basic and diluted net income per ADS and per share, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

NetEase defines non-GAAP net income attributable to the Company's shareholders as net income attributable to the Company's shareholders excluding share-based compensation expenses. Non-GAAP net income attributable to the Company's shareholders enables NetEase's management to assess its operating results without considering the impact of share-based compensation expenses. NetEase believes that this non-GAAP financial measure provides useful information to investors in understanding and evaluating the Company's current operating performance and prospects in the same manner as management does, if they so choose. NetEase also believes that the use of this non-GAAP financial measure facilitates investors' assessment of its operating performance.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP net income attributable to the Company's shareholders is that it does not reflect all items of expense/ income that affect our operations. Share-based compensation expenses have been and may continue to be incurred in NetEase's business and are not reflected in the presentation of non-GAAP net income attributable to the Company's shareholders. In addition, the non-GAAP financial measures NetEase uses may differ from the non-GAAP measures used by other companies, including peer companies, and therefore their comparability may be limited.

NetEase compensates for these limitations by reconciling non-GAAP net income attributable to the Company's shareholders to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. See the unaudited reconciliation of GAAP and non-GAAP results at the end of this announcement. NetEase encourages you to review its financial information in its entirety and not rely on a single financial measure.

Contact for Media and Investors:

Email: ir@service.netease.com 

Tel: (+86) 571-8985-3378