SM Entertainment (041510) Q1 2026 earnings summary

Executive summary

• Revenue grew 20.6% year-over-year to KRW 279.1bn, driven by concert, MD & licensing, and subsidiary performance.

• Operating profit rose 18.5% YoY to KRW 38.6bn, supported by parent-level growth and DEARU consolidation.

• Net profit declined 85.5% YoY to KRW 36.7bn due to a high base effect from prior-year DEARU share acquisition and increased corporate tax.

Financial highlights

• Gross profit increased 20.4% YoY to KRW 100.4bn; SG&A rose 21.6% YoY to KRW 61.8bn.

• Operating margin was 13.8%, down 0.3 percentage points YoY.

• Sequentially, revenue fell 12.5% and operating profit dropped 29.3% from 4Q25.

Outlook and guidance

• Upcoming music releases and concert tours for major artists are scheduled throughout 2Q26 and 3Q26.