NetEase Net Profit Falls Despite Higher Revenue
By Sherry Qin
Chinese videogame giant NetEase recorded lower net profit in the final quarter of 2025, partly due to a high base.
Net profit fell 29% from a year earlier to 6.24 billion yuan, equivalent to $902.9 million, missing the 8.26 billion yuan expected in a FactSet poll of analysts. Its adjusted net profit, a closely watched metric that excludes share-based compensation expenses, declined 27%.
Analysts had expected a weaker result, given a high base in the previous year. Higher operating expenses and investment losses also weighed on the game maker's bottom line.
Fourth-quarter revenue rose 3% to 27.55 billion yuan, in line with market expectations.
Revenue from games and related value-added services climbed to 22.0 billion yuan from 21.2 billion yuan a year earlier. The company attributed the increase to higher net revenues from self-developed games, such as "Fantasy Westward Journey Online," as well as from newly launched games "Where Winds Meet" and "Marvel Rivals."
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
February 11, 2026 04:24 ET (09:24 GMT)
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