NetEase 2025 Financial Report: Annual Revenue of 112.6 billion yuan, steady gaming business, AI deep integration

NetEase 2025 Annual Total Revenue Reaches 112.626 Billion Yuan, Up 7.0% Year-over-Year; Non-GAAP Net Income Attributable to Parent Company Is 37.3 Billion Yuan, Up 11.3%.

Operational Performance

In 2025, NetEase’s total revenue reached 112.626 billion yuan, a year-over-year increase of approximately 7.0%. Non-GAAP net income attributable to the parent company was 37.3 billion yuan, an increase of 11.3%. Despite a slowdown in revenue growth in the fourth quarter, the company achieved steady growth for the full year.

Business Progress

The net revenue from games and related value-added services for the full year was 92.1 billion yuan. In the fourth quarter, this business generated 22 billion yuan, up 3.4% year-over-year. Established products like Fantasy Westward Journey and Identity V continued to contribute stable revenue, while new titles such as Yan Yun Shili Sheng and Marvel Clash provided growth. The return of Blizzard series games to the Chinese market also set a new annual revenue record.

Financial Status

In 2025, gross profit margin increased to 64.29%, showing improvement compared to the previous year. The company’s cash flow remained healthy, with net cash flow from operating activities accounting for 45.05% of operating revenue. The board approved a quarterly dividend and announced an extension of the $5 billion share repurchase plan until 2029. By the end of 2025, approximately $2 billion worth of shares had been repurchased.

Business and Technology Development

Management emphasized that AI has become a foundational capability for game development, operations, and innovative businesses. R&D investment in 2025 reached 17.7 billion yuan, maintaining an R&D intensity of over 15%. AI technology applications in game user-generated content creation, educational product intelligent interactions, and other scenarios continue to deepen.

Company Business Status

Youdao performed strongly, with fourth-quarter revenue of 1.6 billion yuan, up 16.8% year-over-year, exceeding market expectations. Cloud Music revenue was 2 billion yuan, up 4.7%, remaining stable. Revenue from innovation and other businesses was 2 billion yuan, down 10.4%, mainly due to business adjustments.

Strategic Initiatives

New titles such as Yan Yun Shili Sheng and Marvel Clash received positive responses in overseas markets. The company plans to further increase the proportion of overseas revenue. The return of Blizzard games to the Chinese server also revitalizes the user ecosystem.

The above content is compiled from publicly available information and does not constitute investment advice.