NetEase Announces Fourth Quarter and Fiscal Year 2025 Unaudited Financial Results
Rhea-AI Summary
NetEase (DAO) reported fourth-quarter 2025 net revenues of RMB27.5 billion (US$3.9 billion) and fiscal‑year 2025 net revenues of RMB112.6 billion (US$16.1 billion). Fiscal non‑GAAP net income was RMB37.3 billion (US$5.3 billion). Net cash rose to RMB163.5 billion (US$23.4 billion). The board approved a US$0.232 per share quarterly dividend and extended a US$5.0 billion repurchase program; ~22.1 million ADSs repurchased for US$2.0 billion to date. Company highlighted AI integration across game development and strong global franchise engagement.
Positive
- Games revenue +10.2% YoY for fiscal 2025 (RMB92.1 billion)
- Non‑GAAP net income +11.4% YoY for fiscal 2025 (RMB37.3 billion)
- Net cash +24.3% YoY to RMB163.5 billion at Dec 31, 2025
- Board approved quarterly dividend of US$0.232 per share
- Share repurchase program extended to Jan 9, 2029; US$2.0B repurchased
Negative
- Q4 2025 GAAP net income down ~28% QoQ to RMB6.2 billion
- Q4 2025 non‑GAAP net income down ~25% QoQ to RMB7.1 billion
- Innovative businesses revenue -10.4% YoY in Q4 2025 (RMB2.0 billion)
- Total operating expenses +10.9% YoY in Q4 2025 (RMB9.4 billion)
- Effective tax rate rose ~300 bps YoY to 16.4% in Q4 2025
Market Reaction
Following this news, NTES has declined 4.12%, reflecting a moderate negative market reaction. Our momentum scanner has triggered 7 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $118.60. This price movement has removed approximately $3.36B from the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
Education peers showed mixed moves: KLC (+3.31%) and AFYA (+0.32%) were up, while UDMY (-0.21%) and APEI (-1.51%) declined, pointing to stock-specific factors rather than a clear sector-wide trend for DAO.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 20 | Q3 2025 earnings | Negative | -8.1% | Youdao Q3 2025 revenue growth but sharply weaker margins and income from operations. |
| Nov 20 | Q3 2025 earnings | Positive | -8.1% | NetEase Q3 2025 strong revenue, profit and cash, plus dividend and buyback extension. |
| Aug 14 | Q2 2025 earnings | Positive | +9.9% | Youdao Q2 2025 first profitable second quarter with revenue growth and AI progress. |
| Aug 14 | Q2 2025 earnings | Positive | +9.9% | NetEase Q2 2025 strong gaming-led growth, high net income and quarterly dividend. |
| May 15 | Q1 2025 earnings | Positive | +8.9% | Youdao Q1 2025 mixed revenue but major profitability and AI-driven growth improvements. |
Earnings-related headlines for DAO and its parent have often triggered sizable moves, with mostly positive reactions to Youdao’s own results but at least one notable divergence when NetEase reported strong numbers yet the stock sold off.
Recent history shows a series of earnings events for Youdao and NetEase driving significant volatility. Youdao’s Q1–Q3 2025 results highlighted revenue growth and sharp profitability improvements, generally met with strong positive moves. NetEase’s Q2 2025 earnings also coincided with a sizable gain, while its Q3 2025 beat saw a sharp decline, showing that strong parent results do not always lift DAO. Today’s full-year 2025 report for NetEase, with solid group and Youdao revenues, follows this pattern of earnings as key catalysts.
Historical Comparison
In the past year, DAO’s earnings-related headlines saw an average move of about 2.5%. Today’s pre-news gain of 1.13% sits within this typical earnings reaction range.
Across Q1–Q3 2025, Youdao’s earnings showed improving profitability under an AI-driven strategy, while NetEase reported strong gaming growth and capital returns, setting the backdrop for today’s Q4 and full-year 2025 results.
Market Pulse Summary
This announcement delivers a comprehensive view of NetEase’s and Youdao’s Q4 and full-year 2025 performance, highlighting revenue growth, substantial net income, strong net cash, ongoing dividends and a large repurchase program. For DAO, the Youdao segment’s revenue trends and profitability are key reference points. Investors monitoring this story may focus on sustainability of AI-driven growth, marketing and R&D spending, and how capital returns evolve relative to cash generation.
Key Terms
non-gaap financial
ads financial
net cash financial
effective tax rate financial
AI-generated analysis. Not financial advice.
Fourth Quarter 2025 Financial Highlights
- Net revenues were
RMB27.5 billion (US ), an increase of$3.9 billion 3.0% compared with the same quarter of 2024.- Games and related value-added services net revenues were
RMB22.0 billion (US ), an increase of$3.1 billion 3.4% compared with the same quarter of 2024. - Youdao net revenues were
RMB1.6 billion (US ), an increase of$223.7 million 16.8% compared with the same quarter of 2024. - NetEase Cloud Music net revenues were
RMB2.0 billion (US ), an increase of$281.5 million 4.7% compared with the same quarter of 2024. - Innovative businesses and others net revenues were
RMB2.0 billion (US ), a decrease of$292.8 million 10.4% compared with the same quarter of 2024.
- Games and related value-added services net revenues were
- Gross profit was
RMB17.7 billion (US ), an increase of$2.5 billion 8.7% compared with the same quarter of 2024. - Total operating expenses were
RMB9.4 billion (US ), an increase of$1.3 billion 10.9% compared with the same quarter of 2024. - Net income attributable to the Company's shareholders was
RMB6.2 billion (US ). Non-GAAP net income attributable to the Company's shareholders was$892.6 million RMB7.1 billion (US ).[1]$1.0 billion - Basic net income per share was
US ($0.28 US per ADS). Non-GAAP basic net income per share was$1.40 US ($0.32 US per ADS).[1]$1.58
[1] As used in this announcement, non-GAAP net income attributable to the Company's shareholders and non-GAAP basic and diluted net income per share and per ADS are defined to exclude share-based compensation expenses. See the unaudited reconciliation of GAAP and non-GAAP results at the end of this announcement. |
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
Net revenues from games and related value-added services were
Net revenues from Youdao were
Net revenues from NetEase Cloud Music were
Net revenues from innovative businesses and others were
Cost of Revenues
Cost of revenues for the fourth quarter of 2025 was
Gross Profit
Gross profit for the fourth quarter of 2025 was
Operating Expenses
Total operating expenses for the fourth quarter of 2025 were
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
Net Income and Non-GAAP Net Income
Net income attributable to the Company's shareholders totaled
Basic net income was
Non-GAAP net income attributable to the Company's shareholders totaled
Non-GAAP basic net income was
Fiscal Year 2025 Financial Results
Net Revenues
Net revenues for fiscal year 2025 were
Net revenues from games and related value-added services were
Net revenues from Youdao were
Net revenues from NetEase Cloud Music were
Net revenues from innovative businesses and others were
Cost of Revenues
Cost of revenues for fiscal year 2025 was
Gross Profit
Gross profit for fiscal year 2025 was
Operating Expenses
Total operating expenses for fiscal year 2025 were
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
Net Income and Non-GAAP Net Income
Net income attributable to the Company's shareholders for fiscal year 2025 totaled
Basic net income was
Non-GAAP net income attributable to the Company's shareholders for fiscal year 2025 totaled
Non-GAAP basic net income was
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 (
Quarterly Dividend
The board of directors approved a dividend of
NetEase paid a dividend of
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
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.
**
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 (
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
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
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
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
NetEase compensates for these limitations by reconciling non-GAAP net income attributable to the Company's shareholders to the nearest
Contact for Media and Investors:
Email: ir@service.netease.com
Tel: (+86) 571-8985-3378
NETEASE, INC. | ||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||
2024 | 2025 | 2025 | ||||||||||||||||||
RMB | RMB | USD (Note 1) | ||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | 51,383,310 | 47,167,904 | 6,744,921 | |||||||||||||||||
Time deposits | 75,441,355 | 92,639,378 | 13,247,255 | |||||||||||||||||
Restricted cash | 3,086,405 | 4,319,344 | 617,658 | |||||||||||||||||
Accounts receivable, net | 5,669,027 | 5,337,819 | 763,298 | |||||||||||||||||
Inventories | 571,548 | 689,183 | 98,552 | |||||||||||||||||
Prepayments and other current assets, net | 6,416,868 | 7,658,346 | 1,095,128 | |||||||||||||||||
Short-term investments | 10,756,143 | 22,803,503 | 3,260,858 | |||||||||||||||||
Total current assets | 153,324,656 | 180,615,477 | 25,827,670 | |||||||||||||||||
Non-current assets: | ||||||||||||||||||||
Property, equipment and software, net | 8,520,101 | 8,425,327 | 1,204,806 | |||||||||||||||||
Land use rights, net | 4,172,465 | 4,047,355 | 578,764 | |||||||||||||||||
Deferred tax assets | 1,113,435 | 2,831,423 | 404,888 | |||||||||||||||||
Time deposits | 3,025,000 | 2,995,000 | 428,279 | |||||||||||||||||
Restricted cash | 5,208 | 3,893 | 557 | |||||||||||||||||
Other long-term assets | 25,830,685 | 22,496,585 | 3,216,968 | |||||||||||||||||
Total non-current assets | 42,666,894 | 40,799,583 | 5,834,262 | |||||||||||||||||
Total assets | 195,991,550 | 221,415,060 | 31,661,932 | |||||||||||||||||
Liabilities, Redeemable Noncontrolling Interests | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | 720,549 | 643,164 | 91,971 | |||||||||||||||||
Salary and welfare payables | 4,683,009 | 4,889,708 | 699,219 | |||||||||||||||||
Taxes payable | 2,759,185 | 3,874,143 | 553,996 | |||||||||||||||||
Short-term loans | 11,805,051 | 6,384,417 | 912,959 | |||||||||||||||||
Contract liabilities | 15,299,222 | 20,514,540 | 2,933,540 | |||||||||||||||||
Accrued liabilities and other payables | 14,400,641 | 16,062,984 | 2,296,976 | |||||||||||||||||
Total current liabilities | 49,667,657 | 52,368,956 | 7,488,661 | |||||||||||||||||
Non-current liabilities: | ||||||||||||||||||||
Deferred tax liabilities | 2,173,117 | 2,637,258 | 377,123 | |||||||||||||||||
Long-term loans | 427,997 | - | - | |||||||||||||||||
Other long-term liabilities | 1,228,641 | 1,304,837 | 186,589 | |||||||||||||||||
Total non-current liabilities | 3,829,755 | 3,942,095 | 563,712 | |||||||||||||||||
Total liabilities | 53,497,412 | 56,311,051 | 8,052,373 | |||||||||||||||||
Redeemable noncontrolling interests | 84,272 | 91,319 | 13,058 | |||||||||||||||||
NetEase, Inc.'s shareholders' equity | 138,685,606 | 160,296,119 | 22,922,040 | |||||||||||||||||
Noncontrolling interests | 3,724,260 | 4,716,571 | 674,461 | |||||||||||||||||
Total equity | 142,409,866 | 165,012,690 | 23,596,501 | |||||||||||||||||
Total liabilities, redeemable noncontrolling | 195,991,550 | 221,415,060 | 31,661,932 | |||||||||||||||||
The accompanying notes are an integral part of this announcement. | ||||||||||||||||||||
NETEASE, INC. | ||||||||||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||||||
(in thousands, except per share data or per ADS data) | ||||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||
2024 | 2025 | 2025 | 2025 | 2024 | 2025 | 2025 | ||||||||||||||||||||||||||
RMB | RMB | RMB | USD (Note 1) | RMB | RMB | USD (Note 1) | ||||||||||||||||||||||||||
Net revenues | 26,747,811 | 28,358,625 | 27,546,973 | 3,939,165 | 105,295,236 | 112,625,807 | 16,105,276 | |||||||||||||||||||||||||
Cost of revenues | (10,475,470) | (10,181,020) | (9,854,598) | (1,409,189) | (39,488,152) | (40,223,939) | (5,751,947) | |||||||||||||||||||||||||
Gross profit | 16,272,341 | 18,177,605 | 17,692,375 | 2,529,976 | 65,807,084 | 72,401,868 | 10,353,329 | |||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Selling and marketing expenses | (2,818,645) | (4,457,675) | (3,888,256) | (556,013) | (14,147,657) | (14,619,702) | (2,090,590) | |||||||||||||||||||||||||
General and administrative expenses | (1,162,381) | (1,164,573) | (1,050,701) | (150,248) | (4,550,625) | (4,228,189) | (604,623) | |||||||||||||||||||||||||
Research and development expenses | (4,469,868) | (4,541,891) | (4,434,260) | (634,091) | (17,524,812) | (17,719,110) | (2,533,799) | |||||||||||||||||||||||||
Total operating expenses | (8,450,894) | (10,164,139) | (9,373,217) | (1,340,352) | (36,223,094) | (36,567,001) | (5,229,012) | |||||||||||||||||||||||||
Operating profit | 7,821,447 | 8,013,466 | 8,319,158 | 1,189,624 | 29,583,990 | 35,834,867 | 5,124,317 | |||||||||||||||||||||||||
Other income/(expenses): | ||||||||||||||||||||||||||||||||
Investment (loss)/income, net | (506,077) | 1,379,402 | (1,669,086) | (238,676) | 355,286 | 731,511 | 104,605 | |||||||||||||||||||||||||
Interest income, net | 1,174,333 | 936,706 | 1,002,404 | 143,342 | 4,920,915 | 3,953,486 | 565,341 | |||||||||||||||||||||||||
Exchange gains/(losses), net | 1,535,312 | (373,812) | (517,965) | (74,068) | 255,430 | (775,937) | (110,958) | |||||||||||||||||||||||||
Other, net | 278,952 | 153,198 | 485,863 | 69,477 | 602,134 | 1,086,543 | 155,374 | |||||||||||||||||||||||||
Income before tax | 10,303,967 | 10,108,960 | 7,620,374 | 1,089,699 | 35,717,755 | 40,830,470 | 5,838,679 | |||||||||||||||||||||||||
Income tax | (1,385,014) | (1,316,356) | (1,250,430) | (178,809) | (5,461,408) | (6,032,686) | (862,663) | |||||||||||||||||||||||||
Net income | 8,918,953 | 8,792,604 | 6,369,944 | 910,890 | 30,256,347 | 34,797,784 | 4,976,016 | |||||||||||||||||||||||||
Accretion of redeemable noncontrolling | (1,039) | (1,044) | (1,122) | (160) | (3,919) | (4,266) | (610) | |||||||||||||||||||||||||
Net income attributable to noncontrolling | (151,435) | (175,883) | (126,866) | (18,142) | (554,819) | (1,033,718) | (147,820) | |||||||||||||||||||||||||
Net income attributable to the | 8,766,479 | 8,615,677 | 6,241,956 | 892,588 | 29,697,609 | 33,759,800 | 4,827,586 | |||||||||||||||||||||||||
Net income per share * | ||||||||||||||||||||||||||||||||
Basic | 2.76 | 2.70 | 1.96 | 0.28 | 9.28 | 10.59 | 1.52 | |||||||||||||||||||||||||
Diluted | 2.73 | 2.67 | 1.93 | 0.28 | 9.19 | 10.48 | 1.50 | |||||||||||||||||||||||||
Net income per ADS * | ||||||||||||||||||||||||||||||||
Basic | 13.81 | 13.50 | 9.78 | 1.40 | 46.40 | 52.97 | 7.58 | |||||||||||||||||||||||||
Diluted | 13.67 | 13.36 | 9.66 | 1.38 | 45.95 | 52.42 | 7.50 | |||||||||||||||||||||||||
Weighted average number of ordinary shares used in calculating net income | ||||||||||||||||||||||||||||||||
Basic | 3,174,113 | 3,191,231 | 3,191,805 | 3,191,805 | 3,200,453 | 3,186,454 | 3,186,454 | |||||||||||||||||||||||||
Diluted | 3,206,100 | 3,223,497 | 3,227,907 | 3,227,907 | 3,230,602 | 3,218,174 | 3,218,174 | |||||||||||||||||||||||||
* Each ADS represents five ordinary shares. | ||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of this announcement. | ||||||||||||||||||||||||||||||||
NETEASE, INC. | ||||||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
2024 | 2025 | 2025 | 2025 | 2024 | 2025 | 2025 | ||||||||||||||||||||||
RMB | RMB | RMB | USD (Note 1) | RMB | RMB | USD (Note 1) | ||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||
Net income | 8,918,953 | 8,792,604 | 6,369,944 | 910,890 | 30,256,347 | 34,797,784 | 4,976,016 | |||||||||||||||||||||
Adjustments to reconcile net income to net cash provided | ||||||||||||||||||||||||||||
Depreciation and amortization | 697,447 | 617,872 | 720,367 | 103,011 | 2,417,894 | 2,247,427 | 321,378 | |||||||||||||||||||||
Fair value changes of equity security, other investments and | 358,852 | (1,965,526) | 1,308,861 | 187,165 | (841,901) | (1,159,449) | (165,799) | |||||||||||||||||||||
Impairment losses on investments | 422,801 | 1,616,146 | 857,796 | 122,663 | 1,291,627 | 2,724,476 | 389,595 | |||||||||||||||||||||
Fair value changes of short-term investments | (241,431) | (278,636) | (283,560) | (40,549) | (530,607) | (1,108,409) | (158,500) | |||||||||||||||||||||
Share-based compensation cost | 931,444 | 902,201 | 847,194 | 121,147 | 3,882,939 | 3,647,662 | 521,609 | |||||||||||||||||||||
Allowance for expected credit losses | 12,031 | 180,085 | 17,478 | 2,499 | 68,934 | 367,513 | 52,554 | |||||||||||||||||||||
(Gains)/losses on disposal of property, equipment and software | (3,644) | 404 | (20,063) | (2,869) | (4,758) | (30,286) | (4,331) | |||||||||||||||||||||
Unrealized exchange (gains)/losses | (1,542,986) | 368,559 | 514,469 | 73,568 | (719,162) | 688,913 | 98,513 | |||||||||||||||||||||
Losses/(gains) on disposal of long-term investments, | 232 | (38,072) | (273,438) | (39,101) | (272,415) | (440,913) | (63,050) | |||||||||||||||||||||
Deferred income taxes | 404,109 | (933,553) | 204,920 | 29,303 | 320,726 | (1,254,125) | (179,337) | |||||||||||||||||||||
Share of results on equity method investees and revaluation results | (19,437) | 1,389,265 | 153,645 | 21,972 | 155,568 | 1,537,721 | 219,891 | |||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||
Accounts receivable | 517,850 | (194,823) | 594,561 | 85,021 | 716,375 | 264,073 | 37,762 | |||||||||||||||||||||
Inventories | 42,135 | (45,582) | (51,881) | (7,419) | 123,780 | (117,634) | (16,821) | |||||||||||||||||||||
Prepayments and other assets | (432,196) | (889,519) | 701,921 | 100,373 | (809,590) | 100,708 | 14,401 | |||||||||||||||||||||
Accounts payable | 218,689 | 16,042 | (59,225) | (8,469) | 91,142 | (71,615) | (10,241) | |||||||||||||||||||||
Salary and welfare payables | 1,759,382 | (566,362) | 1,859,384 | 265,888 | (210,918) | 128,573 | 18,386 | |||||||||||||||||||||
Taxes payable | 154,651 | 517,353 | (436,268) | (62,385) | 187,788 | 1,112,836 | 159,133 | |||||||||||||||||||||
Contract liabilities | (209,626) | 2,579,424 | 1,048,151 | 149,884 | 2,022,196 | 5,435,054 | 777,202 | |||||||||||||||||||||
Accrued liabilities and other payables | 1,022,944 | 880,072 | 749,075 | 107,116 | 1,530,848 | 1,869,491 | 267,334 | |||||||||||||||||||||
Net cash provided by operating activities | 13,012,200 | 12,947,954 | 14,823,331 | 2,119,708 | 39,676,813 | 50,739,800 | 7,255,695 | |||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Purchase of property, equipment and software | (311,982) | (283,645) | (137,818) | (19,708) | (1,275,400) | (1,065,376) | (152,347) | |||||||||||||||||||||
Proceeds from sale of property, equipment and software | 9,295 | 1,261 | 21,790 | 3,116 | 14,533 | 45,886 | 6,562 | |||||||||||||||||||||
Purchase of intangible assets, content and licensed copyrights | (120,387) | (190,983) | (183,986) | (26,309) | (930,988) | (987,089) | (141,151) | |||||||||||||||||||||
Net changes of short-term investments with terms of three months or less | 3,798,989 | (1,111,376) | (400,836) | (57,319) | (408,256) | (6,874,340) | (983,017) | |||||||||||||||||||||
Purchase of short-term investments with terms over three months | (4,560,000) | (7,270,000) | (5,600,000) | (800,789) | (8,235,000) | (21,640,000) | (3,094,479) | |||||||||||||||||||||
Proceeds from maturities of short-term investments with terms over three months | 2,853,778 | 1,426,005 | 7,695,328 | 1,100,418 | 2,853,778 | 17,575,388 | 2,513,247 | |||||||||||||||||||||
Investment/ prepayment for investment in long-term investments and | (201,686) | (95,169) | (1,617,947) | (231,363) | (1,103,026) | (4,545,723) | (650,030) | |||||||||||||||||||||
Proceeds from disposal of long-term investments, businesses, | 355,142 | 1,554,537 | 624,662 | 89,325 | 2,822,585 | 3,041,482 | 434,926 | |||||||||||||||||||||
Placement/rollover of matured time deposits | (21,691,769) | (49,326,969) | (39,787,587) | (5,689,549) | (154,792,305) | (166,696,968) | (23,837,349) | |||||||||||||||||||||
Proceeds from maturities of time deposits | 40,570,700 | 30,600,384 | 39,781,381 | 5,688,662 | 179,377,113 | 147,925,757 | 21,153,102 | |||||||||||||||||||||
Change in other long-term assets | (73,553) | 75,342 | (7,658) | (1,095) | (406,632) | 39,639 | 5,668 | |||||||||||||||||||||
Net cash provided by/(used in) investing activities | 20,628,527 | (24,620,613) | 387,329 | 55,389 | 17,916,402 | (33,181,344) | (4,744,868) | |||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Net changes from loans with terms of three months or less | 606,092 | 536,886 | (56,405) | (8,066) | (6,656,988) | 243,636 | 34,840 | |||||||||||||||||||||
Proceeds of loans with terms over three months | 457,000 | 1,481,550 | 92,700 | 13,256 | 13,920,080 | 5,552,800 | 794,040 | |||||||||||||||||||||
Payment of loans with terms over three months | - | (5,879,605) | (975,000) | (139,423) | (14,739,347) | (11,595,012) | (1,658,065) | |||||||||||||||||||||
Net amounts received related to capital contribution from or repurchase of | 51,614 | 18,072 | 819 | 117 | 136,006 | 103,808 | 14,844 | |||||||||||||||||||||
Net amount (paid)/received related to repurchase of NetEase's ADSs/ | (1,595,093) | 35,227 | (15,398) | (2,202) | (8,830,115) | (639,335) | (91,424) | |||||||||||||||||||||
Dividends paid to NetEase's shareholders | (1,982,595) | (2,583,740) | (2,575,287) | (368,261) | (11,165,338) | (13,825,681) | (1,977,046) | |||||||||||||||||||||
Net cash used in financing activities | (2,462,982) | (6,391,610) | (3,528,571) | (504,579) | (27,335,702) | (20,159,784) | (2,882,811) | |||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and | 113,792 | (117,878) | (175,895) | (25,153) | 10,752 | (382,454) | (54,690) | |||||||||||||||||||||
Net increase/(decrease) in cash, cash equivalents and restricted cash | 31,291,537 | (18,182,147) | 11,506,194 | 1,645,365 | 30,268,265 | (2,983,782) | (426,674) | |||||||||||||||||||||
Cash, cash equivalents and restricted cash, at the beginning of the period | 23,183,386 | 58,167,094 | 39,984,947 | 5,717,771 | 24,206,658 | 54,474,923 | 7,789,810 | |||||||||||||||||||||
Cash, cash equivalents and restricted cash, at the end of the period | 54,474,923 | 39,984,947 | 51,491,141 | 7,363,136 | 54,474,923 | 51,491,141 | 7,363,136 | |||||||||||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||||||||||||||
Cash paid for income taxes, net | 603,514 | 1,967,228 | 1,068,868 | 152,846 | 5,189,585 | 6,427,207 | 919,078 | |||||||||||||||||||||
Cash paid for interest expenses | 24,343 | 207,879 | 18,313 | 2,619 | 489,622 | 387,982 | 55,481 | |||||||||||||||||||||
The accompanying notes are an integral part of this announcement. | ||||||||||||||||||||||||||||
NETEASE, INC. | ||||||||||||||||||||||||||||||||
UNAUDITED SEGMENT INFORMATION | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||
2024 | 2025 | 2025 | 2025 | 2024 | 2025 | 2025 | ||||||||||||||||||||||||||
RMB | RMB | RMB | USD (Note 1) | RMB | RMB | USD (Note 1) | ||||||||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||||||||||
Games and related value-added services | 21,242,410 | 23,327,508 | 21,966,634 | 3,141,187 | 83,622,643 | 92,148,608 | 13,177,075 | |||||||||||||||||||||||||
Youdao | 1,339,798 | 1,628,524 | 1,564,692 | 223,748 | 5,625,919 | 5,909,019 | 844,979 | |||||||||||||||||||||||||
NetEase Cloud Music | 1,880,490 | 1,964,063 | 1,968,270 | 281,459 | 7,950,146 | 7,759,450 | 1,109,587 | |||||||||||||||||||||||||
Innovative businesses and others | 2,285,113 | 1,438,530 | 2,047,377 | 292,771 | 8,096,528 | 6,808,730 | 973,635 | |||||||||||||||||||||||||
Total net revenues | 26,747,811 | 28,358,625 | 27,546,973 | 3,939,165 | 105,295,236 | 112,625,807 | 16,105,276 | |||||||||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||||||||
Games and related value-added services | (7,075,562) | (7,151,130) | (6,472,229) | (925,516) | (26,142,623) | (27,910,861) | (3,991,201) | |||||||||||||||||||||||||
Youdao | (699,045) | (940,661) | (859,314) | (122,880) | (2,877,428) | (3,292,191) | (470,777) | |||||||||||||||||||||||||
NetEase Cloud Music | (1,279,951) | (1,269,289) | (1,285,937) | (183,887) | (5,268,634) | (4,989,858) | (713,540) | |||||||||||||||||||||||||
Innovative businesses and others | (1,420,912) | (819,940) | (1,237,118) | (176,906) | (5,199,467) | (4,031,029) | (576,429) | |||||||||||||||||||||||||
Total cost of revenues | (10,475,470) | (10,181,020) | (9,854,598) | (1,409,189) | (39,488,152) | (40,223,939) | (5,751,947) | |||||||||||||||||||||||||
Gross profit: | ||||||||||||||||||||||||||||||||
Games and related value-added services | 14,166,848 | 16,176,378 | 15,494,405 | 2,215,671 | 57,480,020 | 64,237,747 | 9,185,874 | |||||||||||||||||||||||||
Youdao | 640,753 | 687,863 | 705,378 | 100,868 | 2,748,491 | 2,616,828 | 374,202 | |||||||||||||||||||||||||
NetEase Cloud Music | 600,539 | 694,774 | 682,333 | 97,572 | 2,681,512 | 2,769,592 | 396,047 | |||||||||||||||||||||||||
Innovative businesses and others | 864,201 | 618,590 | 810,259 | 115,865 | 2,897,061 | 2,777,701 | 397,206 | |||||||||||||||||||||||||
Total gross profit | 16,272,341 | 18,177,605 | 17,692,375 | 2,529,976 | 65,807,084 | 72,401,868 | 10,353,329 | |||||||||||||||||||||||||
The accompanying notes are an integral part of this announcement. | ||||||||||||||||||||||||||||||||
NETEASE, INC.
NOTES TO UNAUDITED FINANCIAL INFORMATION
Note 1: The conversion of Renminbi (RMB) into
Note 2: Share-based compensation cost reported in the Company's unaudited condensed consolidated statements of comprehensive income is set out as follows in RMB and USD (in thousands):
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||
2024 | 2025 | 2025 | 2025 | 2024 | 2025 | 2025 | ||||||||||||||||||||||||||
RMB | RMB | RMB | USD (Note 1) | RMB | RMB | USD (Note 1) | ||||||||||||||||||||||||||
Share-based compensation cost included in: | ||||||||||||||||||||||||||||||||
Cost of revenues | 304,687 | 267,472 | 212,072 | 30,326 | 1,185,854 | 1,004,581 | 143,653 | |||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||
Selling and marketing expenses | 7,435 | 29,063 | 33,725 | 4,823 | 104,534 | 132,666 | 18,971 | |||||||||||||||||||||||||
General and administrative expenses | 246,424 | 209,916 | 238,298 | 34,076 | 1,069,850 | 916,675 | 131,083 | |||||||||||||||||||||||||
Research and development expenses | 372,898 | 395,750 | 363,099 | 51,922 | 1,522,701 | 1,593,740 | 227,902 | |||||||||||||||||||||||||
The accompanying notes are an integral part of this announcement. | ||||||||||||||||||||||||||||||||
Note 3: The financial information prepared and presented in this announcement might be different from those published and to be published by NetEase's listed subsidiary to meet the disclosure requirements under different accounting standards requirements.
Note 4: The unaudited reconciliation of GAAP and non-GAAP results is set out as follows in RMB and USD (in thousands, except per share data or per ADS data)
Three Months Ended | Year Ended | |||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||
2024 | 2025 | 2025 | 2025 | 2024 | 2025 | 2025 | ||||||||
RMB | RMB | RMB | USD (Note 1) | RMB | RMB | USD (Note 1) | ||||||||
Net income attributable to the Company's shareholders | 8,766,479 | 8,615,677 | 6,241,956 | 892,588 | 29,697,609 | 33,759,800 | 4,827,586 | |||||||
Add: Share-based compensation | 915,489 | 886,380 | 831,031 | 118,836 | 3,813,032 | 3,583,902 | 512,491 | |||||||
Non-GAAP net income attributable to the Company's shareholders | 9,681,968 | 9,502,057 | 7,072,987 | 1,011,424 | 33,510,641 | 37,343,702 | 5,340,077 | |||||||
Non-GAAP net income per share * | ||||||||||||||
Basic | 3.05 | 2.98 | 2.22 | 0.32 | 10.47 | 11.72 | 1.68 | |||||||
Diluted | 3.02 | 2.95 | 2.19 | 0.31 | 10.37 | 11.60 | 1.66 | |||||||
Non-GAAP net income per ADS * | ||||||||||||||
Basic | 15.25 | 14.89 | 11.08 | 1.58 | 52.35 | 58.60 | 8.38 | |||||||
Diluted | 15.09 | 14.73 | 10.95 | 1.57 | 51.85 | 57.99 | 8.29 | |||||||
* Each ADS represents five ordinary shares. | ||||||||||||||
The accompanying notes are an integral part of this announcement. | ||||||||||||||
View original content:https://www.prnewswire.com/news-releases/netease-announces-fourth-quarter-and-fiscal-year-2025-unaudited-financial-results-302684830.html
SOURCE NetEase, Inc.
FAQ
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