HYBE’s Q1 2026 financial report sparked concern after the company posted an operating loss of 42.2 billion won, or roughly $132 million. But it doesn’t tell the whole story. A major reason for the loss was that a 255 billion won expense was triggered because Chairman Bang Si-hyuk gave his own stock to employees as bonuses, which the company had to record as a major cost on its balance sheet. accounting expense tied to Chairman Bang Si-hyuk’s stock gift for employee bonuses, according to HYBE’s latest earnings coverage.
HYBE is also dealing with legal costs, restructuring pressure, and the ongoing fallout from the NewJeans-ADOR dispute. That’s why the HYBE 2026 Financial Report has become such a flashpoint.
Some fans see the company under real strain. Others believe HYBE is clearing the decks by offloading every possible financial setback now, setting the stage for a dramatic rebound in the coming months.
The Pressure on Bang is Getting Heavier
Bang Si-hyuk’s legal troubles are adding even more pressure. His personal shares in HYBE are effectively “locked” by a Seoul court. As investigations into alleged investor fraud tied to the company’s IPO are going on. He denies wrongdoing, but the case has kept HYBE under an ugly spotlight.
The NewJeans conflict has already damaged HYBE’s image and investor confidence, especially after the group’s contract fight turned into a public legal battle.
While HYBE recorded a net loss, its core music business is growing. Direct-participation revenue rose 25% year-on-year to 403.7 billion won, and recorded music revenue nearly doubled because of BTS’s Arirang comeback.
