#China #Hangzhou #NetEase #Cloud Music #Fantasy Westward Journey

NetEase Reports Strong Q3 2025 Performance

On November 20, 2025, NetEase, Inc. (NASDAQ: NTES and HKEX: 9999), a prominent player in internet and gaming services, unveiled its unaudited financial results for the third quarter of 2025, ending September 30. The results demonstrate a robust performance in sales, underscoring the company's strong position in the gaming sector amidst the evolving digital landscape.

Financial Highlights

NetEase achieved net revenues of RMB 28.4 billion (approximately $4.0 billion), marking an impressive 8.2% increase compared to the same quarter in 2024. The gaming segment, comprising games and related value-added services, contributed significantly with revenues totaling RMB 23.3 billion ($3.3 billion), a year-on-year growth of 11.8%.

However, there were varied results across their different segments: while revenues from Youdao reached RMB 1.6 billion ($228.8 million), representing a modest increase of 3.6%, NetEase Cloud Music faced a slight decline, generating RMB 2.0 billion ($275.9 million), which was a decrease of 1.8% compared to Q3 2024. Innovative businesses and other services experienced a notable dip, with revenues of RMB 1.4 billion ($202.1 million), down 18.9%.

Gross profit for the company stood at RMB 18.2 billion ($2.6 billion), reflecting a 10.3% rise from the previous year. Nevertheless, total operating expenses also rose, reaching RMB 10.2 billion ($1.4 billion), which is an increase of 8.9% year-over-year.

Net income attributable to shareholders remained strong at RMB 8.6 billion ($1.2 billion), with a basic net income per share of $0.38 ($1.90 per ADS). When adjusted for share-based compensation expenses, the non-GAAP net income attributable to shareholders was RMB 9.5 billion ($1.3 billion), or $0.42 ($2.09 per ADS).

Operational Achievements

Beyond financial numbers, NetEase emphasized its operational capabilities during Q3 2025. The company effectively maintained high player engagement, particularly with its flagship title, Fantasy Westward Journey Online, which achieved record concurrent player peaks, reaching 3.58 million during the quarter.

The launch of several new titles also reinforced NetEase's global gaming portfolio. Destiny Rising topped download charts following its global launch on August 28 and domestic launch on October 16, illustrating the game's popularity across various regions. Meanwhile, Sword of Justice and Where Winds Meet, which debuted on November 7 and November 14, respectively, are also set to capture player interest with their unique Wuxia themes. Collectively, these games showcased the company’s continued commitment to innovation and engagement.

Furthermore, ongoing collaborations with Blizzard have enhanced offerings for Chinese players, with the much-anticipated China-exclusive Titan Reforged Server launched for World of Warcraft and notable returns of franchises like Diablo II Resurrected.

Future Outlook

In a statement, CEO William Ding remarked, “We delivered another quarter of solid execution, underscoring our healthy growth in China and rising global appeal.” He emphasized that user experience continues to drive their business strategy, while innovative gameplay and collaboration with industry leaders aim to enhance player satisfaction across the globe.

As NetEase navigates the competitive and rapidly changing landscape of the gaming industry, its robust financial performance and strategic initiatives offer optimism about its trajectory. With a diverse array of games set to launch and strong community engagement, the company is well-positioned to sustain its momentum in the coming months. NetEase's commitment to driving creativity and tech-inspired gaming experiences is likely to support both player satisfaction and the company’s future growth.

Secure your insights into NetEase’s developments as they prepare for another exciting quarter with impactful announcements and gaming innovations on the horizon.