Pop Mart has released its financial results for the first half of 2026, reporting revenue of RMB 17.17 billion, up 23.8% year on year. Adjusted net profit amounted to RMB 5.16 billion, representing an adjusted net profit margin of 30%, while gross margin remained high at 69.7%. However, revenue and profit growth fell short of capital-market expectations, sending its lower shares. The stock closed at HK$149, down 3.06% for the day, with market capitalization at approximately HK$198.4 billion—more than 50% below its August 2025 record high.
The principal reason for the weaker-than-expected performance was softer momentum in overseas markets. Pop Mart achieved rapid growth in 2025 as LABUBU became a global phenomenon, with overseas markets contributing nearly 40% of revenue and the Americas expanding sharply. In the first half of 2026, however, overall overseas revenue declined by more than 11% year on year, with revenue falling in both the Americas and overseas Asia-Pacific markets; only Europe recorded modest growth. Founder Wang Ning acknowledged that last year’s exceptional growth benefited from a short-term surge in consumer attention. As enthusiasm for its core IP normalised, combined with limited overseas operating experience, the group’s growth momentum weakened noticeably.
At the same time, revenue from THE MONSTERS, the IP family behind LABUBU, fell 7.5% year on year to RMB 4.45 billion in the first half, reducing its share of group revenue to 26% from 34.7% a year earlier. Inventory turnover days rose significantly, adding to inventory pressure.
A bright spot was the emerging IP TWINKLE TWINKLE, which recorded revenue of RMB 2.65 billion and year-on-year growth of more than 580%, becoming Pop Mart’s second-largest IP and fastest-growing franchise. Nevertheless, the IP remains most popular in Asian markets and has yet to demonstrate the global reach achieved by LABUBU.
Pop Mart has described 2026 as an adjustment year. It has paused its aggressive store-expansion strategy and shifted its overseas focus towards operating quality. The group will continue launching new LABUBU products and pursue collaborations with film, television and sporting events to sustain the IP’s visibility. It also plans to introduce TWINKLE TWINKLE to overseas markets including Singapore, as it seeks to establish a more diversified set of IP growth drivers.
Following a period of rapid expansion, whether Pop Mart can reduce its reliance on a single blockbuster IP remains a key question for the market.
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