Pop Mart's 2025 revenue slightly below expectations, stock price hits nearly one-year largest decline

Pop Mart, China’s leading toy giant, slightly missed analyst expectations for 2025 revenue. After the earnings release, the company’s Hong Kong-listed stock plummeted nearly 15%, marking the largest decline since April 2025.

Pop Mart’s revenue for 2025 grew 185% to 37.1 billion RMB, below the analyst forecast of 38 billion RMB. Net profit increased 309% to 12.8 billion RMB, slightly above the expected 12.6 billion RMB.

Pop Mart has relied heavily on Labubu’s global popularity to drive growth. This small monster plush with sharp teeth has become a phenomenon in the global collectible craze and remains the company’s main growth engine. Currently, Pop Mart is diversifying its intellectual property (IP) portfolio and continuing growth through new product launches. The company has developed emerging characters like “Star People” as independent breakout products with their own fan bases, rather than as replacements for Labubu.

Nevertheless, Labubu remains the core pillar of the company’s performance. Led by Labubu, the Monsters series generated 14.2 billion RMB in revenue in 2025, surpassing the 12.5 billion RMB forecast. This character-driven toy contributed about 40% of the company’s total revenue in 2025, up from 23% in 2024.

However, investors remain concerned that the Labubu craze may fade, and Pop Mart’s stock has been under pressure since peaking in August 2025. To address these concerns, Pop Mart has increased promotion of other character toys and is attempting to rekindle interest in Labubu through a partnership with Sony Pictures to release a movie.

Bloomberg industry analyst Peter Tang and Monica Si wrote in their report: “Whether Pop Mart can sustain its growth this year depends largely on its overseas expansion, especially in Asia-Pacific and North America, as well as IP diversification (excluding Labubu) and new product launches.”