NetDragon announces full-year 2025 results: revenue of 4.48 billion yuan, down 26.0% year-over-year

DoNews, March 26 - NetDragon Websoft Holdings Limited (“NetDragon” or “the Company”; Hong Kong Stock Exchange stock code: 777) today announced its financial results for the full year 2025.

The Company’s overall operating expenses for the year decreased by 22.2% year-on-year, while operating profit in the second half of the year increased by 47.7%. The U.S.-listed subsidiary Mynd.ai saw its annual classified operating expenses decrease by 21.1%, and adjusted EBITDA losses in the fourth quarter of 2025 narrowed by 61.8% quarter-on-quarter.

The operating classified profit margin for the gaming and application services business reached 27.4%, an increase of 3.9 percentage points year-on-year.

2025 Full Year Financial Summary

Revenue was RMB 4.48 billion, a decrease of 26.0% year-on-year.

Revenue from gaming and application services was RMB 3.28 billion, accounting for 73.2% of the Group’s total revenue, a decrease of 16.8% year-on-year, mainly due to the optimization of flagship IPs to support long-term development and sustained growth.

Revenue from Mynd.ai business was RMB 1.20 billion, accounting for 26.7% of the Group’s total revenue, a decrease of 43.2% year-on-year, primarily due to the sale of the early education business in Singapore in the second half of 2024 and the ongoing impact of the industry demand adjustment cycle. As market conditions stabilize, client demand is expected to gradually recover.

Gross profit was RMB 3.15 billion, a decrease of 20.2% year-on-year, with the gross profit margin increasing by 5.1 percentage points to 70.3% year-on-year.

Operating expenses were RMB 2.61 billion, a decrease of 22.2% year-on-year. The cost optimization and efficiency enhancement measures we have implemented have shown results, and we expect them to be fully reflected in 2026.

Operating classified profit from gaming and application services was RMB 900 million, a decrease of 3.0% year-on-year. The impact of cost savings partially offset the decrease in revenue, with the operating classified profit margin increasing by 3.9 percentage points to 27.4% year-on-year.

Operating classified losses from Mynd.ai business were RMB 360 million, compared to a loss of RMB 300 million in 2024. Operating classified losses in the second half of 2025 were RMB 160 million, narrowing by 12.4% year-on-year.

The profit attributable to the Company’s owners was RMB 150 million, a decrease of 51.4% year-on-year, impacted by impairment losses related to cryptocurrency as of December 31, 2025, as well as one-time expenses related to employee optimization plans.