Tencent Music Entertainment (NYSE: TME) delivered a strong Q4 2025, with total revenues of RMB 8.64 billion (US$1.24 billion), up 15.9% year-over-year. Full-year 2025 net profit attributable to equity holders surged 66.4% to RMB 11.06 billion (US$1.58 billion). Diluted EPS per ADS for Q4 came in at RMB 1.41 (US$0.20), beating the consensus estimate of US$0.21. TME stock declined roughly 2.0% the day after the earnings announcement.
About Tencent Music Entertainment Group
Tencent Music Entertainment Group (NYSE: TME; HKEX: 1698) is the leading online music and audio entertainment platform in China, operating the country’s most popular music apps: QQ Music, Kugou Music, Kuwo Music, and WeSing. The company was founded in July 2016 through Tencent’s merger of QQ Music, Kuwo Music, and Kugou Music, and is headquartered in Shenzhen, China.
As of March 2026, TME carries a market capitalization of approximately US$25.41 billion, with a trailing P/E ratio near 15x and a dividend yield of approximately 1.16%. The company employs around 5,353 people and commands roughly 62.3% of the Chinese music streaming market as of the most recent data. Its platform spans online music streaming, online audio, karaoke, music-centric live streaming, and online concert services.
Top Financial Highlights
- Q4 2025 Total Revenue of RMB 8.64 billion (US$1.24 billion), up 15.9% year-over-year
- Q4 2025 Online Music Services Revenue rose 21.7% YoY to RMB 7.10 billion (US$1.02 billion)
- Q4 2025 Music Subscription Revenue increased 13.2% YoY to RMB 4.56 billion (US$653 million)
- Q4 2025 Non-Subscription Music Services Revenue surged 40.8% YoY to RMB 2.54 billion (US$363 million)
- Q4 2025 Net Profit Attributable to Equity Holders reached RMB 2.20 billion (US$315 million), up 12.6% YoY
- Q4 2025 Non-IFRS Net Profit Attributable was RMB 2.49 billion (US$355 million), up 9.0% YoY
- Q4 2025 Diluted EPS per ADS was RMB 1.41 (US$0.20)
- Q4 2025 Gross Margin expanded to 44.7% from 43.6% in Q4 2024
- Full-Year 2025 Total Revenue was RMB 32.90 billion (US$4.71 billion), up 15.8% YoY
- Full-Year 2025 Net Profit Attributable surged 66.4% YoY to RMB 11.06 billion (US$1.58 billion), partly boosted by a RMB 2.37 billion one-time gain on the deemed disposal of a stake in a UMG-linked associate
- Full-Year 2025 Non-IFRS Net Profit Attributable grew 25.0% YoY to RMB 9.59 billion (US$1.37 billion)
- Full-Year 2025 Diluted EPS per ADS was RMB 7.11 (US$1.02)
- Full-Year 2025 Gross Margin expanded to 44.2% from 42.3% in 2024
- Cash on Hand (cash, equivalents, term deposits and short-term investments) stood at RMB 38.04 billion (US$5.44 billion) as of December 31, 2025
- Annual Cash Dividend of approximately US$368 million (US$0.24 per ADS) approved for 2025, payable around April 20, 2026
- SVIP Subscribers exceeded 20 million by year-end 2025
- Q4 2025 Paying Users (online music) reached 127.4 million, up 5.3% YoY
- Q4 2025 Monthly ARPPU grew to RMB 11.9 from RMB 11.1 in Q4 2024, a 7.2% YoY increase
Beat or Miss?
| Metric | Reported | Estimated | Difference / Analysis |
| Q4 2025 Diluted EPS per ADS (US$) | US$0.20 | US$0.21 | Slight miss versus consensus estimate |
| Q4 2025 Total Revenue | RMB 8.64B (US$1.24B) | N/A | No consensus revenue estimate available |
| Q4 2025 Gross Margin | 44.7% | N/A | Expanded from 43.6% in Q4 2024 |
| Full-Year Net Profit Growth | +66.4% YoY | N/A | Boosted by RMB 2.37B one-time gain |
| Full-Year Non-IFRS Net Profit Growth | +25.0% YoY | N/A | Reflects organic profitability expansion |
| SVIP Subscribers | 20M+ by year-end | N/A | A key management milestone achieved |
| Online Music MAUs | 528 million (-5.0% YoY) | N/A | Continued structural decline in free users |
What Leadership Is Saying?
“In 2025, we executed our content-and-platform strategy with discipline, delivering accelerated revenue growth and sustained margin expansion. Fueled by the solid growth of our subscription services and the powerful momentum of music IP non-subscription offerings, we are deepening a differentiated, all-in-one music services platform. This enables us to unlock greater value from music IPs, creating new opportunities for artists, and address a larger market. With disciplined investment and persistent innovation guided by long-term value creation, we are confident in spearheading industry advancement.” Cussion Pang, Executive Chairman, Tencent Music Entertainment Group
“Amid rapid advancements in AI technology and evolving consumer expectations, we remained agile, responding proactively on multiple fronts to better serve our users and strengthen our content platform flywheel. Our relentless focus on product enhancement and a multi-tiered, user-centric strategy drove effective subscriber conversion, deeper engagement, and increased wallet share throughout 2025. Notably, driven by differentiated, expansive content privileges and immersive experiences, our SVIP user base surpassed 20 million, with ARPPU continuing to trend upward. Our newly launched ad-supported subscription plan is gaining initial progress and will, over time, allow us to broaden user access and attract new audiences.” Ross Liang, CEO, Tencent Music Entertainment Group
Historical Performance
Q4 2025 vs Q4 2024
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Total Revenue | RMB 8.64B (US$1.24B) | RMB 7.46B (US$1.02B) | 15.90% |
| Online Music Services Revenue | RMB 7.10B (US$1.02B) | RMB 5.83B (US$799M) | 21.70% |
| Music Subscription Revenue | RMB 4.56B (US$653M) | RMB 4.03B (US$552M) | 13.20% |
| Social Entertainment Revenue | RMB 1.54B (US$221M) | RMB 1.63B | -5.20% |
| Gross Profit | RMB 3.86B (US$552M) | RMB 3.25B | 18.70% |
| Gross Margin | 44.7% | 43.6% | +110 bps |
| Total Operating Expenses | RMB 1.25B (US$178M) | RMB 1.17B | 6.20% |
| Net Profit (attributable) | RMB 2.20B (US$315M) | RMB 1.96B (US$268M) | 12.60% |
| Diluted EPS per ADS | RMB 1.41 (US$0.20) | RMB 1.26 (US$0.18) | 11.90% |
| Paying Users (online music) | 127.4M | 121.0M | 5.30% |
| Monthly ARPPU | RMB 11.9 | RMB 11.1 | 7.20% |
| Online Music MAUs | 528M | 556M | -5.00% |
Full-Year 2025 vs Full-Year 2024
| Category | FY 2025 | FY 2024 | Change (%) |
| Total Revenue | RMB 32.90B (US$4.71B) | RMB 28.40B (US$3.89B) | 15.80% |
| Online Music Services Revenue | RMB 26.73B (US$3.82B) | RMB 21.74B (US$2.98B) | 22.90% |
| Music Subscription Revenue | RMB 17.66B (US$2.53B) | RMB 15.23B (US$2.09B) | 16.00% |
| Social Entertainment Revenue | RMB 6.18B (US$883M) | RMB 6.66B | -7.30% |
| Gross Margin | 44.2% | 42.3% | +190 bps |
| Total Operating Expenses | RMB 4.86B (US$695M) | RMB 4.68B | 3.90% |
| Net Profit (attributable) | RMB 11.06B (US$1.58B) | RMB 6.64B (US$910M) | 66.40% |
| Non-IFRS Net Profit (attributable) | RMB 9.59B (US$1.37B) | RMB 7.67B (US$1.05B) | 25.00% |
| Diluted EPS per ADS | RMB 7.11 (US$1.02) | RMB 4.24 (US$0.58) | 67.70% |
| Total Operating Profit | RMB 13.36B (US$1.91B) | RMB 8.71B | 53.40% |
Competitor Comparison
The following table compares the most recent Q4 2025 / FY 2025 figures for TME against its key rivals: NetEase Cloud Music (China’s second-largest music streaming platform) and Spotify (the global market leader).
| Category | TME Q4 2025 / FY 2025 | NetEase Cloud Music Q4 2025 / FY 2025 | Spotify Q4 2025 |
| Total Revenue (Q4) | RMB 8.64B / US$1.24B | RMB 2.0B / US$281.5M | EUR 4.5B |
| Total Revenue (FY) | RMB 32.90B / US$4.71B | RMB 7.76B / US$1.11B | N/A |
| Revenue Growth (Q4 YoY) | +15.9% | +4.7% | +13% (constant currency) |
| Revenue Growth (FY YoY) | +15.8% | +0.1% | N/A |
| Gross Margin (Q4) | 44.7% | ~34.7% | 33.1% |
| Operating Profit (FY) | RMB 13.36B (+53.4% YoY) | RMB 1.62B (+38.5% YoY) | EUR 701M (Q4) |
| Paying Subscribers (Q4) | 127.4M | ~44M (2023 data) | 290M |
| MAUs (Q4) | 528M | ~200M | 751M |
| Market Position | China No. 1 (~62.3% share) | China No. 2 | Global No. 1 |
Spotify is not officially available in China, which means TME and NetEase Cloud Music operate in largely separate markets. Spotify holds a significant investment stake in TME worth approximately US$1.6 billion as of end-2024, effectively treating the two companies as strategic partners rather than direct rivals.
How the Market Reacted?
TME shares were already trading higher ahead of the results, surging 8.1% the day before the announcement and gaining a further 6.34% pre-news on the day of release, a reaction well above the stock’s historical average earnings-day move of approximately 3.21%.
However, following the actual release, TME shares declined roughly 2.0% the next trading day, consistent with the pattern seen after Q3 2025 results in November, when shares fell 8.4% despite another strong earnings beat.
The overall tone of the report was decidedly bullish, with double-digit revenue growth, expanding gross margins, record SVIP subscriber milestones, and a US$368 million dividend declaration signaling strong confidence from management. Over the full year 2025, TME stock delivered a total return of approximately 122%, significantly outpacing Spotify’s 54% gain over the same period.
