Pop Mart shares drop 23% on revenue miss, Labubu reliance

Pop Mart International Group Ltd.’s Hong Kong-listed shares fell a record 23% after its 2025 results showed heavier reliance on its Labubu franchise and a revenue miss.

The Beijing-based toy maker posted revenue of 37.1 billion yuan (US$5.37 billion) while net income rose 309% to 12.8 billion yuan (US$1.85 billion), a touch above forecasts.

An analyst cited a Q4 slowdown and a dividend payout cut to 25% from 35% as adding to concerns about franchise durability.

CEO Wang Ning said Pop Mart expects at least 20% sales growth in 2026, and the company reported Americas revenue of 6.8 billion yuan (US$985.29 million) after adding 42 stores.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Pop Mart is building franchises beyond toys

Pop Mart wants less dependence on one character. It is pushing Labubu as a media franchise through a movie deal with Sony Pictures Entertainment (a Hollywood film and TV studio) 1.
To reach audiences outside China, the film has Paul King attached. He directed “Paddington” and “Wonka” 2.
Expansion plans also cover location-based entertainment. Phase Two of its Beijing theme park is expected to start construction in 2027, with IP (intellectual property)-themed areas for SKULLPANDA and Little Star Man 3.
The company has opened a jewellery store chain. It sells items engraved with its popular characters, which adds another revenue stream beyond collectible toys 4.

A new playbook for turning products into global entertainment brands

This approach offers a current template for making money from intellectual property. It starts with a niche product, then grows into a broader entertainment business.
The figurine business helped Pop Mart spot characters with momentum. It then moved into nearby physical lines like plush toys, which became the largest revenue source at 50.4% 5.
After landing a proven hit, the company is investing in experiences. That includes theme parks and a hybrid live-action and CGI (computer-generated imagery) film project 1.
Scaling from goods to media franchises can help IP-led businesses build brands that last. Examples include video game studios and digital creators 2.