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NTES

NetEase, Inc.

NTES

NetEase, Inc. • NASDAQ
$138.05 ▲ 0.33% (+0.46)
Market Cap $88.11 B
52w High $159.55
52w Low $87.67
Dividend Yield 2.46%
P/E 17.32
Volume 469.25K
Outstanding Shares 638.24M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $28.359B ▲ $10.164B ▲ $8.616B ▲ 30.381% ▼ $13.5 $8.631B ▼
Q2-2025 $27.892B ▼ $8.991B ▲ $8.601B ▼ 30.837% ▼ $13.5 ▼ $9.49B ▼
Q1-2025 $28.829B ▲ $8.038B ▼ $10.301B ▲ 35.732% ▲ $16.25 ▲ $10.922B ▲
Q4-2024 $26.748B ▲ $8.451B ▼ $8.766B ▲ 32.775% ▲ $13.8 ▲ $8.519B ▲
Q3-2024 $26.21B $9.33B $6.538B 24.946% $10.15 $7.667B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $149.093B ▲ $214.489B ▲ $53.557B ▼ $156.256B ▲
Q2-2025 $146.689B ▲ $208.499B ▲ $54.395B ▲ $149.587B ▲
Q1-2025 $140.115B ▲ $200.858B ▲ $52.989B ▼ $143.834B ▲
Q4-2024 $137.581B ▲ $195.992B ▲ $53.497B ▲ $138.686B ▲
Q3-2024 $123.987B $184.896B $49.168B $132.15B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $8.793B ▼ $12.948B ▲ $-24.621B ▼ $-6.392B ▼ $-18.182B ▼ $12.473B ▲
Q2-2025 $9.088B ▼ $10.862B ▼ $3.893B ▲ $-1.951B ▲ $12.772B ▲ $10.359B ▼
Q1-2025 $10.547B ▲ $12.107B ▼ $-12.841B ▼ $-8.288B ▼ $-9.079B ▼ $11.354B ▼
Q4-2024 $8.919B ▲ $13.012B ▲ $20.629B ▲ $-2.463B ▲ $31.292B ▲ $12.7B ▲
Q3-2024 $6.706B $10.576B $-720.861M $-8.459B $1.328B $9.974B

Revenue by Products

Product Q1-2013Q1-2014
Advertising Services
Advertising Services
 $2.09Bn ▲$2.54Bn ▲
Email Wireless Value Added Services and Others
Email Wireless Value Added Services and Others
 $710.00M ▲$1.08Bn ▲
Online Game Services
Online Game Services
 $16.36Bn ▲$17.82Bn ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has climbed steadily over the past five years, showing that NetEase continues to grow its core businesses rather than relying on one‑off spikes. Profitability has improved even faster than sales, with operating and net income rising as the company scales and manages costs more efficiently. The business now runs with solid margins by industry standards, reflecting the attractive economics of online games and digital services. The main nuance is that profit growth recently has flattened relative to earlier years, which could signal rising content costs, heavier marketing, or higher R&D spending. Overall, though, the income statement points to a mature, consistently profitable digital platform rather than a volatile, hit‑driven story.

Balance Sheet

Balance Sheet The balance sheet looks conservative and resilient. Total assets have grown year after year, and shareholder equity has expanded steadily, indicating that NetEase is building value rather than eroding it with leverage. Cash holdings have increased to very comfortable levels, giving the company substantial financial flexibility for content investment, acquisitions, and R&D. At the same time, total debt has been coming down, leaving NetEase with a light debt load relative to its size. This combination of rising equity, strong cash, and declining debt suggests a sturdy financial foundation and room to maneuver through industry or regulatory shocks.

Cash Flow

Cash Flow NetEase converts a healthy portion of its profits into actual cash, which is a strong sign of earnings quality. Operating cash flow has grown consistently, broadly tracking and in some years even outpacing profit growth. Capital spending needs are modest for a company of its scale, thanks to its mostly digital, asset‑light model. As a result, free cash flow has increased meaningfully over the period, giving management ample resources to fund game development, AI investments, and shareholder returns without stretching the balance sheet. The cash flow profile is one of the company’s key financial strengths.

Competitive Edge

Competitive Edge NetEase is one of the leading gaming and digital content companies in China, with a deep catalog of long‑running titles and strong brand recognition, particularly among local gamers. Its in‑house development capabilities and track record of sustaining franchises over many years provide a real edge versus smaller rivals. At the same time, it operates in the shadow of a much larger competitor, Tencent, which still dominates the domestic gaming market. NetEase’s answer has been to differentiate through higher‑quality self‑developed games, a strong community‑driven music platform, and a broader digital ecosystem that includes education and e‑commerce. The company’s increasing push into overseas markets and console/PC titles is an important strategic move, but success is not guaranteed and will pit it against global publishers as well.

Innovation and R&D

Innovation and R&D Innovation is central to NetEase’s strategy. It develops its own game engines for PC and mobile, which gives it more control over performance, features, and costs than relying on third‑party tools. The company is also an early mover in using AI to make games more immersive, such as enabling game characters to respond with natural, unscripted dialogue. Beyond gaming, NetEase is embedding AI into education products (through Youdao’s learning tools and devices) and into its music platform for personalized recommendations and community features. Management has signaled a willingness to spend heavily on AI models and advanced R&D, aiming to create fewer but more ambitious, “category‑defining” titles. The upside is a stronger moat and more global hits; the trade‑off is higher up‑front costs and the risk that not all big bets will pay off.

Summary

Overall, NetEase combines steady revenue growth, improving profitability, and strong cash generation with a conservative balance sheet. It looks more like a mature, cash‑rich digital platform than a high‑risk, early‑stage tech company. Strategically, its strengths lie in deep game development capabilities, loyal user communities, and a diversified portfolio across games, music, education, and e‑commerce. The company is leaning hard into AI and global expansion, which could open new growth avenues but also introduces execution risk and continued heavy investment. Key things to watch include: how effectively it turns large AI and R&D spending into hit games and differentiated services; the performance of major new global releases; the evolution of Chinese regulation on gaming and digital content; and its ability to narrow the gap with larger competitors while maintaining its strong financial discipline.

NEWS

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November 6, 2025 · 3:30 AM UTC

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