Chinese pop toy giant POP MART reported 2025 revenue that slightly missed analyst expectations. Following the earnings release, the company's Hong Kong-listed shares plunged nearly 15%, marking their largest single-day decline since April 2025.

POP MART's 2025 revenue grew 185% to 37.1 billion yuan, falling short of the analyst consensus estimate of 38 billion yuan. Net profit increased by 309% to 12.8 billion yuan, slightly exceeding expectations of 12.6 billion yuan.

The company has heavily relied on the global popularity of its Labubu character to drive growth. The small monster doll with fangs has become a phenomenon in the global collectibles craze and remains its primary growth engine. POP MART is now working to diversify its intellectual property portfolio and sustain momentum through new product launches. The company is developing emerging characters, such as "星星人" (Star Person), into standalone hit products with their own fan bases, rather than positioning them as direct replacements for Labubu.

Despite these efforts, Labubu continues to be the core pillar of the company's performance. Revenue from the Monsters series, led by Labubu, reached 14.2 billion yuan in 2025, surpassing expectations of 12.5 billion yuan. Sales of products featuring the character accounted for approximately 40% of the company's total revenue for the year, a significant increase from 23% in 2024.

However, investors remain concerned that the Labubu craze may eventually fade. POP MART's stock price has been under pressure since it peaked in August 2025. To address these concerns, the company is increasing promotion for its other character lines. It is also attempting to rekindle interest in Labubu through initiatives like a collaborative film project with Sony Pictures.

Analysts from Bloomberg Intelligence noted that the key factors for POP MART's continued growth this year will be its overseas market expansion, particularly in the Asia-Pacific and North America regions, along with the diversification of its IP portfolio beyond Labubu and the success of new product releases.