NetEase, Inc. financial statements

Income statement, balance sheet and cash flow statement for the last 10 fiscal years, taken from the XBRL data NetEase, Inc. files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	5,499	8,315	9,768	8,509	11,290	13,747	13,991	14,573	14,425	16,105
Cost of revenue	2,379	4,333	5,636	3,977	5,316	6,377	6,340	5,691	5,410	5,752
Gross profit	3,120	3,983	4,131	4,533	5,974	7,371	7,650	8,882	9,016	10,353
Research and development	439	672	1,133	1,208	1,589	2,209	2,180	2,322	2,401	2,534
Selling and marketing	646	1,069	1,386	894	1,640	1,917	1,943	1,968	1,938	2,091
General and administrative	217	373	464	450	517	669	681	690	623	605
Operating expenses	1,301	2,115	2,983	2,552	3,746	4,795	4,804	4,980	4,963	5,229
Operating income	1,819	1,868	1,148	1,981	2,228	2,576	2,846	3,903	4,053	5,124
Other non-operating income	54.4	42.6	87.2	63.1	113	111	123	148	82.5	155
Pre-tax income	2,001	2,000	1,301	2,353	2,356	3,312	3,516	4,797	4,893	5,839
Income tax	303	332	359	419	466	648	730	662	748	863
Net income to minority interests	27.1		11.2	-11.2	-79.6	-65.5	-72.1	-8.86	76	148
Net income	1,671	1,646	895	3,051	1,849	2,645	2,949	4,143	4,069	4,828
EBITDA	1,866	1,991	1,451	2,356	2,758	3,090	3,260	4,333	4,384	5,446
EPS, basic	0.51	0.50	0.28	0.95	0.56	0.80	0.90	1.29	1.27	1.52
EPS, diluted	0.51	0.50	0.27	0.94	0.55	0.79	0.89	1.27	1.26	1.50
Shares, basic (weighted)	3,282	3,290	3,235	3,220	3,305	3,326	3,263	3,216	3,200	3,186
Shares, diluted (weighted)	3,307	3,315	3,255	3,250	3,350	3,367	3,296	3,252	3,231	3,218

Balance sheet

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Cash and equivalents	836	425	784	466	1,397	2,275	3,609	3,018	7,039	6,745
Short-term investments	1,668	1,497	1,698	2,200	2,034	1,927	1,105	625	1,474	3,261
Receivables	612	556	624	599	701	864	725	905	777	763
Inventory	227	841	730	93.4	95.2	151	144	97.9	78.3	98.6
Other current assets	533	587	673	692	937	979	790	856	879	1,095
Total current assets	7,190	9,521	9,994	12,225	16,526	17,751	19,081	20,098	21,005	25,828
Property, plant and equipment	348	579	782	664	698	853	920	1,137	1,167	1,205
Lease right-of-use assets				66.6	118	164	129	106	74.1	45.8
Long-term investments	284	413	763	1,335	1,795	2,951	2,689	3,068	2,768	2,640
Other non-current assets	72	171	431	814	783	629	987	837	696	531
Total assets	8,358	10,917	12,649	16,106	21,743	24,110	25,048	26,187	26,851	31,662
Accounts payable	201	375	347	174	174	155	219	124	98.7	92
Accrued liabilities	464	721	851	760	1,074	1,416	1,613	1,785	1,949	2,281
Deferred revenue	1,085	959	1,157	1,236	1,677	1,904	1,815	1,882	2,096	2,934
Total current liabilities	2,814	3,650	5,106	5,493	7,164	7,925	8,239	7,584	6,804	7,489
Long-term debt						200	530	60.3	58.6
Lease liabilities				40.2	72.8	115	97.5	78.3	56.5	33.2
Other non-current liabilities	0.03	2.81	7.8	25.4	22.8	57.4	87.7	101	112	153
Total liabilities	2,819	3,686	5,171	5,614	7,369	8,508	9,263	8,147	7,329	8,052
Total debt						200	530	60.3	58.6
Paid-in capital	236	269		562	4,265	5,950	3,314	3,184	1,351	1,407
Retained earnings	5,088	6,568	6,399	8,100	9,833	12,161	13,205	15,805	17,856	21,415
Treasury stock					-1,601	-3,217	-1,582	-1,788	-613	-217
Other comprehensive income	8.86	5.62	2.48	-10.3	-99.7	-130	62.6	86.9	138	-34
Shareholders' equity	5,501	7,029	6,579	8,827	12,586	14,959	15,185	17,505	19,000	22,922
Minority interests	39.2	108	116	164	133	620	581	519	510	674
Total equity	5,540	7,137	6,694	8,991	12,720	15,579	15,765	18,024	19,510	23,597
Total liabilities and equity	8,358	10,917	12,649	16,106	21,743	24,110	25,048	26,187	26,851	31,662
Shares outstanding	3,281	3,283	3,199	3,229	3,349	3,274	3,224	3,211	3,168	3,192

Cash flow statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Net income	1,699	1,667	942	3,078	1,890	2,664	2,877	4,135	4,145	4,976
Depreciation and amortization	47.2	123	303	375	530	514	414	430	331	321
Stock-based compensation	143	308	368	345	408	477	460	457	532	522
Deferred income tax	9.6	-67.3	-10.2	21.6	13.5	64	71	18.5	43.9	-179
Change in receivables	-237	86.9	-103	-1.63	-81.3	-186	80.4	-207	98.1	37.8
Change in inventory	-110	-599	66.5	59.6	4.55	-53.9	-4	41.8	17	-16.8
Change in payables	87	169	-12.4	1.9	-13.2	-24.4	64.9	-78.8	12.5	-10.2
Cash from operations	2,231	1,827	1,951	2,473	3,814	3,912	4,017	4,976	5,436	7,256
Capital expenditures	-164	-283	-368	-174	-162	-251	-305	-324	-175	-152
Purchases of investments	-1,792	-1,920	-1,952	-3,213	-3,051	-2,399	-863		-1,128	-3,094
Cash from investing	-2,017	-2,036	-1,974	-3,180	-4,474	-1,111	-1,069	-2,401	2,455	-4,745
Debt issued						698
Stock issued					3,358
Share buybacks	-173	-317	-1,093
Dividends paid	-367	-501	-209	-1,270	-656	-551	-975	-1,129	-1,530	-1,977
Cash from financing	-324	-200	231	155	1,519	-1,975	-1,484	-3,024	-3,745	-2,883
Exchange rate effect		-1.93
Net change in cash	-91	-411	220	-547	884	817	1,481	-476	4,147	-427
Free cash flow	2,067	1,544	1,584	2,299	3,653	3,660	3,713	4,652	5,261	7,103
Interest paid			43.9	62	37.7	29.4	85.3	110	67.1	55.5
Income taxes paid	158	417	292	459	314	557	738	690	711	919

Key metrics

Worked out from the statements above. Latest values use fiscal 2025. Valuation uses the share price of $121.04 on September 28, 2026.

Profitability

Metric	Value	How it is calculated
Gross margin	64.3%	Gross profit / revenue.
Operating margin	31.8%	Operating income / revenue.
EBITDA margin	33.8%	EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin	36.3%	Pre-tax income / revenue.
Net margin	30.0%	Net income / revenue.
FCF margin	44.1%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	45.1%	Cash from operations / revenue.
Effective tax rate	14.8%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	23.0%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	16.5%	Net income / average total assets.
Return on invested capital (ROIC)	31.0%	Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
R&D / revenue	15.7%	Research and development expense / revenue.
Stock-based pay / revenue	3.2%	Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue	0.9%	Capital expenditures / revenue.
D&A / revenue	2.0%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	11.6%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	4.8%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	7.4%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Gross profit growth, 1y	14.8%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	10.6%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit CAGR, 5y	11.6%	Compound annual growth of gross profit over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating income growth, 1y	26.4%	Operating income vs the same period a year earlier. Only from a positive base.
Operating income CAGR, 3y	21.7%	Compound annual growth of operating income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating income CAGR, 5y	18.1%	Compound annual growth of operating income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
EBITDA growth, 1y	24.2%	EBITDA vs the same period a year earlier. Only from a positive base.
EBITDA CAGR, 3y	18.6%	Compound annual growth of ebitda over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EBITDA CAGR, 5y	14.6%	Compound annual growth of ebitda over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Net income growth, 1y	18.7%	Net income vs the same period a year earlier. Only from a positive base.
Net income CAGR, 3y	17.9%	Compound annual growth of net income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Net income CAGR, 5y	21.2%	Compound annual growth of net income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
EPS growth, 1y	19.0%	EPS vs the same period a year earlier. Only from a positive base.
EPS CAGR, 3y	19.0%	Compound annual growth of eps over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EPS CAGR, 5y	22.2%	Compound annual growth of eps over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating cash flow growth, 1y	33.5%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 3y	21.8%	Compound annual growth of operating cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow CAGR, 5y	13.7%	Compound annual growth of operating cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Free cash flow growth, 1y	35.0%	Free cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow CAGR, 3y	24.1%	Compound annual growth of free cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Free cash flow CAGR, 5y	14.2%	Compound annual growth of free cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Book value growth, 1y	20.6%	Book value vs the same period a year earlier. Only from a positive base.
Book value CAGR, 3y	14.7%	Compound annual growth of book value over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Book value CAGR, 5y	12.7%	Compound annual growth of book value over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Total assets growth, 1y	17.9%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	8.1%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	7.8%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Share count change, 1y	-0.4%	Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 3y	-0.8%	Change in diluted weighted shares, per year over 3 years. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 5y	-0.8%	Change in diluted weighted shares, per year over 5 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	3.45x	Current assets / current liabilities.
Quick ratio	1.44x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	1.34x	(Cash + short-term investments) / current liabilities.
Liabilities / assets	25.4%	Total liabilities / total assets.
Working capital	$18.34B	Current assets - current liabilities.
Tangible book value	$22.92B	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	0.55x	Revenue / average total assets.
Fixed asset turnover	13.6x	Revenue / average property, plant and equipment.
Inventory turnover	65.0x	Cost of revenue / average inventory.
Days inventory	6 days	365 x average inventory / cost of revenue.
Receivables turnover	20.9x	Revenue / average receivables.
Days sales outstanding	17 days	365 x average receivables / revenue.
Days payables	6 days	365 x average accounts payable / cost of revenue.
Cash conversion cycle	17 days	Days inventory + days sales outstanding - days payables.
FCF conversion	147.1%	Free cash flow / net income, when net income is positive.
Capex / operating cash flow	2.1%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	$1.50	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
EPS, basic	$1.52	Net income per basic share, as reported (split-adjusted).
Revenue per share	$5.00	Revenue / diluted weighted shares.
FCF per share	$2.21	Free cash flow / diluted weighted shares.
Operating cash flow per share	$2.25	Cash from operations / diluted weighted shares.
Book value per share	$7.18	Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share	$7.18	Tangible book value / shares outstanding.
Cash per share	$3.13	(Cash + short-term investments) / shares outstanding.
Payout ratio	41.0%	Dividends paid / net income, when net income is positive.
Dividends / FCF	27.8%	Dividends paid / free cash flow, when free cash flow is positive.

Valuation

Metric	Value	How it is calculated
Market cap	$77.24B	Share price x shares outstanding.
Enterprise value	$67.23B	Market cap + total debt - cash - short-term investments.
P/E	16.0x	Market cap / net income. Only when net income is positive.
P/S	4.80x	Market cap / revenue.
P/B	3.37x	Market cap / shareholders' equity. Only when equity is positive.
Price / tangible book	3.37x	Market cap / tangible book value, when positive.
P/FCF	10.9x	Market cap / free cash flow. Only when free cash flow is positive.
P/OCF	10.6x	Market cap / cash from operations, when positive.
EV/Sales	4.17x	Enterprise value / revenue.
EV/EBIT	13.1x	Enterprise value / operating income, when both are positive.
EV/EBITDA	12.3x	Enterprise value / EBITDA, when both are positive.
EV/FCF	9.47x	Enterprise value / free cash flow, when both are positive.
FCF yield	9.2%	Free cash flow / market cap.
Earnings yield	6.3%	Net income / market cap (the inverse of P/E).
Dividend yield	2.6%	Dividends paid over the period / market cap.
Shareholder yield	2.6%	(Dividends paid + share buybacks) / market cap.
PEG	0.84x	P/E / EPS growth per year over 3 years (in percent). Only when both are positive.

What was NetEase, Inc.'s revenue in fiscal 2025?

NetEase, Inc. reported revenue of $16.11B for fiscal 2025, 11.6% higher than the year before.

Was NetEase, Inc. profitable in fiscal 2025?

Yes. Net income was $4.83B, a net margin of 30%.

How much free cash flow did NetEase, Inc. generate in fiscal 2025?

Cash from operations of $7.26B minus capital expenditures of $152.3M left free cash flow of $7.10B.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

Open interactive statements, quarterly figures and charts

Back to NetEase, Inc.