Shares of Pop Mart International Group, the Hong Kong-listed company behind the popular collectible “blind box” toys, including the viral Labubu series, fell sharply on Wednesday. Investors reacted to the 2025 earnings report, sending the stock down more than 20 percent after the midday break — marking its largest drop in nearly a year.
The Beijing-based company reported a 185 percent increase in annual revenue, reaching 37.12 billion yuan ($5.38 billion) in 2025, up from the previous year. Despite this substantial growth, analysts noted that the figures fell short of market expectations.
Instagram | collectingcrafty | Despite record revenue growth, Pop Mart stock tanked as investors worried about IP longevity.
Morningstar analyst Jeff Zhang highlighted that both revenue and earnings growth missed consensus estimates. He pointed to a slowdown in the fourth quarter as a key factor raising concerns over the longevity of Pop Mart’s top intellectual properties. Zhang also noted that the company’s decision to reduce its dividend payout ratio to 25 percent in 2025 from 35 percent in 2024 added to investor unease.
Pop Mart has been expanding its licensing and theme park businesses, but Zhang cautioned that the company still faces significant execution risks.
Company Outlook and Expansion Plans
Chairman and CEO Wang Ning shared 2026 projections, aiming for at least 20 percent revenue growth compared with last year. Wang emphasized measured growth: “We won’t pursue overly aggressive growth that boosts revenue at the expense of profitability.”
The company intends to expand its product lineup with home appliances and open an extended Beijing theme park this summer, signaling Pop Mart’s strategy to move beyond collectible toys.
Global Popularity of Pop Mart Collectibles
Instagram | doxinoday | Pop Mart is dominating the global art toy scene with viral hits like Labubu and Crybaby.
Pop Mart has tapped into global interest in collectible toys, bag charms, and plush items linked to well-known IPs, including Labubu from “The Monsters” series, as well as “Molly” and “Crybaby.” The brand has grown from a domestic blind-box retailer to one of China’s most prominent consumer names, gaining recognition both locally and internationally.
The recent dip in stock value reflects investor concerns over slower-than-expected growth and dividend policy changes. Analysts also note the risks of executing ambitious expansion plans. The success of upcoming home appliance launches and theme park expansions will be key to sustaining investor confidence and supporting Pop Mart’s continued growth globally.
