Pop Mart Shares Fall After Earnings Disclosure

Pop Mart, the Chinese toymaker known for its collectible figures, saw its stock price decline by approximately 30% following the release of its 2025 annual report on March 25th. The drop reflects investor reaction to the company’s financial performance and its dependence on key intellectual property (IP).

Reliance on 'The Monsters' IP

The report highlighted that “The Monsters” IP, which includes the popular Labubu character, accounted for roughly 40% of Pop Mart’s revenue. This IP generated 14.16 billion Chinese yuan, equivalent to about $2 billion in revenue.

Shifting Revenue Streams

However, the contribution of “The Monsters” to overall revenue decreased in 2024, representing only 23% of sales, totaling 3.04 billion yuan. Simultaneously, revenue proportions from other popular IPs like Skullpanda and Crybaby were lower in 2025 compared to the previous year.

Strong Sales Growth Offset by IP Concerns

Despite the IP concentration, Pop Mart reported substantial overall sales growth of 184.7%, with revenue increasing from 13.04 billion yuan to 37.12 billion yuan. Jefferies maintained a “buy” rating on the stock in a March 25th note, citing a “solid” growth outlook for the company.

Stock Performance and Market Trends

Despite the positive analyst rating, Pop Mart’s stock has fallen around 30% since the earnings announcement and is down approximately 60% from its peak in August. This decline coincides with a cooling in the collectibles market, as evidenced by data from Chinese resale site Qiandao, which showed mini Labubu resale prices falling below retail prices in October.

Expanding the Labubu Universe

Pop Mart is actively working to extend the lifespan of the Labubu IP through strategic collaborations. These include partnerships with established brands like Hello Kitty and My Melody.

Labubu Movie in Development

On March 19th, Pop Mart announced a collaboration with Sony Pictures Entertainment to create a Labubu movie. Paul King, director of “Paddington” and “Wonka,” will direct the film, with a screenplay co-written by Labubu creator Kasing Lung and American playwright Steven Levenson. Pop Mart representatives did not respond to a request for comment from Business Insider.