NetEase, Inc.
NTES Communication Services Electronic Gaming & Multimedia
NetEase, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $16.1 billion, up 11.6% from fiscal 2024. In the quarter to June 2026, revenue grew 14.0%, EPS fell 14.4%, free cash flow grew 1.53% and total debt rose 18.0%, each against the same quarter a year earlier. Operating cash flow growth for five consecutive years.
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NetEase, Inc. (NTES) Altman Z-score
NetEase, Inc.'s Altman Z-score for fiscal 2025 is 9.21, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 9.21 | 1.94 |
| FY2024 | 7.27 | 0.40 |
| FY2023 | 6.87 | 1.62 |
| FY2022 | 5.26 | (1.62) |
| FY2021 | 6.88 | 0.66 |
| FY2020 | 6.22 | 0.75 |
| FY2019 | 5.47 | 0.16 |
| FY2018 | 5.31 | (4.71) |
| FY2017 | 10.02 | 1.15 |
| FY2016 | 8.87 | (1.64) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.58 | — | 0.70 | |
| Retained earnings / total assets | 0.68 | — | 0.95 | |
| EBIT / total assets | 0.16 | — | 0.53 | |
| Market value of equity / total liabilities | 10.87 | — | 6.52 | |
| Sales / total assets | 0.51 | — | 0.51 | |
| Altman Z-score | Safe zone | 9.21 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 10.16 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| NTES NetEase, Inc. | 9.2× |
| GRVY GRAVITY Co., Ltd. compare | 6.4× |
| DDI DoubleDown Interactive Co., Ltd. Sponsored ADR compare | 4.9× |
| TTWO Take-Two Interactive Software, Inc. compare | 3.4× |
| RBLX Roblox Corporation compare | 3.0× |
| SOHU Sohu.com Inc. compare | 1.8× |
| GDEV GDEV Inc. compare | 1.4× |
| PLTK Playtika Holding Corp. compare | 0.5× |
| FIRY Firy Inc. compare | −5.2× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets