The 2022 World Champions have released their audited financial statements for fiscal year 2025. Positive net income, LCK franchise fees fully paid off, and a Kiwoom naming deal that couldn't have come at a better time. But the accumulated deficit is closing in on $20 million.
Behind DRX
The club posts a positive net income for the second year running.
An unprecedented operational turnaround. Revenue is growing, operating profit stays positive, and net income — admittedly symbolic at $6,680 — crosses the break-even line.
Since inception, DRX has raised roughly $31M in capital from its investors. The accumulated deficit on the balance sheet now stands at $18.7M, against $8.86M of net equity.
IP-driven revenue is clearly declining: Riot's share of digital cosmetics (Worlds team skins, VCT capsules, etc.) is down 28%, merchandising down 43%, sponsorship down 20%. The commercial value of the DRX brand has naturally eroded since the 2022 title, and it shows on every line tied to audience monetization.
Growth instead comes from prize money, direct Riot payouts, and content revenue. That compensates for the IP decline, but it remains entirely dependent on competitive results and on the publisher's level of commitment.
Operating costs rose 21% year-on-year, adding roughly $1.4M of expenses — absorbing almost the entirety of the revenue growth.
Player salaries are, unsurprisingly, the dominant line, representing half of the club's total revenue:
Other lines:
This is the structural event of the 2024–2025 cycle for Korean LoL. When the LCK moved to a franchise model in 2021, each club committed to paying entry fees over several years. In DRX's case: roughly $6.76M, spread between December 2020 and December 2026.
To prevent a chain of franchise bankruptcies, the LCK cut franchise fees across the board by about a third (~$22.3M of relief on a $68M total at league level), redistributed 50% of league revenue to the clubs, and provided additional direct aid averaging $880K per club.
For DRX specifically, the renegotiation delivered a $2.48M saving. Without it, the club would be structurally loss-making. As of December 31, 2025, DRX has settled the remaining fees in full — no further payments owed to Riot Games Korea on this contract.
In March 2025, DRX signed a naming partnership with Kiwoom Securities, one of South Korea's largest brokerages. The LCK team, now branded Kiwoom DRX, will play under the tri-code KRX for the 2026 season.
The deal barely shows up in the 2025 numbers: sponsorship revenue is actually down 20% on the year. The full Kiwoom effect will need to be watched on the 2026 financials.
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