This is a historic turning point for Korean esports. T1, the most decorated franchise in League of Legends history, has posted a positive net result for the first time since its founding in 2019.
The consolidated accounts for fiscal year 2025, signed by CEO Joseph Marsh, reveal revenue of over $60 million, up from $33.7 million a year earlier, an exceptional 78% increase.
But it is the bottom line that truly stands out: after accumulating nearly $50 million in cumulative losses over six years, T1 delivered an operating profit of $1.4 million and a net income of $555,000. The turnaround is all the more striking when set against the previous fiscal year, which ended with a $4.2 million loss.
Merch and derivatives: a marketing success story
Where does this growth come from? A look at the cost structure provides a major clue: the cost of goods sold surged from $6.3 million to $13.8 million, driving up logistics costs in the process. In short, T1 has become a merchandising powerhouse — jerseys, capsule collections, branded products — the organization has turned its fans' passion into massive revenue, capitalizing on its extraordinary competitive achievements.
The doubling of product inventory amount points to a genuine explosion in sales volume, not just a price increase.
Sponsorship accounts for over $10.5 million, up 51% YtoY. But product sales, esport money and merchandising clearly dominate: $49.5 million, or 82% of total revenue. The doubling of product inventory amount points to a genuine explosion in sales volume, not just a price increase.
Growth is consistent across all regions, with Korea leading the way (+90% YtoY).
Fundraising: a strong signal
The financial statements reveal a significant post-closing event: on March 5, 2026, the board of directors approved a capital increase of 4,330 shares at $1,741 per share, amounting to an injection of approximately $7.5 million — enough to more than triple the company's equity and strengthen the club's financial position.
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