DeNA Consolidated Financial Results for the Fiscal Year Ended March 31, 2026

Key insights

7 takeaways

01
DeNA reported a fiscal year 2026 revenue decline of 9.9% to 147.7 billion yen and a 35.5% drop in operating profit to 18.7 billion yen.See it on page 1
02
Financial performance was negatively impacted by a 9.9 billion yen impairment loss, primarily due to a goodwill write-down in the Healthcare and Medical segment.See it on page 33
03
The Game Business experienced a performance normalization following the initial launch phase of Pokémon Trading Card Game Pocket.See it on page 6
04
DeNA utilized 58.079 billion yen for financing activities, prioritizing debt reduction and share buybacks while maintaining 103 billion yen in cash reserves.See it on page 8
05
Equity earnings from key affiliates, specifically Cygames and GO Inc., provided a critical buffer against the company's broader financial downturn.See it on page 6
06
Projections for fiscal year 2027 estimate a 4.3% revenue recovery, though operating profit is expected to remain constrained by increased strategic investments.See it on page 9
07
Management identified significant operational risks, including regulatory shifts, data privacy compliance, and reliance on mobile platform providers across its live streaming, sports, and healthcare segments.See it on page 12

Summary

DeNA experienced a challenging fiscal year ending March 31, 2026, characterized by a contraction in core financial metrics. Total revenue declined by 9.9 percent to 147.7 billion yen, while operating profit fell by 35.5 percent to 18.7 billion yen. This downturn was primarily attributed to the normalization of performance in the Game Business following the initial launch phase of Pokémon Trading Card Game Pocket, compounded by a significant 9.9 billion yen impairment loss, largely stemming from a goodwill write-down in the Healthcare and Medical segment. Despite these pressures, the company sustained a robust liquidity position with 103 billion yen in cash and benefited from strong equity earnings from key affiliates, including Cygames and GO Inc.

The company’s capital allocation strategy during this period prioritized debt reduction and share buybacks, resulting in 58.079 billion yen in cash used for financing activities. Looking toward the 2027 fiscal year, projections indicate a modest 4.3 percent revenue recovery, though operating profit is expected to remain under pressure as the firm increases strategic investments to evolve its business portfolio. This forward-looking stance is balanced against a complex risk landscape, including the rapid integration of artificial intelligence, reliance on mobile platform providers, and the inherent volatility of consumer behavior within the global mobile gaming market.

Operational stability remains a central concern, with the company identifying significant vulnerabilities across its diverse segments, which include live streaming, sports, and healthcare. Management acknowledges that risks such as regulatory shifts, data privacy compliance, intellectual property litigation, and potential service disruptions from external factors like natural disasters could materially impact financial performance and brand reputation. While internal controls and compliance frameworks are in place to mitigate these threats, the company maintains a cautious outlook, recognizing that many of these systemic and human-factor risks remain difficult to fully predict or prevent.