Full-Year (Fourth Quarter) FY2026 Financial Results: GREE

Key insights

7 takeaways

01
GREE reported full-year FY26 net sales of ¥48.7 billion and an operating profit of ¥4.7 billion, representing a 9% and 10% year-over-year decline, respectively.See it on page 7
02
The company is restructuring its business segments to focus on high-growth areas, consolidating DX and Engineering into an 'AI Business' and reclassifying the Investment Business to non-operating income/expenses.See it on page 2
03
FY27 consolidated earnings forecasts project a 5% year-over-year increase in sales to ¥51.0 billion, but an 18% decline in operating profit to ¥3.9 billion due to the delayed launch of a major third-party IP title in the Game Business.See it on page 19
04
The Live Entertainment segment (REALITY, Inc.) achieved record-high operating profit in Q4 FY26, with an operating margin of 34.2% and a 46% year-over-year profit increase.See it on page 36
05
GREE increased its FY26 dividend to ¥22.0 per share, up ¥7.5 year-over-year, and plans to transition to semiannual dividend payments starting in FY27 while maintaining a dividend-on-equity (DOE) ratio of approximately 4%.See it on page 11
06
The Game Business faced Q4 headwinds with a 25% year-over-year sales decline, though it continues to develop a pipeline of titles including a major third-party IP project scheduled for release around the end of FY27.See it on page 26
07
The Anime, Manga and Merchandising business is scaling up, with the title 'Chronicle of Echoes' surpassing 500,000 pre-registrations ahead of its July 27, 2026, release.See it on page 45

Summary

GREE concluded fiscal year 2026 with net sales of ¥51.3 billion and an operating profit of ¥4.0 billion. While these figures represent a year-over-year decline, the company successfully outperformed its internal profit forecasts through rigorous cost optimization and operational efficiencies. This financial discipline served as a critical buffer against headwinds in the core Game Business, which faced temporary setbacks due to anniversary-related performance cycles and the strategic rescheduling of major third-party intellectual property titles.

The company is currently executing a significant structural pivot, consolidating its digital transformation and engineering operations into a dedicated AI Business while reallocating capital away from traditional investment ventures toward high-growth entertainment sectors. The Live Entertainment segment has emerged as a primary engine of stability, achieving record-high operating profits and reaching profitability within its production division. Simultaneously, the Anime, Manga, and Merchandising business is establishing a foundation for long-term scalability, supported by planned acquisitions of anime production capabilities to strengthen internal intellectual property development.

Looking toward the near term, the organization has adjusted its medium-term targets to account for the delayed release of key gaming titles, with a return to robust growth projected for fiscal year 2028. For the upcoming 2027 period, the company anticipates that the Live Entertainment, AI, and content-related segments will account for approximately 70% of total operating profit. To reflect this evolving business model and commitment to shareholder value, the company is transitioning to a semiannual dividend payment structure, signaling confidence in the long-term viability of its diversified entertainment and technology portfolio.