FinancialGREE
FY2025 Third Quarter Financial Results
9 May 202578 pages~41 min full read
The company is targeting a 41% profit compound annual growth rate through fiscal year 2027 by establishing a new IP Business segment to consolidate anime, licensing, and manga operations.
See it on page 50The organization maintains a full-year operating profit target of ¥5.1 billion for FY2025 by streamlining its workforce and reducing fixed expenses.
See it on page 57The Investment Business holds a portfolio valued at ¥36.1 billion with a 17% internal rate of return, consistently outperforming market benchmarks.
See it on page 62The Metaverse Business achieved record-high quarterly results, with the VTuber segment projected to reach full-year profitability by 2027.
See it on page 41Q3 consolidated net sales reached ¥14.6 billion with an operating profit of ¥1.6 billion, despite a minor net income loss attributed to foreign exchange and impairment factors.
See it on page 6The Game Business remains the primary revenue driver, bolstered by the launch of 'Puella Magi Madoka Magica Magia Exedra' and a shift toward diversified payment methods to improve margins.
See it on page 27The DX segment is transitioning toward a recurring-earnings model by focusing on consulting and SaaS development to provide foundational stability.
See it on page 53The third quarter of fiscal year 2025 reflects a strategic pivot toward diversified growth and operational efficiency, characterized by consolidated net sales of ¥14.6 billion and an operating profit of ¥1.6 billion. While consolidated net income faced a minor loss due to foreign exchange and impairment factors, the core operating segments outperformed expectations. A central development in this period is the establishment of a dedicated IP Business segment to consolidate anime, licensing, and manga operations, signaling a shift toward a recurring growth model. This structural change aims for a 41% profit compound annual growth rate through fiscal year 2027, balancing stable core earnings with high-upside investments.
The Game Business remains the primary revenue driver despite a year-over-year decline in sales. Profitability in this segment was bolstered by the successful launch of Puella Magi Madoka Magica Magia Exedra, which is expected to contribute significantly to future earnings as profit margins improve through diversified payment methods. Simultaneously, the Metaverse Business achieved record-high quarterly results, driven by the rapid expansion of the VTuber segment and high-margin merchandising. This segment is positioned for aggressive growth, with forecasts suggesting full-year profitability for the VTuber business by 2027.
Complementing these consumer-facing segments, the DX and Investment businesses provide foundational stability. The DX segment continues its transition toward a recurring-earnings model through consulting and SaaS development, while the Investment Business maintains a robust valuation of ¥36.1 billion across Japanese and US markets. Despite quarterly volatility in fund distributions, the investment portfolio continues to outperform benchmarks with a 17% internal rate of return. Overall, the organization is streamlining its workforce and reducing fixed expenses to maintain a full-year operating profit target of ¥5.1 billion, prioritizing long-term sustainability across its five core business pillars.
