Financial

FY2025 Full-Year (Fourth Quarter) Financial Results

1 August 202580 pages8,876 words

Summary

GREE Group’s fiscal year 2025 financial results reveal a strategic pivot toward high-margin, continuous growth segments despite a period of consolidated contraction. The company reported net sales of ¥57.1 billion and an operating profit of ¥4.9 billion, a year-over-year decline largely attributed to valuation losses within the investment business and a 14% sales drop in the core Game segment. However, the underlying "Four Segments"—Game, Metaverse, IP, and DX—maintained stable profitability, with the Metaverse division emerging as a primary growth engine. Driven by a 181% surge in VTuber business revenue, the Metaverse segment is nearing monthly profitability and is expected to see a 177% rise in operating profit by the following year. The strategic outlook for FY2026 and beyond focuses on a "profit-first" model, with management revising medium-term targets to prioritize a 28% operating profit CAGR through FY2028. While FY2026 is projected to be a "profit bottom" with an operating income of ¥3.6 billion due to heavy investments in new major IP titles and a transition toward SaaS-based recurring revenue in the DX segment, a recovery is anticipated by FY2027. The company intends for its continuous growth businesses—Metaverse, IP, and DX—to account for over half of total sales and profit by FY2028, reducing reliance on the volatile investment and legacy gaming sectors. Financially, the group remains highly liquid with ¥83.9 billion in cash and a robust 74% equity ratio. This capital strength supports a 20th-anniversary commemorative dividend and an aggressive M&A strategy aimed at scaling merchandising and content operations. Despite short-term valuation fluctuations in its ¥50.9 billion investment portfolio, the group is positioning itself for long-term stability by diversifying payment options, expanding AI offerings, and leveraging stable fund management fees to offset market volatility.

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GREEAug 2025

FY2025 Full-Year (Fourth Quarter) Financial Results

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