FinancialGREE
FY2026 First Quarter Financial Results
1 Nov 202577 pages~40 min full read
FY2026 Q1 consolidated net sales reached ¥12.8 billion with an operating profit of ¥1.1 billion, representing a 63% year-over-year increase in profit despite a sequential sales decline.
See it on page 6Management revised full-year sales estimates upward to ¥56.4 billion, positioning FY2026 as a foundational investment year before projected significant growth in FY2027.
See it on page 17The Investment Business generated ¥1.4 billion in operating profit from a ¥53 billion asset pool, maintaining an unrealized portfolio value of ¥38.9 billion.
See it on page 60The Game segment remains the primary revenue driver at ¥7.5 billion, while the DX Consulting Business achieved record quarterly sales of ¥1.9 billion.
See it on page 26The VTuber Business reached a record quarterly operating profit of ¥0.4 billion, supported by consistent streaming growth and disciplined cost management.
See it on page 32Production and IP sub-segments are currently operating at a loss due to heavy investment and delayed anime revenue cycles, with a return to profitability expected in the second half of the year.
See it on page 42The group is targeting a medium-term profit CAGR of 20% to 25% through FY2028, underpinned by a strong 70% equity ratio.
See it on page 18The first quarter of FY2026 reflects a period of strategic transition and resilient profitability, with consolidated net sales reaching ¥12.8 billion and operating profit totaling ¥1.1 billion. While these figures represent a sequential decline in sales, they exceeded internal expectations and demonstrate a 63% year-over-year increase in operating profit. The current fiscal year is positioned as a foundational "bottom" year for earnings due to aggressive investments in a new console title, with a return to significant growth projected for FY2027. Management has revised full-year estimates upward to ¥56.4 billion in sales, anticipating a smaller profit decline than originally forecasted.
The Game segment remains the primary revenue driver at ¥7.5 billion, benefiting from overseas outsourced development and reduced advertising expenses following the wind-down of major promotions. Simultaneously, the newly rebranded VTuber Business achieved record quarterly operating profit of ¥0.4 billion, supported by steady live streaming growth and effective cost controls. While the Production and IP sub-segments currently face temporary losses due to heavy investment and delayed revenue cycles in anime, they are expected to reach profitability in the second half of the year. The DX Consulting Business emerged as a high-growth pillar, reaching record quarterly sales of ¥1.9 billion through large-scale digital marketing projects.
The Investment Business continues to provide significant financial upside, reporting a substantial year-over-year increase in operating profit to ¥1.4 billion driven by management fees and success fees from a ¥53 billion asset pool. Despite some valuation losses in specific funds, the segment maintains a high unrealized portfolio value of ¥38.9 billion. Across all segments, the group is targeting a medium-term profit CAGR of 20% to 25% through FY2028, supported by a strong 70% equity ratio and a diversified portfolio spanning gaming, virtual entertainment, and digital transformation services.
