GREE Holdings FY2026 Q1 Financial Results Briefing (Transcript)

GREE Holdings reported its financial results for the first quarter of fiscal year 2026, highlighting a period of strategic reorganization and disciplined profit management. The company achieved consolidated net sales of ¥12.8 billion and an operating profit of ¥1.1 billion. A significant structural update involved renaming the Metaverse segment to the VTuber Business, now divided into Platform and Production sub-segments to better reflect current activities. While overall sales saw a slight decline due to a slowdown in the Game Business, profits exceeded initial projections across all four core segments due to effective cost controls and reduced variable expenses.

The Game Business remains the largest revenue contributor at ¥7.5 billion, though it experienced a decline in momentum from existing titles. To offset this, the company is pivoting toward console development, with one proprietary IP title scheduled for release in FY2026. Conversely, the VTuber Business reached a historical high in operating profit, driven by a 142% year-over-year increase. This growth was attributed to reduced payment processing fees and the narrowing of losses in the Production Business, which is expected to reach monthly profitability within the current fiscal year.

The IP and DX Businesses showed mixed results; the IP segment was impacted by delayed revenue recognition in its anime division, while the DX segment benefited from large consulting orders. The Investment Business remained stable, contributing to net profit through foreign exchange gains and securities sales. Geographically focused on the Japanese market with expanding global IP interests, GREE maintains its medium-term target of reaching a profit floor in FY2026 before returning to a growth trajectory in FY2027 and FY2028. Management emphasized a shift toward recurring earnings and high-quality internal IP to drive long-term value.