GREE Holdings FY2026 Q2 Financial Results Briefing (Transcript)

GREE Holdings reported solid financial results for the second quarter of fiscal year 2026, characterized by improved profitability across its core business segments despite a downward revision in sales expectations. Consolidated net sales reached ¥12.7 billion with an operating profit of ¥0.4 billion. While the Game Business remains a primary revenue source, the company is increasingly reliant on its "continuous growth businesses"—VTuber, IP, and DX—to drive future earnings. Management has raised the full-year operating profit forecast from ¥3.6 billion to ¥4.4 billion, citing effective company-wide cost controls and strong performance in the VTuber sector.

The Game Business generated ¥7.1 billion in quarterly sales, with existing titles performing better than anticipated and a new console game scheduled for announcement in the third quarter. The VTuber Business achieved record-high quarterly sales, driven by a 50% quarter-on-quarter increase in the Production Business. The IP Business returned to profitability due to delayed anime distribution revenue, while the DX Business focused on transitioning toward recurring earnings and potential M&A activity. Conversely, the Investment Business recorded an operating loss due to valuation losses on investee funds, though the company maintains a high-quality portfolio with steady asset accumulation.

Geographically focused on the Japanese market with expanding overseas VTuber events, the report covers the three-month period ending in the second quarter of FY2026. The methodology involves a segment-by-segment financial analysis comparing quarterly and year-over-year performance. Leadership maintains that FY2026 represents an earnings floor, with a projected return to a growth trend in FY2027 and FY2028 as new game titles and production initiatives scale.