FY2026 Second Quarter Financial Results Briefing

The briefing presents FY2026 second‑quarter results for GREE Holdings, emphasizing four core segments—Game, VTuber, IP, and DX—and the Investment Business. Consolidated net sales reached ¥12.7 billion, operating profit stood at ¥0.4 billion, and ordinary profit rose to ¥0.58 billion, the latter boosted by foreign‑exchange gains from yen depreciation. Segment analysis shows net sales of ¥12.1 billion and operating profit of roughly ¥0.6 billion, with variable costs flat at ¥4.0 billion but fixed costs climbing by ¥0.63 billion due to labor, rental, and outsourcing expenses linked to console game development and VTuber production.

Operating profit fell from ¥1.11 billion in Q1 to ¥0.59 billion, reflecting higher fixed costs despite a modest sales increase of ¥0.15 billion. The Game Business delivered ¥7.1 billion in sales and ¥0.5 billion in operating profit, turning profitable after a prior negative forecast; live‑service titles and upcoming console releases are highlighted. VTuber sales hit a record high, with operating profit at ¥0.2 billion; the Production Business grew 50% QoQ, driven by events and commerce. IP sales rose 41% QoQ to ¥0.5 billion, with anime distribution and new smartphone game launches cited as key drivers. DX sales were ¥1.84 billion with operating profit of ¥0.18 billion, noting a shift toward recurring‑earnings models and planned roll‑up M&A.

Full‑year forecasts adjust sales downward due to Game Business trends but lift operating profit expectations to ¥4.4 billion, surpassing the initial ¥3.6 billion forecast through cost control. Medium‑term targets remain unchanged, aiming for a profit bottom in FY2026 followed by growth from FY2027 onward. The Investment Business recorded moderate distributions but incurred valuation losses, with a long‑term positive cumulative profit outlook and IRR above benchmarks.