GREE Holdings Annual Securities Report: 22nd Fiscal Term

Key insights

7 takeaways

01
GREE Holdings reported a 10.1% decline in consolidated net sales to ¥51,324 million for the fiscal year ending June 30, 2026, driven largely by a 20.3% revenue drop in the core Game Business.See it on page 9
02
Despite lower top-line revenue, consolidated profit attributable to shareholders increased to ¥4,088 million, supported by internal restructuring and strategic asset management.See it on page 5
03
The company maintains a strong financial position with ¥74,194 million in cash and equivalents and an equity ratio of 75.8%.See it on page 4
04
Growth in the VTuber and Engineering segments partially offset the decline in gaming revenue as the company continues to diversify its portfolio.See it on page 18
05
Shareholder returns include an ordinary dividend of ¥22 per share, with a policy targeting a 4% dividend on equity ratio and a minimum 30% payout ratio.See it on page 40
06
Sequoia, Inc. remains the majority shareholder with a 61.80% stake as of June 2026.See it on page 36
07
The company has implemented a performance-linked executive remuneration structure and established an Audit & Supervisory Committee to manage risks associated with smartphone gaming and investment volatility.See it on page 66

Summary

The GREE Holdings Annual Securities Report for the 22nd fiscal term, ending June 30, 2026, details the company’s strategic transition into a holding company structure and its ongoing efforts to diversify revenue streams. While the organization maintains a stable financial foundation with ¥74,194 million in cash and equivalents and an equity ratio of 75.8%, it faced a 10.1% decline in consolidated net sales to ¥51,324 million. This contraction was primarily driven by a 20.3% revenue drop in the core Game Business, though this was partially offset by growth in the VTuber and Engineering segments. Despite the decline in top-line revenue, consolidated profit attributable to shareholders rose to ¥4,088 million, reflecting the impact of internal restructuring and strategic asset management.

The company operates a multifaceted portfolio spanning gaming, VTuber live-streaming, intellectual property, digital transformation, and engineering. To mitigate risks associated with the volatility of the smartphone gaming and investment sectors, GREE Holdings has implemented a robust governance framework, including an Audit & Supervisory Committee and independent Nomination and Remuneration Committees. Management is prioritizing the development of new hit titles and the expansion of its non-gaming segments to ensure long-term growth. Furthermore, the company maintains a shareholder return policy targeting a dividend on equity ratio of approximately 4% and a payout ratio of at least 30%, with an ordinary dividend of ¥22 per share declared for the period.

Governance and human capital remain central to the company’s operational strategy. GREE Holdings utilizes a performance-linked executive remuneration structure that aligns management interests with shareholder value through a balance of base salary, annual bonuses, and stock compensation. The company also emphasizes inclusivity, with a specific target for female management representation, and employs rigorous internal controls to ensure regulatory compliance. Ernst & Young ShinNihon LLC provided an unqualified opinion on the financial statements, noting that the valuation of unlisted stocks remains a key audit focus. As of June 2026, Sequoia, Inc. continues to serve as the majority shareholder, holding a 61.80% stake in the organization.