Financial Results: Fiscal Year Ended December 31, 2025 (Japan)

GungHo Online Entertainment experienced a significant financial downturn in FY2025, with net sales falling 10% to ¥93,242 million, operating profit dropping 71.1% to ¥5,056 million, and attributable profit declining 87.4% to ¥1,407 million.

Profitability metrics saw a sharp contraction, as net profit per share plummeted from ¥182.67 in the previous period to ¥25.79 for FY2025.

The company is shifting to a more aggressive shareholder-return policy, targeting a 30%+ dividend payout ratio, a 4% dividend-on-equity (DOE), and a consolidated payout ratio of at least 50% starting in FY2025.

Cash balances decreased significantly to ¥31,021 million, driven by heavy investing and financing outflows, including substantial treasury-share repurchases.

To improve capital efficiency, the board approved a 2026 share repurchase program of up to ¥5 billion for 2.1 million shares and authorized the cancellation of 16 million existing treasury shares.

The company attributed its poor performance to a flat mobile-gaming market and rising development costs, while maintaining a primary revenue concentration in Japan (¥31.8 billion) and Asia.