Consolidated Financial Results: Six-Month Period Ended September 30, 2025

Square Enix Holdings Co., Ltd. reported its consolidated financial results for the six-month period ending September 30, 2025, highlighting a strategic focus on enhancing competitiveness and profitability across its core business segments. Despite a 15.0% year-on-year decline in net sales to ¥133,895 million, the company achieved a 28.8% increase in operating income, which reached ¥27,278 million. Profit attributable to owners of the parent fell by 14.5% to ¥10,052 million, largely impacted by ¥9,849 million in reorganization costs recorded as an extraordinary loss.

Performance varied significantly across the company’s four primary segments. The Digital Entertainment segment, the largest contributor, saw net sales decline by 25.6% due to lower sales of new titles and the absence of major expansion launches compared to the prior year; however, operating income rose by 19.3% as a result of reduced development and advertising expenses. The Merchandising segment demonstrated strong growth, with net sales increasing by 32.3% and operating income doubling to ¥6,793 million, driven by royalty income from key intellectual properties. Conversely, the Amusement and Publication segments experienced modest declines in both sales and operating income.

The company maintains a strong financial position with an equity ratio of 81.3%. Looking ahead, management has revised its full-year consolidated forecasts for the fiscal year ending March 31, 2026, projecting net sales of ¥280,000 million and operating income of ¥41,000 million. These results reflect the company’s ongoing efforts to optimize its operational structure and manage costs effectively in a competitive global market. All financial data is presented in accordance with Japan GAAP, and the company recently executed a three-for-one stock split effective October 1, 2025.