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

Square Enix Holdings’ financial results for the six-month period ending September 30, 2025, reveal a strategic shift toward improved profitability despite a contraction in consolidated net sales. Total net sales for the first half of the fiscal year reached 133.8 billion yen, down from 157.5 billion yen in the same period of the previous year. Conversely, operating income rose to 27.2 billion yen, up from 21.1 billion yen, reflecting a significant improvement in the operating margin from 13.4% to 20.4%. This growth in profitability was largely driven by the Digital Entertainment and Merchandising segments, which offset declines in other areas.

The Digital Entertainment segment, the company’s primary revenue driver, reported net sales of 73.0 billion yen and operating income of 20.0 billion yen. While sales in the MMO and smart device sectors declined, the HD Games division returned to profitability, generating 5.0 billion yen in operating income compared to a 1.2 billion yen loss in the prior year. This turnaround was supported by solid performance from new titles and catalog sales. Meanwhile, the Merchandising segment saw strong growth, with operating income nearly doubling to 6.7 billion yen, bolstered by increased royalty income from key intellectual properties.

Other business segments showed mixed results. The Amusement segment maintained stable operating income of 4.2 billion yen despite a slight dip in net sales, benefiting from higher same-store sales and prize item performance. The Publication segment experienced a minor decline in both sales and income, attributed to a reduction in new comic book releases. Overall, the company’s financial position remains stable, with total assets of 409.6 billion yen as of September 30, 2025, and a focus on maintaining operational efficiency across its diverse entertainment portfolio.