Square Enix Financial Results Briefing Session: Three-Month Period Ended June 30, 2025

Square Enix’s financial results for the first quarter of the fiscal year ending March 31, 2026, reflect a period of contraction across most business segments. Consolidated net sales for the three-month period ended June 30, 2025, totaled 59.2 billion yen, a decrease of 10.7 billion yen compared to the same period in the previous fiscal year. Operating income also declined to 9.0 billion yen, down from 10.8 billion yen, resulting in an operating margin of 15.2 percent.

The Digital Entertainment segment, the company’s primary revenue driver, experienced a notable downturn, with net sales falling to 32.9 billion yen. This decline was driven by lower performance in HD games, massively multiplayer online (MMO) titles, and games for smart devices and PC browsers. While HD games saw a year-over-year increase in operating profit due to reduced development cost amortization and lower advertising expenditures, MMO revenue and profits dropped significantly. Conversely, the Amusement segment served as a bright spot, reporting growth in both net sales and operating income, supported by strong same-store sales and increased demand for prize items.

Other segments faced mixed results. The Publication division maintained solid performance despite a slight year-over-year decline in revenue and profit, with digital media accounting for 45 percent of total segment sales. The Merchandising segment also saw a decrease in both sales and operating income, attributed to lower demand for new character merchandise featuring key intellectual properties. As of June 30, 2025, the company reported total assets of 402.4 billion yen, with cash and deposits totaling 231.7 billion yen. Management maintains a cautious outlook, emphasizing that future performance remains subject to market competition, currency fluctuations, and evolving consumer preferences.