GREE Holdings Inc (3632) Q1 2026 earnings summary

Executive summary

• Quarterly net sales were ¥12,765 million, down 1.4% YoY; operating profit was ¥1,068 million, reversing an operating loss of ¥133 million a year earlier.

• Ordinary profit reached ¥1,492 million and net profit attributable to owners was ¥1,078 million, reversing prior-year losses.

• Four-segment net sales were ¥12.0 billion and operating profit ¥1.1 billion; profit exceeded expectations indicated at FY2025 year-end.

Financial highlights

• Consolidated sales were down 9% QoQ and operating profit down 7%; EBITDA was ¥1.2 billion, down 9% QoQ.

• Gross profit was ¥6,306 million, with a 49.4% margin versus 48.3% a year earlier; SG&A declined to ¥5,238 million from ¥6,385 million.

• Ordinary and net profit increased QoQ and YoY, aided by FX gains from yen depreciation and gains on investment-security sales.

Outlook and guidance

• Q2 FY2026 four-segment sales are expected to rise, while profit is forecast to decline on higher console-game development expenses.

• FY2026 four-segment profit is expected to exceed initial projections, while game sales are forecast below plan; Game expects to meet its initial profit forecast through profitability controls.

• Consolidated FY2026 earnings guidance was suspended amid rapid business-environment changes, particularly in Investment.

• Medium-term outlook has profit bottoming in FY2026 before growth resumes in FY2027; the group profit CAGR target for FY2026–28 is 42%.