GREE Holdings Inc (3632) Q1 2026 earnings summary

Executive summary

• Net sales for the quarter were ¥12.8 billion, with operating profit of ¥1.1 billion, reversing prior-year losses and surpassing profit expectations.

• Ordinary and net profit increased both quarter-over-quarter and year-over-year, aided by FX gains and investment security sales.

• All segments delivered strong performance, with VTuber and DX businesses achieving record-high quarterly operating profit.

• The Game Business saw a temporary sales slowdown but exceeded profit expectations due to overseas outsourced development projects.

• Comprehensive income improved to ¥857 million from a loss of ¥2,034 million in the prior year.

Financial highlights

• Consolidated net sales: ¥12.8 billion (QoQ -9%, YoY -1.4%).

• Operating profit: ¥1.1 billion (QoQ -7%).

• Net profit: ¥1.08 billion (YoY +266%).

• Gross profit was ¥6,306 million, with a gross margin of 49.4%.

• EBITDA: ¥1.2 billion (QoQ -9%).

Outlook and guidance

• Q2 FY2026: Sales expected to rise, profit to decline due to higher game development expenses.

• FY2026: Profit forecast to surpass initial projections despite lower game business sales; profit expected to bottom in FY26 and resume growth in FY27.

• Medium-term: Profit CAGR (FY26–28) of 42% targeted for the group.

• Disclosure of consolidated earnings forecast suspended due to rapid changes in the business environment, especially in the Investment Business.