GREE Holdings Inc (3632) Q4 2025 earnings summary

Executive summary

• FY 2025 net sales were JPY 57.1 billion, operating profit JPY 4.9 billion, with profitability improvements across all segments despite YoY declines in sales and profit in the Investment Business; EBITDA reached JPY 5.6 billion.

• Net profit attributable to owners dropped 74.2% YoY to JPY 1.19 billion, impacted by higher foreign exchange losses and weaker performance in core segments.

• Major organizational changes included merging the Commerce Business into the DX Business and establishing a new IP Business segment.

• Aggressive investment continued in the VTuber business, which is rapidly growing, and a new business segment was established in FY25 to support future growth.

• Three consecutive hit game titles in 3Q contributed to stable profits; development pipeline expanded, focusing on major IP titles.

Financial highlights

• FY 2025 consolidated net sales decreased 7% YoY to JPY 57.1 billion; operating profit fell 19% YoY to JPY 4.9 billion; net profit dropped 74% YoY to JPY 1.19 billion.

• Q4 FY 2025: Game business sales JPY 9.1 billion, operating profit JPY 1.6 billion, with an 18% operating margin.

• FY 2025 EBITDA reached JPY 5.6 billion; annual dividend set at JPY 14.5 per share, including a JPY 10 commemorative dividend.

• Cash and cash equivalents at FY25 year-end were JPY 83.9 billion, up JPY 6.6 billion YoY.

• Operating profit margin fell to 8.5% from 9.8% YoY; return on equity decreased to 1.3% from 5.0% YoY.

Outlook and guidance

• FY 2026 forecast: net sales JPY 58.1 billion (+8% YoY), operating profit JPY 3.6 billion (-31% YoY), reflecting higher costs from full-scale development of new titles.

• No consolidated earnings forecast disclosed for the next fiscal year due to rapid changes in the business environment and market-driven volatility in the Investment Business.

• Dividend policy targets a DOE of around 3% and a payout ratio of 30% or higher, with a maximum of 70%.

• VTuber business expected to achieve monthly profitability in 2H FY26; continued investment in SaaS and new businesses.

• Medium-term targets lowered for sales but raised for operating profit due to improved profitability; profit expected to bottom in FY26 and return to growth in FY27.