GREE Holdings Inc (3632) Q4 2026 earnings summary

Executive summary

• Full-year FY26 consolidated net sales were ¥51.3 billion, operating profit ¥4.0 billion, and EBITDA ¥4.4 billion, with profit exceeding expectations due to disciplined cost management and growth in non-game segments.

• Net sales declined 10.1% year-over-year to ¥51,324 million, with operating profit down 17.2% to ¥4,026 million.

• Ordinary profit rose 31.3% to ¥4,936 million, driven by significant foreign exchange gains.

• Net profit attributable to owners surged 242.3% to ¥4,088 million, reflecting improved non-operating income.

• Segment reorganization consolidated DX and Engineering into the AI Business, and divestment from the Investment Business shifted focus to high-growth entertainment and AI sectors.

Financial highlights

• Gross margin improved as cost of sales fell faster than net sales; gross profit was ¥24,443 million.

• Q4 FY26 net sales were ¥12.9 billion (down 1% QoQ), operating profit ¥1.6 billion (up 69% QoQ).

• Net profit for FY26 was ¥4.09 billion, up 242% YoY.

• Net assets increased to ¥96,804 million, with an equity ratio of 75.8%.

• Cash and cash equivalents at period end were ¥74,194 million.

Outlook and guidance

• FY27 forecast: net sales ¥51.0 billion (+5% YoY), operating profit ¥3.9 billion (-18% YoY), with growth led by Live Entertainment and AI businesses.

• FY2027 forecast: net sales of ¥51,000 million (down 0.6% YoY), operating profit of ¥3,900 million (down 3.1% YoY).

• Medium-term targets revised downward due to delayed launch of a major third-party IP game, but strong growth expected from FY28 as new titles and continuous growth businesses mature.

• Forecasts for ordinary profit and net profit are suspended due to anticipated volatility in investment valuations.

• FY27 dividend forecast maintained at ¥22 per share, with a semiannual payment structure and a DOE target of around 4%.