GREE Holdings Inc (3632) Q3 2025 earnings summary

Executive summary

• Net sales for 3Q FY25 were ¥14.6 billion, with operating profit at ¥1.6 billion, both declining quarter-over-quarter due to foreign exchange and impairment losses, while nine-month net sales reached ¥43,136 million, down 8.6% year-over-year, and operating profit was ¥3,707 million, down 18.6%.

• New titles in the Game segment performed well, and the Metaverse segment achieved record-high sales and profit, driven by VTuber business growth.

• The IP Business segment was newly established, consolidating anime, manga, and licensing operations to target sustainable growth in global content markets, effective April 1, 2025.

• Segment reorganization merged the Commerce Business into the DX Business from July 1, 2024.

Financial highlights

• Consolidated 3Q FY25: Net sales ¥14.6bn (QoQ -6%), operating profit ¥1.6bn (QoQ -29%), EBITDA ¥1.7bn (QoQ -29%), net income -¥0.05bn (QoQ -102%).

• Excluding Investment Business: Net sales ¥14.1bn (QoQ +2%), operating profit ¥1.7bn (QoQ +40%), EBITDA ¥1.8bn (QoQ +38%).

• Gross profit for the nine months was ¥22,522 million, down from ¥26,629 million year-over-year.

• Comprehensive income dropped to ¥63 million from ¥3,094 million year-over-year.

• Basic earnings per share fell to ¥5.20 from ¥18.53 year-over-year.

Outlook and guidance

• 4Q FY25 sales expected to rise QoQ (+4%) with new game title contributions, but operating profit to decline (-8%) due to increased VTuber investments.

• Full-year FY25 estimates: Sales ¥58.7bn (YoY -6%), operating profit ¥3.1bn (YoY -15%).

• Disclosure of consolidated earnings forecast has been suspended due to rapid changes in the business environment, particularly impacting the Investment Business.

• Medium-term targets project profit CAGR of 41% (FY25–27), with growth in continuous businesses and a rebound in Game segment from FY27.